» Subscribe Today!
More of what you want to know.
The Daily News
X

Forgot your password?
Skip Navigation LinksHome >
VOL. 128 | NO. 185 | Monday, September 23, 2013

Moody's: Established Gambling Markets Faltering

HANNAH DREIER | Associated Press

Print | Front Page | Email this story | Comments ()

LAS VEGAS (AP) – Established gambling towns like Las Vegas and Atlantic City are hurting as more states start welcoming bettors' dollars, Moody's Investors Service warned this week.

The credit rating agency issued a report describing a shift in casino tax revenues away from New Jersey, Indiana and Nevada to new markets in places like Pennsylvania, Illinois and Ohio.

The recession crushed gambling revenues across the county, and casino towns have been slow to bounce back.

"The previously recession-proof Nevada gaming market has seen only a partial recovery since the recession," the report stated. Moody's warned that the state general fund could be in trouble if neighboring California legalized casino gambling.

While casino taxes make up less than 1 percent of New Jersey's revenue, they account for a quarter of Nevada's general fund.

In Atlantic City, where the national recession exacerbated an existing drop in visitors, gambling tax revenue has declined every year since 2006. Mississippi, home to riverboat casinos, has seen a 7.7 percent decline in gambling tax revenue over the last 10 years.

Meanwhile, struggling states have opened the doors to games of chance. Among those that have expanded legalized gambling in recent years are Pennsylvania, New York, Maryland, West Virginia and Delaware.

All this is more bad news for states that previously enjoyed casino monopolies.

Pennsylvania, which has a casino market a quarter the size of Nevada's, now collects more gambling taxes than any other state. The state took in $1.5 billion in such revenue last year.

Moody's predicts these trends will continue as more states harness gambling as a new source of revenue. The result could be a redrawing of the market share and tax revenue landscape.

Casino owners have been working to draw visitors to their gambling centers with lavish clubs, high-end restaurants and outdoor novelties like the world's biggest Ferris wheel, which is under construction along the Las Vegas Strip.

Hannah Dreier can be reached at www.twitter.com/hannahdreier

Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Sign-Up For Our Free Email Edition
Get the news first with our daily email


 
Blog Get more from The Daily News
Blog News, Training & Events
RECORD TOTALS DAY WEEK YEAR
PROPERTY SALES 86 313 4,762
MORTGAGES 97 409 6,640
FORECLOSURE NOTICES 34 147 1,475
BUILDING PERMITS 0 705 11,294
BANKRUPTCIES 53 311 4,525
BUSINESS LICENSES 41 177 1,983
UTILITY CONNECTIONS 64 436 6,253
MARRIAGE LICENSES 19 132 1,373

Weekly Edition

Issues | About

The Memphis News: Business, politics, and the public interest.