Monday, July 14, 2014

Law Of Diminishing Returns


More is not always better than less.

It doesn't take a business major or rocket scientist to realize that there is a finite number of potential gambling establishment patrons. When the same number of gamblers are offered an increasing number of venues the revenue pie will be sliced in ever smaller pieces. At some point many establishment will not make enough profit to remain in operation. States that hoped to reap tax revenues form gambling are seeing this phenomenon at work now.

On point:
ATLANTIC CITY — Atlantic City’s crumbling casino market disintegrated even further on Saturday as the owners of the Trump Plaza casino said they expect to shut down in mid-September. Notices warning employees of the expected closing will go out to the casino’s 1,000-plus employees on Monday. If Trump Plaza closes, Atlantic City could lose a third of its casinos and a quarter of its casino work force in less than nine months.Indiana casinos lose millions to Ohio competitors State officials were betting that Indiana gaming revenues would take a major hit when a downtown Cincinnati casino and two racinos opened in Ohio last year. And they were right. But more competition is headed their way from Illinois, Kentucky and Michigan. Competition has changed the game forever.

  1. Indiana casinos lose millions to Ohio competitors State officials were betting that Indiana gaming revenues would take a major hit when a downtown Cincinnati casino and two racinos opened in Ohio last year. And they were right. But more competition is headed their way from Illinois, Kentucky and Michigan. Competition has changed the game forever.


CLEVELAND (AP) -- Declining casino revenue has cut into the take for local governments, and now the growth of racetrack slots gambling is diverting some of that money from cities and counties

The industry is taken a hit across the nation as indicated by a Moody’s Investors Service latest report on gambling — downgrading the national gambling business from “stable” to “negative.

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