Share this

Wizard Recommends

Last Updated: February 8, 2017

Proclivity for Gambling (Part 2 of 2) The Most Gambling-Crazed States

Introduction

As all of the readers may recall from the first article in this series, unlike the immensely detailed and skillful WalletHub Article mentioned last week:

We are not going to attempt to answer which States are most addicted to gambling simply because, short of actual numbers of people v. the population of a given state to refer themselves to a gambling treatment program, to say a State has the most, 'Addicts,' relies more on correlation than causation...and the correlations used seem to be pretty loose. Instead, we are going to attempt to answer which states are the most, 'Gambling-Crazed,' and our methodology is going to rely much more upon tangible numbers.

I hinted at a proposed methodology for making this determination in the previous Article, but I have decided to change it to something that I think will be even more accurate. The first thing that we are going to attempt to do is determine what states (legally) have different forms of gambling, and then to the best extent we can, we are going to attempt to determine how much revenue each form of gambling generates for any given state to determine how much money is being spent on gambling, in each individual category, for any given state.

Granted, this method is not without a couple of flaws. For example, Nevada obviously has legal casinos, and much of the revenue derived from those casinos (if not the bulk of it) comes from individuals who live outside of the State of Nevada, with much of said revenue coming from outside of the country. With that said, however, gambling is also an obvious source of jobs, both in construction and then all of the casino-associated jobs when a house is actually opened, so it can be said that Nevada certainly relies on gambling more than any other state if, in fact, that is what the numbers bear out.

Another particular flaw in this system is that I am not going to account for States with legalized Sports Betting (as its own category) at all, for two reasons:

  1. It's only legal in two states.
  2. And:

  3. It takes place in the casinos of those states, and as such, falls under the gambling revenues aspect of casinos...to use it for anything else would be effectively double-counting it.

With that said, horse racing will count because it is legal in many more states, and in fact, in some cases horse tracks are legal in states that do not have legalized casinos. Therefore, unlike Sports Betting, which is fundamentally inseparable from the casino, horse racing can definitely be construed as a separate form of gambling.

Finally, we will not take Online Gaming revenues into consideration whatsoever simply because there is no reliable means with which to do so. There are currently only four states that have any form of legalized and regulated Online Gambling, so only those revenues could be considered to be highly accurate. What I will do with respect to these States, however, is that I will include any Online Gambling revenue as, 'Casino Revenue,' to as great of an extent as possible.

Online Gambling (in the general sense) will, however, be considered. The way that we will do this is that States will be awarded a certain number of, 'Points,' for the mere fact that they have legalized and regulated online gambling, and states that have explicitly (or, states in which it can be assumed) that online gambling is illegal will have points removed based on my previous research on that matter.

The scoring system will also not take Daily Fantasy Sports (DFS) into consideration for a few reasons:

  1. DFS is a relatively new phenomenon, so it can reasonably be suggested that the states have not all had the opportunity to legalize DFS, some states that will ultimately end up doing so simply haven't gotten around to it yet.
  2. In those states in which DFS has been legalized and regulated, that set of circumstances has not been the case for a full year yet, as a result, there is no way to obtain reliable state-by-state revenue numbers.
  3. We would also have to include states in which DFS can be assumed to be patently illegal, but some of those states would also be states in which online gambling, in general, is patently illegal, thus, those states would be double-counted.

We are going to start off easily enough by using the following Wikipedia page to determine what forms of gambling are legal (as of the time of this writing) in a given state:

https://en.wikipedia.org/wiki/Gambling_in_the_United_States

The first thing that we have to do is look at the six forms of gambling mentioned and decide how we want to rate those, in general:

Charitable

There are some States in which certain forms of gambling are expressly illegal, but exceptions are occasionally made when some or all of the revenues (or profits therefrom, anyway) are being used for a charitable cause. Bingo tends to thrive in these states, particularly in areas where there are no casinos nearby or in those states in which casinos are entirely illegal. Furthermore, certain organizations will also have, 'Casino Nights,' in many of these states in which monies can be raised for charitable organizations.

