Maryland’s four casinos pulled in a monthly-record $79 million revenue in March, an increase of 27.3 percent on the previous month. By contrast, Pennsylvania’s and Ohio’s statewide revenues fell by 5.7 and 5.6 percent, respectively. Revenue for the city of Detroit’s three casinos also fell by 7.3 percent. This spells bad news for “America’s worst city,” which is depending on taxes skimmed from casino revenue in order to repay its colossal debts.
American gambling laws
allow each state to self-regulate its casino industry. Many such as Minnesota, Florida and Texas only allow casinos to operate on Indian reservations. Others such as Pennsylvania and New York have recently expanded the number of commercial casino licenses in the search for more tax revenue.
Casino saturation becomes a problem
The problem with commercial casino expansion is that the market is becoming increasingly saturated. The number of casinos rises while the number of gamblers remains static. The decline is most evident in New Jersey, where last year the Atlantic Club Casino made casino news by declaring bankruptcy and laying off 1,600 employees.
Atlantic City has been hurt by competition from neighboring Pennsylvania. Judging from the state’s disappointing monthly revenue report, it looks as if there are simply too many casinos along the Eastern Seaboard.