National Gambling Revenue a bit off in 09
Gambling is a major source of revenue but, like everything else, when the economy gets rough it is one of the first things to go. This is because people gamble with extra income and when that income is no longer there the gambling industry stands to take a big hit on their profits and amount of money that people are willing to risk as well.
Many people found themselves in similar situations which is why the annual revenue from gambling, which was 30.7 billion saw a hit of 5.5% from the numbers in 2008. People were just finding themselves in situations where they could not afford to gamble as much. Instead, people bet smaller amounts or went to the casino less often in order to stretch their funds out even further. A lot of people stick with penny machines instead of the higher cost ones. Some people also focus on playing with coupons so that they can play as often as they want without needing to empty their wallets.
This was not the first year that the gambling revenue took a hit. It was the second straight year in a row where people had cut down on spending their income on gambling because of the hard hit economic times which caused the recession to happen. All forms of discretionary spending have been modified by people and their income has been allocated to more important things such as food, housing, and other bills that are important for surviving.
State results are individually down as well. The largest state for gambling is Nevada which had over a 10% decrease in the gambling and tax revenue as well. This is a huge hit while Mississippi saw similar numbers with a hit of 9.4% in both the tax revenue and casino revenue as well. New Jersey has seen the largest hit with having Atlantic City in its boundaries. The tax revenue has seen its largest hit here with being close to 20% at 18.6% and the gambling revenue itself being reduced by 13.3%. Pennsylvania has caused New Jersey to have a lot of competition for gambling and has actually seen an increase in their revenue for one of the states that has commercial gambling not run by Indians.
Casinos have been used to try to close budget gaps in a few different states by taxing the winnings at high rates. They also bring jobs to the area but many experts feel that the solution is a temporary problem and will not truly resolve any budget problems a state is facing. Pennsylvania taxes their table games at 16% and gained an employment increase of 55.5% from the previous year. Anticipations for the revenue ended up being set at $250 million.
The fact that there are 13 commercial casino states means that there is a revenue of $5.6 billion among them through the gaming taxes. Maryland and Ohio are both expected to join the ranks of these other states to try to get a profitable tax basis.
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