Archive | January, 2015

Casinos in NY – Too Late

6 Jan
Full-fledged casinos are coming to NYS. These will differ from the current casino  (owned by Indians, limited liquor, no oversight, poor locations) and “racino” (run by the NYS Lottery, no table games, poor locations) offerings. And initially, they will be very successful. But that flame will die quickly.
People won’t be flocking to New York State to gamble. They can do that anywhere. As is often the case, we are too late to the game. At one time, the casino issue was a moral one. But that time has passed. It is just another industry and NY has belatedly decided to join the mix.
The supply of gaming options in NY will increase, but the demand will be the same. Any first year economics student can tell you the result – less, if any, profit for all.
In ten years, with a different set of politicians, the have-nots will scream and the NY legislature will respond. Every county can have a casino. And they’ll become places for patronage. Think Off Track Betting. The descriptions will be different levels of bad and filth.
The casino business by itself is a long-term bad deal for New York State residents. At the end of the year all we have are a lot of jobs, mostly low paying. No factory making airplane parts, no microchip plant. And to get that $100 million dollar payroll, people had to lose $200 million of their wealth. Seems like a high cost.
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