Policy Brief Vol. 6, No. 8:
February 27, 2003
Casino Gambling Debate Begins
Debate is one of the cornerstones of democracy. It occurs at all levels of government, from the village board to the U.S. Congress.
At its core, debate is intended to help resolve issues. Yet I sometimes find myself wondering how often debate changes votes. For widely-publicized emotional issues, in particular, positions often seem to be locked in before debate begins. The counterpoint, of course, is that only one or two undecided votes can decide an issue.
The Nebraska Legislature is considering two proposed constitutional amendments that would authorize casino gambling in the state. No more than one ultimately will go before the voters. I expect that a good part of the legislative debate will center not so much on the differences in LR 11CA and LR 14CA but whether casino gambling should be allowed at all.
It takes 30 votes in the Legislature to put a proposed constitutional amendment on the ballot. Expect tough debate on both sides. When the dust settles, the winning side is unlikely to have many votes to spare. The scramble for undecided votes could be fierce.
Notwithstanding the emotion surrounding this issue, Nebraskans may be interested in a few facts regarding gambling – especially casino gambling – nationwide.
In 2001, the latest year for which complete data are available, gross gambling revenue (GGR) totaled $63.3 billion or about $230 dollars for every man, woman and child in the United States. GGR is the amount wagered minus players' winnings. Ten years earlier, in 1991, GGR was $27.1 billion.
Gambling – or gaming, as it's sometimes called – is offered by private companies, state governments, American Indian reservations and non-profit charity groups. Depending to some extent on the sponsoring group, gambling includes casino games, lotteries, pari-mutuel betting, charitable games, card rooms and legal bookmaking. The largest revenue generators are commercial casinos, lotteries and reservation casinos. In 2001, their GGRs were $27.2 billion, $17.6 billion and $12.2 billion, respectively.
The 11 states with commercial casinos generated state and local tax revenues totaling $3.6 billion in 2001. Tax rates ranged from a low of 6.25 percent in Nevada to 35 percent in Illinois. Among adjacent states, casino taxes amounted to $323 million in Missouri, $217 million in Iowa, $92 million in Colorado and $4.5 million in South Dakota. Of particular interest to Nebraskans, just under half of Iowa's tax revenue came from casinos near the Iowa-Nebraska state line.
If the Legislature approves a casino measure for the voters, debate will quickly shift from the state Capitol to public forums across the state. At the very least, it will assure high voter turnout in November 2004.
2/27/03-RF/VM
Roy Frederick - Ph.D.
Agricultural Economics
Professor
(402) 472-6225
Vicki Miller Research Communications Coordinator (402) 472-3813
Department: Agricultural Economics
|
