ROANOKE TIMES
Copyright (c) 1996, Roanoke Times
DATE: Sunday, February 11, 1996 TAG: 9602090116
SECTION: EDITORIAL PAGE: F-2 EDITION: METRO
USUALLY when a state legislator requests a fiscal-impact analysis of a pet proposal, he or she expects it will bolster the chances of General Assembly approval. In the case of Norfolk Del. William Robinson's push for riverboat gambling casinos, however, the fiscal-impact review offers more reason why the General Assembly should reject the idea.
The state's Department of Planning and Budget concludes that riverboat gambling would compete for suckers' dollars that now go to the Virginia lottery - reducing the state's take of lottery revenue upon which the state's budget has become increasingly dependent.
In the first year of the riverboats' operation, the lottery could expect 10 percent less revenue, and a 5 percent reduction every year thereafter. A 10 percent reduction would translate into a loss of about $30 million in the state revenue coming from lottery profits, which topped $311 million last year.
Also, because Robinson proposes to let the Lottery Department oversee this new gambling venture, DPB says lottery proceeds would be further reduced by the costs of licensing and taxing the casinos.
Riverboat gambling's promoters, of course, are quick to point out that the casinos will produce tax revenue for the state. Well ... yes ... but the DPB says it can't estimate how much because it's not known how many how many will be operating, where they'll be operating, etc.
Neither can it be accurately predicted how much they may depress nearby businesses, including hotels, restaurants and existing tourist attractions, depleting the state's revenue from these sources.
And it's unknown how much they may increase the state's costs related to crime and gambling addiction. (A clue, though: A recent study by the University of Illinois found it costs a state $3 to $6 for crime, addiction, regulation, etc., for every dollar that legalized gambling contributes to a state's treasury.)
What is known that is that Virginia would be encouraging people to gamble away their money rather than spending it on food, homes, clothing, education and medical needs, or investing it for the future. The only people likely to be better off from this switcheroo of wealth are a few operators of floating gambling palaces. It's snake-oil economics.
LENGTH: Short : 48 lines KEYWORDS: GENERAL ASSEMBLY 1996by CNB