The economics of gambling

Larry Gude

Larry Gude

Strung Out
Depends on competition. Does Virginia argue that they should open casino's because too many Virginians are spending money in Maryland? That's the argument Maryland made. Does DC decide to do the same for the same reasons? Heck, does SMC say "You know, life was better when our folks used our slot machines..."?
 
Gilligan

Gilligan

#*! boat!
PREMO Member
Merlin99 said:
Michigan's got at least 25 casinos and at least 20 more planned or in progress.
Click to expand...

There are successful ones and there are failed ones, all over the country. I wonder what factors caused the collapse of the Atlantic City operations. Was "new competition" one of the factors?

We had a fast ferry project with the Mohegan Sun group back in the day...they seemed to always have unlimited sources of money. In fact, I believe they took over one the Atlantic City casino operations in 2012...not sure which one.
 
Last edited:
kwillia

kwillia

n/a
Sadly, dear Maryland... this is a vision into our future...:ohwell:

http://finance.yahoo.com/news/atlantic-city-failing-casinos-key-130022154.html

Gambling revenue in Atlantic City is barely half of what it was in 2006. Since 68% of the city’s tax revenue depends on the gambling industry, city official are going to face some tough decision. Nearly half of the workforce is also connected to casinos, so consumer spending will likely fall off as unemployment rises and purchasing power declines. And to top it all off, Moody’s just downgraded the city’s debt to junk bond level. The worst part is that no one knows when this domino effect will end — and no one appears to have a viable contingency plan.
 
Gilligan

Gilligan

#*! boat!
PREMO Member
kwillia said:
Sadly, dear Maryland... this is a vision into our future...:ohwell:

http://finance.yahoo.com/news/atlantic-city-failing-casinos-key-130022154.html

Gambling revenue in Atlantic City is barely half of what it was in 2006. Since 68% of the city’s tax revenue depends on the gambling industry, city official are going to face some tough decision. Nearly half of the workforce is also connected to casinos, so consumer spending will likely fall off as unemployment rises and purchasing power declines. And to top it all off, Moody’s just downgraded the city’s debt to junk bond level. The worst part is that no one knows when this domino effect will end — and no one appears to have a viable contingency plan.
Click to expand...

That article, like others I've seen, has a fundamental flaw in reasoning: Atlantic city was a festering dump before the casinos came. Much of it remained blighted after the casinos came. It will revert to being a festering dump when the casinos are gone. Any talk of "bad planning by city officials" or "lack of diversification" simply ignores reality.
 
Monello

Monello

Smarter than the average bear
PREMO Member
My first big boy job was in Atlantic City way back when. The day I started they only had 3 operating casinos. My 1 and only (thank goodness) union job. We had way more workers than what we needed. Plus if you were hired to do job A and job B fell behind, you were banned from helping out due to the union rules.

The landscape of the city changed overnight. Lots of wrecking balls knocking down old buildings. There were still parts of the city that nobody went to after dark. The entertainment industry thrived. They had boxing every week, plus some televised title fights on Saturdays. Frank Sinatra and Diana Ross were the big names in the shows. Bars were open all hours of the night. Lots of money was changing hands every evening.

But housing prices shot up. I paid premium prices for a dumpy place. But I was 2 blocks from the beach. Many workers were broke a day or 2 after payday. We were eventually prohibited from gambling in our own casino as lots of people gave their entire paychecks back.

Many people made good money initially. Some found a way to profit from the boom. Now just about every indian tribe has some sort of gaming establishment. Competition is good up to a point. Once a number of casinos fail to turn a profit they will close. Then the market will determine just how many casinos will remain.

Lotteries seem to thrive since there is low overhead. They are sold in established businesses. All you need is the ticket console and you are in business. Plenty of people out there dreaming of hitting it big.
 
ProfMoneyWise

ProfMoneyWise

Member
Year 2008ish - Borgata - Gypsy Bar - Bud Light and a Vodka Tonic - $14 before tip - everything was high-priced.

I like nice things at a fair price but felt everything about our stay was priced high. We ventured to the other places and we don't expect much but we do like clean. I remember things being dirty.

I also remember remarking upon our departure . . . I don't think I've ever heard the bells ringing (machines paying off).

We never went back.

Maryland Live was one visit for us too. We need to give it another chance I think as we went there in the early days. Crowded is my impression there.

West Virginia for this former smoker is a test. Yes, I've become one of those reformed types. Seemed dirty and crowded to me there too.

Dover Downs gets our vote when we do go play some games of chance. Nice ride, nice place to stay, reasonable prices and while we are never up we at least are entertained a bit while we lose our saved up entertainment stash we take with us.
 
Last edited:
GURPS

GURPS

INGSOC
PREMO Member
Monello said:
My first big boy job was in Atlantic City way back when. The day I started they only had 3 operating casinos. My 1 and only (thank goodness) union job. We had way more workers than what we needed.
Click to expand...



good times with 'da boys ? [aka the mob]
 
You must log in or register to reply here.
Top