Government and the Transformation of the Gaming Industry

Government and the Transformation of the Gaming Industry

Richard A. McGowan

The book is divided into three parts. The first part focuses on the historical and cultural forces that have shaped the new gaming industry. The second part of the book analyzes how each segment (pari–mutuel betting, lotteries and casinos) competes in the new industry. The political and social implications of gaming are the focus of the final part, which concludes with a series of recommendations that will enable the industry, public policy officials and anti–gambling activists to construct policies that mitigate some of the problems associated with gambling.

Chapter 3: The Segments of the Casino Industry: From Gambling Den to Mega-Resort

Richard A. McGowan

Subjects: politics and public policy, public policy


INTRODUCTION Not long ago, to experience the allure of casino gambling in the United States one was required to make a trip to one of two (typically) distant locations – Las Vegas or Atlantic City. Over the past decade, however, this situation has changed drastically. With the increasing social acceptance of gambling, new locations for casino gambling have emerged across the nation, bringing this controversial attraction to nearly every region of the country. Not surprisingly, the competitive pressures that have resulted are placing considerable strain on America’s traditional locations for casino gambling. Another reason given for much of the growth in the gaming industry is the dire economic condition of some states in the early 1990s. States needed new revenues at a time when the public was unwilling to accept new tax measures. Drastically cutting state services was not a politically feasible option, either. State and local governments turned more and more to gaming in an effort to increase revenues. Lotteries had been the most public form of gambling, but a growing number of states and local governments resorted to casino gambling in order to raise money without having to do the politically unpopular act of raising taxes. In 1999, well over three hundred million tax dollars were paid to New Jersey by the gaming industry (Atlantic City Information Guide). Additionally, gaming would create more jobs and help reduce the rate of unemployment in economically depressed states. A phenomenon exists whereby legalizing gaming in one state causes some neighboring states to...

You are not authenticated to view the full text of this chapter or article.

Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.

Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.

Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.

Further information