States look to gamblers to boost sagging budgets.

• Position: On First Reading - Brief Article

It may be just another roll of the dice, but nearly a dozen states are hoping that expanding gambling will shoot them into the black or at least close a few budget gaps this year.

Over the past several decades, all but two states--Hawaii and Utah--have authorized at least one form of gaming. And as states now struggle with lower than expected revenues and spending overruns, tapping into gambling may be seen as a relatively painless way to find new money. Consumers spent $61.4 billion on gambling nationwide in 2000 and taxes on gambling added about $26.8 billion to state coffers in 2000, according to Christiansen Capital Advisers LLC, a firm that compiles gaming statistics. Despite their revenue potential, many gambling measures face brisk opposition and have an uncertain future as of press time.

New York led the way in October 2001 by legalizing additional Indian casinos, participation in a multistate lottery and video gaming at horse tracks.

Facing a $520.8 million budget gap, Missouri Governor Bob Holden has proposed increasing the adjusted gross receipts tax, primarily assessed on riverboat gaming, by 2 percent. He also wants to increase riverboat gaming boarding fees by $1, legalize a new keno-type lottery game and remove the $500 loss limit provision. Currently, gamblers are not allowed to lose more than $500 per riverboat excursion.

Within the gaming industry, devices like slot machines and video poker show extraordinary growth. Many horse and dog tracks want to install gaming devices to boost flagging revenues. Kansas, Kentucky and Maryland are considering bills that would allow racetracks to install video...