State lawmakers are desperately seeking new revenues to close the state’s whopping $535 million budget gap. One proposal by Gov. M. Jodi Rell to bridge the budget shortfall is to introduce Keno, a lottery-type form of gambling, often found in restaurants, bars, and convenience stores.
Gambling revenues have long earned Connecticut a hefty payday. Casino revenue was the fifth-highest source of revenue for Connecticut in fiscal 2007, according to state documents, generating $411.4 million in fiscal 2008. Lottery tickets raised about $278 million for the state’s general fund in fiscal 2007.
But gambling comes with enormous direct and indirect costs, and for individuals unable to manage it, the cost is devastating to them and their families. While lawmakers may find it easier to justify a revenue generator that presents a problem for a small percentage in our state — about 240,000 — according to a state report, they must understand that taxpayers will still pay the price for the problems it creates.
In a 390-page report, “Gambling In Connecticut: Analyzing the Economic and Social Impacts” prepared for Gov. M. Jodi Rell last June, much of the $435 million to $543 million cost of pathological gambling is a “direct monetary cost to the state.”
In addition, the report states: “Gambling losses represent money that could have been used to pay state and local taxes. There are also the indirect costs of counseling and related services to problem gamblers and their families. An example is the inability of pathological gamblers and their families to pay for hospital services that are often used. There is also a financial impact to the criminal justice system in prosecuting gambling-related crimes.”
If Keno is likely to cost the state more in long-term costs, regardless of its potential harm to families and individuals, the state should seek other ways to boost its coffers.
