This Las Vegas Sun article offers some insights as to why horse racing events are “going the way of Latin.” It describes how horse racing revenue has declined 30 percent at Nevada casinos in the past decade even as other forms of gambling, after taking a hit in the recession, have increased over that period.
Economic Effects
Atlantic City Looks To Bus More Homeless Back Home
When predatory gambling interests come to your town or city, they falsely promise new jobs, revenue, and overall economic prosperity. However, the story below highlights the dark side of the industry. Beyond the glitz and glamor of Atlantic City’s multi-million dollar casinos, hundreds of homeless people are on the street with no place to go.
Looking Back, Lost Bid to Host a Casino “a blessing”
The English seaside resort town of Blackpool was relieved when it lost a bid to host a “super casino.” Blackpool will now focus its efforts on maintaining its family friendly reputation.
An Examination of Indian Casinos in Western New York
This report suggests that an expanded casino in the Buffalo-area will be a “huge money-sucking vacuum” for a city already struggling with high poverty. It was presented to the Legislation Committee of the Buffalo Common Council by Professor Steve H. Siegel, of the College of Hospitality and Tourism Management, Niagara University.
The Secrets of a Slot Machine
Dennis Bailey, the former Executive Director of Maine’s Casinos No!, wrote the excellent piece below which details how slot machines are heavily weighted in the casino’s favor.
Mayor Testifies Foxwoods Casino Has Not Brought Economic Benefits to Town
The former mayor of Ledyard, Connecticut, Wesley Johnson, testified his town has not seen any positive economic impact since the Foxwoods Casino was built there. “There has been no economic development spin-off from the casino. Businesses do not come here,” Johnson said.
Federal Reserve Study Finds Casinos Do Not Grow Local Economies
A 2006 study by the Federal Reserve Bank of Boston found that patrons who frequent casinos catering to local markets do not bring in any new money to the local economy and are simply substituting gambling for other goods and services. Nationwide the overwhelming majority of casinos cater to locals.
New Hampshire Study Finds Proposed Casino Would Take Away Local Jobs and Lead to Higher Taxes for All
An independent New Hampshire Gambling Commission study found that bringing one casino to the state would take away seven existing local jobs for every 10 casino jobs created – yet another example how predatory gambling operators willfully exaggerate the lure of jobs to mislead public opinion. The same report showed one casino would raise $219 million in state revenue but the total social cost would be $287.7 million: a net drain of $68.7 million. Who do you think pays that tab?
Impact of Casinos on Retail Sales
Taxable retail sales in Iowa cities without casinos grew more than five times faster than sales in cities with casinos, leading researchers to conclude, “the operation of a casino in a mid-size city, far from contributing to economic development, creates a measurable drain on the economy of the city.” Lori Fairchild, PhD, “Impact of Casinos on Retail Sales in Mid-Size Iowa Cities,” Great Plains Business & Economics Conference, Omaha Federal Reserve Bank, Oct. 28, 2005
State-Sanctioned Casinos and Exploiting the Working Poor
In 2010, the Lehigh Valley Research Consortium released a report showing that 48 percent of those below the poverty line in the Lehigh Valley intend to gamble at the Sands Casino in Bethlehem, Pennsylvania. ”The casino ads always show young glamorous-looking people gambling,” said Michele Moser Deegan, a Muhlenberg College associate professor who directs the consortium. ”But when you go inside, you can see that it really is the working poor and middle class. This survey shows that.”