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Posted November 5, 2004

 

Gambling Developments in the States - 2004

 

Reacting to significant budget restrictions and general economic difficulties in the last few years, many states have looked to expanding gambling as a way to increase state revenue and stimulate economic development. Responses to the trend of gambling expansion from lawmakers and citizens vary widely. Some studies seem to indicate an increasing tolerance of gaming as an acceptable form of entertainment among U.S. citizens. This is especially true when the question is presented as a choice between gambling expansion and tax increases. At the same time, studies on the effects of gambling on communities and individuals continue to encourage those who oppose gambling expansion including lawmakers, private organizations and individual citizens.

The following chart contains information on state gambling developments that have occurred during 2004. Both proposals for change to state gambling laws and actual changes are included. Like all legislative proposals, the eventual enactment of these bills is dependent on a number of different factors and difficult to predict. The inclusion of the following bills in this chart is not meant to imply an estimate on the likelihood of their enactment.

The information in this chart was last updated on November 4, 2004, and will continue to be reviewed and updated on a regular basis.


STATE


2004 GAMBLING DEVELOPMENTS

Alabama

Failed: Constitutional amendment to repeal state’s ban on lotteries and full-fledged casinos.

Failed: Electronic bingo at the state’s four racetracks.

Alaska

Failed: Single casino in Anchorage.

Failed: Taxation of gambling on cruise ships.

California

Enacted: A bill creating new state compacts with five Indian Tribes in California. Agreeing to pay into two state revenue streams, the tribes may now operate an unlimited amount of slot machines and are guaranteed exclusive rights to slots operations in the state.

Enacted: The Governor negotiated a revenue sharing compact with five other Indian Tribes. Four of the five compacts were approved by the legislature. The deal reached with the Lytton Band of Pomo Indians that would have allowed for a 5,000 slot machine casino in San Pablo was not approved by the legislature.

Failed: Ballot initiative appearing as Proposition 68 that would require Indian Tribes operating casinos to share 25 percent of their revenue with the state. If any tribe refused to comply, five tracks and 11 card rooms would be allowed a total of 30,000 slot machines at locations including suburban San Francisco and Inglewood.

Failed: Ballot initiative appearing as Proposition 70 that would require 8.84 percent of tribal casino revenue be shared with the state. Limits on the kinds of games tribes can operate as well as limits on the number of casinos and slot machines on tribal land would be removed. This proposal also would extend the current 20-year gaming compacts to 99 years.

Proposed: Reduce the share of lottery revenue dedicated to fund education from 34 percent to 25 percent.

Delaware

Proposed: Two new slot casinos.

Proposed: Racetracks required to turn over unclaimed winnings to the state.

District of Columbia

Failed: Petition drive to include a question on the legalization of slot machines on the November ballot.

Florida

Passed: Passage of Amendment 4 will allow two Broward and Miami-Dade counties to hold local referenda on allowing slots at seven pari-mutuel facilities in the counties.

Failed: Regulation of gambling arcades.

Failed: Allow charities, religious and veteran’s groups to sell lottery-style bingo tickets.

Georgia

Failed: Online lottery.

Illinois

Proposed: 3,200 slot machines added to each of the state’s five horse racing tracks. Bars, taverns and social service clubs—three machines each.

Proposed: Riverboat casino expansion.

Indiana 

Failed: House Bill 1188 would have allowed 1,000 electronic pull-tab machines at each of the state’s horse tracks and 1,500 at betting parlors.

Iowa

Enacted: Comprehensive gambling bill that allows the introduction of table games at racinos, ends cruise requirements for riverboat casinos, and allows the gaming commission to issue an unlimited number of casino licenses. This bill also prohibits a riverboat casino in downtown Des Moines.

Kansas 

Implemented: “eScratch”—an online lottery game.

Failed: At least three different proposals with various combinations of casinos, slots at tracks, slots at fraternal organizations and slots at other locations such as bowling alleys and driving ranges.

Kentucky

Failed: A bill providing for a statewide vote on a constitutional amendment allowing expanded gambling at existing racetracks.

Louisiana

Proposed: Relax food revenue percentage requirements for restaurants wanting to install video poker machines.

Failed: New video poker truck stops must be located within 1,000 feet of federal highway.

Maine

Enacted: A bill that provides for the implementation and regulation of slots at racetracks. A ballot initiative allowing slots at racetracks was passed by voters in November, 2003. This bill creates the Gambling Control Board and Advisory Council, and establishes a racino revenue distribution formula.

