Last year, video
game companies earned over $20 billion in revenue last year in
the U.S.—and with expansion into mobile and tablet devices those
profits are expected to grow. The promise of a consistent
multi-billion dollar revenue stream makes gaming an alluring
industry for many cash-strapped states who are hungry to get a
piece of the action. But, points out Alexis Garcia, several studies
have called into question the effectiveness of these programs—a
2013 analysis done by the Tax Foundation found that film tax
incentives only generate 30 cents in tax revenue for every
dollar spent.
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