BY RICHARD C. LEONE
COMMENTARY
Recently the New York Times reported that several studies had concluded that there would be only modest returns to states that legalized online gambling. For Iowa, for example, the forecast was less than $13 million. Even California could count on no more than about $100 million. These sums are “chump change” compared to the $18 billion the states reap from lotteries. Nonetheless, the lure of more gambling may prove, once again, to be irresistible.
Where 30 years ago legal gambling was rare, largely limited to Nevada, today it is as American as apple pie. And as apple pie has given way to more exotic and prepared desserts, gambling has taken on increasingly varied games and venues to attract customers.
Encouraged by our state governments and enticing advertising, we have become a nation of gamblers. And our state governments are addicted to gambling revenues as a substitute for direct taxation. The lure of raising money through “gaming” has proved irresistible. In fact that there isn’t any debate about the bite the lottery takes out of low income families. We know that this basic form of state sponsored gambling is highly regressive in impact. Lottery revenues, in fact, are more regressive than just about any other “tax.” In general upper income people avoid the lottery, but the working poor are hooked.
