Economic Impact of the Gaming Industry

Florida’s three primary gambling sectors – pari-mutuel, lottery, and Indian casinos – have been viewed as a means of increasing state revenue and funding community development projects. The continued economic effects of the ongoing COVID-19 pandemic and ensuing recession have left legislative officials to determine how to bring sports gambling into the fold and properly tax new revenue streams.

A bill proposed by Florida State Senator Jeff Brandes would collectively legalize statewide mobile sports betting. The online news outlet Space Coast Daily recently published an article detailing that, if passed, Senator Brandes’s proposed legislation would legalize placing wagers on both professional and collegiate sports, taxing all winnings at a rate of 15 percent.

Earlier this month, REMI provided a webinar presentation, “The Future of Sports Betting,” that used our Tax-PI model to analyze the economic effects of sports gambling in states that have already established some version of sports betting, evaluate a scenario of a new state adopting a similar policy, and demonstrate how to assess the corresponding tax revenue impacts.

Our upcoming REMI discussion, “Economic Outlook: Florida,” analyzes the trajectory of Florida’s economy and evaluates the short- and long-term economic outlook for the state by using our Policy Insight model.

Click here to find the Space Coast Daily article on Florida’s sports betting prospects.

Please use the links below to view the complete proposed legislation on sports betting in Florida:

SB 392: Sports Wagering

SB 394: Taxes

SB 396: Fees/Sports Wagering

Feel free to review the presentation slides and a recording of our “The Future of Sports Betting” discussion by clicking here.

You can also find more information about our REMI Economic Outlook Webinar Series by clicking here.

REMI March Economic Forecast Update Now Available

We have uploaded the most recent GDP economic forecast update to our website for all of our clients to download and install into their respective models.

This update of the national forecast is based on the 2019-2020 historical data from BEA released on January 28, 2021, The U.S. Economic Outlook for 2020-2022 from the University of Michigan’s Research Seminar in Quantitative Economics (RSQE) released on February 19, 2021, and The Budget and Economic Outlook: 2021 to 2031 from CBO released in January and February 2021.

You can access this newest file and all of our previous economic forecast updates by clicking here.

Be sure to check this web page at your convenience to get all of the latest forecast updates for your dynamic economic modeling software.

Understanding State Economies Using Economic Modeling

Organizations and institutions of all kinds are implementing dynamic economic modeling techniques in order to better comprehend the inner workings of their local economies. These entities have realized that they can use new tools and applications to more accurately examine the current state of their regions, which then enhances their ability to appropriately adjust legislation and plan for the future.

The nonprofit news site Crosscut recently published an article discussing some of the developments within the state of Washington and the potential policy trajectories that might be proposed during their legislative session.

Included in this story was a description of the Washington State Budget & Policy Center’s use of the REMI model to analyze the employment and budgetary impacts of establishing a tax on the state’s wealthiest households. Their assessment of the state’s tax structure also involved scenarios considering how budget cuts could negatively affect what they identified as the most regressive tax system in the nation.

The state of Wyoming’s tax system was also evaluated earlier this year using the Wyoming Department of Administration & Information’s REMI model as they took a closer look at the state’s various tax exemptions. The County17 news outlet in Wyoming detailed the results of this exploration of their current tax structure and its overall effectiveness regarding employment, investment, revenue, and more.

Last week, REMI provided a webinar presentation, “Economic Outlook: Washington,” that used our Policy Insight model to highlight the economic and demographic indicators involved in the state of Washington’s short-, medium-, and long-term economic outlook after the election of a new president and the emergence of COVID-19.

You can access the Crosscut website and read more about Washington’s tax policy options by clicking here.

Click here to find the County17 article on Wyoming’s tax exemptions.

Feel free to visit our “Economic Outlook: Washington” webpage to review the presentation slides and a recording of the webinar by clicking here.