In most of these states, there is no reliable means by which the revenues from such activities are tracked. Even in the event that the revenues (and the amount that goes to charity) are to be reported, the State does not necessarily release all of these individual reports (or combine them all into one report) as public information.

Charitable Gambling, in one form or another, is legal in all but four States. Therefore, we are going to start Charitable Gambling States with a base of five points (which will be the lowest possible for these purposes) and to the extent that we can discover charitable gambling revenues (in the states where making such determination is possible or estimable) we will then award one point for each position a state occupies on the list. (For instance, the State with the greatest amount of revenue, per person, from this source of gambling would receive forty-six points because forty-six states have this form of gambling)

Unfortunately, for States in which revenues from this form of gambling cannot be determined will not be capable of receiving any extra points on a revenue/person basis. In these cases, we will use what other forms of gambling are legal in the state in question as tiebreakers.

***NOTE: After researching the charitable gambling laws for the first ten States to allow same, seven of the ten States were such that the revenues of charitable gambling could not be determined as Charitable Gambling was not taxed nor the actual revenues regulated in any way. As a result, States will only receive five points for allowing this form of gambling, but there will be no revenue/resident adjustments to scores.

Pari-Mutuel

This is generally applied to a form of betting in which a house takes the cut of the action and then distributes the remainder according to the Odds of an event occurring. The simplest form is horse racing in which the House takes some juice and the winners are paid out accordingly.

While it may seem counter-intuitive, some states actually permit pari-mutuel wagering, but do not permit there to be any racetracks of any kind.

Only eleven of fifty states do not have some form of legalized pari-mutuel gambling, therefore, we will assign a basis of ten points and determine the rest as we will with the Charitable Gambling question, in terms of added points.

NOTE: After researching fifteen states, Connecticut has been the only one with pari-mutuel gambling that did not also have racetracks, therefore, only revenues for racetracks will be considered as offering additional points henceforward and revenues derived from pari-mutuel racing (in states with no tracks) may be mentioned, but will not be considered for additional points.

Lotteries

State Lotteries are an absolute cash cow that have occasionally been called, 'A tax on the poor,' or alternatively, 'A tax on the stupid.' This is a tremendous source of revenue for the vast majority of States and the actual implementation of a State Lottery is a rather simple process with the only complicated component at all being the Distribution.

In some States, such as West Virginia, the State Lottery might also oversee Limited Lottery facilities in which a small number of slot/keno/video poker machines may be operated and the revenues from which the State takes a significant cut.

Initially, I had some trouble deciding whether to put such revenues into the realm of casino revenues or lottery revenues, but in the end, Diplomacy wins and I decided to let each State decide for itself. I will construe these revenues in whatever manner the respective State construes them, however, if any of these states do not have legalized commercial casinos, then these revenues will be construed as lottery revenues for obvious reasons.

Only six States do not have a State Lottery, and interestingly enough, two of them are known to be big casino states, Nevada is obviously the biggest casino state and then the other one with no state lottery is Mississippi. Perhaps those states do not want to be seen as competing with the casinos, it's hard to say.

In any event, we are going to start Lottery States with a base of five points and we will use the system mentioned in the previous entries to allocate additional points.

Commercial Casinos

Everyone knows what a casino is, or should if you are even bothering to read this page, so I am not going to get into the definition of a casino.

The one thing that I will stipulate is that there is a difference between commercial casinos and tribal casinos for these purposes.

Also, according to the Wikipedia page, California does not have any commercial casinos, however, I tend to disagree with that assertion. I am going to construe California Card Rooms as casinos because they offer all of the (physical) card games that would be found in other casinos, and even some games (example: Craps) in which cards are used to replace the implements with which those games are played. I would simply say that California does not have any legalized, regulated and commercial slot machines.

Some may disagree and contend that the card rooms are not, in fact, casinos. However, if they were not, then how could we effectively categorize them?

Due to the fact that Commercial Casinos do not exist in more than half of the States, we are going to award twenty-five points for having commercial casinos and distribute additional points in two different ways:

1.) Gambling Revenues per Person

-This is the method previously discussed.

