Casino Boom Pinches Northeastern States
Influx of Competition Leaves Early Players—Such as Delaware, New Jersey and West Virginia—Struggling to Keep Bets Flowing By Scott Calvert and Jon Kamp The Wall Street Journal June 19, 2014
Racetrack casinos used to contribute as much as $240 million a year to Delaware’s tax coffers. But as the Northeast becomes saturated with gambling venues, the state’s casino revenue has tumbled, prompting a new industry request—for a tax break.
“It’s a different world for the Delaware casinos,” said Democratic Gov. Jack Markell, who supports reducing the tax burden on casinos by $20 million a year to help them compete.
More casinos have opened in the Northeast over the past decade than in any other part of the country, and the expansion is causing upheaval in the region. States that adopted gambling earlier than their neighbors, such as Delaware, New Jersey and West Virginia, are watching dollars drain away, and new projects have some wondering how many facilities the area can support.
Twenty-six casinos have opened since 2004, fueling a 39% increase in total annual gambling revenue in the mid-Atlantic and New England, according to a study by the University of Nevada, Las Vegas. Within 100 miles of Philadelphia, there now are 24 casinos, a big shift from the early 1990s, when Atlantic City, N.J., enjoyed an East Coast monopoly. At least a dozen more gambling spots are in the pipeline from Massachusetts to Maryland, raising fears in states such as Rhode Island that their casino tax windfall is at risk.
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Contact: John Sowinski Phone: 407-608-5930 Email: info@nocasinos.org