|
Gambling gains luster in the face of deficit
Expanding the lottery. Adding sports betting. Offering video lottery at racetracks. Opening new off-track wagering parlors. Building a new casino at the Meadowlands.
It seems that every year, there's a new push to expand legalized gambling in New Jersey.
Now as state officials scramble to avert controversial cuts without raising taxes, several leading lawmakers say giving residents more ways to gamble may be New Jersey's best bet to raise extra cash for the ailing state budget.
"We have to be aggressive about finding new revenues that are falling through the cracks," said Sen. Raymond Lesniak (D-Union), who would like to bring sports betting to New Jersey. "These are activities that people enjoy."
Critics of gambling warn that expanding it has social consequences and would not be a money-making panacea. Gaming supporters say New Jersey is far from tapping out its potential.
While casinos and the lottery steadily produce more dollars, gambling represents a much smaller percentage of state budget revenues than it did two decades ago, according to a Star-Ledger analysis. In 1989, gambling dollars made up 7.5 percent of the budget. It's now 4.2 percent -- not much higher than in 1980, when only a few casinos were open in Atlantic City.
Boston College professor Richard McGowan, who has written books on gambling, said at least 16 states receive at least 5 percent of their revenue from gaming.
In a report to be released next month, the American Gaming Association says state and local governments received $5.87 billion from casinos last year -- a 135 percent increase from a decade ago.
"The market will determine when a saturation point has been reached," said group spokeswoman Holly Thomsen. "I don't think there's any evidence that we've reached that point yet."
California recently negotiated a major increase in fees from tribal casinos. Kansas is developing the nation's first state-owned, privately operated casinos. Maryland residents will vote on up to 15,000 slot machines at five locations. Pennsylvania will use its new casino wealth to give residents a property tax break averaging $169 this year.
"Tapping into gaming revenues has proven to be an effective way to raise cash for basic operations," said Sujit Canarenta, a budget analyst with the Council of State Governments.
With New Jersey facing a major budget shortfall for the ninth straight year, proposals to squeeze more from gaming are piling up.
Senate President Richard Codey (D-Essex) earlier this month suggested an expansion of the New Jersey Lottery that would encourage "big box" stores like Home Depot and Target to sell tickets and let people play on the internet.
Lesniak said he may file a lawsuit to challenge a 1992 federal moratorium that prevents New Jersey and virtually every other state from having sports betting. The Assembly earlier this year approved a measure seeking a voter referendum on the issue.
Before leaving office in January, former Assemblyman Louis Manzo (D-Hudson) introduced a resolution asking voters to approve a casino at the Meadowlands, something he says could tap the New York market before the city considers its own gaming halls.
And the New Jersey Sports and Exposition Authority is seeking to add more Off-Track Wagering parlors that take in racing bets.
State Treasurer David Rousseau last week told the Senate Budget and Appropriations Committee that the administration also is weighing its lottery options.
Rutgers University economist Joseph Seneca opposes giving people more outlets to play the lottery, saying it is more harmful to the poor than the gasoline tax.
"There is probably no more regressive way to raise state revenues than the lottery," he said. "It is a tax on the poor."
Former Gov. Brendan Byrne, who three decades ago pushed for casinos because "I wanted to get the gambling money from people who were giving it to organized crime," also has reservations about expanding gambling.
"There's a certain aspect of irresponsibility in depending on gambling money," Byrne said. "You are depending on people's weakness." However, Byrne thinks there will be sports betting, and a casino at the Meadowlands, someday.
Some say the state doesn't need more gambling to get more cash; it can simply raise its casino tax, one of the nation's lowest.
While only Nevada casinos generate more revenue, New Jersey takes in fewer tax dollars from gaming halls than five states -- including Pennsylvania. New Jersey was the only state last year with a net loss in casino tax revenues.
Gov. Jon Corzine, however, is against any casino tax increase, believing the lower tax will spur more development in Atlantic City and more revenue to the state.
Last week, the governor said he is "very optimistic" about a "gaming expansion" that could bring as many as 30,000 jobs to Atlantic City in the next decade.
"We're very excited about the future of Atlantic City and so are a lot of investors," he said.
This article is a reprint from The Star-Ledger. To see the original article Click Here
Copyright 2007 OSGA, LLC
Top of Page
Support your right to gamble and protect your online gaming experience with a membership to OSGA.
Sign up today at OSGA.com.
|
