State-Sponsored Gambling Funding Education Expanding gambling could lead to millions of dollars for schools.

Glossary

Exclusive: excluding or restricting to the person, group or area.

Expenditure: amount of money spent.

Federal: a system of government that forms unity, but remains independent.

Fiscal: involving financial matters.

Income Tax: money received from the government.

Legislative: the power to make laws.

How are schools funded?

Schools are funded by the federal government; however the federal government only supplies part of the education funds. According to author Clare McCann, of “School Finance,” from Education Central, states, Local governments generally contribute about 44 percent of the total, and the federal government contributes about 13 percent of all direct expenditures. However, schools do not just get education funds specifically from the government; education funds can come from different sources that are accumulated by the government. “The state governments gather and distribute a significant amount of funding for schools through state sales and income taxes, lotteries, and property taxes,” says Teach-nology, from the article, “How Are Schools." State-sponsored gambling is an example of a source that funds education.

What is state-sponsored gambling?

Gambling is playing any game of chance, for money or other thing of value. The US Legal website of “Gambling Law and” states, “Gambling is accepting, recording, or registering bets, or carrying on a policy game … Title 18, U.S.C., Sec. 1955, makes it a federal crime or offense for anyone to conduct an ‘illegal gambling business.’” Gambling is legal only when the casino and player pays taxes. Amy Brown, author of “State-Sponsored Gambling” from The Prindle Post, notes that, exclusive gambling is illegal; gambling is legal if and only if both the casino and player pays taxes. State sponsored gambling have all considered having funds for different public services. For an example sponsored gambling have funds for education.

If casinos fund education, do schools still get the general funds for education?

Casinos that fund education replace the general funds for education. According to Len Lazarick, author of, “Despite Campaign Promises,” from Maryland Reporter, states, “while expansion of gambling has raised more money overall both for casinos and the education fund, the money in the Education Trust Fund has replaced (not added to) general fund revenues normally spent on schools.” Rather than replacing the general education fund, the government cuts down the funds. Ben Giles, author of, “Extra Gambling Money,” from Washington Examiner, states, “Money put in the Education Trust Fund will increase $174.5 million from gambling profits by fiscal… but at the same time, they project the state to reduce the amount of money from the general education fund used on education.” Most of the gambling money is put towards education funds.

How much of a casino's profit funds education?

More than half of the money that casinos make go towards education funds. According to the article, “How Lottery Funds,” from Oregon Lottery, states, “Public education - 57% of lottery dollars are distributed into four different areas within education: the Education Stability Fund, the State School Fund, colleges and universities and bonds.” The money that is distributed is used to improve any school equipment. According to, Iowa Gaming Association, the article, “How Much of,” states, $5 million of gaming tax revenue is earmarked annually for the school infrastructure fund, which provides grants to fix up aging school facilities. In some cases money that is given to schools are not even used toward school purposes. State-sponsored gambling may cause state revenues to increase if casinos start to expand.

Will state-sponsored gambling benefit the economy's future?

State-sponsored gambling has caused the state revenues to increase. According to Steven G. Koven and Thomas S. Lyons authors of, “Economic Development: Strategies,” from the Rockefeller Institute, noted that state revenue from gaming has risen steadily from 1998 to 2007 and totaled $23.3 billion in fiscal 2007. However, there has been an increase in gaming, it absorbs a lot of time and resources from those who gamble. Roger Dunstan, author of, “Economic Impacts of,” from California Research Bureau, states, “Proponents of the view that gambling is harmful use a quote of Nobel Laureate Paul Samuelson. ‘Gambling involves simply sterile transfers of money or goods between individuals, creating no new money or goods. Although it creates no output, gambling does nevertheless absorb time and resources.’” If gaming equipment continue to increase and evolve, then gambling may benefit the economy. Gambling may be one of the main education fund sources; however, it may take over people's time and money if it expands.

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