Thursday, May 8, 2014

Pennsylvania Needs You ... to Gamble More

Remember when the Governor and the General Assembly told us that opening up casinos in Pennsylvania would reduce our property taxes, save horse raising, expand school budgets, bring in tourism, keep our own gamblers from traveling out of state, help us compete with neighboring states, support local development, and cure cancer?  Well, in our continuing race to the bottom the General Assembly is now considering Internet poker and casino games.  This will help close up a big budget shortfall of $1.2 billion.

Like we do not have enough gambling already?  It is not bad enough that the state entices its citizens to "play to win" in multiple lotteries and is itself addicted to casino tax dollars?  Pennsylvania's 12 casinos generated $1.4 billion in state and local gambling taxes in 2013.  Over a billion dollars of losers' money!  Yet this is not enough to satisfy the ravenous appetite of our legislature.

We have two really big problems.  First is a state government that is desperate for tax revenue because it will not make tough cuts in spending.  The billion dollars raised from casino gambling that was suppose to CUT our taxes (and solve many of our ills) is not sufficient.  And did we not just see passage of a tax increase on our gasoline to help fix and build roads?  Then there is the year-after-year excuses about why we cannot reduce the country's highest corporate net income tax on businesses..."we just do not have the money in a very tight budget."  Stop spending so much!

The second problem is society's acceptance of what used to be called a vice, gambling, as a source for government funding.  When the mob runs a gambling operation it is evil and anti-social, but when the state runs it there is no harm?  I can make the case that state promoted gambling is worse.  Our government should lift up and edify good behavior, not be preying on its vulnerable citizens.

The General Assembly is reviewing a report that forecasts another pot of gold for the state if it permits internet gambling (and taxes the heck out of it).  This new found tax-money for Pennsylvania could be over $100 million a year.  (Not enough to put much of a a dent in the projected $1.2 billion deficit.)  The report also says we might squeeze out some more money from our casinos if we reduce pesky regulations like allowing cash advances with credit cards on the gaming floor or let players cash third party check and personal checks over $2,500 or reduce required state police presence.

Oh, and great news on internet gambling: It would have minimal effect on land-based casinos because it would attract a whole new market (of suckers).  IGaming caters to a younger, predominantly male demographic.  I guess not enough of our boys are showing up at casinos, but this way we can reach out to them on their smartphones for some poker!

Hey, I know!....let's use internet gambling money to reduce property taxes, fund education, provide medicine for grandma, and...We better do it soon because New Jersey, Nevada, and Delaware are doing it.

1 comment:

  1. Oh dear, and I think back to my ancestors wanting to stop the Sunday gambling which led to other sins. I guess this makes it ok to go into debt gambling as long as the State gets its share. What an uncertain signal this sends to law enforcement when the state sponsors this activity which leads downhill.

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