March 29, 2013

Casino tax for gambling addiction prevention falling short

 

By Joanne Huist Smith

Staff Writer

The Ohio Department of Alcohol & Drug Addiction Services’ share of the gross casino revenue tax for prevention and treatment of gambling addictions is falling far short of estimates. With gambling still in it’s infancy in the state, officials say it’s not clear whether the funding will meet the need.

The first Ohio casinos opened in May 2012 in Cleveland and Toledo, followed by the opening of the Columbus facility in October 2012. The state began receiving its quarterly 2 percent allocation of the tax revenue in July, for distribution to the 50 county boards coordinating the public behavioral health system in Ohio.

“Initially we were working with estimates, $15 million, then $8 million, then $5 million. We just keep scaling back,” Stacey Frohnapfel-Hasson, communications chief for the Ohio Department of Alcohol & Addiction Services (ODADAS) said.

The first allocation of the gross casino revenue tax to the state in July totaled $395,205. In October, ODADAS received $788,792 and in January $1,048,352. Because the allocations have been low, the state has made just one distribution to the 50 county boards totalling $710, 235, according to state data.

“It’s hardly anything when you look at the state as a whole,” Frohnaphel-Hasson said. “Quarterly distributions will begin next (fiscal) year.”

Montgomery County’s Alcohol, Drug Addiction and Metal Health Services board received $32,945 in the first quarterly distribution.

“It’s enough to get started. We don’t really know who will need these services, Helen Jones-Kelley, executive director of Montgomery County’s Alcohol, Drug Addiction and Metal Health Services board said.

The Mental Health and Recovery Board of Clark, Greene and Madison Counties received $21,127; Tri-County Board of Recovery and Mental Health Services for Darke, Miami and Shelby counties, $12,613; Mental Health Recovery Services of Warren & Clinton Counties, $15,682 and the Butler County Alcohol and Drug Addiction Services Board, $22,663.
Prevention will be the focal point of the funding.

About 60 percent of the funds must be spent on prevention of problem gambling and 40 percent on treatment. The funds must be used — contracts awarded to providers — by June 3.

“We want people to understand that gambling at a racetrack or a casino can be addictive,” Jones-Kelley said. “We’re likely to see an increase in the number of people with a gambling addiction. It’s a very attractive from of recreation.”

Montgomery County is developing a screening tool to identify and assess gambling issues. Jones-Kelley said ADAMHS currently has providers undergoing state training to treat gambling addictions and she expects a contract will be awarded to provide the service in June. The county also will spend part of its funds on public education, such as web and radio ads and other advertising.
Kevin Taylor, director of financial management for the Mental Health and Recovery Board of Clark, Greene and Madison Counties said they too are working on a public education plan.
“We held a conference call with our providers about screening and treatment,” Taylor said. “We want to implement screening as soon as possible.”

In Butler County, the funding will initially be used to develop a treatment plan and to set up the infrastructure to implement it. John Bohley, executive director of the Butler County Alcohol and Drug Addiction Services Board, said they want to learn who is at high risk for a gambling addiction and understand community attitudes about prevention and treatment.

“We’re not out to demonize gambling by any means. It’s something our population has embraced,” Bohley said. “We’re encouraging professionals in our area to develop competencies to treat gambling addictions. It may be several months before we roll out.”
 

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The first Ohio casinos opened in May 2012 in Cleveland and Toledo, followed by the opening of the Columbus facility in October 2012. Each casino is required to file and remit taxes to the state of Ohio daily. Revenue accumulates in the Casino Tax Revenue Fund; payments are made by the Ohio Department of Taxation on the last day of the month following the end of a calendar quarter. The table shows how the Ohio Casino Tax Revenue Fund is distributed:

5 percent: Gross Casino Revenue Host City Fund
34 percent: Gross Casino Revenue County Student Fund *
51 percent: Gross Casino Revenue County Fund
3 percent: Casino Control Commission Fund - one percent (1%) of the amount deposited into this fund is subsequently transferred to the Casino Tax Administration Fund.
3 percent: Ohio State Racing Commission Fund
2 percent: Law Enforcement Training Fund (Ohio Attorney General’s Office) - eighty-five percent (85%) of the amount deposited is subsequently transferred into the Police Officer Training Academy Fund; and fifteen percent (15%) is transferred into the Criminal Justice Services Casino Tax Revenue Fund
2 percent: Problem Gambling & Addictions Fund (Alcohol and Drug Addictions Services)

http://www.daytondailynews.com/news/news/state-regional/casino-revenue-tax-for-gambling-addition-preventio/nW7Zx/