Categories: News & Updates

Ohio’s Fiscal Deficit Cannot Be Filled by Gambling Revenues: Thomas Suddes

Buckeye State’s public schools were to be funded by the Ohio Lottery, correct? False. However, that myth—which talk-show yowlers occasionally bring up—illustrates why the General Assembly’s current proposals to increase gaming in order to replace significant portions of Ohio’s income and property taxes are nothing more than soapbox hype.

The original 1973 amendment did not require lottery proceeds to assist K–12 schools, but in 1987, Ohio voters enacted a constitutional amendment that did. Approximately 11.5 cents of every dollar the state spends on K–12 education today comes from such revenues.

Therefore, about $1.5 billion in Ohio Lottery revenues will be distributed to Ohio K–12 schools for the year starting on July 1.

Ohio is expected to earn $13.9 billion in state sales taxes this fiscal year. $10 billion is the estimated amount of state income tax revenue. And the $19.5 billion that owners of residential and commercial real estate spent statewide in 2022 (more than 60% for public schools).

Oh, and 98% of the $937 million in projected Ohio Sports Gaming Receipts Tax income in 2023 will go toward supporting extracurricular activities and interscholastic athletics.

According to the American Gaming Association, Pennsylvania earns a nearly national-record $3.6 billion in gaming taxes for the province and cities, compared to Ohio’s $937 million total.

Although that is a significant sum of money, it only represents 8 cents for every $1 of Ohio’s General Revenue Fund, which is the largest source of state funding.

Apologies, barkers of the Corn Belt: It’s time to sell snake oil of a different vintage. The most secure wager is that gaming revenues would not eliminate significant Ohio taxes. In addition, Statehouse spending continues to increase following nearly 30 years of GOP control.

Courtesy: https://igamingexpert.com/, https://www.igbnorthamerica.com/, https://gamingamerica.com/news/

tech@triplew.in