Casinos Say They Can Help with California Budget Crisis

Print this Article | Send to Colleague

"This could be part of a solution to California’s budget woes," said Ryan Hightower, a spokesman for the association, which is sponsoring SB 40, a bill by Sen. Lou Correa (D-Santa Ana).

The group commissioned an economic study from former state finance director Timothy L. Gage, who concluded that with a 10 percent operator fee on gross gambling receipts, the state would initially earn about $82 million each year, but the revenue would exceed $100 million annually after five years.

Opponents say Internet poker is not a budget solution. They note that some Indian tribes have threatened to withhold tens of millions of dollars in slot-machine revenue from the state if lawmakers approve what those tribes see as competition to their brick-and-mortar casinos.

Fred Jones of the California Coalition Against Gambling Expansion also said the state budget could be hurt if more families end up in bankruptcy or foreclosure because of the ease of Internet gambling.

"No society has ever, nor ever will, gamble itself into prosperity," he said.