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New casinos are proposed in four Wisconsin cities: Beloit, Kenosha, Sheboygan and Shullsburg. Casino gambling usually brings jobs and money to local communities, but it also brings problems. The question is whether any of the casinos should be built.
After years of rapid growth, both the amount wagered at casinos and the net winnings for casinos in Wisconsin and in most parts of the United States have declined in recent years.
The recession accounts for a substantial part of the decline, with the number of gamblers remaining stable but their wagers getting smaller. Just as casino revenue has slowed, so has the growth of state-sponsored lotteries.
Even though the recession most likely accounts for the actual decline in wagers in Wisconsin and across the nationthere appears to be an overall flattening of the demand for casino gambling that is perhaps best explained by a maturation of the Wisconsin market for casino gambling.
Market maturation essentially means that the casino gambling market in Wisconsin is saturated or near saturation. Demand for new products typically starts slowly, grows rapidly, and then flattens out. As markets mature, the rate of increase in demand slows and eventually becomes flat and may even decline, particularly when substitutes for the good or service appear. The concept applies to gambling the same way it applies to minivans, diet books or almost any other good or service.
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Adding new casinos to an already saturated market has consequences. In a saturated market, any new revenue to the sponsoring tribe is likely to come from another Wisconsin tribe and from another Wisconsin community.
In that case, there would be no net gain to the people of the state. There will simply be a transfer of jobs and money from one community to another and from one tribe to another. The community with a new casino built in a favorable location will compete effectively until another casino is built in a better location with more amenities.
Casinos in less favorable locations will suffer and so will the communities in which they are located. The adverse consequences of adding to supply when demand is saturated are real. Casino owners in Reno, Nev.
Reno authorities have to ask themselves whether the tribal casinos are offering a better product to customers and whether the higher-end Las Vegas casinos are equally to blame. But if the market were not close to saturation, the impact of casinos in California would most likely not have been as severe.
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- The Jack Abramoff Indian lobbying scandal was a United States political scandal exposed in ; it related to fraud perpetrated by political lobbyists Jack Abramoff, Ralph E. Reed, Jr., Grover Norquist and Michael Scanlon on Native American tribes who were seeking to develop casino gambling on their reservations. She was.
Closer to home, the Lac Courte Oreilles Band of Lake Superior Chippewa Indians has experienced a drop of more than two-thirds in its casino earnings over the past few years, compared with losses of only about 5 percent over the same period for aggregate tribal casino earnings in Wisconsin.
There are several plausible reasons for that. Competition from other casinos in locations favored by gamblers and with better amenities and ambience is part of business. But it also provides evidence of market maturity. There may, however, be greater adverse impacts of the recession near Hayward, where the Lac Courte Oreilles casino is located, or other factors peculiar to the operation of that specific casino that account for the decline there.
Competition from internet gaming could do to tribal gaming what tribal gaming did to dog tracks in Wisconsin. Internet gambling does not require brick and mortar casinos; it requires only a computer with an internet link.
It has no state or national boundaries and will be extremely difficult for government at any level to regulate or tax. Both commercial and tribal gaming interests are attempting to position themselves should internet gaming become a reality.
More casinos in Wisconsin are not inevitable. As of this writing, the Bureau of Indian Affairs has not made a determination concerning any of the four proposed casinos. But under the Indian Gaming Regulatory Act, the governor has the final word on new casinos in his or her state. Whether any of the casinos should be permitted depends on whether they contribute a net positive effect to the economy and the people of the entire state or whether the benefits would accrue just to those communities where they are built.
All that is required to stop a proposed casino is for the governor to say no. That is the amount that was wagered in Native American gambling facilities in Wisconsin in Wisconsin Division of Gaming, Not all of those wagers constitute losses by gamblers.
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Eleven tribes in Wisconsin are recognized by the federal government. Gambling, from bingo to baccarat, has been very good to some tribes. For those few reservations in or near larger urban areas, with access to heavily traveled highways, or in popular recreation areas, casinos have generally proven profitable. Most tribal reservations in Wisconsin, however, are in remote locations, and casino gambling on some of those reservations has not generated the hoped-for level of profits.
Some casinos in remote locations do very well because they are destinations or near destinations where people travel to golf, fish, hike and relax. Others do not do as well. The strategy is simple: Find a community that is in a prime market area, that wants economic development, and that has historical tribal ties.
Most local governments in Wisconsin hope for economic development to build a stronger economy and to increase local government revenue. Historically, this often resulted in little more than a largely vacant industrial park on the edge Scatter Casino Lobbyist Grover town.
The profitability of the monopoly in casino gambling for Native American tribes in Wisconsin led to a significant expansion of casinos in locations across the state. Initially, the expansion was on existing reservation lands. Now, Scatter Bonus Casino Kckcc, tribes have built and are operating casinos in Wisconsin in locations that are far from their reservations.
Nothing, of course, is as simple as it first seems.
