The other problem with expanding gaming
Mar 16th, 2010 by David Anderson
Elbert gave a view which reflected the social and moral opposition to expanding gaming in Delaware. I want to focus a little attention on the practical economic concern. A state funded study predicted that more revenue would come into the state with the addition of two more sites by 2013. It predicted that the existing casinos would lose money, but overall the revenue would increase. We would gain up to 5000 jobs.
The fact is that it would be a pyrrhic victory. You can not build a successful industry based upon everyone losing money but the state. Maryland and Pennsylvania passed legislation enabling slots. The expansion in Maryland has been slowed by financing. Investors will not fund all of the venues and the fact is that the ones that would be most profitable are hindered by the threat of nonexistent competition. Greed is keeping any gain from happening.
Delaware tried to avoid many potential problems by going with established racing venues. They were highly regulated, experienced, could obtain financing, and had history interacting with the state. The state became business partners with the racinos. I question that decison, but my side lost. Now that we are partners, is it good business to drive them into bankruptcy? In the long run would it be better to have 4 of 5 racinos that lose money or 3 that make money? Organizations that make money can innovate to bring new options besides gaming. They can bring tourists. They can market themselves to fill different niches like weekend getaways or affordable day trip entertainment for seniors. Day get aways and Mini Vacations are a major trend that Atlantic City and others are not fully exploiting. No one really has mid afternoon or dinner hour entertainment for senior day trips during the week. These type of innovations can not be funded if the businesses are fighting for the next day.
The state will not make money in the long run when the temporary jobs are gone. One of the organizations is closing down, and the others are laying off. Short term greed is not good policy. We need to treat the racinos like they are business partners not slot machines.
Three is enough.
