The Lottery–An Unreliable Source Of State Revenue

Not not not this is family policy will see family Pres. John Preston thank you for joining us for family policy matters are just today is Lucy daughter him policy analyst at the Rockefeller Institute for government in New York State. Lucy is the principal author of a new report from the Rockefeller Institute entitled state revenues from gambling short-term relief long-term disappointment. She's with us today to talk about the findings from that report and why gambling is not a reliable and sustainable source of revenue for states Lucy.

Welcome to family policy matters. It's great to have you with well it's a pleasure to have you won't know Lucy tell us briefly about this report by the Rockefeller Institute and its purpose.

What aspects of state gambling did you examine and what states did you study in the report that is the false report examining the first portrait we conducted was I don't need to file for doing a great fish for fish and then a number of states then looking at extensional credits gambling activities so we did to five sleep automatically extending the time think gambling is having an impact that a session on the gambling: studies clearly show that gambling calving is that not efficient prove for the study between Elise month we must make them think gambling cabinets. All major types of gambling activities, such as blood. Today's commercial casinos blessing us and pagan rituals of the fidgeting.

We did so for all dates that have that life event have gambling activities.

The only two states that do not gambling on how my ending Alaska can think of to make it an Indian casino Sunday, so they still only speculate, battles at present Plunkett to donate For nearly all types of gambling activities across all states. Very interesting to know the one question that you examined in the report is one state to engage in gambling talk about the lottery in particular for a few minutes and I know that North Carolina was one of the most recent states to enact a lottery in the mid-2000. Why do so many states often turn to the lottery in the hopes of generating revenue more additional types of gambling that particularly popular in the 70s and 80s and car lot sale patients articling 44 states, New Hampshire. I was the first state to leak less about Biloxi in 1964 North Carolina. I think it one of the lake states and capital to plug in the hopes of facing more revenue for the so-called} prefix article 20 are marked by local states normally put the revenues generated from to look again the Gentile font on in a dedicated font targeted toward particular program. A gap usually sets educational fitness programs, environmental protection and natural resources, and despite the popularity of Biloxi that I've noticed and I did not a significant contributor to the budgets most gleefully look at the inflation-adjusted sequence for the nation as a whole. We haven't too much coffee and saving us some La Quinta descent yet will I know that your report looks at the percentage of revenues generated by the states and the percentage of that comes from gambling activities and on average. If I understand correctly typically states that have gambling activities, lotteries, etc. may generate about 2% to 2 1/2% of their overall revenues from those gambling operation so it does make up a relatively very small percentage of their overall budget during the so-called great recession in the late 2000.

Many states chose not to raise taxes, but instead expand various forms of state-sponsored gambling whether they have those forms of gambling already and salt to just increase the existence of them, or to institute additional forms of gambling are in an attempt to generate more revenue for the state is something that worked according to your research work, although states experiencing different types of results as a response about gambling more about some gambling session indicates that despite the fact that many Tongue to gambling costs fiscal over the past eight we see that the closing tax and she is having calving from major types of government Not kept pace with the growth and local government tax collection thought overall economy salt tool.

Your question no not flock at the average annual growth rate for about 0.3% between 2008 and 2015 you are listening to policy matters resource to listen to our radio show online enter more resources that will be a voice of persuasion in your community to our website and see family.org you showing the reported gambling revenue including lottery revenue also did not do well in 2015, especially compared to 2014 how many states all declines in gambling revenues last year and what about North Carolina. How did the lottery perform in North Carolina during the last year. Collections declined by all telephone .7% from fiscal year 2014 to 2015 looking at all states about 27 states. The decline in W think 2015 and 16 say state so close North Carolina actually deported golf at 3.3% in jail times to let having us from luckily North Carolina has been increasing get off TX level or what it having a thing North Carolina did not really supplement education spending fits with the promise that the lawmakers making 2005 while debating the bill legalization of loyalty actually that have been from studies conducted indicating that North Carolina is spending less per student on public education vents before the low tables 1st cost is a major issue that was discussed in 2005 years prior to that is a lot of was debated is that those revenues would be used to supplement as opposed to supplant existing education dollars and according to what you said, it looks like the lottery is not living through on that promise will loosely based on your analysis.

