Experts Wonder Where State Collected Casino Revenue Goes

Gambling News - July 9th, 2009 - Written by Glen

Taxes that are, at the very least, in the millions, are collected by the state governments from the casinos and lotteries within their borders. Recently, pundits have been questioning where these taxes end up.Alabama, for instance, has recently come under fire. According to The Birmingham News, gambling interests donated over two and a half million dollars to different politicians within the state. Records are difficult to maintain due to the restrictions imposed on how much money may be given to political campaigners, and loopholes are typically used to bypass the restrictions in place. Political Action Committees are established in order to donate money to legislators, and PAC's frequently give one another funds to circumvent limitations. It is not clear where the $2.6 million dollars went, but it has traded hands several times.

In New Hampshire, the actual amount of taxes collected has been placed under the microscope. The percentage removed from winnings will scale according to how much was actually won, and the odds in place on the victory. Over $5 million dollars is the expected revenue, but where it will end up and how it will be used is a different story all together. If New Hampshire uses most other states as a model, the money may go to education.

Gambling is long said to promote dishonesty and criminal mischief, but there is much hope that this will not be the case when it comes to state budgets. Many states are suffering from the weakened economy, and budgets are coming up short. Programs are being slashed on a regular basis, and casino revenues are a hopeful source of salvation for many states. There has been a sharp increase in the number of available gambling venues, which is due in part to states seeking extra sources of income.Honesty is an essential policy, and is one policy makers need to abide by when collecting funds - whether it is from winnings or donations.