Ohio casino revenue may be less than projected

Gov. John Kasich's budget proposal suggests that revenue from Ohio's four voter-approved casinos could be about half of what officials had predicted years ago.
Associated Press
Feb 5, 2013

 

The (Cleveland) Plain Dealer (http://bit.ly/XkX5gy ) reports that state officials estimated four years ago that the casinos could take in as much as $1.9 billion a year after all were in operation.

But Kasich's budget proposal issued Tuesday projects that gross casino revenue will be $957.7 million for the fiscal year beginning July 1. It could rise to just over $1 billion in the following fiscal year.

The figure is significant because smaller revenues mean fewer tax dollars for the state.

Officials say the lower estimate takes into account competition from racinos and lower-than-expected revenues at the three casinos already operating.

 

Comments

luvblues2

BULL FREAKIN' S*@T!!

Perkins2060

Day late and a dollar short!

Truth or Fiction

I thought gambling in Ohio was going to be the save all solution! Jobs - Money - Let the Good Times roll! Why is it that government always estimates the cost too low and the revenue too high?

luvblues2

Another "piss on my leg and tell me it's raining" story. Not any different than the lottery.

ladydye_5

Who has money to go to the casinos? The restruants cost a fortune, let alone buying a drink....and that doesn't even cover actually gambling. Heck sometimes you even need to pay for parking! I live 20 minutes away from the Toledo casino and haven't been there yet. Do not forsee going anytime soon either. The $Xxx.xx I would "burn" at the casino is grocery money, gas money, prescription money, dr bill money. MOst of us do not have money to burn!

dire wolf

1 Billion dollars in Revenue is still nothing to sneeze at. That tax revenue compared with what was ZERO computes quite favorably to the state. Give it time, it's only been one year and it's going to get much higher as time goes by. It might be much higher if every politician and other various partners didn't have their hand in the cookie jar getting their cut under the table.

luvblues2

Yeah...at the expense of some gambling addict's family and eventually the taxpayers to put them in re-hab.

arnmcrmn

its called personal control. why do we have people that want to ban everything because a small % of people abuse it.

The Hero Zone's picture
The Hero Zone

I believe I read that California had the same problem with its investment in Facebook stock in whatever tax or retirement programs it was supposed to support. It was supposed to be a magic bullet that made everything better then fell short. Variable income like this should be more of a budgetary frosting on the cake instead of a heavily relied-upon income stream in my opinion.

Contango

CA was expecting tax revenue.

(FB)? Too much hype leading up to the IPO. IMO, the business model is a dead end.

I bought (ZNGA), made a few hundred and then dumped it in about one wk.

The Hero Zone's picture
The Hero Zone

That was very wise of you, while my investing licence I believe has expired a few years after my career shift, when I heard that both Facebook and Zynga were going public I would happily have given advice to get out quickly if you even got in at all.

looking around

LOL tighten up the slots and add another deck to the shoe!

looking around

double post

OSUBuckeye59

Realized casino revenues being much less than originally projected is nothing new. The companies pitching casinos to States' always first tout the jobs created both in building and then running the casinos, then go for the emotional play when they cue up the violins and show happy faced schoolchildren, all the while hawking the increased tax revenues the State will be able to pour into school funding. It's all PR. The old adage of "The House always wins" is true when it comes to gambling, but it also holds true for the Casino owners. In searching online for over 30 minutes, I have yet to find a story of any state ever realizing even 40% of the original casino tax revenue projections.


I live in Oregon, where the few casinos we have are all owned by Native American tribes. This past November a Canadian-based trust had an initiative on the ballot, hoping Oregon voters would approve the first non-Native American casino in Oregon. The trust pitched the casino named "The Grange", and flooded the airwaves with family-oriented commercials talking about all the jobs that would be created, then finished out the commercials with happy, smiling schoolchildren as they pitched all the funds that would pour into the schools. As these ads were rolling day after day, multiple former Oregon Governors plus the current, standing Governor all came out in total opposition to "The Grange". And the competing Casino-owned Native American tribes actually banded together to fund television ads vehemently opposing "The Grunge", as they coined the name. In mid-October, will multiple Oregon-based polls showing better than 75% voter opposition to the new Casino, the Canadian company stopped the TV ads, realizing they were simply throwing good money after bad.


Casinos are a pox on the public.

iamrevolutionary

They would make more $$$ if they had smoking areas like all the surrounding states' casinos do. "Bet " on it!

Contango

Brick and mortar is old school.

Time to jump on the Internet gambling bandwagon like NV and NJ.

Lose more money faster than you ever thought possible.

http://philadelphia.cbslocal.com...

arnmcrmn

Who cares if it fell a bit short. A lot of JOBS were added in Ohio....isn't that what everyone has been crying about. I didn't know their shortfall hurt each and every poster on this site? Did your money pay for the building of these casinos? Are you running them?

Ive been to the Horseshoe casino in Cleveland and let me tell ya, the clientele was shocking. Spent over an hour in the high limit room and watched so many broke as heck looking people come in and out of there spending what little money they had. Sad.

Contango

Not against gaming, but economically it merely redistributes capital and adds nothing to long-term economic growth - zero sum game.

Buy gaming stocks instead. Made a few bucks on Shufflemaster years ago.

dire wolf

to the people claiming the casinos are bad because it ruins the lives of the gambling addicts and their families, you must also be saying that all bars should be closed because it adds to the alcoholism of the millions of people whose lives are ruined because of their drinking habits, which are millions of more people than the gaming addicts. I could go on and on with more examples if you want.

luvblues2

Please do. It won't be anything most will pay attention to, though. You must've been one of those who voted casinos in? We all know how alcohol and drugs ruin families and cost taxpayers money. Now we have to deal with another evil as well. Good luck at the table dw.

dire wolf

i don't gamble much and when i do it's only a couple hundred dollars on the line, when i can afford the hit should it happen. I also learned the game inside and out,(i.e. counting cards in my head) before even sitting down at a table. I did vote for the casinos because as you can see, it has really brought in extra tax revenue to the state of ohio for a state that is in a major financial crisis. Luckily nobody is forced to live that 'evil' life, and minors are not afforded the opportunity if they do desire it. I also stay away from the drugs and alcohol bait that is begging me. It's only evil if you take the bait.

luvblues2

No addict ever set out to be one.

dire wolf

i couldn't agree more. well spoken.

Contango

IMO, personal responsibility.

Life may have given you a gun, but you decide whether or not to put in the bullets.

whocares

The average tax payer could have told the state government this years ago.

Football Fan 44089

The problem with 4 casinos (eventually; I don't think Cincinnati's opens until March) is that they're going to cannibalize each other's revenues. This is Ohio, not Las Vegas, Nevada. In addition to that, there are also racinos as well: Scioto Downs, around 10 miles south of downtown Columbus.

arnmcrmn

luvblues must not realize the amount of money ohio makes off of booze. yeah, lets cut off a huge state revenue maker, and also hundreds of thousands of jobs that go along with it as well. While we are at it, take away cell phones, TV's, computers and video games......all of which have the potential to become addicting. Then we will be left with no money, and hopefully 4 walls to stare at while we twiddle our thumbs and sing to ourselves.

Its called personal control and responsibility. Id be willing to bet there are a ton more responsible gamblers and drinkers out there than ones with an addiction. Everyone has an excuse and wants to blame everything else but themselves. Welcome to America 2013.