And:

2.) Gambling Locations per Thousand People

It does what it says on the box, how many places are there to gamble for every one thousand residents of a given state?

Tribal Casinos

It is a casino, only it is certainly owned and sometimes operated by a Native American tribe of one kind or another on land that they own. The tribe usually also has jurisdiction over the gambling activities that take place at this location, and sometimes, they do not answer to any authority higher than their own for any reason whatsoever.

In most cases, there exists a Gambling Compact with the State in which the casino is located that stipulates, among other things, if and how much revenue the State receives from the tribal casino operations.

While slightly more than half the states have a legalized form of Tribal Gambling, the State does not necessarily regulate those activities in any meaningful way, and moreover, many of the States with legalized Tribal Gambling ALSO have legalized and regulated Commercial Casinos.

For those reasons, I am only going to award a Base of ten points for Tribal Gambling and will award additional points based on aforementioned criteria to the best extent that I can.

Racetracks

Finally, we have Racetracks which are legal in many States in which casinos are not. However, there are some States that have racetracks despite the fact that casinos are illegal in those States.

Racetracks are also going to be somewhat complicated by the fact that the revenues generated therefrom are occasionally indistinguishable from casino revenues. For those reasons, I am hesitant to assign too many Base Points for having racetracks and, as a result, am allocating ten Base Points for Race Tracks much like I did for legal pari-mutuel wagering.

We will make allocations for revenues for added points in the same manner as we do other areas, provided such numbers are available. We will also allocate points separately for the number of race tracks there are in a state per thousand residents.

Online Gambling

It is difficult to gauge Online Gambling on a revenue basis because it is difficult to come up with revenue numbers for the States in which Online Gambling is not expressly legalized and regulated. Therefore, we are going to use my previous work on the status of Online Gambling on a state-by-state basis:

https://wizardofodds.com/the-legality-of-online-gambling-us

To determine point allocations in this regard. For States that do have expressly legalized and regulated Online Gambling, any such revenues that can be determined shall be construed as casino revenues (in general) and points shall be allocated on the following basis:

  • Expressly Legal: +5
  • Ambiguous: 0
  • Probably Illegal: -2.5
  • Expressly Illegal: -5

Defense of Method

Some might argue that casinos are going to naturally generate more revenue than racetracks, and therefore, should be considered as being more, 'Gambling-Friendly,' than a State that has racetracks. What I would encourage is to recall that a State can, and in some cases do, have both forms of gambling. Furthermore, a state that has casinos, but not racetracks (25 basis points and ten basis points, respectively) starts off with a fifteen point advantage over states that have racetracks, but not casinos.

Another potential problem for a state such as Nevada is that they do not allow for Lottery or for Racetracks, however, I think that the very nature of Nevada as THE casino state shall offset that fact rather nicely. Besides that, Nevada still starts off with a ten point advantage built-in over a state that allows State Lottery and Racetracks, but not casinos.

Finally, when it comes to Population data I need an, 'All things equal,' basis in this regard, therefore, while it may not strictly be the most accurate means on a state-by-state basis; it seems the most fair (Universally speaking) to use the 2010 Census Data for State populations.

With that out of the way, let's get down to business!

Ultimately, we are going to use the combined revenues of Lotteries, Commercial Casinos and Tribal Casinos to determine additions to the Base Points to see what states have the most gambling per resident from these sources.

Alabama

The State of Alabama allows for the following forms of gambling:

  • Charitable
  • Pari-Mutuel
  • Tribal

Therefore, the State of Alabama shall start off with 25 Base Points with a penalty of 2.5 Base Points for being ambiguous as to whether or not Online Gambling is illegal. As a result, Alabama starts off with 22.5 Base Points.

Furthermore, as recently as 2013, the Attorney General for the State of Alabama filed a lawsuit against the Poarch Band for running Class III machines (allegedly) as opposed to Class II machines. This lawsuit was defeated soundly in 2014 when it was determined that the State of Alabama had no legal regulatory powers on Indian land.

