The big bucks that come with big gaming are more important than ever to West Virginia’s economy, as the Mountain State now ranks second only to Nevada in the percentage of its budget that comes from gambling revenues.
West Virginia’s share of the budget generated by gambling also grew more than any other state, including Nevada, from 1998 to 2006, according to a report from the Rockefeller Institute of Government and reported on by the Associated Press.
“West Virginia’s budget reliance on gambling dollars grew by 6.4 percent between 1998 and 2006, the most of any state,” the AP reported. “Rhode Island had the next-largest growth, at 3.3 percent.”
The report based its number on the amount of funding brought in from the traditional lottery, as well as nearly 20,000 video lottery machines in the state. Figures were reported before the 2007 introduction of table gaming at two of West Virginia’s racetracks.
Bottom line: Gambling dollars totaled close to 9 percent of the Mountain State’s general budget in 2006.
Obviously, there’s a lot of dough to be made in scratch-off tickets, at racetrack slots and through video gaming. Consider that Nevada — the mecca of gaming — brought in 13.4 percent of its general revenue budget from gaming, the only state to rank higher than West Virginia.
Looking at these figures, we now have to wonder how West Virginia managed financially without a lottery.
And we question if that money was taken out of the state’s general fund, where it could be recouped? It’s difficult to imagine West Virginians — struggling with exorbitant gasoline prices and other high costs, like others across the U.S. — footing the bill.
When the Mountain State legalized the lottery in the 1980s, officials banked on the fact that gaming would bring in much needed funds to the treasury.
Thus far the fates of the dice have smiled favorably, bringing in billions of dollars of funding since the first lottery ticket was sold on Jan. 9, 1986.
It’s a sad reality and commentary on our culture — and perhaps our future.
We urge officials to resist the temptation to become addicted to gaming dollars. The Rockefeller Institute report showed half of the states with gaming showed a drop in the share of their budgets that came from gambling dollars, including Nevada, which had a 2.4 percent decline.
“From a fiscal perspective, state-sponsored gambling now resembles a blue-chip stock reliably generating large amounts of cash, but no longer promising dramatic growth in revenue,” the report stated.
While there is no doubt gaming in West Virginia is contributing a substantial chunk to the state budget, leaders must be wary of putting too many eggs in one economic revenue basket.
Obviously, gambling has paid off financially for West Virginia. But we must heed caution and remember that revenue streams can dry up quickly.
Especially those that feed on a temptation to get rich quick.
Editorials
June 20, 2008
Temptation — Gambling on revenue stream addictive
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