1	Gaming Trends
2	Where do we stand? The current rash of state budget deficits has created significant interest in gaming Pennsylvania: $500-2,000 million Maryland: $1.2 billion Texas: $9.9 billion Michigan: $1.6 billion Ohio: $2 billion Florida: $2 billion California: $34.6 million Nebraska: $337-449 million New York: $11.5 billion Sources: Center on Budget & Policy Priorities; Fool.com; National Association of State Budget Officers
3	Where do we stand? Budget deficits This is not “news” These deficits have existed for a number of years and there has been little success in the new implementation of gaming
4	Where do we stand? Successes New York – VLT’s at tracks Oklahoma – VLT’s at tracks Arizona – Native American compacts Delays Maryland – 2 legislative sessions Pennsylvania – 2 legislative sessions Michigan – multi year compact delay Florida – perennial delay Ohio – 2 legislative sessions In the works Texas California Nebraska
5	Where do we stand? A clear message on the benefits of gaming is not going out The problem, to a certain extent is The focus is and has been almost exclusively on gaming tax revenues to the state This has led to exorbitant tax rates being considered by states And now, after Illinois, significant up-front payments are being considered
6	What do we need to do? The positive impacts of the implementation of gaming must be presented in a comprehensive manner to broaden the base of support.
7	Positive Impacts of Gaming Industry In addition to gaming tax revenues, the implementation of non-gaming activities positively impacts Job creation Tourism Local spending and purchases Other state revenue Economic redevelopment Support for charities and civic activities Local government revenues Reduction of demand for social service support The construction industry Minority communities And if implemented, in the form of racinos The racing industry
8	Positive Impacts: Job Creation Gaming industry is labor intensive Usually 600 persons per 1,000 positions Higher paying jobs with good benefits Career ladders There is a multiplier effect of almost 0.8 other jobs for each gaming job created
9	Positive Impacts: Construction Industry The gaming industry is construction intensive Often the largest construction project in a community for that year Employees all members of construction trade Generates one job for every $75,000 of construction cost
10	Positive Impacts: Local Spending and Purchases The casino industry buys significant goods and services For every $100 million in gaming revenue, $15 million of goods and services are purchased On average, 85% of the purchases are made in the local community Purchases often support small and minority businesses
11	Positive Impacts: Other State Revenues The gaming industry provides more than gaming tax revenues to state governments Income tax revenues Corporate Personal Sales tax revenues Inventory taxes Franchise taxes
12	Positive Impacts: Local Government Revenues The gaming industry is often the largest contributor of local tax revenues Ad valorem taxes Sales taxes Hotel taxes Local income taxes (as appropriate)
13	Positive Impacts: Reduction of Demand for Government Services Reduction of welfare rolls & A.F.D.C. Medical insurance benefits reduce public health care costs Unemployment costs are reduced
14	Positive Impacts: Economic Redevelopment The gaming industry has been a catalyst for economic redevelopment New hotels New tourist related facilities Infrastructure improvements
15	Positive Impacts: Minority Communities The gaming industry actively supports minority communities DBE purchasing plans Minority hiring plans
16	Positive Impacts: Charitable & Civic Contributions The gaming industry supports the communities within which it operates Creation of dedicated funding Creation of foundations
17	Message: There is more to us than gaming tax revenue It is the responsibility of all industry segments to join forces and present this information to our legislators and business leaders in a factual and accurate manner.