p14 Stateside 27/11/08 08:40 Page 12
STATESIDE
Stateside
Gaming in Pennsylvania has proved a resounding
success – mostly. Sharon Harris looks under the covers
I
n 1687, the renowned mathematician and often a white female, in her 40s to 50s. Others are
scientist Sir Isaac Newton proposed three Laws older, and many are disabled. Depression about the
of Motion. The most famous claimed that "To economy may tempt the vulnerable to drown their
every action there is an equal and opposite sorrows by playing, or even worse, mistakenly believe
reaction." In other words, every event causes a they can better their bank accounts by gambling.
reaction, which may be both positive and negative. There is no upside to that. The Pennsylvania
After several attempts, my home state of industry will have to work as hard as Atlantic City has
Pennsylvania opened its first casino in November to fight compulsive gambling. Everyone should monitor
2006. Limited to electronics – no table games with how the current economic situation affects gaming.
live dealers – they have generated impressive However, it is not just customers who are feeling
revenues. It helps that tens of millions of people live the financial pinch. Casinos in Atlantic City have laid
within a few hours drive of any venue across the state. off hundreds of staff members since the summer. Las
Reports reveal that it has boosted the Pennsylvania Vegas numbers are just as bad.
economy. So, it should be a resounding success, Now, the pain is coming full circle. Las Vegas and
right? Well, not so fast. For all the good, there have Atlantic City executives are also succumbing to
also been glaring negatives. conditions that will either cut salaries and/or
The seven Pennsylvania slot casinos have generated eliminate bonuses. CEOs and senior management
more than $1.8 billion for the state coffers. Much of cannot realistically justify taking home extra cash
that money, plus proceeds from the Pennsylvania when they are sending pink slips to thousands of
Lottery, has provided tax relief for low-income seniors working men and women.
On the flip side,
and school districts, reducing homeowners’ property For example, 22 Trump casino executives are taking
tax bills. Pennsylvania’s population of more than 12 a five percent pay cut, totaling $500,000. MGM
during this same
million includes one of the oldest senior populations Mirage is eliminating this year’s cash bonus program,
two-year period,
in the US. based on specific levels of profitability. To further
More than 6,500 jobs have been created, bringing trim costs, MGM Mirage left the Nevada Resort
players have lost
employment, infrastructure upgrades and revenue to Association. And, its $5 billion megaresort project for
more than $2.4
individual communities. The horseracing industry has Atlantic City has been put on hold.
benefitted by $288 million. Seven of 14 slot licenses Those with money and the stomach to ride out the
billion. That
went to racetracks, where six slot parlors have already ebbs and flows of casino operation profits/losses may
translates into an
been built. find it a good time to invest. International singer and
average $249
On the flip side, during this same two-year period, musician Jimmy Buffett is part of a group that will
players have lost more than $2.4 billion. That buy Atlantic City’s Trump Marina from Donald Trump.
from every
translates into an average $249 from every Even “The Donald” has had to adjust for a changing
Pennsylvania adult
Pennsylvania adult, many who live on their pension market. The selling price was recently slashed from
or Social Security checks. $316 million to $270 million.
Thousands of seniors lament that gaming is now so Buffett applied for a services supplier license, but
convenient that they are spending way too much of the New Jersey Casino Control Commission ruled
their money and leisure time at nearby casinos. While that his company’s small role in management requires
true that not everyone is playing, enough people are, him to undergo a standard background investigation.
and often enough, to raise red flags of warning. The intensive examination reaches back to an
As zoning questions continue about the remaining applicant’s earliest associations and alliances. I have
planned casinos, neighborhood groups are actively seen people rejected for just interacting with
opposing construction. Philadelphia is in the midst unsavory people.
of a nasty citizen struggle. Along with the usual I wish the same scrutiny were applied to our
projected crime and traffic complaints, they cite a government leaders. It could change who gets elected,
growing problem gambling scenario. which might just clean up the mess they have made.
The Pennsylvania Council on Compulsive I’m heading out for the G2E, so look for my
Gambling reports that helpline calls have jumped thoughts on the US election and the show next
39% per month this year. This problem gambler is month – I will have plenty to say about both…
14 DECEMBER 2008
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