Say Yes to New Hampshire. Say NO to Casinos.
4. Physical casinos are now a declining industry. Casino market saturation is causing sharp state revenue drops.
States heavily dependent on casino taxes are suffering severe budget stress. Note: “gross win” is casino gross profits on slots and/or table games and is usually the base on which casino taxes are imposed:
- Connecticut: Two of the largest casinos in the world, Foxwoods and Mohegan Sun, continue to see large losses of revenue, termed in one recent article as a “free fall.” Competition from across the border in New York, Rhode Island and shortly, Massachusetts, has cut into the resort-style casinos revenues. In November 2014, Foxwoods announced an eventual cut of 1,000 slot machines, about 20% of its inventory. Meanwhile, Mohegan Sun is considering a new casino across the border from Springfield, MA to fend off losses to their neighboring state. Foxwoods, Mohegan Sun Report Drop In Slot Revenue For October – Hartford Courant.
- New Jersey: In Atlantic City, New Jersey, about 130 miles south of Manhattan, four of 12 casinos closed this year. A bid to close a fifth, the Trump Taj Mahal Casino Resort, is in bankruptcy court and is now expected to close in March 2015. In the last 12 months, 9,900 jobs have been lost, mostly low-paying service employees. The Taj Mahal closing would layoff an additional 3,000, making the total nearly 13,000 jobs lost. 2014 timeline of battered casinos – Associated Press
In books, electronics, and office supplies, we’ve already seen how quickly the Internet has devastated brick and mortar business models. In 2012, it began happening to physical casinos when Delaware became the first state to allow Internet gambling, including blackjack, poker, and online slot machines.
Casino saturation has become so intense, states so addicted to casino tax money, and legislatures so trapped by casino lobbyists, that New Jersey, Delaware, and West Virginia all now use taxpayer dollars to subsidize their casinos.
Millennium Gaming, the Las Vegas gambling company pushing for Salem casino, testified to the NH Gaming Study Commission in 2010 that New Hampshire gambling revenues would drop by “nearly half” if Massachusetts legalized casinos (see page GSC 15) which it has done.