THE governor's list of potential new revenue generators includes gaming sources, but their impact is characterized as "indeterminate." There is nothing indeterminate about the fact that the recreational gaming market in our state continues to grow despite the economic climate.

Year over year, total net receipts for all gaming activities have grown from $2.29 billion in fiscal year 2010 to more than $2.5 billion in 2011. Nearly all of that growth, however, is attributable to tribal casino operations, which have grown to an estimated $1.95 billion from $1.75 billion last year, according to the Washington State Gambling Commission.

Nontribal house-banked cardrooms, which pay gambling taxes that help sustain local budgets in addition to state business-and-occupation taxes, have declined steadily since the advent of electronic gaming. This decline is due to a number of competitive advantages the tribal operations enjoy, the most important of which is their monopoly on electronic gaming machines. Tribes do not pay any state or local taxes on their gaming receipts.

In view of the state's dire financial situation, it has been suggested the state consider renegotiating tribal compacts to extract a revenue-sharing agreement. Other states receive an average of 11 to 22 percent of these tribal gaming revenues in exchange for similar exclusivity.

It is unlikely that the tribes would agree to such an arrangement. Why should they? With a monopoly on up to 30,000 electronic gaming machines, they have a solid grip on the recreational gaming market, which is driven by up-to-date gaming technology such as the electronic scratch ticket games authorized under the state-tribal compact. At best, negotiations could drag on for months or years before the state sees even a minimal amount of revenue from tribal receipts.

A better way to tap gaming revenues is to authorize electronic gaming for the state's house-banked cardrooms, or "minicasinos." The Recreational Gaming Association, which speaks for the nontribal cardrooms, has put a proposal before the Legislature for a limited number of machines — no more than 200 per location and a maximum of 7,875 statewide, allowed only in the 63 existing cardroom locations.

This limited-footprint proposal addresses the proliferation concerns with which other proposals have been met, while raising significant revenues for state and local governments. According to an extensive study by gaming-market experts, the gaming association's proposal would raise $380 million per biennium at full operation, with a potential for about $160 million the first year.

After allocating funds to local governments, the gambling commission and problem gambling programs, the bulk of the revenues would be distributed to K-12 education (50 percent); health and human services (30 percent) and public safety (20 percent). This would mean about $176 million to "buy back" education cuts, and $105 million for health and human services.

House-banked cardrooms have been operating in Washington since 1997, providing as many as 10,800 jobs, millions of dollars in taxes and hundreds of millions of dollars to the state's economy. They are valued and welcomed partners in the communities in which they operate, as evidenced by overwhelming voter support for local cardrooms in communities such as Tukwila and Lakewood.

Tapping gaming revenues to support vital programs is a good idea. Doing it to sustain taxpaying, job- and revenue-generating businesses is a great idea.

Chris Kealy is president of the Recreational Gaming Association of Washington and owner-operator of the Iron Horse Casino in Auburn.