SPRINGFIELD - A state report shows Illinoisans are gambling less, and the state's budget is suffering as a result.

In the state's last fiscal year, it took in 6.5 percent less money from gambling-related taxes than the year before, a report released this month shows.

The trend, the Commission on Government Forecasting and Accountability report suggests, can be partly blamed on the state's indoor smoking ban that went into effect at the beginning of the year.

While betting at casinos dropped and horse racing interest continued to flounder, people bought lottery tickets at a record pace, the report shows.

The state's nine casinos have seen their revenues drop more than 17 percent since the same time last year, but the last fiscal year saw $2 billion in Illinois Lottery sales for the first time.

Critics say the fluctuating numbers show the state shouldn't gamble on games of chance to pay for important state programs.

"That's such a risky source of revenue for the state to rely on," said state Rep. John Bradley, D-Marion.

The gambling industry has failed in multiple attempts to get casinos an exemption from the smoking ban.

Some observers say the drop in bets is a simple reflection of the faltering economy. But Illinois Casino Gaming Association director Tom Swoik said neighboring states haven't seen the same steep declines Illinois has.

"That tells me it's not the economy," he said. "It's not the weather."