States Bet on Risky Business of Gambling

PASADENA, CA, Jun 19 (MARKET WIRE) --
In uncertain economic times, gambling in America's society and culture
has become more than just entertainment. Many states are becoming more
dependent on revenue generated from state-regulated gaming to bolster
shaky budgets. California is an excellent example. Facing a deficit of
more than $17 billion, the state is looking at modernizing its lottery to
provide a 'rainy day' fund. Governor Arnold Schwarzenegger argued in his
May budget revision that the underperforming lottery could provide more
than just a small percentage of state education funding. Bonds issued
against a remodeled lottery could fund Schwarzenegger's Revenue
Stabilization Fund to the tune of more than $5 billion for the 2008-2009
state budget and up to a total of $15 billion by 2010-2011.

Interestingly, while part of the planned modernization of the lottery
includes making the games more attractive to players, California also
funds programs to make the public aware of problem gambling. The social
problems associated with legalized gaming carry high costs that are not
immediately visible. State and city governments are forced to deal with
these costs using money from their budgets that might otherwise be used
elsewhere.

In "A Legacy of Luck," Vision.org contributor Robyn Page addresses the
draw of gaming dollars for state governments and addresses many of the
social issues surrounding the culture of gaming in America. Tracing the
effects of the most recent National Gambling Impact Study Commission
report, Page outlines the concerns for communities, families and
individuals when gaming becomes problematic.

Page states that "voting yes on progambling initiatives is a seductive
issue for legislators," and is far more attractive to many voters than
"inconveniently raising taxes." Unfortunately, the results are far less
attractive. While "promoters typically cite job creation and higher tax
revenues as some of gambling's economic benefits," Page shows that
"everyone, gambler and nongambler alike, pays the consequences of
gambling."

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Contact

Edwin Stepp
www.vision.org
Vision Media Productions
476 S. Marengo Avenue
Pasadena, CA 91101
Phone (24 hrs): 626 535-0444 ext 105

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