What is causing the decline in gambling and lottery revenues in states where we've seen those declines and cannibalization. The main type of declines in gambling, calving affect SSL for example recession hit a significant impact on America's discretionary spending behavior over the boat today on Microsoft saving more and spending less on discretionary items and conceptually spending on gambling gets a discretionary spending Ticketing that is the changing demographic data gambling.

In general, attacks elderly population and gaming indices trying to delay caught between gets the millennial use the term cannibalization. Can you explain a little bit for listeners. Short so debilitation, all except for kitchen layout more for senior numbers and failure to put the shift of spending combined type of activity tour. Not that type of cannibalization first with them. The substitution of spending on the same gambling activity reading different jokes traffic location. For example, if we because of the expansion of the nonsense of peanuts. We have seen a lot of victims flood cannibalization then concealments how can bluffs no longer develop tool may putting states tool of spent time and money on cleanup and faith taking that home states. That was the case between your church see and consider buying up a van not Pennsylvania legalize casino operations. Lawmakers affect officials in your Jesse blame Devon Pennsylvania for seeing the client think phenol saving in battle on state purpose was not to examine the social cost of gambling, but you did look at the impact of certain social cost which is, as you point out in the report.

Gambling creates costs that are paid by all taxpayers not just gamblers tell us little bit about what you found regarding the cost of gambling to society and how that impacts state revenues in general would look at the chart and social expansion of any kind of gambling clips to potential social cost, which in turn instill economic close. So there are lots of studies that have looked at the socialite economics outputs of gambling and the most significant qualified elected tool so-called problem or pathological gambling at the last tool will increase bankruptcy rates all increased crime rates on some estimates that around 3% of Americans or something found probable pathological gambling and yet states are spending millions of dollars on taking the pathological laptop in gambling. The studies also have examined the possible impact of gambling, bankruptcy, or crime rates. It is very mixed and it's really hard to measure the social and economic close sophisticated commit gambling. Nevertheless, the benefits of gambling should always be peeled along for the costs and make those neglecting special because it's simply not an option think that's very important for the public and understand that all the beer led to believe that the institution of gambling or the expansion of gambling will be a an economic boon for the state, but in fact there are significant cost in lots of different areas that will result from we did hear that this the same kinds of arguments about the lottery in North Carolina that it would be the economic boon for the state but based on your findings.

What advice do you have for state legislators who are considering expanding various forms of gambling including lotteries I know here in North Carolina that there is a proposal before our state legislature right now that would allow the state lottery to double its advertising budget and essentially saturate the airwaves television and radio with more more ads promoting the lottery. What would you say to state legislators who are considering proposals like that or enacting domes of gambling that currently are not in place in most states and speak specifically if you would about your faults regarding whether gambling is a reliable form of revenue for states are not that life is that I won't get any look at the picnic tent before John thinking nation of any kind of gambling activity that he is to show that overall gambling calving is not sustainable source of having your own for short expression of any kind of gambling being seen as short-term project believes it generates more calving yields. However, it has been about any specific type of gambling activity vessels and as the competition becomes much prefer living in some gambling, ultimately decline underneath the state budget hole to feel we have seen it in indicates of casino looked into states that kept at the Pixie nonstop default that follows in six and after the 2006, and history clearly shows that the fabulous of funds.

Phenol patients have been declining into states that all that he is in all patients so a look at the big picture and look at that, he steady beat device will I think that's great advice. Before we conclude our discussion today I want to give you an opportunity later listeners know where they can go to learn more about the Rockefeller Institute in your new report on state revenues from gambling. Then you depart. That's not let the previous reports are all on SITES at the W.tokens.audit team great website at www.rocmst.org again or ACK and ST.org for the Rockefeller Institute and without losing to Diane I want to thank you so much for being with us today and for sharing your important findings regarding state-sponsored gambling on family policy matters. Like so much thinking I might fully close. I want to invite you to follow the North Carolina family policy Council on Facebook. Just login and find us@ncfamily.org again@ncfamily.org.

Be sure to like us when you visit. In addition, for instant updates on profamily news of interest. Follow us on Twitter at MC family oh orgy again that at MC family oh orgy family policy matters. The production of NZ family to listen to our radio show online, and for more valuable resources and information about issues important to families in North Carolina my website and see family.org follow us on Twitter and Facebook