While the Lottery officials deny that slots had any effect on lottery sales. But the $458 million in gambling losses on slots (revenue reports here), and the 55% tax on those losses had to come from somewhere. Whether it be out-of-state gamblers or PA gamblers staying home instead of going to Atlantic City, the Lottery, or personal savings, there must be some shifting of individuals’ behavior to account for the new gambling money. I speculate that slots gambling will take away from other forms of entertainment, and movie ticket sales, sporting events, and show (as well as the lottery) will suffer.
Incidently, compare the payouts on slots vs. the payouts on the Lottery. Almost 91% of slots revenue goes to payouts – but only 59% of lottery sales do. Whether you love or hate gambling, you have to see that the lottery is about the worst bet around.