First-ever gambling losses prove nothing's recession-proof
It used to be certain things were iron-clad. Recession-proof.
Health care jobs were untouchable. Law enforcement wasn’t going anywhere. Tyra Banks was still going to be a maniac … always.
Yet this downturn has been unlike any that came before, and even institutions once thought immune to the state of the economy are falling without a quick fix in sight.
It turns out gambling, which once appeared alongside “Keith Olbermann will infuriate people” as the very definition of recession-proof, has tumbled for the first time as revenues deteriorate and casinos panic.
According to the New York Times, gambling hotbeds like Las Vegas and Atlantic City have reported losses, which simultaneously punch the states who have invested in the casinos (Nevada – down $122 million in tax revenue in fiscal year 2009, from 2008. New Jersey – down $62 million) in the gut.
Illinois, another major U.S. gambling spot, lost $166 million.
The unprecedented hit has even sparked a mini-debate on gambling philosophy. Some argue the decline is temporary and, says the Times, the industry still has “plenty of room to expand.” Others, however, fear the casino business has reached market saturation, whereby bettors will still spend the same but will now split it across a number of gambling options.
But then there is the issue of gambling in the first place. Detractors argue the jump in crime, personal bankruptcies and addiction in areas with casinos should offset most reasons for implementing gambling into any neighbourhood. And they’re right.
Proponents, though, have a fair point, too. Gambling does bring in new jobs, local vendor opportunities and tax revenue which – especially that last one – are crucial to communities with budgets feeling the magnificent strain of the recession.
So in any case, whichever social stance you take, money is lost when gambling suffers. These are the facts.
And considering a recent survey suggests 6 of 10 gamblers have cut back on betting since the downturn hit – for the sake of schools, hospitals and Taxpayer Funded Service XYZ – something’s gotta give.
By Jason Buckland, MSN Money
Posted by: Tom Williamson | Sep 11, 2021 9:45:19 AM
Interesting
Posted by: Paul Richard | Sep 11, 2021 11:21:27 AM
So it seems the excesses are hitting home. The Casino industry is like alot of other industries. They give poor return on investment and excessive profit margins and gouging of customers is prevelant. I have some freinds that quit going to casinos because they don't have the chance to hit medium to big jackpots like the past.(those hits enabled them to justify the losses on other visits) On my last trips to Vegas I have done better on Fremont street compared to the Strip..... Gamblers go where they win, not only the shows and extravagance of the strip hotels.
Posted by: darnp | Sep 11, 2021 2:52:02 PM
this has nothing to do with the ressession, this has to do with the increase of "ONLINE" gambling, lotteries, and easially accessable internet gaming.
There was a time to gamble you had to travel, spend monies to loses monies. i see no stats that say how much monies were spent year to year just a number says its losing money?
as well i see no stat that says the number of gambling locations remained the same. this report is bogus because it gives you a skim of the top representaion of the facts.
rate it as crap
Posted by: Hclark | Sep 11, 2021 7:07:31 PM
Darnp is right, And I might add that besides internet gambling there are now casinos and VLT"S in most provinces in Canada. no need to cross the border at all. Don't need to buy plane tickets.No taxes on winnings here.Hell, you don't need to take the wife to a fancy show, just plop her down next to you at the gambling tables, The government is hooked on gambling itself. At all levels, federal provincial and municipal it takes the easy way out and raises money from the weaknesses of others then pacifies the public with a program for gambling addition.
Posted by: renae | Sep 11, 2021 11:46:40 PM
"The house" always wins, because the games are rigged.
These casinos are only losing money in the sense that hotels
lose money. Traffic is down, while costs, such as heating and
lighting bills, laundry, etc., are fixed.
Posted by: raddic | Sep 14, 2021 11:27:47 PM
Iam happy to hear the casino's are hurting, too many times we hear of losers at the tables and slots giving up everything due to the "hook", Ive been there-done that. It's time the corporate big shots stop feeding off of their false dreams of hitting it big. Eventually most of the big winners end up giving their winnings back anyway. There must be a better way the governments can bring in revenue - How about investing money on programs/ events where the children can enjoy spending time with mom and dad, clearly you can see the casino's are not built to support a happy family. It is time to move forward and start building a better future, nothing good has ever come out of gambling, go and attend a GA meeting if you need to hear more of the truth on this.
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