In short, the revenue returns deteriorate-and often quickly. However, history shows that in the long-run the growth in state revenues from gambling activities slows or even reverses and declines. In the short-run, states indeed do raise additional revenues due to expansion of gambling activities and facilities. States are particularly likely to expand gambling in the aftermath of recessions and subsequent economic downturns in the hopes of raising more revenues. Many states have been authorizing and expanding additional forms of gambling and finding ways to raise revenues from those activities.

Gambling has become very popular as a way for states to raise revenue. State Revenues From Gambling Short-Term Relief, Long-Term Disappointment Introduction