By Dave Anderson:
Gambling was supposed to save Pittsburgh and Allegheny County finances while also giving the state a shot of politically cheap revenue. Statewide, it has not been a horrendous mess(yet), but locally, casino gambling was supposed to keep the county of bankruptcy, float the city's books, reinvigorate the airport by assuming a portion of the terminal debt service, build the Penguins a new arena and otherwise distribute a wide variety of public goodies with minimal political cost as broad based taxes had not been raised.
The Pittsburgh casino is stuck operating with an identical competitor 20 miles to its south, and two slightly better casinos in West Virginia's Panhandle. The revenue picture is ugly because casino gambling is a mature industry that has no new virgin territory to easily exploit. Any new additions that can act as differentiators for a casino are quickly countered by other states and other casinos.
The same problem is playing out in Southeastern Pennsylvania. The Philadelphia casinos are competing against Atlantic City and Delaware. Pennsylvania recently approved expanding table games to the casinos so the border casinos can more easily compete and draw crowds from New Jersey and West Virginia. Delaware has responded in kind:
Table games, such as blackjack, poker, craps and roulette, could be operating in Delaware in a matter of months, following the passage of legislation on Thursday that was signed into law by Gov. Jack Markell the same day.
Gambling is engaged in a race to the bottom as every state is still seeking politically cheap cash, but the market is saturated and there is not a whole lot of cash to be split every which way.
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