Wednesday, August 26, 2009

Keno revenue comes up short

I saw coverage of this in various news outlets over the last couple of weeks, but nothing locally. I may have missed it, but just in case....

The Ohio Lottery reported that year-end figures for the new Keno game were significantly short of projections. They were budgeted at $73 million for the year which ended July 31. Total collections, however, were only $30 million - 41% of the estimated amount.

From The Columbus Dispatch, which questions the results in relation to the new video slot machines:

"The video-slots plan will raise $933 million for the current two-year budget, the governor predicts.

About half -- $455 million -- will come from license fees paid by racetracks that install slot machines. The rest, $478 million, is the state's projected share of revenue generated by the slots.

How likely is Ohio to see $478 million? Amanda Wurst, Strickland's spokeswoman, says the governor's slots estimate takes into account the slumping economy. But if the same thing happens to slots revenue that happened with Keno, then slots will generate just $196 million for Ohio, leaving a $282 million hole in the state's 2010-2011 budget.

And even this is contingent on the state winning a lawsuit challenging its right to authorize slot machines without a statewide vote."

This shows that, even with gambling revenue, nothing is guaranteed. So what's next?

The Keno revenue was counted upon to avoid deep cuts in education funding. Now that it's not even half of projections, what decisions will the state have to make regarding education disbursements? Will there end up being cuts to local school systems?

Considering that we will be electing school board members this November, I'd be interested in hearing their thoughts on this on the campaign trail.

And we also have Issue 3 on the ballot in Ohio which would allow casinos in certain cities. Will the lack of projected revenue from Keno have an impact on that vote?

stay tuned....

2 comments:

Tim Higgins said...

Maggie,

The only thing that can be counted on in discussions on gambling is that those who claim to be "winners" will exaggerate the amount of any winnings.

The only thing that can counted on in discussion of revenues and costs by politicians is likewise that exaggeration favorable to their preconceived position will be the rule rather than the exception.

The only thing that can be counted on in discussions of education is that more money is required for improvement of the process.

As a consequence, these numbers can be of little surprise to any but those who believe that they can beat the house odds.

Hooda Thunkit (Dave Zawodny) said...

Maggie,

”The Ohio Lottery reported that year-end figures for the new Keno game were significantly short of projections. They were budgeted at $73 million for the year which ended July 31. Total collections, however, were only $30 million - 41% of the estimated amount.

Budgeted??? How does one “budget” on gambling revenue? Seems like someone was gambling with the budget...



”The Keno revenue was counted upon to avoid deep cuts in education funding. Now that it's not even half of projections, what decisions will the state have to make regarding education disbursements? Will there end up being cuts to local school systems?

If the so-called “budgeted” gambling receipts (or would they be non receipts?) were earmarked for education, then the simple answer is that the promised/predicted educational funds will surely be cut...



”And we also have Issue 3 on the ballot in Ohio which would allow casinos only in certain cities. Will the lack of projected revenue from Keno have an impact on that vote?”

One could reasonably assume/predict that it should impact the Issue 3 vote, but that flies in the face of the logic of the facts. Politicians and “We the Sheeple” though, are rarely influenced by the facts. . .


Those politicos whom seem to have trouble realistically predicting the "income" of any gambling enterprise seem to have little trouble predicting our stupidity
and gambling on us putting them back in office, which we always seem to do.

That said then, is it really gambling on their part?

Of that I have little doubt. . .

[Note: The emphasis and the emphasized, added “and” are mine.]

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