It is no small secret that in the wake of the economic downturn, many American states have turned to gambling as a way to generate extra tax revenue in a time when other streams are drying up. Many states, even those not badly affected by the recent recession, are also looking at gambling as a way to help cut the growing budget deficits.
According to Clyde Barrow, a gambling expert from the University of Massachusetts-Dartmouth, the reason that gambling is often being turned to is it is perceived "as a voluntary tax because nobody has to gamble." Increasing gambling therefore is a good way to generate extra revenue without openly raising every day taxes, a move which is often akin to political suicide.
He also said that although building more casinos would mean that each individual business may feel a slight drop in business, the market as a whole will grow.
"We do know the closer you put casinos to people the greater propensity to gamble," said Barrow.
Along with more land based casinos being built, online gambling is expected to make a comeback. States such as California and Florida are considering legislation that would see intrastate online poker networks set up, despite the incoming UIGEA laws.
“Absolutely, we're addicted to gambling dollars," added Iowa state Rep. Kraig Paulsen, the House Republican leader. "The current budget couldn't be close to being balanced without that money."
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