Casinos May Hold the Answer to Fiscal Questions
Cited: MSNBC
Financially strapped states are turning to casino gambling and entertainment venues within these casinos to help balance the books. In New York, Governor Cuomo announced that his office would begin talks with a large Malaysian company called Genting Group to map out plans to expand the casino at Aqueduct Race track just outside of New York City. The news follows on the back of similar proposals and changes to the state laws governing gambling across the United States. Massachusetts recently passed a law allowing gambling in up to three resort casinos while Ohio is just about ready to open its first gambling hall after voters there approved the opening of up to four such entertainment centers in the state. Maryland, Pennsylvania, and Florida as just a few more cash-strapped states that are turning to adult entertainment to try to get their books back into the black.
In addition to the additional revenue from these gambling facilities, both lawmakers and the voters hope that the tourism that will come along with these casinos will more than placate their concerns over the societal consequences of being a state with legalized gambling. And the additional revenues are nothing to sneeze at as Genting Groups new “racino” in Aqueduct, though still limited to video slots and electronic table games, is poised to make $13 million next week, with expected annual revenues at $676 million, 44% of which will go to the state education fund.
However, industry analysts also note that there is stiff competition for these entertainment dollars and that there isn’t an unlimited pool of gamblers for states to draw from. They point out that as the casino in New York opened, older casino areas in nearby Atlantic City and Connecticut have seen a drop-off in revenues. They also note that Las Vegas casinos lost nearly $4billion in 2011, with the recent recession still gripping this gambling Mecca with both hands.
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My take:
Gambling your way out of fiscal problems for the state is probably like trying to do it as an individual….risky, very risky. There’s every chance that these casinos do well and everyone prospers. There’s also an equal chance that they attract a bad element, lose favor if the economy doesn’t start to get rolling and putting more people back to work, and then they become a problem, and an eyesore. We’ll just have to see.
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