A Part of the Solution
Posted: Sept. 18, 2009
A rash of news articles published in recent weeks have questioned the lasting economic benefits of our industry, suggesting that casinos have somehow reached their maximum earning potential. These news stories often quote gaming opponents, who contend that state governments looking to casinos to close budget gaps are likely to be disappointed.
Are casinos good investments for communities searching for new sources of income? Absolutely.
Can gaming single-handedly bail out states experiencing economic troubles? No.
Our industry has long contended that casinos are not a panacea for states struggling with budget shortfalls. Gaming can be a crucial element of a state’s plan to achieve financial stability, but it cannot be the sole solution.
Without a doubt, however, casinos certainly can help jump-start a stagnant economy. They provide good-paying jobs, generate business opportunities for local vendors and entice tourists. During these difficult times, those contributions are more important than ever before.
For example, a new casino that recently opened in Pittsburgh, Pa., has received enthusiastic praise from community leaders for attracting visitors to neighboring businesses and injecting fresh vigor into the town. During its first month, The Rivers casino hosted nearly 23,000 gamblers and diners. And local hotels continue to report an increase in calls from out-of-town tourists who plan to visit the area. All this is happening in the midst of the worst recession in a generation.
Of course, our industry is not without its struggles. The prolonged and severe downturn has clearly demonstrated that casinos are not recession-proof. They have proven susceptible to economic decline, and gaming revenue in some regions is depressed.
But our challenges are not unique. Industries of all stripes have been impacted by the recession, and consumer-driven industries have been particularly hard hit. The restaurant industry, for example, has been contracting since the third quarter of 2007, and nationwide restaurant sales are expected to decline at least 1 percent in 2009. Similarly, the International Air Transport Association recently reported 54 airlines sustained $2 billion in losses during the second quarter of this year.
But despite the downturn, millions of visitors are still visiting casinos every day. People continue to seek out entertainment experiences – even in the tough times.
Ultimately, though it currently faces many challenges, our industry continues to provide valuable benefits to gaming communities – benefits that, quite simply, wouldn’t otherwise exist. Casinos may not be able to single-handedly stabilize a state’s economy, but they certainly can help – now and looking ahead to when our entire economy has recovered.
