New York Times: States Addicted to Gambling
The New York Times featuring a report Monday regarding individual states desire to boost their economies through gambling, New Jersey included.
New Jersey governor Chris Christie last week announced a decision for the state to take over struggling gambling destination Atlantic City. Casino revenue there is down almost 30 percent from the same period in 2006. Of course, Atlantic City was hit with a double whammy of sorts. Not only has the town suffered from a downturn in the economy but neighboring states have recently provided stiffer competition.
Peter Applebome of the Times writes:
From the beginning of our joy ride with legalized gambling, there was a worry that more gambling would mean more overextended suckers addicted to slots, poker tables, lotteries and roulette wheels.
Now we know it’s true — only the addicts are not necessarily day trippers on tour buses.
They are also states.
The Times also reports that all three states in the New York metropolitan area get a larger percentage of their state-generated general revenue (excluding federal sources) from gambling than the national average, however, state and local gambling revenues from gambling emporiums and lotteries declined nationally by 2.6 percent in 2009, the first decline in three decades. State and local revenues from commercial casinos (excluding Indian ones) in the 2009 fiscal year declined by 8.5 percent.. In the fiscal year 2008 it was 4 percent in Connecticut, 3.3 percent in New Jersey and 3.1 percent in New York, compared with 2.3 percent nationally.
That said, at least 25 states have contemplated expanding gambling over the past year. Mr. Christie’s plan is the latest sign of how much the states have invested, the Times points out.
“The states aren’t the ones who are going to go into bankruptcy,” said Michael Diamond, vice president for research at Spectrum Gaming Group, which studies the casino industry. “They might see their revenue stream come down, but they’re going to encourage as much activity as someone is willing to invest in.”
Aaron Goldstein, Gambling911.com
