States Increase Gaming Options to Fill Budget Holes

At least 18 states are considering expanding chance games to recover lower revenue collections from casinos, horse racing and lotteries.

March 18, 2010

DES MOINES, Iowa - With reduced gambling revenue, many states are increasing gaming options to shore up their budgets, the Lottery Post reports. At least 18 states are looking into expanding chance games because of a decrease of 5 percent to 14 percent in funds collected from lotteries, horse racing and casinos.

"Absolutely, we??re addicted to gambling dollars," said Iowa state Rep. Kraig Paulsen, who opposes gambling expansion in Iowa. The state gets around $300 million from the gambling industry each year. "The current budget couldn??t be close to being balanced without that money."

Pennsylvania recently legalized casinos, which installed 25,000 slot machines over the last few years. The state also now allows table games, including blackjack, craps, poker and roulette.

New York is adding 4,500 video lottery terminals to the Aqueduct Racetrack, while Connecticut Gov. M. Jodi Rell has asked to put keno in restaurants.

Florida, which joined Powerball last year, may add another multi-state game, and has placed lottery ticket terminals in grocery stores. Kansas promotes Dodge City and its 600 slot machines and gaming tables, while Missouri casinos have updated slots with 3-D graphics.

Maryland is installing 10,000 slot machines in five locations. "As the recession became deeper, that expected revenue became more important,: said Shaun Adamec, a spokesman for Maryland Gov. Martin O??Malley of Maryland.

With many states leery of raising taxes, adding more gambling options seems to be an easy way to fill state coffers. States usually receive a percentage of the gambling revenue.

"There??s no appetite in the Legislature for an even modest tax increase," said Gary Tuma, a spokesman for Pennsylvania Gov. Ed Rendell. The state is hoping to raise $140 million in fiscal 2010-11 from the additional gaming options.

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