How the Election Results Impact Industrial Initiatives

The 2020 election brought about spirited debates, numerous potential initiatives, and an historic voter turnout. With Joseph R. Biden, Jr. emerging as the President-elect, the spotlight has now pivoted to the proposed policies from his campaign, the feasibility of each directive, and the subsequent impact to various national industries.

For example, The Atlanta Journal-Constitution recently reported on Biden’s plans to improve education in this country by using several funding and investment strategies. The news article expanded upon some of the possible programs that would be aimed at revitalizing education nationwide before focusing on how the state of Georgia could benefit from these ideas, as well as the local responses so far. Included in their coverage was a list of ten educational proposals attributed to the impending Biden administration and descriptions of how they might affect the state.

Greentech Media produced an article discussing how the solar industry, and the Solar Energy Industries Association (SEIA) in particular, are approaching the post-election landscape. The focus of the story was on the federal Investment Tax Credit, as well as the Section 201 tariffs’ role in limiting the industry. The solar energy community appears to be hopeful about Biden’s opportunity to usher in a new era of clean energy for this country and the ability to enhance the presence of energy alternatives for the next year and beyond.

Immigration advocates are also anticipating a transition to a new Commander-in-Chief due the President-elect’s stance on some of the restrictive border policies implemented by the Trump administration. Voices of America highlighted a collection of proposals and programs that Biden is anticipated to address early in the impending presidential term. Though these directives might not manifest themselves immediately upon assuming the office, many professionals believe that immigration policies will be a larger part of the national discussion throughout the next four years.

REMI has been presenting our Election 2020 Webinar Series every Tuesday since November 10th that further analyzes how the election results stand to affect certain industries as the nation adjusts to new leadership. You can access the presentation materials from previous sessions and the registration link for our future webinars by clicking here.

You can find more information on The Atlanta Journal-Constitution article by clicking here.

To read the article by Greentech Media, feel free to click here.

You can also access the Voices of America story on immigration policies by clicking here.

The Pandemic Effect: Fiscal Year Impacts

Numerous state governments have been grappling with the ongoing COVID-19 pandemic and the disruptions it has caused across several industrial sectors. One of the key areas of concern has been the impact to budgetary planning and revenue collection, which are both vital to how states approach the upcoming fiscal year.

The Associated Press recently covered the Massachusetts House of Representatives’ debate surrounding their delayed state budget plan. The outbreak of COVID-19 pushed back this important deliberation and created the need for temporary interim budgets throughout the year to keep the economy intact until the new state budget could be approved and signed.

The Governor of Arkansas Asa Hutchinson also recently put forth a general revenue budget worth $5.84 billion as reported by the Arkansas Democrat-Gazette. This plan comes after the Arkansas Department of Finance and Administration projected a recession on account of the pandemic back in April.

When speaking with the state’s Legislative Council and Joint Budget Committee, Gov. Hutchinson said, “We have reduced spending in the past year, and we have focused on the core critical areas of education, public safety and our health care infrastructure that was essential during this pandemic. As a result, we are entering the next year in sound financial condition.”

Meanwhile, the Missouri House of Representatives approved a $1.3 billion plan earlier this week that would utilize $750 million in COVID-19 relief funding before it expires at year’s end. This financial restructuring, which was covered by the Springfield News-Leader, was initiated in an attempt to shield the state from the effects of a difficult budget year.

Our CEO & Chief Economist Frederick Treyz, Ph.D. and Economic Analyst Tobias Reynolds hosted a webinar presentation last week entitled “Economic Impact of State and Local Budget Deficits” that explored how governments at all levels approached budget cuts and spending reductions in the face of a pandemic-weakened economy.

You can access the presentation materials from this discussion by clicking here.

You can also find the article by the Associated Press about the Massachusetts budget plan by clicking here.

The Arkansas Democrat-Gazette report can be accessed by clicking here.

More information on the article by the Springfield News-Leader can be found by clicking here.