We did a post last week detailing how casinos were not paying off as expected for many states. Now here comes more evidence that there are not enough gamblers to fill all of the casinos that have opened in recent years.
Revenues were down 9 percent at casinos in Mississippi. The amount of money the state pulled in from the casinos was the lowest it has been since 1997.
The decrease in revenue was blamed in part by increased competition from casinos in Arkansas. The weak economy was also blamed. Revenues were down almost 8 percent at a casino in Illinois. Revenues were also down at the two large Indian casinos in Connecticut. Even Las Vegas and Atlantic City recently saw a big drop in revenues.
The drop in revenues does not bode well for other states, like New York and Massachusetts, that are scrambling to get in the casino game. While those states may do well when the casinos first open, history shows the revenue numbers will eventually trail off, forcing states to do more to replace the unsustainable casino revenues. The growing casino glut is adding to the problems for many states.
Keep ‘em coming like this
It’s amusing to see the casinos scramble to rationalize why their once high flying cash cows are having temporary revenue challenges. I don’t oppose recreational gambling, but its funny how the early bird casinos in an area use their monopoly status to gouge their customers with low odds, high food and room prices, and snooty service. When the competition moves into the market they whine about the freebies and discounts they have to give to retain their loyal customers. Heck I won’t visit our convenience casinos unless they give me enough comp to cover my gasoline tab. Keep the heat on, Paul.