For that reason, it can reasonably be concluded that the State of Alabama essentially only, 'Allows,' Tribal Casinos begrudgingly, and as a result, I am subtracting the ten Base Points that they received for having Tribal Casinos which thereby reduces Alabama's Base Score to 12.5. Obviously, we will now also not be taking the revenues derived from Tribal Gambling into consideration at all.

In those counties in which Charitable Bingo games are legal in the State of Alabama (counties have the option of effectively making them illegal) the State does not directly oversee or regulate the terms of the Bingo Halls as each specific regulatory framework is left up to the specific county. Therefore, the State does not take any part of the gambling revenues whatsoever.

Also, the Wikipedia Page (as of the time of this writing) is incorrect, as the State of Alabama does have racetracks in addition to simulcast wagering:

http://www.birminghamracecourse.com/liveracingmain.html

The above website is just one example of one of their tracks, so Alabama ultimately ends up with 22.5 points for:

  • Charitable: 5
  • Pari-Mutuel: 10
  • Racetracks: 10
  • Online: -2.5

  • Total: 22.5

With respect to the Regulation of pari-mutuel betting locations, the State of Alabama also leaves that to the counties in which such locations are located and upon whom it is incumbent to create a Racing Commission. At this time, there are four such Commissions and four such racetracks and/or locations.

Unfortunately, no determination can be made at this time for the total revenues that are generated by these locations. Therefore, we are going to have a special category for Racetracks in which we will rank the States by how many tracks there are per 1,000 citizens. As of the 2010 Census, the population of Alabama was a rounded 4.78 million and there were four race tracks/pari-mutuel locations. As a result, there are 0.000837 locations (again, rounded) for every 1,000 citizens.

Also, since these decisions are left up to the Counties with some forms of gambling, and given their actions with respect to the Indian Casinos, Alabama will be considered as losing all ties with other States. I think it is fair to suggest that Alabama, as a whole, is not gambling-happy at all, but rather simply tolerates some forms of gambling and allocates responsibility for the oversight thereof to the counties.

Alaska

In terms of Base Points, Alaska allows for the following types of gambling:

  • Charitable
  • Tribal

The result of this is 15 points, however, I had previously determined that Online Gambling is, 'Probably Illegal,' in the State of Alaska, but the matter is ambiguous enough that we are only going to subtract 2.5 Points and give them a score of 12.5 Base Points.

In the State of Alaska, a 1% fee is remitted to the Tax Division on Charitable Gambling proceeds and, 'Monte Carlo,' nights are expressly illegal.

Furthermore, Alaska also authorizes, 'Distributors,' to sell, 'Pull Tabs,' but Alaska only takes fees of 3% of all of those revenues, so I am not going to construe that as a State Lottery.

Furthermore, that 1% tax is only collected on all Charitable Gambling Revenues, per organization, in the event that those gambling revenues exceed $20,000. The license fees for the permits only range from $20-$100.

Gambling revenues in the State of Alaska via these sources have been largely steady:

http://www.tax.alaska.gov/programs/programs/reports/Annual.aspx?54160&Year=2015

We see that $2,082,492.96 was generated from taxes on Pull Tabs, since that represents 3% of all Pull Tab sales, that means that there was $69,416,432 in total Pull Tab revenues in the State of Alaska.

Net proceeds (the 1% fee on all revenues of an organization in excess of $20,000) accounted for $385,936.76 in State Tax revenues, which means that Gross Revenues in this area were $38,593,676 (not including the first $20,000, or less, for those licensees that had less than $20,000 in charitable gambling revenues).

Because it is so difficult to determine how much the permit-holders failing to hit $20,000 in revenues actually made, we are only going to count known revenues which resulted in tax receipts. Therefore, the total contribution from Charitable Gambling in the State of Alaska we determine that approximately $108,010,108 in Gambling Revenues occurred.

Based on Alaska's 2010 Census Population of 710,231, the revenue per citizen in this regard comes out to $152.08/resident of Alaska.

