Sucking The Life Out Of The Golden Calf

   If anyone needs an example of how government can ruin anything, just by being involved in it, take a look at the state of Delaware and what it has done to the gambling industry.

  The state of Delaware has been relying on revenue from gambling now for many years. First it was the lottery, we were told that it would solve many of the problems faced by our education system and that much of the money would also go to help seniors.

  Well as you can assume it wasn’t enough, so we had to up the bet, and so we instituted slots betting. Again we were told that the revenue from this and the lottery would be the magic bullet that would solve the state’s budget short falls.

 So that brings us to last years push to put into place sports betting. Gov. Markell and those who supported sports betting told us that if we just did this one more thing that we would reap the benefits .  They even based our budget, a balanced budget I might add, on the projected revenues of sports betting. Of course those projections were based on multi-sorts , sports betting and as we all knew and now know the state was not allowed under the law to do multi-sports betting. So all we have are bets on the NFL, this has caused the projections to be much higher than the actual revenues. In fact Dover Downs and Harrington Raceway are both saying that sports betting is barely breaking even.

  This brings me to the main point of this post. The two racinos, Harrington and Dover are reporting falling profits that they attribute to the fact that sports betting has been less than successful, but also to the fact that the state is taking a larger share of those profits.

 Harrington Raceway & Casino has cut its dividend for the first time since it started offering slots betting back in 1996. Dover Downs is reporting a fifty percent drop in profits from last year. Both locations are blaming these losses on the state taking a greater share of the profits.

  So this demonstrates how, when government is involved and continues to raise taxes, and be clear that is exactly what is happening, that they will eventually suck the life out of whatever it is that they are taxing. Be it an industry or an individual. The only thing that can stop this from happening is to cut spending.

 A government cannot tax its way out of debt, it matters not whether it be a local government, a state government, or the federal government. The more the government takes from the individual or an industry the less there is to take. Every time you increase a tax you discourage people and industries from growing, after all why grow if the government will just step in and take more of your profits.

 Here in Delaware, as in many states and also the nation as a whole, we don’t have a revenue problem, but a spending problem. If we would lower taxes and cut spending we would see tax revenues increase from the increase in the amount of spending that the citizens would do. Also industry and business would have more money to invest in new projects which would spur employment.

  Currently we do not have a governor or a legislature that believes in the free market or in lower taxes as a way to increase revenue. What we do have is governor and a legislature that believes that by constantly increasing the amount of options for the people to gamble away their money, and to continue to increase the amount the state takes from these activities, that they can continue to spend out our tax dollars on their pet projects  and their discretionary funds.

 Now that we are seeing that sports betting is not the end all that it was sold to be, what next ? Well of course from the governor we will now hear that we must go the next step and implement table gambling, which I believe was the intention all along. This too will fail, due to the fact that there are only so many gambling dollars and the state will continue to increase the amount that it takes which will cause the gambling industry to be less and less profitable for the private side of it. At some point the private companies that run the gambling for the state will decide it is no longer in their interest to be involved.

 So as always it is up to us the people, the citizens , the voters to arrest this behavior. We must as a state , say enough. We must find and vote for leaders who will find ways to make real and long-lasting cuts in spending and taxes. Until the people as voters do this, then the government will continue down this path of ruin of taxing and spending.

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