Revenue Enhancement via Problem Gambling

Revenue Enhancement Via  Problem Gambling

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The operational approach of the NY State Legislature to problem gambling is horribly clear from the voting records on S7833 (passed 55 to 4 on June 20 2014) and the Assembly “same as” (A 10075 , Goldfeder sponsor) which  passed 119 to 9 on June 19.  The approach is to exploit problem gamblers, not help them recover.  The bill, not signed by the Governor yet,  allows racinos to close their  video lottery terminal (VLT) floors  at  6 AM instead of (previously) 4 AM.  It also  increases “free” play credits.   The memo is below in italics.

BILL NUMBER: S7833

SPONSOR: KLEIN
TITLE OF BILL: An act to amend the tax law, in relation to the

authorized hours of conducting video lottery gaming and the amount of

free play authorized therefor

PURPOSE OR GENERAL IDEA OF THE BILL:

The purpose of this bill is to enhance the revenues of video lottery

gaming facilities in New York.

SUMMARY OF PROVISIONS:

Section 1: Amends section 1617-a (b) of the tax law to allow video

lottery gaming facilities to operate until 6:00 a.m.

Section 2: Amends section 1617-a (f)(3) of the tax law to increase the

annual value of free play allowance credits authorized for use by a

video lottery gaming facility from ten to fifteen percent of the total

amount wagered on video lottery games after payout of prizes.

Section 3: The effective date.

JUSTIFICATION:

This bill is needed to provide incentive for individuals to visit the

video lottery gaming facilities in order for these facilities to enhance

revenues and attendance.

PRIOR LEGISLATIVE HISTORY:

This is new legislation.

FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:

None noted.

EFFECTIVE DATE: immediate

Comment by CAGNY editor: At 3:50 A.M. those racino VLT users who don’t want to stop at 4 o’clock are not the exhilarated, beaming young couples in racino advertisements. They are mostly problem gamblers and addicted gamblers who, if forced out at 4 A.M., would on the average leave less of the money they are using that morning than if they stayed until 6.  S 7833 was written deliberately to exploit that thin stratum of casino users (perhaps 12%) who provide about half the “net revenue” of the average casino.

Coalition Against Gambling in New York honors the insight and courage of the few legislators who voted NO.

 

The opinions expressed are those of the writer, Stephen Q. Shafer MD MPH and are not necessarily shared by any or all other members of CAGNY.  Permission is given hereby to quote or copy in whole or in part as long as the above permalink is cited.

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