Are slot machines at racetracks a stable form of revenue?
Nationwide, in the 15 states in which racetracks operate slot machines, racetrack slot revenues doubled over the past ten years. In 2008, while the recession was taking full effect, racetrack slot machine revenues increased by 16 percent. In 2009, as the recession worsened, racetrack slot machine revenues increased by another 5 percent, though a handful of tracks saw a decline. Tax payments to states and other jurisdictions increased proportionately during the same period. If racetrack slot machines were authorized in Texas, it is possible that revenues from slots would be affected by future economic downturns. But the same is true for sales taxes, liquor taxes, hotel-motel taxes and other taxes levied by the state.