Secondly, Alaska's Tribal Gaming is not a, 'Casino,' as one would normally think of a casino, most Tribal Gaming is just in the form of Bingo Halls. In fact, the MIC Gaming Hall is the only, 'Casino,' in the State of Alaska to have any machines whatsoever (none of them have Table Games) and MIC, in fact, has less than 100 Class II devices.

While this decision is somewhat arbitrary, in my opinion, the State of Tribal Gaming in Alaska is so weak that I'm not going to even construe them as having any Tribal Casinos. Therefore, Alaska loses all Ten Base Points for Tribal Casinos which reduces the Base Score of Alaska to 2.5.

  • Charitable Gaming: 5 Points
  • Online Gaming: -2.5 Points

  • Total: 2.5 Base Points

Arizona

On the face of it, Arizona starts out with the following forms of gambling:

  • Charitable
  • Pari-Mutuel
  • Lottery
  • Tribal

Therefore, Arizona starts out with 30 Base Points in this regard. However, based on the wording of their statutes, I have determined that Internet Gambling is, 'Almost Definitely Illegal,' in the State of Arizona, which reduces them by five points down to 25 Base Points.

In terms of charitable gambling, the State of Arizona has lengthy statutes pursuant to the regulation thereof and the statutes allow for both raffles and charitable Bingo:

http://www.gambling-law-us.com/Charitable-Gaming/Arizona/

Despite the lengthiness of the statutes, it seems that Bingo Halls are licensed by either the counties or towns directly, and if my understanding of the statutes is correct, it does not appear that the state garners any revenues directly from the charitable gambling, though they do proscribe the percentages that the local bodies can take in taxes.

While the regulation is at the local level, it seems that all Bingo taxes collected (Raffles are not taxed) are deposited into the State's General Fund, see Page 87 of this report:

https://www.azdor.gov/Portals/0/AnnualReports/FY15%20Annual%20Report_web.pdf

One confusing aspect of this is that there are three tax tiers for Bingo, so the tax amounts can range from 2.5% (less than $15,600 in gross receipts) to 1.5% ($15,601-$300,000 in gross receipts) and 2% ($300,001+ in gross receipts). Unfortunately, this report does not break down what of the $482,440 in direct tax proceeds came from where, so it seems prudent just to call it 2%.

The result is total Bingo revenues of $24,122,000 while raffle revenues are, unfortunately, unknown. The population of Arizona as of 2010 was 6,392,017, so the revenues from this source amount to a small $3.77/person.

While this may seem like a paltry amount, let us not forget that Arizona does have three other forms of gambling.

We have to get into some footnotes to get an idea of the total revenue for the Arizona State Lottery:

http://www.azleg.gov/jlbc/16AR/lot.pdf

On the first page of this report, on the fifth footnote, we see that 6.7% of lottery revenues go towards retailer commissions. The most recent data also seems to only include Fiscal Year 2014 numbers, so if $47,598,200 went to retailer commissions, then $710,420,895 in tickets were sold. Furthermore, 20% of Tab Ticket sales (allowed to be sold for charitable organizations) goes to the Charitable Commissions line item which was $865,300, meaning such sales were $4,326,500. With exception to Tab Tickets, everything else fell under the purview of the first number.

As a result, we see that Arizonans spent about $714,747,395 in FY 2014 on total State Lottery products. The population of the State in 2010 was 6,392,017, so we end up with about $111.82/resident for Lottery Sales. Based on a 60% return, this would come out to $44.73/resident.

This leaves Pari-Mutuel betting and Indian Casinos which are, in fact, proper casinos. Fortunately, this is easy because Arizona has a Department of Racing, and on Page 14 of this report:

https://racing.az.gov/sites/default/files/documents/files/FY2015%20Arizona%20Department%20of%20Racing%20Annual%20Report%20final%20ver.pdf

It is flatly stated that $164,340,189 was the total pari-mutuel handle for the year 2015, based on 2010 Census Data, that is $25.71/resident.