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The Potawatomi casino in Milwaukee, for example, is on land grandfathered in when the first compacts were developed in Wisconsin. Thus, the Ho-Chunk casinos over the same area are presumably near one or another parcel that constitutes part of the reservation lands. One question is whether, given declines in recent years in both gross handle and net profit at casinos in Wisconsin and across the country, the casino gambling market in Wisconsin is saturated and demand Scatter Casino Lobbyist Grover satiated.
If so, adding more casinos would simply move wagering from one place to another with little or no increase in gamblers, wagers or profits. If the market is saturated, casinos in preferred locations are very likely to cannibalize the profits of those with poor locations in the competition for a bigger piece of a profitable pie — a pie that would remain roughly the same size. That is already happening on a larger scale nationally.
If there is no addition to wagers or profits, then, presumably, employment in casinos and related facilities such as hotels, restaurants and gift shops would increase in places with better locations and decline in places with less favorable locations.
Local governments that made major infrastructure improvements to support the casino find themselves without the revenue they expected to pay for those improvements. Financiers find they are holding paper for a bad loan. We all pay for a failed casino investment, just as we all pay when a major employer, public or private, closes and leaves a community in dire circumstances. A second concern is with adverse social spillover from gambling.
Problem gamblers generate huge personal, family and social problems. The relevant question here is the extent to which the ubiquitous presence of casinos exacerbates the problem and whether more casinos would exacerbate it further. Finally, there is a third set of Scatter Casino Lobbyist Grover. Do the payments made by the tribes to the state and to local governments under the terms of the compacts governing casinos actually cover the costs of lost tax revenue, expenditures on infrastructure that supports the casinos, and the costs of regulating the aspects of casino operations that the state is able to regulate under federal law?
Income to tribes and tribal members living on tribal land from activities on reservations or mini-reservations is not taxable. However, when casinos employ people who are not enrolled members of the tribe that owns the casino and who do not live on the reservation, the state government does benefit from taxes on their income.
With some exceptions, sales to people who are not enrolled tribal members living on the reservation are also subject to sales tax and state-imposed excise taxes. And, if the money paid to all casino employees, whether tribal members or not, is spent in the local area on goods and services not provided by Free Spin Casino Verite Downloads Chrome members on tribal lands, then there is a multiplier effect that provides positive economic benefits to the entire community.
The decisions they make now will have significant long-term consequences. Those who want their elected officials to make appropriate public policy decisions deserve to have the issues illuminated and, to the extent possible, have these questions answered. This monograph is an attempt to do that. Gambling, whether in Indian casinos or elsewhere, truly is big business. Almost inevitably, big business that is subject to governmental regulation or affected directly by governmental policy results in big-time lobbying pressure on elected officials.
The fundamental criterion for whether off-site casino gambling should be expanded in Wisconsin should be whether the benefits of additional off-reservation casinos to all the people of Wisconsin outweigh the costs.
Three sets of benefits and costs are particularly relevant. The first set is composed of economic considerations: How and to what extent would additional off-reservation casino gambling affect the economy of the community in which it is located and the state economy as a whole?
If the market is saturated, who would gain and who would lose? Social benefits and costs constitute a second set of criteria. Social benefits and costs are difficult to define and harder to measure. Metrics for some social costs and benefits do not even exist. Here, this report relies on the relatively small body of literature that attempts to answer the extent to which additional Class III casinos are likely to contribute to adverse social effects associated with problem gambling and crime that may accompany gambling operations.
Moreover, one must also ask about the extent to which another off-reservation casino is likely to contribute to helping tribes and tribal members become independent and fund their own programs, as the Indian Gaming Regulatory Act says is its goal. A final set of benefits and costs consists of financial considerations. Sufficiency, in this case, means whether the revenues generated Scatter Casino Lobbyist Grover the new casino would cover the costs incurred by state and local governments because of the additional casino.
Adequacy of revenue also means whether the revenue paid to the state by the tribe owning the additional casino is sufficient to warrant the state continuing to ensure the tribes a monopoly on Class III casino gambling within the state. One might well argue that before the state enters into a compact with a tribe, an analysis of costs and benefits and economic effects should be conducted.
Such a study could provide the basis for bargaining over the portions of the compact that address the costs to government. Casino gambling in Wisconsin generates strong emotions among committed advocates both for and against it.
Some who oppose casinos believe gambling is sinful, immoral or contributes to depravity. Others believe that money spent on gambling would be better spent on activities that contribute to the general well-being of the people. De Casino Concertzaal Utrecht Fc Fixtures think that even a few instances in which players steal from their employers, ravage their family finances, or spend disproportionate amounts of time gambling are enough to warrant outlawing casino gambling altogether.
On the other hand, casino advocates argue that there are benefits to the local economy and that casino gambling has given Indians long-overdue access to jobs and income that is perhaps not enough to recompense them for centuries of oppression. Consequently, decisions involving the extension of Indian casino gambling to off-reservation sites, compacts with tribes concerning casinos, and the consequences of casino gambling can be highly emotional and intensely political. The politics and the emotions affect the quality and reliability of published materials, both pro and con.
Many papers and publications are little more than value-based polemics.
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