More casinos may not have expected financial results, study finds
South Florida Business Journal by Oscar Pedro Musibay, Reporter
Date: Wednesday, December 26, 2012
- Oscar Pedro Musibay
- Reporter- South Florida Business Journal
If all you wanted for Christmas as a gambling operator was to add more one-armed bandits to your casino floor, or to expand the menu to include more horse racing, then 2012 was your year.
Casino operators such as the Seminole Tribe of Florida spent $150 million to expand in Coconut Creek and horse racing returned to Hialeah Race Track. Gulfstream Park in Hallandale Beach wants to hold horse racing year round and the majority of voters in Palm Beach County said they support slot machines at pari-mutuels.
Additionally, The Genting Group recommitted to its strategy of convincing legislators to buy into the idea that Las Vegas-style gambling should be allowed in downtown Miami.
But a new study on the impact of casino growth on Iowa might dump some coal in their stockings:
The University of Iowa found that casino expansion doesn’t necessary [sic] draw more local gamblers.
Donald Black, a psychiatry professor at the University of Iowa that studies gamblers, said that results should also apply elsewhere. He likened the public’s fascination with casinos to a child having a new toy, with the initial interest changing from intense to indifferent, over time, according to an explanation of the study on the University of Iowa Carver College of Medicine website.
“It seems society reaches a saturation point beyond which additional gambling opportunities won’t capture more people," Black, whose study was published in the journal Annals of Clinical Psychiatry, was quoted saying on the College of Medicine website. "And that applies to problem gamblers, too. They all seem to adjust to it.”
The issue is particularly poignant considering all the money going into the industry. Genting’s push has spurred some such as Ron Bergeron to seek permits to open Jai Alai facilities in Weston and others to push for pari-mutuels elsewhere, all with their eye on including card rooms and other gambling.
This comes despite problems in the gaming industry: Florida Gaming Corp. (OTCBB: FGMG) sold at the end of November for more than $115 million despite its financial struggle and a foreclosure lawsuit that included both its Miami and Fort Pierce operations.
Genting has insisted throughout its push for expanded gambling that the kind of casinos the Malaysian company operates attracts international players with lots of money. Their product draws a class of the world’s wealthy, “whales,” that is just as likely to park their super-appointed yacht in the casino’s waterway as be able to afford a private flight on their customized jet to play the high-end table games.
So, the study may be brushed off Genting's shoulders like the recent push to declare The Miami Herald building historic, which would have undercut their plan to develop the waterfront. The city of Miami’s historic board denied the designation. Business Journal Editor Kevin Gale hailed as a sign of progress.
The rest of the industry will have to see if the results of the study bear out in their own local operations, which have been a job creator for many communities over the last year.
http://www.bizjournals.com/southflorida/news/2012/12/26/iowa-study-says-more-casinos-may-not.html
Casino operators such as the Seminole Tribe of Florida spent $150 million to expand in Coconut Creek and horse racing returned to Hialeah Race Track. Gulfstream Park in Hallandale Beach wants to hold horse racing year round and the majority of voters in Palm Beach County said they support slot machines at pari-mutuels.
Additionally, The Genting Group recommitted to its strategy of convincing legislators to buy into the idea that Las Vegas-style gambling should be allowed in downtown Miami.
But a new study on the impact of casino growth on Iowa might dump some coal in their stockings:
The University of Iowa found that casino expansion doesn’t necessary [sic] draw more local gamblers.
Donald Black, a psychiatry professor at the University of Iowa that studies gamblers, said that results should also apply elsewhere. He likened the public’s fascination with casinos to a child having a new toy, with the initial interest changing from intense to indifferent, over time, according to an explanation of the study on the University of Iowa Carver College of Medicine website.
“It seems society reaches a saturation point beyond which additional gambling opportunities won’t capture more people," Black, whose study was published in the journal Annals of Clinical Psychiatry, was quoted saying on the College of Medicine website. "And that applies to problem gamblers, too. They all seem to adjust to it.”
The issue is particularly poignant considering all the money going into the industry. Genting’s push has spurred some such as Ron Bergeron to seek permits to open Jai Alai facilities in Weston and others to push for pari-mutuels elsewhere, all with their eye on including card rooms and other gambling.
This comes despite problems in the gaming industry: Florida Gaming Corp. (OTCBB: FGMG) sold at the end of November for more than $115 million despite its financial struggle and a foreclosure lawsuit that included both its Miami and Fort Pierce operations.
Genting has insisted throughout its push for expanded gambling that the kind of casinos the Malaysian company operates attracts international players with lots of money. Their product draws a class of the world’s wealthy, “whales,” that is just as likely to park their super-appointed yacht in the casino’s waterway as be able to afford a private flight on their customized jet to play the high-end table games.
So, the study may be brushed off Genting's shoulders like the recent push to declare The Miami Herald building historic, which would have undercut their plan to develop the waterfront. The city of Miami’s historic board denied the designation. Business Journal Editor Kevin Gale hailed as a sign of progress.
The rest of the industry will have to see if the results of the study bear out in their own local operations, which have been a job creator for many communities over the last year.
http://www.bizjournals.com/southflorida/news/2012/12/26/iowa-study-says-more-casinos-may-not.html
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