Arizona also has live race handle, apparently, which means that there must be live race tracks such as the Turf Paradise Race Course, which makes the Wikipedia page wrong on that and gives Arizona another ten Base Points bringing them up to 35 Base Points.

The new Base Points score for Arizona is:

  • Charitable: +5
  • Pari-Mutuel: +10
  • Lottery: +5
  • Tribal: +10
  • Online: -5<
  • Race Track: +10

  • Total: +35

Sloppy Wikipedia Editors!

Finally, we take a look at Tribal Casinos. The revenues for 2014 were readily available, and the tribes did $1,820,000,000 in revenues which represents $284.73/resident.

Even without state regulated and licensed Commercial Casinos, and even though Online Gaming seems to be all but expressly forbidden, Arizona is likely to be one of the more gambling-friendly states of the fifty given these revenue numbers.

Arkansas

Arkansas is undoubtedly one of the more gambling-friendly Southern States. According to Wikipedia, they have every form of gambling except Commercial Casinos and Tribal Casinos, but that's not even necessarily true. They have two locations that have Slot Machines, except the State insists on referring to them as, 'Electronic Games of Skill,' but I am going to construe them as Commercial Casinos, they certainly have the revenue to back it up.

They might also have a Tribal Casino soon, but one of the Racetracks is doing everything they can to prevent that.

  • Charitable
  • Pari-Mutuel
  • Lottery
  • Commercial
  • Racetracks

Therefore, Arkansas starts out with 55 Basis Points on my ranking system. However, Online Gambling, based on the wording of their codes, is patently illegal, so they lose 5 points for that and have 50 Basis Points.

Arkansas Charitable Gambling law allows for both Raffles and Bingo and Arkansas actually taxes the distributors of the cards an Excise Tax of 0.3 cents per Bingo Card. According to their most recent report, such taxes generated $183,541.18 in revenues which means that 61,180,393 Bingo Cards were distributed in that ten month period, we can multiply that by 6/5 to arrive at an estimated 73,416,472 Bingo Cards distributed in the State over the last year.

Unfortunately, that doesn't tell us anything about how much the average Bingo card in the State actually costs for the player, so it is actually difficult to say what the total revenues of charitable gambling actually are.

With respect to Racing revenues, Arkansas generated:

http://www.dfa.arkansas.gov/offices/directorsOffice/Pages/monthlyGeneralRevenueReport.aspx

Shows that 2.6 million in tax revenues came from racing in the last twelve months. The law states that only 1% of Simulcast revenues are to be taxed, but that offers little guidance as 7% of the Live Wager revenue is taxed and the tax revenue breakdown doesn't say how much of the taxes came from what source.

Fortunately, things are a little more clear when it comes to what we will call (even though Arkansas doesn't) casino gambling. The State has two locations (both of them also race tracks) that offer what the State terms, 'Electronic Games of Skill,' where same are taxed at a rate of 18% of net revenues. The State has received $55,100,000 in taxes from that source over the last twelve months which means there have been $306,111,111.11 in revenues from that source, The population of Arkansas was 2,915,918 in 2010, so we will construe that as $104.98 in revenue from that source...which we are calling Commercial Casinos.

The State's two race tracks are also the only locations for pari-mutuel wagering, so that is also included, but we cannot be sure of the total revenue that produces.

The State's Lottery Revenue is pretty direct:

https://www.ark.org/dfa/transparency_2015/revenues.php?ina_sec_csrf=1c1bd714ceb43cde983b63c3ab8ad678&do:revenues&tab=bytype#revenues_2_710_drilldown

They had $409,159,192 in sales for the 2015 Fiscal Year, which represents $140.32 in lottery sales per resident. Based on a 60% return, that still comes out to $56.13/resident.

NOTE: Arkansas shall lose all Base Point ties with other States because of their insistence that slot machines at the Tribal Casinos are, 'Electronic Games of Skill,' and because they do not allow Table Games.

California

California, for one thing, has Horse Racing even though the Wikipedia page seems to think that they do not have race tracks.

