Gambling at Des Moines’ Prairie Meadows in 2006 generated more than $180 million and $57 million in profits. More than $20 million went to public programs and $4 million was given to charity, but nearly $30 million went to horse race purses and overhead.

Nationally, 36 racinos in 11 states generated about $3.6 billion in gross gaming revenue in 2006, according to the American Gaming Association. Most of that money was generated by slot machines. Racinos paid out $1.4 billion in tax revenue to state and local governments in 2006, a 12.5 percent increase over 2005.

“I just feel that the money is not being spent properly or appropriately right now,” said Bill Knapp, a prominent Des Moines real estate developer who is involved in a variety of community projects.

Knapp proposes diverting more money to charitable causes, support of rural economic development efforts and public projects. He also says the track should shorten its calendar to cut expenses and redirect some of its profits.

“I think the legislatures in all of these states realized that this is an agriculture industry and they wanted to preserve that for whatever reason and that’s how this all came about,” said Richard Thalheimer, an economist from Lexington, Ky., who specializes in gaming issues.

A 1999 study by an Iowa State University economics professor concluded that horse racing and breeding in Iowa created more than 3,000 jobs and generated $252 million for the state’s economy.

Staff reporter Jessica Kerman contributed to this story.