October 1st, 2004
Gambling interests try to pull a fast one on voters
Claims that I-892 is revenue neutral not supported by facts. Total revenues projected in dispute.
Contact: Steve Zemke
206-366-0811
Seattle, WA—Initiative 892 is a huge expansion of gambling in Washington State. It would add up to 18,225 new slot machines in over 2000 locations across Washington State. It is an attempt by out of state and foreign gambling interests to expand their operations in our state. A net outflow of money from our state will go into the corporate profits of out of state organized gambling interests.
In a recently released study on the fiscal impacts of Initiative 892, the Washington State Office of Financial Management noted that I-892 would reduce revenues coming in from the Washington State Lottery by 25%. This would result in a projected loss of $19.3 million in 2005 -2007 and some $60 million in 2007 -2009 that would otherwise go into the state school construction fund.
The report also projects a loss of $7.5 million in 2007 and some $8.4 million in 2008 -2009 from local gambling tax revenues. The tax on slot machines imposed by I-892 would not go to local government.
Eyman claims, with no study to back him up, that the tax on slot machines would raise $400 million. The state projects only $260 million. If I read their methodology correct they assume a 75% return of prizes to slot machine players. Yet the national average goes as high as 95% return to players. One can see the logic in this. Too small of a return to players means that on the average Eyman uses of 75% to calculate the net win that the cumulative “winnings” of repeat slot machine users would represent a cumulative 25% loss over time. A much higher win ratio is needed to create the illusion that you can actually “win” something.
In addition the state study does not discuss the losses due to problem addictive gambling, both personally and to our society. This includes loss of tax dollars spent dealing with social problems associated with gambling. One study estimated that as much as $70 million a year is now spent with tax dollars to take care of gambling problems in Washington state. Adding over 18,000 new slot machines in every neighborhood across the state will only make access to gambling easier for addictive gamblers and increase the costs to our society and further drain tax dollars from other needs.
It all starts adding up quickly to a question of what are we losing. I-892 is not revenue neutral but comes with many costs. I-892 is not something to gamble with. Voters need to vote No! on November 2nd.
You can see the actual study results at
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