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The lure of gambling

Posted Monday, August 16, 2004 - 7:25 pm





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States rely too much on gambling to fill

coffers, an unwise practice that

preys on those of limited means.

Government-sponsored gaming is an increasingly easy option for the nation's state politicians trying to avoid the tough choices of either raising taxes or cutting vital services. But resorting to state-sponsored gambling is a poor substitute for governing responsibly.

Granted, gambling often provides a superficially golden glow to a state's revenues. Only a few days ago, South Carolina announced that large Powerball jackpots had helped boost lottery ticket sales to $950 million for the fiscal year that ended June 30. That's a remarkable increase of more than $200 million in just a year. After payouts of $552 million in prizes, the state was left with about $270 million — a handy $17 million more than expected — to help pay for college scholarships.

Is it any wonder, then, that a total of 40 states and the District of Columbia have joined the lottery bandwagon? Perhaps the only surprise is that all 50 states haven't adopted a lottery — but that eventually may happen. A few years ago, one of the more persuasive arguments by lottery supporters in this state was that South Carolinians were spending millions on the Georgia lottery, helping to put Georgia's young people through college — rather than greasing the road to higher education for South Carolina's young people.

The result: South Carolina adopted a lottery. Pressure from 40 states may likewise convince the rest of the states to follow suit.

Meanwhile, 11 states operate commercial casinos, compared to just two in 1989. Riverboat and tribal casinos are expanding.

Both Democrats and Republicans alike are embracing gambling. Pennsylvania's Democratic Gov. Ed Rendell pushed for 61,000 new slot machines in his state, and won approval from his Republican-controlled legislature. Maryland's GOP Gov. Robert Ehrlich, meanwhile, wants to expand slot gaming to finance education. Ohio and Delaware are expanding gaming. Gov. Arnold Schwarzenegger of California is trying to dig that state out of a grueling budget crisis, in part, by allowing an unlimited number of slot machines in Indian tribal casinos.

But the old concerns about state-sponsored gambling remain: Revenues from gambling, notoriously unpredictable, are hardly a stable source of revenue. Over-reliance on gaming revenues can create turmoil for a state budget and vital government services such as education.

Gaming also encourages addiction: Problem gamblers cost the U.S. economy an estimated $80 billion a year. Worse, gambling preys on those least able to afford the habit and promotes the wrong-headed notion that wealth is accidental rather than the product of hard work, thrift and wise investment. Gambling remains an awful way for a state to earn a dollar.

Tuesday, August 17  
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