Gambling Lobbyists Throw Their Weight Around--But Lose on LB 1102

People who watched the LB 1102 debate on historic racing machines witnessed a lively debate. What was going on in the lobby outside of the legislative chamber was arguably even more dynamic. There were about six or seven lobbyists for the horse racing industry working the bill, including three of the most powerful in Nebraska. 
 

At one point in the debate, senators opposing the bill realized several of the bill’s supporters were at a meeting being held off-site.  The absences meant that supporters were short of the 25 votes needed to advance the bill.  In an attempt to take advantage of this situation, LB 1102 opponents decided to end the filibuster by withdrawing amendments to the bill – thus forcing a vote. 
 

When the lobbyists caught wind of what was happening, they were able to get several senators who supported the bill back to the legislative chamber, thwarting the attempt. Tensions increased when LB 1102 proponents tried to end the filibuster. 
 

Requiring 33 votes, they needed every vote they could get.  One senator who felt ill and wanted to leave was apparently told by lobbyists he needed to stay.  The lobbyists summoned another senator, who was home sick in bed, back to the Capitol.  A car was sent to pick up the senator.
 

The vote to end the filibuster on LB 1102 failed by only three. The pro-video gambling lobbyists were able to pull several senators who were either undecided or leaning against LB 1102 onto their side.  If there had been a vote to advance LB 1102, I would not have been surprised to see 25-28 votes for the bill.  If that were the case, the bill would have had to overcome a possible veto by Gov. Heineman. 
 

Nonetheless, it reveals a problem with attitudes about governmental endorsement of gambling.  Legislators buy the argument that gambling is a legitimate source of tax revenue or of economic expansion.  The problem is that when you run the numbers, it never really works that way.  Studies consistently show that legalizing gambling costs taxpayers at least three dollars in social costs for every one dollar received as tax revenue. 
 

From just a public policy perspective, betting on gambling revenues is a losing proposition.  I’m concerned that we are creating a scavenger economy that relies more on the milking of existing wealth rather than the creation of new wealth.