Introduction of Racinos Disrupt Ohio’s Gambling Market
The legalization of casinos had everyone expecting an increase in new jobs in Ohio. Gambling taxes were also expected to see an increase. It seems as though all of the expectations and promises have fallen through. Casino operators in Ohio blame the racinos for the fall in the game. Racinos are video slots that were introduced into seven racetracks in the year 2011. The racinos have brought gambling competition to the casino market since their inception.
How did racinos affect Ohio’s gambling market?
The racinos were introduced by Gov. John Kasich. The kind of competition it would bring up was unforeseen.
Racinos employ fewer workers as compared to casinos that use traditional table games such as Black Jack. This means that employment has not risen as expected in the gambling market.
In 2009, the casino taxes were predicted at $650 million. In reality, the annual casino taxes that were actually generated amounted to $270 million. Nothing close to what was expected.
In 2009, more than 8000 new jobs were predicted in the casino industry, however, the introduction of racinos did not allow the predictions to go as expected.
When it comes to generating income from racinos, the 2009 predictions called for a cut of 450 million in a year for Ohio. The reality is quite different. Ohio gets just about $350 million from racinos every year.
The casino versus racino competition is still heavy in the gambling market and is quite apparent in Greater Cincinnati. A number of casinos even had to shed a large number of their employees due to reduced business. This is quite the opposite of what was expected. In addition, the reduced taxes are affecting the beneficiaries as well. This includes the Department of Education.
Until 2013, the revenue generated by the gambling market mostly went into school districts and counties. The remaining amount went into host cities, the Ohio State Racing Commission, and the Casino Control Commission.
While the gambling market has proved to be beneficial in many ways, gambling addiction has become quite a severe problem. Reports state that one in every hundred Ohio residents have a gambling problem.
Before casinos and racinos became popular in Ohio, it was estimated that less than one in two hundred residents had a gambling problem.
Even so, reports say that the gambling problem in Ohio is far less than the gambling addictions across the United States as a whole.