Maryland 

Failed: 11,500 video lottery machines at four horse racing tracks, 4,000 at two stand-alone facilities along the Interstate 95 corridor.

Michigan

Passed: Ballot question appearing as Proposal 1 to amend the state constitution to prohibit new gambling sites or games without voter consent.

Proposed: Legislation that would allow up to 500 Video Lottery Terminals at the state's seven racetracks.

Enacted: House Bill 4612, increases the state wagering tax on Detroit Casinos from 18 to 24 percent.

Minnesota

Failed: Allow racetrack to add casino.

Failed: Allow existing card club to increase the maximum number of tables from 50 to 100.

Missouri

Failed: August ballot proposal expanding legal riverboat casino locations beyond the Missouri and Mississippi rivers.

Nebraska

Failed: Ballot measure question on constitutional amendments to allow two casinos in the state. The question appeared on the November ballot as Amendment 3.

Failed: Competing ballot proposal allowing two casinos to be built in Omaha and up to 4,900 slot and video poker machines in bars and keno parlors. Proposals appeared on the November ballot as initiatives 417, 418, 419 and 420.

New Jersey

Enacted: A bill gradually rolling back an existing 4.25 percent tax on complimentary benefits given by casinos to high wagering guests.

New York

Implemented: Video lottery machines in at least two racetracks.

Proposed: Video lottery terminal parlor in the proposed downtown convention center in Albany.

Proposed: Eight new facilities for video lottery machines.

Failed: Video lottery machines on ferries between Rochester and Toronto.

Failed: Proposal to expand the availability of the video numbers game “Quick Draw” to more restaurants and taverns by removing food sale percentage requirements in current legislation.

North Carolina

Proposed: Change the regulatory duties associated with video poker machines from local sheriffs to state agents.

Proposed: Ban on video poker machines.

North Dakota

Implemented: State joins Powerball.

Ohio

Proposed: A bill for a state constitutional amendment that would allow a riverboat gambling franchise in each of the cities of Cincinnati and Cleveland.

Failed: Bill that would put ballot question of a constitutional amendment allowing 2,150 video lottery machines at each of Ohio’s seven racetracks to voters.

Oklahoma

Failed: Electronic gambling machines at racetracks. Although Senate Bill 553 allowing electronic bingo terminals at three racetracks contingent on other Indian gambling compact developments was enacted, subsequent passage of Senate Bill 1252 repealed the gambling provisions in the former bill.

Passed: Ballot proposal appeared as State Question 712, allows electronic gambling machines at three racetracks as was to be provided by Senate Bill 553.

Passed: Ballot proposal to authorize state lottery will appear on the November general election ballot as State Questions 705, the Oklahoma Education Lottery Act, and 706, the Education Lottery Trust Fund.

Pennsylvania

Enacted: Legislation allowing up to 61,000 slot machines at seven racetracks, five slots casinos and two resorts.

Proposed: Video poker and keno machines in bars, taverns and restaurants.

Rhode Island

Failed: A bill for a state-wide referendum on allowing Indian Casino for Narragansett tribe in greater Providence area. After a legislative override of the Governor's veto of the bill, the state Supreme Court ruled that the proposed ballot question violated the state constitution.

Tennessee

Implemented: Tennessee Lottery began operations in January 2004. State also became 26th lottery nationwide to join Powerball.

Enacted: Limited charitable gaming now allowed.

Failed: Warning labels of gambling addition possibility on lotto tickets and at distribution points of gambling addiction.

Texas

Failed: Proposal to allow up to 40,000 video lottery terminals at seven existing racetracks.

Washington

Failed: A ballot proposal allowing non-Indian casino gambling in the state will appear on the November ballot. Initiative 892 would allow bowling alleys, bars, taverns and mini-casinos to operate the same number of slot machines as Indian tribes are currently authorized—over 14,000.

Failed: Ballot initiative that would allow electronic scratch ticket machines at charities, restaurants, taverns, bowling allies, tracks and card rooms.

For additions or corrections to this chart, or for more information please contact:

Ian Pulsipher
NCSL Fiscal Affairs
econ-info@ncsl.org
303-364-7700 ext. 1649
Mandy Rafool
Program Principal
NCSL Fiscal Affairs
econ-info@ncsl.org
303-364-7700 ext. 1506


 

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