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Moody's: Established gambling markets faltering

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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 revenue away from New Jersey, Indiana and Nevada to new markets in places like Pennsylvania, Illinois and Ohio.

The recession crushed gambling revenue 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.

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.

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

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.

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  • Forward Thinking
    Shocking news from our friends at Moody's. What industry is next, let me guess, companies that sell typewriters are going to face competition from home computers and printers. As soon as states approved casino gambling they should have seen this coming. For Ohio, that was like 3 years ago. Moody's and others are well behind, just like when they missed the housing bubble. Oh yeah, they get paid by the very industries they cover. Conflict of interest? Perhaps.

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  1. So much for Eric Holder's conversation about race. If white people have got something to say, they get sued over it. Bottom line: white people have un-freer speech than others as a consequence of the misnamed "Civil rights laws."

  2. I agree, having seen three shows, that I was less than wowed. Disappointing!!

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  4. Say It Loud, I'm Black and Ashamed: It's too bad that with certain "black" entertainment events, it seems violence and thuggery follows and the collateral damage that it leaves behinds continues to be a strain on the city in terms of people getting hurt, killed or becoming victims of crimes and/or stretching city resources. I remember shopping in the Meadows area years ago until violence and crime ended make most of the business pack you and leave as did with Lafayette Square and Washington Square. Over the past 10 to 12 years, I remember going to the Indiana Black Expo Soul Picnic in Washington Park. Violence, gang fights and homicides ended that. My great grandmother still bears the scares on her leg from when she was trampled by a group of thugs running from gun fire from a rival gang. With hundreds of police offices downtown still multiple shootings, people getting shot downtown during Black Expo. A number of people getting shots or murdered at black clubs around the city like Club Six on the west side, The Industry downtown, Jamal Tinsley's shot out in front of the Conrad, multiple fights and shootings at the skating rinks, shootings at Circle Center Mall and shooting and robberies and car jackings at Lafayette Mall. Shootings and gang violence and the State Fair. I can go on and on and on. Now Broad Ripple. (Shaking head side to side) Say It Loud, I'm Black and I'm Ashamed.

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