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1 John Hanly Adams, Lotteries: Entering the Big Time in State Finance 1 (1987)

handle is hein.tera/lotteribit0001 and id is 1 raw text is: TAX FOUNDATION WASHINGTON, DC 20005 ONE THOMAS CIRCLE, N.W. SPECIAL REPORT TELEPHONE (212) 822-9050 Lotteries: Entering the Big Time In State Finance By John Hanly Adams Editorial Consultant Tax Foundation Like it or not - and millions of Americans hate the idea on moral or other grounds - state owned and operated numbers games known better as lotteries are a growing part of the financial support for state and local governments in the U.S. The latest available facts and figures on the increasing financial reach of government-sanctioned gambling are presentedinthisTaxFoundationSpecial Report. They show: a A total of 22 states and the District of Columbia took in $12.5 billion in lottery sales, producing almost $5 billion in net lottery income, after expenses and prizes, in the fiscal year ended June 30,1986. Net lottery income for all states has been growing at 29% per year since FY 1980, accelerating to 36% per year since FY 1984. Five additional states approved lotteries in fiscal year 1987. Virginia voters approved a lottery on November 3 and several other states Lotteries Spread, coast to coast - In 1963 one state, New Hampshire, authorized the first modern state lottery. are considering proposals. About three-fourths of the U.S. population now is exposed to state-operated games. * Lotteries still are a small share of states' total income and charges - 1 to 5 percent of the revenue from state taxes and charges in FY '86 - and profits vary far more, and more unpredictably, than tax revenues. But lotteries' input, and thus their clout at state capitals, is growing. Lotteries brought in more revenue than tobacco and alcohol sales taxes last year in California, New York and eight other states and D.C. * State lotteries also remain a small part of the gam- bling financial scene, in terms of dollars. Guesses about the total value of gaming and wagering vary wildly, especially as to the extent of illegal betting in its many forms. One educated guesstimate puts the total handle at $199 billion in 1986. In terms of people taking part - a crucial measure Now, in 1987,22 states and the District of Columbia operate lotteries and 6 others are starting them. Other states are debating the issue. Lotteries' Rise in the gambling world - State-owned and operated lotteries have become the fastest growing form of public betting in the U.S. Lottery ticket sales have quadrupled in the last five years, reaching $12.5 billion in the year ended June 30, 1986. But this apparently is only a fraction of the total gambling handle (the estimated aggregate sum of all money changing hands in public wagering). Casino table games and slot machines licensed by various states remain the King Kongs of gambling. See the chart on the next page for a perspective on that part of the story. Map data from 1987 U.S. Gaming Industry report by Laventhol & Horwath, CPAs.

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