Sunday, February 7, 2021

Tony says "legalize pot." He also should legalize something else in Wisconsin

Wasn't expecting this, but I approve. And so does the Lieutenant Governor.
Gov. Tony Evers will propose legalizing recreational marijuana as part of the state budget he introduces this month — a plan that could generate $166 million in revenue that would be used to help fund rural schools and programs for marginalized communities.

The proposal from the Democratic governor is all but certain to be blocked by Republicans who control the state Legislature. But it's possible they will pursue a narrower path and allow the use of marijuana for medical purposes.

Wisconsin is in a minority of states that have not legalized marijuana use in some form despite recent state polling showing more than half surveyed supported the idea. Thirty-six states have medical marijuana programs, including states bordering Wisconsin....

"Legalizing and taxing marijuana in Wisconsin — just like we do already with alcohol — ensures a controlled market and safe product are available for both recreational and medicinal users and can open the door for countless opportunities for us to reinvest in our communities and create a more equitable state," Evers said in a statement.
Seems like a logical move to me. It'll free up police and jail resources to be used for more serious crimes, and/or be able to give relief cash-strapped local budgets because of the need for fewer resources to a pointless battle against weed. And it'll stop wasting human capital where job prospects are held back because of a person's non-violent marijuana arrests.

Plus, Michigan and Illinois already have legalized marijuana for all people over 21, and Minnesota is likely to have it on the ballot in 2022 (if it isn't OK'd before that). So we'd likely lose some business to those states if we don't legalize it.

But there's another activity that's legal in Illinois, Michigan, and Iowa that Wisconsin could take steps toward legalizing this year. And that's sports betting.

A new report from the Wisconsin Policy Forum on tribal gaming in the state helps explain why the door may be open to sports betting. Because the tribes lost a lot of business and revenue in 2020 as COVID kept people away from the casinos.
After five years of steady revenues, the tribal gaming payments that flow into the state’s main fund declined by 81.7% last year, according to recent figures from the state Department of Administration (DOA). Tribal gaming revenue going to the state’s general fund totaled just $5.3 million for the 2020 fiscal year ended on June 30, down from $29.1 million in 2019 (see Figure 1). Overall tribal payments to the state are also being affected. However, these figures may overstate the long-term decline if tribes end up making delayed payments to the state later.

Tribal casinos closed for more than two months last spring during the lockdown period and reopened with reduced capacity and more limited demand. Other segments of tribal casino business including their hotels, restaurants, concerts, and events have also been severely impacted.

DOA recently projected there would not be sufficient payments from tribal casinos to allow for any revenues to the state’s general fund in 2021, despite a projection made before the pandemic that more than $27 million would flow to the fund. In addition, the state could see more modest declines in additional tribal gaming revenues that are allocated for specific purposes such as tourism, conservation, and services for tribal members.

In Wisconsin, only tribes are able to have slots, table games and other casino-type gaming, and they work out compacts with the state that say what type of gaming they can offer, and where. As part of those compacts, the tribes have pay a share of the "net win" (profit) to the state. Some of those state funds go back as aids for specific, tribal-based programs. But then some funds beyond that can be used in the state's General Fund.

Since there was less business in the casinos, the Policy Forum notes that there will be less for those tribal programs and no money to the General Fund for Fiscal year 2020, and likely for FY 2021. In addition, the tribes themselves also are lacking for revenue due to fewer casino visitors, and are facing budget and econmomic issues as a result.
While the 2019-21 state budget allowed agencies to spend up to $30.0 million in gaming revenues in 2020, only $25.2 million was actually spent. This included $6.3 million for tourism, $4.6 million for natural resources, $2.7 million for health services, and $11.6 million for 16 other departments. Specific allocations include tourism marketing, conservation programs, a range of social services, and the revitalization of tribal languages (mouse over the bubbles in Figure 2 for more information). Agencies are authorized to spend up to $29.7 million in 2021 but that likely would require taking money from a source such as the state’s general fund to make up for depressed gaming revenues....

The impact on tribal governments is much greater. Because casino revenues can make up the majority of some tribes’ budgets, substantial shortfalls have led to cuts in services such as health care. Recent federal aid legislation will not necessarily offset all of these losses. Plummeting casino revenues also have wreaked havoc on casino workers and operations with ripple effects for local communities.
What the COVID World illustrated is that relying on in-person casinos for revenue can be problematic when a circumstance arises that keeps people from wanting to come into enclosed spaces. So why not expand the reasons someone might want to visit a casino, and open gaming to something that can be done remotely? Sports betting allows both of these things to happen, with online/remote betting being a common method of wagering in recent years.

(As a side note, Evers has had the approval for a new Beloit casino sitting on his desk since the feds signed off on it last April. COVID lockdowns were at their largest at that time, so it's understandable that no decision was made then.

But there's no reason for Evers not to act on it now, and/or include those provisions in the state budget that will be announced next week. It wouldn't be constructed and open for a while anyway, and you would think COVID will have diminished and/or be gone as a concern by the time that casino will open. SO DO IT, TONY!)

Obviously, an X factor here is the politics of supporting sports betting in Wisconsin. It really doesn't seem to have a Dem vs GOP pattern nationwide (some red and blue states have it, and some red and blue states don't), and I know Wisconsin has a generally anti-gambling lean when it comes to its politics (there are people that still complain about Indian casinos and the lottery). But I think the longer we delay on having sports betting, the more we will lose out to states like Illinois, Michigan, Iowa and other destinations that allow for wagering.

I'd at least bring up the issue if I was running for governor and other state offices in 2022, and the tribes could well go for it, especially given the financial difficulties that they are facing in the COVID World. It could be a winner among a certain type of independent voter that isn't deeply ideological, but they'd sure love to bet Chiefs-Bucs from their couch today. So yes, LEGALIZE IT, run on it, and see what the reaction is!

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