UPPING THE ANTE: GAMBLING AS A REVENUE SOURCE FOR LOCAL GOVERNMENTS

Among some of the “entrepreneurial” efforts which cities are exploring to raise revenue is legalized gambling. California law permits a local option on the establishment of poker clubs, and in Los Angeles County, five cities now operate clubs which provide anywhere from 10 to 60 percent of their revenue. This paper explores several questions relating to this revenue in these cities, including its stability and growth, and whether the costs of increased crime outweigh the benefit of increased revenue. Data collected over a ten-year period indicate that the revenue results are mixed but that the card clubs do not have any measurable impact on the rate of crime in the community.