Does Atlantic City Have a Message to Ohio Voters?

“Today, Atlantic City, in the eyes of one gambling executive, Tim Wilmott, is in a ‘death spiral,’” that’s the tone of a Sunday New York Times piece on the financial troubles of the city’s casinos.

“Rows of slot machines stand eerily empty,” says the story while hotel rooms are empty. Many casinos have experienced double digit revenue drops, the report said.

The article is far from a hatchet job. However, it does have a cautionary message to Cleveland and other Ohio cities where casinos would go if Issue 3 is passed.

Cleveland will be rolling the dice next Tuesday when voters go into the booths to cast a vote that would give a billionaire a monopoly board contract for a Cleveland casino.

“The economic slowdown has shown that the gambling industry is not quite as recession-proof as was so long believed,” it said of Atlantic City.

And you might like to remember as you go into that booth the promise of Atlantic City’s gambling sales people:

“Billed as a ‘great experiment’ in urban redevelopment, legalized gambling was pitched to voters as an effort to reverse Atlantic City’s long decline…”

Sound familiar?

Over-expansion of gambling opportunities, along with bad economic times, has taken its toll on the business. Just as there are too many shopping centers there are too many gambling spots.

“Retirees who once hopped on buses to Atlantic City to play slots for a few hours can now happily play much closer to home – in eastern Pennsylvania or the New York Metro area, for example,” said the article.

Another problem mentioned: Debt. Interest payments have been missed and the inability to raise money for newer casinos.

And crime.

The article also cites arguments about how casino taxes are being used and who gets the benefit.

Here’s a link to the long article.

Finally, “However well intentioned these efforts, some industry analyst have a tough time imagining just what Atlantic City or its casino operators can do to pull the town out of its rut.”

I guess I view a Dan Gilbert casino as an invitation to crime, an invitation to more government subsidies for roads, a hotel and other infrastructure needs, and an invite to politicians to find new avenues of helping their friends.

Don’t gamble on gambling.