Why a casino won't save Cleveland

Submitted by Ed Morrison on Sun, 11/15/2009 - 16:50.

From William Thompson, a professor at the University of Nevada-Las Vegas and an expert on the casino business:

“Half the gamblers have to be from outside the state for it to work” as economic development, Thompson says. The only people who will definitely make money are the casino operators... What’s going to happen, Thompson predicts, is that about 10 percent of Ohio’s casino revenues will reflect gamblers returning home from the surrounding states. But the presence of casinos near population centers will simply mint new gamblers, and that will be a drain on the economy. Compulsive gamblers steal, lose jobs, have debts and go on welfare. The economic rule of thumb on problem gamblers is as follows: A casino within 50 miles of a community doubles the rate of compulsive gambling, and these troubled individuals exact a social cost of about $10,000 each. About 90 percent of Ohio’s population will soon be within 50 miles of a casino. If Ohio follows the expected pattern, the four gaming halls will create 80,000 more compulsive gamblers, siphoning about $800 million a year from the economy. For gambling to become an economic engine, you have to bring money from elsewhere. In Las Vegas, out-of-state tourists account for nearly 90 percent of the gamblers. The visitors come for the big-time entertainment, shopping and mild winter weather, as well as for the games. Oddly, casino expansion in other states can help the Nevada economy. The slot machines, for example, are made in Reno and Las Vegas. Ohio casinos will probably buy 20,000 slot machines at a price of $15,000 each. That comes to $300 million being sent to Nevada. After riverboat casinos opened in Joliet, Ill., local businesses were asked how they were affected. Half said they lost revenues. Only two gained, and one was a travel agency that found itself booking many more trips to Las Vegas for the new gamblers. The other business bought used cars for cash. Thompson predicts that as Ohio builds its gambling establishments, casinos in neighboring states will prepare themselves for the increased competition. They may improve customer service and up the payout rate on their slot machines. (Outside of Nevada, the slots give back 92 to 94 cents on the dollar. Vegas is the most liberal, at 97 cents.)

Ohio’s casino gamble a risky bet

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Pos. Side of Casino - US balance of payments will improve

 

Hello Ed,
As we all know, food, shelter, gambling, and balance of international payments are what homo sapiens needs for survival.   
Without the casino in Cleveland, China will continue to surge ahead and the US dollar will become second class lucre.    
Mr. Gilbert, Mayor Jackson, Joe Roman and the rest of the City of Cleveland gambling boosters know what they are doing.  What they are promoting is of vital national importance.   Even the Cleveland Foundation couldn’t speak out with any criticism.
Casinos will move Cleveland, Ohio, and the entire USA into the positive column re: international cash flow. 
Because gambling is an export.   Just like manufacturing.   Instead of Warner Swasey making Gradalls and other  hydraulic components at E55th and Carnegie, Cleveland will make three cherries ring, and the roulette table click click click.  
And that’s what makes the payment.
When you are down in the poverty census, you have to have your wits about you.  You have to make keen decisions.  You can’t let reality be distracting. You have to maintain your self interest.
Gambling is the answer.  
And Dan has helped us reach our goal.
Halelluha!
The red sea has parted!

 

can't even get a hotel room in Cleveland!

Yeah, I can't wait for a casino and a medical mart. Downtown will be hopping with doctors and gamblers. The Cavs will win, the Indian will win and even the Browns will win. Hell, Cleveland will be so popular you won't even be able to move in Cleveland Hopkins Airport or get a cab or a hotel room. There'll be lines for food vendors on Public Square - folks who couldn't get in to eat Michael Symon's concoctions. And every year there'll be a bell hop's Ball in the Public Auditorium that MMPI left trashed just to celebrate the swell in the local economy. The psych hospital will have outpatient clinics for gamblers gone wild and we'd better pay more tax to expand the city jail, too. Boy! It's gonna be swell when Cleveland really gets all it's asking for. And all the visitors can breathe in the coal laden air, scuff along in the lead laden dirt along the sides of the overcrowded sidewalks and even take a dip in polluted Lake Erie. Yahoo!