Web Search powered by YAHOO! SEARCH
share
email
font size
options
 
Monday, June 29, 2009

Link: Playing budget games with gambling [Daily News]

POKER, BLACKJACK, craps, roulette and baccarat are among the table games included in a new bill that the Pennsylvania Legislature may consider soon to expand gambling across the state.

The list of games doesn't include the kind of three-card monte that lawmakers are now playing as they talk about table games as a viable solution to the $3 billion state budget crisis.

Rep. Bill DeWeese has been pushing for expanding the original legislation legalizing slots parlors to include table games almost since the original Act 71. Last week, the House Gaming Oversight Committee held an informational hearing on his House Bill 21. There may actually be some rational arguments for including such games; for one thing, the audience for such games tend to be more diverse than those for the lower-stakes slots. But the way legislators are now talking about them - including the governor, who has so far been adamant about opposing expansion until all slots parlors in the state are open - it's clear that they see this as an easy, even inevitable, solution to the budget crisis.

But it isn't, really. For one thing, the amount of immediate money generated from table games would be limited to the license fees; even though they may be $10 million per license, that is still a small percentage of the budget hole. The actual river of money flowing to the state from the games themselves would be at least a year away. And that river will be smaller than the streams from slots; table games require actual workers, so the tax on revenues would be only 18 percent.

More critically, the gaming revenues under current law don't go to the general fund; they are limited to property-tax relief, host cities' fees, tourism and race-horse breeders. Though the current table-games bill alters the distribution of revenues so that it would go primarily for property-tax relief, DeWeese says that he would be amendable to altering the bill to include a provision for the temporary flow of money to the general fund.

This should be temporary. Though we argued recently to reapportion some slots revenues to the general fund, this requires careful deliberation. Gambling is a heavily controlled industry for a reason; it can, and does, ruin lives. If we have to accept this - and thanks to Act 71, we do - taxpayers should ultimately be the direct recipients.

We should also point out that taxpayers should have more say in this proposition; they had virtually none in the passage of Act 71.

Money talks, especially in lawmaking bodies, including ours. Gambling revenue is not money that should be allowed to talk directly to government. As gaming revenues take up a larger and larger percentage of the state's revenues, they will also wield larger and larger influence. And as we saw last week with a Common Cause report that detailed the big campaign contributions from the gaming industry that have gone to Pennsylvania lawmakers, that influence is already considerable.

In fact, the original gaming act is being reviewed for reform. Last week, a gaming reform bill authored by Sen. Jane Earll, R-Erie, was voted out of committee. Among other things, the bill would re-establish the prohibition on political campaign contributions from people and firms subject to the gaming act. But since this has already been struck down by the state Supreme Court, here's a better solution: The reform bill should require immediate reporting of gaming contributions to the department of State.

In fact, we'd recommend that gambling be included in a Social Impact category of laws that would require immediate reporting; that category can also include guns, tobacco and alcohol. If lawmakers insist on encouraging more of these problematic items in our lives, let us keep better track of who's paying them to do it.

Posted by Ben Waxman @ 10:04 AM  Permalink | Post a comment
Comments   
0 comments
About It's Our Money
Every year, city government spends slightly more than $4 billion. Where does all that money come from? More importantly, where does it go? Are we getting the most bang for our tax buck? “It's Our Money” is a joint project between Philadelphia Daily News and WHYY, funded by the William Penn Foundation, designed to answer these questions.




EXCLUSIVE: UNION PRESIDENT SPEAKS OUT

STRIKE

It's Our Money's Ben Waxman interviews TWU Local 234 president Willie Brown on why he called the strike when he did, what it's like to be more hated than A-Rod, and what it will take the union to go back on the job. Click here to see the exclusive interview.




FOLLOW THE (LACK OF) MONEY

Our experts

Philadelphia’s five-year plan includes $300 million in service cuts. Which departments are seeing their budgets slashed, and what are the consequences? Our Follow the (lack of) Money series takes stock of the effects of the budget crisis. This week: Housing Trust Fund.



State and local budget news:


National budget news:



Ben Waxman reports and blogs for “It's Our Money.” Before joining “It's Our Money,” he was a regular contributor to the Philadelphia Daily News op-ed page and former contributor to the blog Young Philly Politics. He studied political science at Juniata College in Huntingdon, PA.




Doron Taussig is the Project Manager for “It's Our Money.” He is also a graduate student in communications at Temple University. Previously he worked as a Staff Writer and News Editor for the Philadelphia City Paper.





Dave Merrell is the Web Editor for "It's Our Money." He comes to the project from Philly.com, where he is a web producer. Originally from upstate New York, he moved to Philadelphia after graduating from Haverford College with a degree in math and economics.




Anthony Campisi reports and blogs for "It's Our Money." Originally hailing from Central Jersey, he came to Philadelphia while a student at the University of Pennsylvania, where he studied intellectual history. He also writes about transportation for PlanPhilly, an innovative urban planning website started by PennPraxis, the consulting arm of the Penn School of Design.



Follow us on Twitter.

Tips? Comments? Questions?
Contact: waxmanb@phillynews.com
or 215-854-5307.


Op-eds

  • THE 411 ON THE BPT: HOW BUSINESSES GET TAXED
  • CITY HEALTH CLINICS NEED A BOOSTER SHOT
  • Focus: Contracts for non-uniformed employees
  • Will the force be with us?
  • It's June 19. Do you know where you state budget is?
  • Contracts: It's All Up To The Man Behind The Curtain
  • Recycling is pure gold
  • The child welfare machine