Breaking even?
By State Representative Smitty Pignatelli
When we talk about putting slot machines in racetracks, we’re talking about taking a gamble-not only with our spare change, but with our state lottery. Massachusetts has the most successful lottery in the nation. Last year, it brought in approximately $930 million; $661 million of which was directly distributed to the 351 cities and towns in the Commonwealth. The 32 cities and towns that make up Berkshire County received over $18 million. Installing slot machines will help the state’s four failing racetracks. By doing so we take the chance that big casinos may soon follow.
You know what they say: “You got to know when to hold ‘em, know when to fold ‘em." Now is not the time for the government of Massachusetts to turn to gambling to help pay its bills.
I strongly support the idea of uncapping the lottery funds. Currently, some of the $930 million in lottery revenue goes into the state’s general fund even though the original intent of the lottery was to provide direct funding to our cities and towns. Many services seniors depend on are funded in part by the lottery: transportation to and from the doctor’s office, helping seniors maintain their own homes in the face of rising property values (especially in Berkshire County), Meals-on-Wheels, community senior centers, and prescription drug discounts.
In addition, lottery revenue helps to fund such projects as the construction of new schools, staffing our police departments, and providing better equipment for our Departments of Public Works.
Casinos do make money, but at what cost? The State of Delaware has approximately 6,500 video lottery terminals at their racetracks. After the winnings are paid off, purses for the tracks are subsidized, and vendors are paid, the state receives about $200 million a year. Sounds like a pretty good hand, though as with any game, it runs the risk of increased gambling addictions, more violent crime, and the creation of a big hole in the lottery’s pocketbook.
If we argue that reducing restrictions on gambling will bring more money to the Commonwealth, we must also ask ourselves how much of that money will actually benefi t our communities. There are some proposals worth looking into that would generate real revenue. One example would be to give our towns the option of increasing the money they collect from rooms rented in hotels and bed and breakfasts and on meals served in our restaurants. This would be particularly helpful to the Berkshires, which has earned a terrific reputation among tourists worldwide. Another option would be to increase the state’s sales tax by 1 percent, a measure that could generate up to $700 million a year.
As we gradually emerge from years of budget deficits and spending cuts, some say that allowing more gambling in Massachusetts may seem good, economically. Considering that nothing comes without a price, we may end up paying for this “quick-fix” not in dollars, but with the lives and well-being of the poor, the elderly, and the addicted; a gamble I, for one, am not willing to take.
Smitty Pignatelli is State Representative for the Fourth Berkshire District..
