This is a great policy brief that explains how gaming revenue actually increases Government Spending.  In the long run, it also increases property tax rates as well, making Pennsylvania less competitive and a more expensive place to live.

via the Allegheny Institute.

Has the availability of gaming money weakened the resolve of officials to make the hard spending choices that should be made? For example, it’s difficult to sit across the negotiating table with public sector unions and demand concessions when they know additional revenue from gaming taxes is expected. We’ve seen this time and again with the transit unions who have stood firm in their demands knowing the Governor would, and of course did, ride to their rescue with more money. As a result labor costs, the largest component of the budget, keep climbing.

While some may argue that gaming money has kept taxes from rising as much as they would have otherwise and is therefore a benefit, it is just as logical to argue that a consequence of gaming dollars is more government spending, which, in recessionary times becomes extremely difficult to maintain. If gaming funds had been used exclusively to actually cut taxes as opposed to filling budget holes or raising expenditures, it would be a different matter. Gaming money has by and large enabled governments to increase spending or put off making needed cuts.

Read the entire article here.