*Blog postings do not necessarily reflect the views of Fantini Research

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By Steve Norton
CEO, Norton Management

Casino, Horse Racing Reps Pitch Gambling to Georgia House Panel

My comment:

I am certainly not opposed to horse racing, but in a city with nearly 100,000 hotel rooms Atlanta's economy would benefit far more from a destination casino downtown. A horse racetrack will draw its audience primarily from the local market, with the exception of 4 major races, 3 of which are permanently located.

By Steve Norton
CEO, Norton Management

How Many Casinos are too Many?

My comment:

Ken Adams wrote a very compelling article in the CDC Gaming Report. I also responded to Mr. Fertitta's article, on Atlantic City offering too much gaming. This is not a new discovery.

All major gaming destinations in Nevada have had numerous failures, or unfinished projects, like the LV Fontainebleau. Mississippi saw its first 7 casinos in Tunica close due to the number of casinos competing for the Memphis market. Atlantic City saw 5 casinos close after Pennsylvania, approved slot machines and New York added slots at Aqueduct and Yonkers racetracks; with AC casino win dropping from $5.2 billion annually to a number less than half the 2006 win.

By Steve Norton
CEO, Norton Management

Beale Pushes Game Plan to Expedite a Chicago Casino

My comment:

Any Chicago casino should be downtown, near the convention center and the larger hotels.

The 5 locations for the Chicago casino, proposed by Mayor Lightfoot, would attract most of their customers from the resident population, but the greatest tax potential for Chicago is a casino aimed at the city’s 57 million annual visitors, many staying at hotels in the Downtown Chicago area.

By Steve Norton
CEO, Norton Management

Illinois Raked in More Gambling Tax Money Despite Casino Decrease

My comment:

Illinois not only cost itself substantial tax revenue from its riverboat casinos but then passes a new form of gaming with Video Gaming Terminals at a lower tax rate in spite of the enormous differential in development cost per gaming position.

In 2007 there were 9 riverboat casinos, that won $1.983 billion, paid taxes of $834 million (42% tax), enjoyed annual admissions of 16.5 million visitors, employing about 8,000 persons. Instead of growing during the next 10 years after the state introduced VGTs, those 9 riverboats saw their win decrease by $1.008 billion (down 51%), taxes declined by $525 million (-63%), and employment losses exceeded 3,000 persons (almost 40%).