Note: This article is from November. The prediction is already coming true (see NJ, DE, etc.)
Taxpayers Face Bailout Of Casino Industry Says The Counter Media
Collapse Of Industry Imminent Due To Heavy Debt And Saturation
- Las Vegas, Nevada (PRWEB) November 19, 2012
American taxpayers are faced with a huge bailout of the casino industry according to a soon to be released White Paper, says thecountermedia.com. The report is scheduled to be released January 2, 2013. The report sights that the casino industry has all the elements that led to the auto and Wall Street bailouts such as high debt, a heavily saturated market, and no national policy on how the industry is ran. An Associated Press report in September of this year validates the study's conclusions, and sites that the bailout has already began in Atlantic City (http://www.businessweek.com/ap/2012-09-24/poll-keep-casinos-only-in-ac-no-state-tax-breaks). A CBS news report dated September 16, 2011 gives details of the beginning of the taxpayer bailout scheme with the rescue of the Atlantic City Hilton (known as the ACH) to the tune $24 million.
The report also points out that 2 of the top 4 casino companies, MGM, and Caesars are over $33 billion in debt and according to 3rd quarter earnings reports lost a combined $650 million plus (http://calvinayre.com/2012/11/12/casino/can-mgm-and-caesars-outrun-their-debt/).
Wall Street analysts have noted that both corporations have seen their stock plummet since the 2008 recession with MGM closing at $9 a share, and Caesars closing at $5. The report cites that due to the mirror circumstances that led to collapse of the Motor City auto industry and Wall Street banks, it is inevitable that the casino industry must be bailed out or allowed to collapse, causing an even more devastating economic disaster. This is in large part due to the fact that Las Vegas and Nevada depend on the casino industry as their economic golden goose, with MGM being the state's largest employer at 50,000 jobs and declining.
The model of depending on casinos as an economic cure all has been adopted by dozens of states, who also face the same collapse as the main Vegas players go under. The report examines Las Vegas, Atlantic City, and the states that have adopted casinos in order to create jobs and add tax revenue to the local coffers. Michigan is used a prominent example of the perilous situation tax payers find themselves in. Michigan approved 3 Las Vegas style casinos in Detroit in the late 1990's in an attempt to rescue its economy from years of stagnation. 15 year later Detroit and Michigan have seen a devastating rise in unemployment, crime, and loss of businesses in site.
Michigan like Nevada, Mississippi, New Jersey, California, and other casino saturated states are at the top of America's jobless list according to the Bureau of Labor Statistics (http://www.bls.gov/web/laus/laumstrk.htm). Most of these states have doubled down on opening more casinos, which Michigan looking at opening 15 additional gambling dens on top of the 23 that already exist. Statistics also show that casinos cause more job losses than they create. Casinos create 4,000 jobs per billion dollars spent, as opposed to small business which create 29,000 jobs, and infrastructure projects creating nearly 50,000 per billions spent (http://www.politifact.com/ohio/statements/2011/oct/26/steve-latourette/us-rep-steve-latourette-says-infrastructure-invest/).
The report reaches the conclusion that it is an economic impossibility for casinos to bring in revenues or patronage that would end the downward spiral to industry collapse. Due to the ready availability of casinos in cities from coast to coast gamblers will not bear the expense of airfare and lodging to travel to either Atlantic City or Las Vegas in significant numbers. The report also sites that both politicians and casino moguls have also reached that conclusion are seeking to open new markets in cities like Toronto, Canada, ban additional casinos in Atlantic City, and out of desperation Las Vegas mayor Carolyn Goodman is calling for the legalization of prostitution, marijuana, and transferring the porn industry from Los Angeles to Sin City (http://www.8newsnow.com/story/17243086/game-changer-legalizing-prostitution-marijuana-pornography-filming).
The most startling conclusion of the report is that if the issue isn't addressed in early 2013, entire states will face bankruptcy due to the staggering number of municipalities that will fail due to the casino industry collapse.
This will result in the country suffering another economic recession on par with the disaster of 2008.
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