Question of the Month
July
2003
Which states in the
Midwest allow casino gaming at racetracks?
Answer: Iowa is the only
state in the Midwest that currently permits casino gaming at
racetracks. And while a number of U.S. states permit casino gaming, as
of 2002, only six other states nationwide (Delaware, Louisiana, New
Mexico, New York, Rhode Island and West Virginia) have introduced
forms of casino gambling — such as slots, video gaming or video
lottery terminals — to their pari-mutuel industries.
According to the American Gaming
Association, in 2001, racetrack casinos raised $2.1 billion in
revenue, $578 million of which went to state and local government, and
the racetrack casino industry employed approximately 8,000 people in
the same year. In that year, Iowa’s racetrack casino industry
employed about 2,600 people and generated nearly $94 million for state
and local government.
Recently, proposals to allow forms of
electronic gaming at racetracks have been considered in several
Midwestern states. A much talked-about, though ultimately
unsuccessful, bill in the Ohio Legislature called for
voters to decide on the November ballot whether to allow video lottery
terminals at the state’s seven racetracks. Proponents wanted to help
the state’s horse racing industry, which has been struggling to
compete with neighboring states, and to help fill the state’s budget
shortfall. Introducing video lottery terminals to Ohio’s horse
tracks was expected to generate $1.3 billion annually, of which up to
$500 million could go to the state.
Also in the Midwest, Kansas,
Michigan and Minnesota have seen recent
legislative action on the issue of instituting gaming at their
racetracks. This session, several bills had been introduced in the
Kansas Legislature to allow electronic gaming machines at racetracks.
One of the measures was passed by the House, only to be voted down in
the Senate. The other measures did not receive full floor action prior
to the Legislature’s adjournment this spring. Similarly, the
Minnesota Legislature adjourned in May without passing a proposal to
allow casino gaming at racetracks in that state. Currently, the
Michigan Legislature has several bills in consideration to allow video
lottery terminals at the state’s racetracks, but none had passed as
of mid-June.
For
more information on this or any other public policy issue, please call
630-925-1922 or complete the online
form for research services.
Return
to Question of the Month
For more information, contact:
CSG Midwest
