Gambling revenue comes from many several different resources. Two of the main resources are lotteries and casinos. Many states legalize gambling with the false hope that it will generate a large amount of revenue. The truth of the matter is that it does generate some revenue, but this revenue is nothing near what it was expected to be. Once this happens, the state expands gambling with the hopes of generating the expected revenue. This puts the state in a hopeless cycle, with casinos on one side asking for expansion, and reform-minded groups on the other side questioning the value of gambling revenue.
State run gambling operations provide even further problems. Many times when state officials run these operations, they lose sight of who they are working for, the state or the industry. This happens because state officials run the state run gambling operations like a private business that should be able to expand in the market. This causes a huge conflict of interest. The state must decide to run the operations like a business and maximize revenue, or keep this potentially corrupt industry under control.
Supporters of legalized gambling will try to say that gambling revenue will help alleviate some of you taxes. However, if you study recent economic history, you can see that legalized gambling activities have been directly and indirectly subsidized by the taxpayers. Research has been conducted that shows that, for every dollar that legalized gambling contributes to taxes, it cost the taxpayer at least three dollars. This extra cost is passed on to the taxpayers because of:.
Infrastructure costs .
Relatively high regulatory costs .
Expenses to the criminal justice system .
Large social-welfare costs .
Eadington, William R. Gambling and Society. Charles C.Thomas-Publisher. Springfield, Illinois, 1976.
Herman, Robert D. Gamblers and Gambling. D.C. Heath and Company, Lexington, MA, 1976.