I also keep going back and forth on whether or not to construe California as having Commercial Casinos because they have card rooms which can have all of the Live Table games, (or versions of them that use cards) but they cannot have any machines, which tend to be the #1 source of revenue for most Land Casinos.

As a result, I have decided to give California 12.5 Points f(half) for Commercial Casinos because that seems to be the only fair answer. Furthermore, they will also not be able to use revenue per resident to increase that score.

  • Charitable: 5
  • Pari-Mutuel: 10
  • Lottery: 5
  • Commercial: 12.5
  • Tribal: 10
  • Race Tracks: 10

Therefore, they start with 52.5 Base Points, and do not lose any Online Gambling points because, while the State has not legalized Online Gambling, Online Gambling cannot be construed as illegal for players on the State level.

We will start with Charitable Gambling, California appears to allow for Bingo and Raffles as well as a charitable organization allowed to have one, 'Casino night,' per year while a physical location may host up to four casino nights per year. However, the State does not appear to take any revenues on a percentage basis, so there is no way to figure out what the total revenues are.

Page 26 of this racing report in California shows the revenues for the 2014-2015 Fiscal Year in terms of total handle and payouts:

http://www.chrb.ca.gov/annual_reports/2015_annual_report.pdf

If we subtract the payouts from the handle, then we are left with $187,727,063 in racing revenues which include Pari-Mutuel and Live track betting alike. The population was 37,253,956 in 2010, so we can estimate this at $5.04/resident in revenue from these sources. We are looking at handle, though, and that was $86.31/resident.

That brings us to the lottery, and the Sacramento Bee reports that California did 5.5 billion in lottery sales for the 2014-2015 Fiscal Year:

http://fox40.com/2015/07/25/california-lottery-sees-record-with-5-5-billion-sold-in-tickets/

Which would represent $147.64/resident is sales for that period based on 2010 Census Data. At a 40% hold, that would be $59.01/resident.

Again, we are not taking Commercial Casino revenues into consideration because the, 'Card Rooms,' that fall under the direct jurisdiction of the State are not permitted to have any slot machines, therefore, they only get half credit for having casinos.

According to the Press Democrat:

http://www.pressdemocrat.com/business/5315965-181/indian-casinos-report-rising-revenues?artslide=0

For the year of 2014, Indian Casino revenues in the State of California were 7.6 billion, which represents about $204.01/resident based on the 2010 Census numbers. California receives revenues on a, 'Per-Machine,' basis pursuant to the State/Tribal compacts rather than as a percentage of revenues.

Colorado

All forms of Gambling are legal in Colorado with exception to Online Gambling, while the penalties are extremely minor for mere players, my conclusion was that Online Gambling is, 'Patently Illegal,' so we end up with these scores:

  • Charitable: +5
  • Pari-Mutuel: +10
  • Lottery: +5
  • Commercial Casino: +25
  • Tribal: +10
  • Race Tracks: +10
  • Online: -5

  • Total Base Score: 60

Gaming taxes in Colorado are based on adjusted Gross Proceeds and are as follows:

  • Charitable Events 3.00%
  • $0 - $2 Million 0.25%
  • $2 - $5 million 2.00%
  • $5 - $8 million 9.00%
  • $8 - $10 million 11.00%
  • $10 - $13 million 16.00%
  • $13+ million 20.00%

This would normally be very difficult to work in reverse to figure it out as it would require determining what the revenues were for each individual casino, (which the State of Colorado, by law, does not publish) fortunately, the State of Colorado does publish overall revenue numbers for slots and tables, including those for fiscal year 2015:

https://www.colorado.gov/pacific/enforcement/industry-statistics-gaming

Simply go to, 'Previous Fiscal Years,' and Select, '2015,' to see the State numbers and city-by-city for 2015. Colorado casino's took $676,693,408.63 in slots revenue and $89,507,224.60 on the tables for a total of $766,200,633.23 in total gambling revenue. The Population of Colorado for 2010 was 5,029,196, which results in $152.35/person in overall casino revenues.

