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Posted September 24, 2008

  Economic Development & Trade


Gaming Measures Faced Long Odds; Some Hit Jackpot

August 6, 2003



At least 23 states considered measures to expand gaming or increase gaming taxes in their 2003 sessions. Revenues from slot machines, video gaming, lotteries, casinos and racetracks have been viewed as a source to help address the budget shortfalls that have plagued nearly every state. As of late July, Oklahoma was the only state to approve a new form of gaming when it authorized a state lottery, which now must be approved by voters.

Legislation to authorize slot machines or other video gaming machines at racetracks or bars was considered in at least 13 states. A pending Pennsylvania measure would permit up to 5,000 slot machines at the state's horse tracks. Measures to authorize gaming machines at tracks were pending in New Jersey and Ohio as of late July. Maine and Colorado expect to have citizen initiated ballot measures on the issue. In eight other states, the measures failed. New York passed a measure to increase the number of hours its video lottery terminals can operate and to reconfigure how revenues are distributed.

Two states expanded their existing video gaming industries. Louisiana authorized video poker machines that accept higher currency denominations and machines with no minimum wager. Delaware took steps to increase its racetrack video gaming activity and revenues by increasing the hours the machines can operate and imposing a video lottery surcharge. In other racetrack news, Colorado and Maine authorized wagering on simulcast out-of-state races at existing tracks.

Oklahoma became the 40th state to authorize a lottery (the District of Columbia and Puerto Rico also have lotteries); voters still must approve the measure. The revenues will fund education. Texas and Vermont authorized participation in multi-jurisdictional lotteries, and similar legislation is pending in Maine.

In casino activity, Indiana authorized a riverboat casino for French Lick, a historic area, and all Indiana riverboat casinos will now be allowed to operate 24 hours a day. Illinois increased taxes on riverboat gaming, and Nevada increased certain gaming license fees. Wisconsin renegotiated its Indian gaming compacts and expects to receive additional revenues. Maine anticipates a citizen initiated ballot measure on casino gambling. Four other states considered authorizing casinos but the measures did not pass.

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