States upping the ante on gambling

March 16, 2010 at 12:00a.m.

Associated Press

DES MOINES, Iowa

Faced with a drop in gambling revenue, states are adding games, considering new casinos and increasing lottery options — anything to keep their cut of the profits rolling in.

States are adamant that they don’t want to take advantage of anyone, but with budgets in free-fall and tax increases a losing hand politically, lawmakers acknowledge they are dependent on gambling dollars.

At least 18 states this year are looking to expand games of chance because of a drop-off of anywhere from 5 percent to 14 percent in the money they collect from casinos, horse racing, lotteries or other gambling.

“Absolutely, we’re addicted to gambling dollars,” said Iowa state Rep. Kraig Paulsen, the House Republican leader and an opponent of plans to expand gambling in Iowa, which already receives about $300 million a year from the industry. “The current budget couldn’t be close to being balanced without that money.”

The idea of luring people to the craps tables when they are being battered by the recession is an awkward one for state governments — a point that has been raised by people who deal with the collateral damage from gambling.

The new blitz “makes gambling more enticing, makes people more curious,” said Doug Billingsley, whose treatment center provides counseling for problem gamblers in Iowa.

In many states, the funds for helping problem gamblers have been cut sharply because of the budget problems.

Some gamblers say they don’t know how they can afford to wager more when they are earning less.