If you're interested in the revenues for each individual city and/or different Table Games or Slot Denominations, those are also available on that page, both annual and month-by-month. I'm not interested in that for the tie being, so it is time to move on to lottery revenues:

https://www.colorado.gov/pacific/sites/default/files/2015%20Annual%20Report_1.pdf

I'm really starting to love the State of Colorado because of how easy their reports are to find! Page 22, $538,000,000 in lottery sales, which is $106.98/person. These sales are led by scratch-offs with the second-highest revenue producer, Powerball, only accounting for 19.09% of the sales that Scratchers do. If we assume a hold of 40%, then we arrive at $64.19/loss per person.

With respect to the Ponies and Greyhound Live Racing and Simulcasting, which covers both pari-mutuel and live racing, no revenue figures were available for 2015, but I do have the annual report for 2014:

https://www.colorado.gov/pacific/sites/default/files/2014%20Annual%20Report.pdf

In terms of overall revenue, the tracks did (see Page 14) $16,083,679, which represents $3.20/person in racing revenues.

While Colorado charges a 3% interest on the Gross Proceeds of Charitable Gambling, (higher than most states) it seems that their publicized reports such as this one:

https://www.colorado.gov/pacific/sites/default/files/February%202016%20Fin.%20Statements.pdf

Do not account for that separately and just lump it in with the other revenues. Unfortunately, the 3% is actually at a higher tax rate than other low-revenue forms of gambling, so the report makes it quite difficult to tell what's what.

Finally, that brings us to Tribal Gaming in the State of Colorado, the State of Colorado has two Indian casinos, but neither of them are required to pay any taxes or to report their revenue to the State. The only rule that the state imposes upon them is that maximum bets (as with state-regulated casinos) are capped at $100. Presumably, all the State cares about is that these casinos do not have an unfair competitive advantage in attracting high-rollers. While quite generous of the State of Colorado, that fact gives us absolutely no opportunity to determine what the revenues of these casinos are.

Connecticut

The State of Connecticut is one of the more restrictive gambling States at this time and has only Charitable Gaming, Lottery and Tribal Gaming.

  • Charitable: 5 Points
  • Lottery: 5 Points
  • Tribal: 10 Points
  • Online: -5
  • Total: 15 Points
  • + Pari-Mutuel* 10 Points

  • Total: 25 Points

This makes Connecticut the second most restrictive state with respect to gambling to Alaska, at least, thus far in the alphabet. As we can see from my page linked above, pursuant to my IANAL understanding of the law, Online Gambling is patently illegal in Connecticut., so the state loses five points as a result.

Of course, the Wikipedia page is, again, WRONG! While Connecticut does not have any live racing of any kind, they have multiple simulcast locations (with a scaling, and high, tax structure just based on monies bet) so we add ten points bringing them up to a Base Score of 25.As a result, Connecticut is now less-restrictive than Alabama.

Unfortunately, it is difficult to determine how much the Simulcasts took in revenue because of this sliding tax scale and the fact that Connecticut only reports how much money goes into the General Fund from this source:

http://www.ct.gov/dcp/lib/dcp/pdf/gaming/stmt2015.pdf

The best we can do is that Connecticut has a report for the Gross Sales of all of these sources (other than Tribal Casinos) through 2011, so we shall use the 2010 numbers in our determination. Racing revenues, of course, have declined substantially in recent years, so these numbers are not ideal, but they're the best we're going to do.

In 2010, the State of Connecticut had total sales of $190,746,664 for Off-Track betting and a population of 3,574,097 for the same year resulting in $53.37/person in Off-Track wagering.

Moving on to the lottery, a revenue source for which sales tend to increase as years go by, Connecticut had $996,846,808 in Lottery Sales in 2010, and as a result, had sales of $278.91/person. Generally speaking, State Lotteries tend to hold roughly 40% of all sales, so we can assume that means Connecticut had actual lottery revenues of about $111.56/person.

Finally, Charitable Gaming came in with $37,948,339 in Gross Sales, but that might actually reflect a lesser amount because Connecticut requires taxes on Bingo, for instance, of 5% after prizes
Written by: Brandon James