Economic (and other) effects of a casino

[tbsells]

This is not intended to be a political post. I hope it sparks an informative conversation without being offensive or violating forum rules. Here goes:

Ohio has a statewide ballot issue regarding the constuction of a resort casino about 20 miles from my home. I do not have a strong opinion one way or the other. The issue is becoming pretty heated locally. One group is opposed to it on moral grounds. Their arguement is that casino's prey on society's weakest and poorest members, that crime will increase, foreclosures will increase, families will be torn apart, etc. etc. etc. Its all BAD. The pro casino group just wants to talk about jobs, jobs, jobs, and tax revenue for Ohio instead. Its all GOOD.

I really don't know............ I'm not convinced that a casino will cause anyone to gamble any more than a bar causes people to drink, or a hotel causes people to cheat on their spouse.

I also am not convinced that these jobs created are worth having. Most are going to be part time low wage jobs. Many of the people hired will probably gamble their wages back to the house.

Law enforcement is against the casino saying that it will increase crime dramatically.

Here are my questions: Do any of you have a casino close to home? What have been the effects on the area? Has it been more positive or more negative? What actually happens when a huge resort casino is built in a rural area? Does crime increase? Is it an economic boom for the area? I'm just wondering what others have seen.

 

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[MrPink]

tax revenue for Ohio instead

I have heard that there will be tax rev and there won't depending on whose ad you believe. Have you found an 'unbiased' source for this information?

 

[tbsells]

I've heard both stories also. I don't know where to get "unbiased" info. I'm not sure it exists anymore.

 

[Jito]

My understanding is that Casinos have a fair amount of decent paying jobs. Example: Vegas dealers make north of 60k a year..

 

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[Yankees338]

I also am not convinced that these jobs created are worth having. Most are going to be part time low wage jobs. Many of the people hired will probably gamble their wages back to the house.

I don't think it's just about the jobs that are created by the casino directly (e.g., dealers, waitresses). There will also be construction jobs created from building the casino. And then there will be more business that will come from the addition of the casino (e.g., restaurants, bars, boutiques, hotels). And because of these additional businesses, there will be more jobs created. All of these new jobs will mean that people will need a place to live, which means that real estate prices (assuming that it's the kind of area where people working these kinds of jobs can afford the average house in the area) could increase.

I still think it could go either way, though. Yes, jobs will be created, but increased crime will certainly accompany it. Another thing to consider is what kind of area will be created. Will it be supported by upscale boutiques or cheap bars and sleezy clubs?

Keep us posted on what happens. I find this interesting because it's also happening near my aunt's house in PA.

 

[MJ DeMarco]

Funny, I have 2 casinos within 3 miles of me, but they are on Indian Reservations.

I can't say that crime has increased or blight but having a casino on a Rez is different than in a metro area. I also agree that Casinos are a tax on the poor. For many destitute folks, the casino becomes a Fastlane Fantasy plan.

 

[JesseO]

Good topic. I don't see a bad thing about casinos, or grocery stores that sell alcohol, or automakers who sell superfast cars. I think it's great revenue for those who want to spend that kind of (bad) money. I went to a casino tonight for the first time in years (3/6 limit poker) and walked out with three times more then I walked in with. It's fun, even if I would have lost and I don't mind that the house took a rake out of each hand played or that they had to pay taxes on it.

 

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[Z5 FILMS]

I think casinos are a good idea if you're going to be one of the types of people who will be seeking employment there. There's lots of different occupations there and casinos do employ a lot of people.

Unless I was seeking employment there, I would not want one in my backyard. I used to live near a horse track and a dog track. The one thing I noticed is the people that go there are the types that look like they really can't afford to be there. Mostly poor people trying to make a quick buck with the rent money.

 

[snowbank]

Atlantic City is pretty much the casinos, and then once you're out of the casino area a block it's the hood. All the employees drive in and they even have a bus that takes employees into the city because no one wants to live there.

Vegas actually has a lot of pricey/nice home areas near the strip. Some not so nice areas, but nothing like Atlantic City.

I think it depends on the current situation there, and if people would want to move there. If more casinos went up in Atlantic City the new employees wouldn't move to Atlantic City they'd drive in or get a bus in like everywhere else. Vegas on the other hand people would move there for jobs.

 

[snowbank]

My understanding is that Casinos have a fair amount of decent paying jobs. Example: Vegas dealers make north of 60k a year..

Ya, some of the better/good personality dealers in Vegas make 6 figures. Even in Atlantic City some dealers were talking about making $75kish.(poker dealers, not sure on other games) Kind of crazy to think about.

 

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[g-dogg]

im not sure if you thought about this, but if this casino is built how will it affect the value of your house? for example if crime does increase does that not lower the value of the realestate in the area?
i know 20 miles is kinda far but i would think it would have an effect on the real estate in the area and neighboring cities.

plus have you thought of opening a business that can benifit from a casino, perhaps a check advancing loan office or strip club lol...

 

[tbsells]

plus have you thought of opening a business that can benifit from a casino, perhaps a check advancing loan office or strip club lol...

Probably a good idea from a business point of view, but I'm not the strip club owner type of guy. Ohio also has a statewide ballot issue that will outlaw payday loans if passed. Alot on the ballot this year.

 

[Merkin Man]

I agree w/ Snowbank.

In Niagara Falls, NY - about 20 miles from my house and one of the locations where I work, a casino was built not on an Indian reservation but on city land the was obtained by Indians, thus carrying with it Indian sovereignty. The hotel and casino that was built is really nice, but I wouldn't walk more than a block away from it w/o some serious stones and a couple of friends.

Sadly, actually, I would say the same thing about the entire Niagara Falls area (on the U.S. side).

In Buffalo - some 20 miles away, the same Indian tribe is building another casino, again in a very poor, crime-ridden area. It is still under construction so time will tell with this one. I believe it has hit a snag with the turning over of the land.

But the place in Niagara Falls has been there about 5 years now and it hasn't done a lot of good or bad for the area. It's created some jobs but I wouldn't say the area is thriving because of it. Of course, with one of the natural wonders of the world in its back yard you would think the area would be thriving anyway...not so much!

 

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[Dhappy]

I was a blackjack dealer at trump plaza in a.c. for 13 years and all we made was four dollars a hour plus tips. The tips were pulled from all dealers and split by the hour. Average was $14 a hour. My best year was 34k. I,m still in contact with some dealer friends there and they say things have got worse. I don,t know what dealer said they were making 75k. They must of been dreaming.

 

[Z5 FILMS]

Ya, some of the better/good personality dealers in Vegas make 6 figures.

You sure? I thought all tips were divided evenly among the dealers? I could be wrong.

 

[NerdSmasher]

Well, this isn't entirely related to the economic effects of a Casino - but in the case of Ohio's, one of the main marketing tools is the tax revenue. But, as is said in many of the ads, it could go to zero - because this particular issue is to put, into the Ohio constitution, an amendment (or perhaps multiple ones, I forget) about this ONE Casino. And, part of this is that the Casino would pay up to 30% tax, depending on how much it's making, etc. But, if another Casino came into Ohio, this casino would pay the same amount of tax as the other Casino. So, if an Indian Casino were built, since they pay 0% tax, this one would pay 0% tax.

Beyond that, if the money is to help the schools, there are some 600+ schools in Ohio, so if you split up the supposed $300 million or so, each school gets about $500,000 added to their roughly $20 million (give or take) budgets... not really a big deal.

So, basically, you either want the jobs the casino brings, along with any other things, good and bad; or you want your area to stay how it is. That's my view on the subject.

(And, yes, I live in Ohio and actually looked into what the deal is with this particular issue.)

 

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