The casinos and lotteries in most states are reporting a downturn in revenue for the first time, resulting in a reduction in the money collected by state and local governments, according to new state data. The decline comes as states are rapidly expanding gambling in hopes of stemming severe budget shortfalls, and it indicates that gambling is not insulated from broader economic forces like recessions, as has been argued in the past.
And the most affected of the downturn here is the Oregon that has the largest percentage drop in its take in the nation over the last year. Oregon's gambling revenues dropped to 15.2 %, just beating out second-place Illinois, which had a 14.6 % drop, according to the Nelson A. Rockefeller Institute Of Government.
The deterioration has led some gambling experts to wonder whether the industry is reaching market saturation, whereby a limited number of gamblers with a fixed amount of money to bet is being split across a growing number of gambling options.
States that have been invested in gambling the longest have been hit hardest. Illinois reported a $166 million drop in tax revenue in fiscal year 2009, from 2008; Nevada had a $122 million drop, and New Jersey $62 million.
However, unlike some states, Oregon gets all of its gambling revenue from the lottery, and in particular the high-income video slots you see in restaurants, bars and taverns around the state. A big part of the drop, of course, is the economic collapse that has hit gambling across the country.
The said recession has a couple of reasons why the gambling revenues are drop in an unexpected time is the ban of smoking in restaurants, bars and taverns that took its effectivity last January 2009.
The reduction in gambling cash is a particular problem in Oregon, which relies on the money more than all but 6 other states, according to the institute. However, despite the downturn, revenue from casinos grew this fiscal year, producing $2.9 billion in taxes and fees in 12 states compared with $2.7 billion the year before, a 6.7 % increase.
And the most affected of the downturn here is the Oregon that has the largest percentage drop in its take in the nation over the last year. Oregon's gambling revenues dropped to 15.2 %, just beating out second-place Illinois, which had a 14.6 % drop, according to the Nelson A. Rockefeller Institute Of Government.
The deterioration has led some gambling experts to wonder whether the industry is reaching market saturation, whereby a limited number of gamblers with a fixed amount of money to bet is being split across a growing number of gambling options.
States that have been invested in gambling the longest have been hit hardest. Illinois reported a $166 million drop in tax revenue in fiscal year 2009, from 2008; Nevada had a $122 million drop, and New Jersey $62 million.
However, unlike some states, Oregon gets all of its gambling revenue from the lottery, and in particular the high-income video slots you see in restaurants, bars and taverns around the state. A big part of the drop, of course, is the economic collapse that has hit gambling across the country.
The said recession has a couple of reasons why the gambling revenues are drop in an unexpected time is the ban of smoking in restaurants, bars and taverns that took its effectivity last January 2009.
The reduction in gambling cash is a particular problem in Oregon, which relies on the money more than all but 6 other states, according to the institute. However, despite the downturn, revenue from casinos grew this fiscal year, producing $2.9 billion in taxes and fees in 12 states compared with $2.7 billion the year before, a 6.7 % increase.
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