Indian Gaming

Virginia newspaper urges state lawmakers not to be tempted by easy money in the form of legalized gambling:

Even with a sitting governor under federal investigation, it remains unclear whether the General Assembly will respond to public calls for ethics reforms paired with a meaningful enforcement mechanism. Given that lack of resolve, it would be foolhardy for state officials to court greater corruption in the form of legalized gambling.

Advocates argue that most states already permit casinos. True, and a quick tour offers sobering reminders of the pitfalls therein. In New York, for example, unions, Malaysia-based gambling giant Genting, Caesar's Entertainment and race track companies spent nearly $4 million on TV ads and mailers in the 10 days leading up to last month's referendum permitting seven new casinos to open in that state.

But the lobbying won't end there. Legislators in states that host casinos are routinely pressured for laws that secure regional monopolies and for special exemptions from alcohol, smoking and other laws.

Ironically, these palaces promising easy money soon return seeking handouts. The Delaware legislature last summer approved $8 million to help the state's three casinos with rising costs for slot machines. Yes, taxpayers are subsidizing one-armed bandits, not the other way around. And the Delaware casinos are still pushing for tax breaks, warning that layoffs will occur without additional assistance.

As the casinos have struggled to remain profitable, state gambling taxes have also waned. Delaware will collect $180 million this year, but that's down from $240 million three years ago. The state is trying to prop up operating budgets by legalizing sports betting and online gambling.

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Editorial: In pursuit of easy money (The Roanoke Times 1/6)