Las Vegas Slot Coin
Once again, we’re sorting through the Casino Online mailbag and helping answer some of your burning questions. Today, we’ll be discussing whether casino gambling is a good way for governments to raise money. While such a topic is incredibly open-ended, we’ll be taking a few case study examples, in the form of Alberta and Pennsylvania, two areas which recently legalised slot machine gambling.
Beginning with Alberta, this Canadian province has a long and rich history of gaming. In 1892, the government first amended legislation to allow certain forms of gambling. Fast forward to the late 1990’s and the Alberta authorities begin experimenting with the introduction and removal in some areas of Video Lottery Terminals, or slots. By 2009, the local government has become “dependent” on casino gambling revenue, with local figures such as Pastor Dale Hansen suggesting that the “Alberta government couldn't function without gambling revenue”. Figures for the 2009-2010 fiscal year predicted the province would rake in an impressive $1.5 billion from gambling revenue, with this figure increasing each year.
However, reality has since hit home for both the Alberta government and casinos located in the Canadian province. 2010’s fiscal year figures have been amended and now suggest slots revenue won’t meet the $1.5 billion target. Nor will the revenue meet 2011’s target – this has since been amended to $1.3 billion, a drop of $50 million. Such figures suggest that the gambling industry is just as fallible and delicate as other areas of the economy. It shouldn’t be seen as a way to solve state deficits, as if people can’t afford basic items such as food, clothing and fuel, chances are they won’t be planning on dumping coins in slot machines either.
On the other hand though, Pennsylvania has noticed a remarkable increase in state revenue, thanks to the legislation of slots. The Pittsburgh Business Times recently reported that Pennsylvania’s nine casinos brought in an impressive $184.2 million in January, up $132.2 million from 2009’s figures. As casinos in Pennsylvania are taxed at 55%, such revenue has no doubt proved incredibly useful for the local government, but, as suggested by Alberta’s recent revenue revisions, this cash shouldn’t be solely relied on. Rather than seeing casino gambling as a way for governments to instantly raise cash, they should form part of a wider business plan to regenerate an area, as otherwise, governments and citizens could be letting themselves in for severe financial disappointment.
