The next Detroit? Atlantic City and Las Vegas facing catastrophic collapse
. . . Beginning in the late 1940s, Las Vegas became known as the 'adult playground of the world.' Celebrities knew they made the big time when their names graced the billboards of ‘Sin City.’ Gamblers hoping to make money would flock there all year and families looking for a nice getaway would enjoy relaxing by the extravagant swimming pools under the hot desert sun, seeing the various shows and concerts, and whenever possible, sneaking away to the blackjack tables while their kids slept.
It was paradise. . .
It was paradise. . .
The Great Recession of the late 2000s hit Las Vegas hard. As the recession wore on, and as gambling received approval in various jurisdictions throughout the United States, folks realized they didn't need to travel thousands of miles just to gamble.
Casino revenues and the price of real estate plummeted. Unemployment went as high as 14 percent, however unofficially, local officials said it may have been as high as 30 percent.
More than half of all home owners with a mortgage in the state of Nevada owe more than their homes are worth.
One local bought his condo in 2006 for $209,000, and as of 2013 it is worth barely $60,000.
As Las Vegas moved to market itself as purely an entertainment paradise, one local said “The reality is, people just won’t fly to the middle of a desert to play some slots, watch shows and sit down for some blackjack when they can drive right near their town or city, or play legally online.”
And now it looks like the feds may soon allow online gambling across the United States.
Casino revenues and the price of real estate plummeted. Unemployment went as high as 14 percent, however unofficially, local officials said it may have been as high as 30 percent.
More than half of all home owners with a mortgage in the state of Nevada owe more than their homes are worth.
One local bought his condo in 2006 for $209,000, and as of 2013 it is worth barely $60,000.
As Las Vegas moved to market itself as purely an entertainment paradise, one local said “The reality is, people just won’t fly to the middle of a desert to play some slots, watch shows and sit down for some blackjack when they can drive right near their town or city, or play legally online.”
And now it looks like the feds may soon allow online gambling across the United States.
Last May, the American Gaming Association called on Congress to enact federal legislation that would allow states to license and regulate online poker so Americans who play can do so safely using responsible, law-abiding operators. The Department of Justice made a decision that the Federal Wire Act only prohibits the transmission of communications relative to bets or wagers on sporting events or contests. It also clarifies that intrastate lottery tickets sold online are legal, so long as the lottery games do not involve sport wagering, even if the transmission crosses state lines.
Officials say this has opened up the possibility that online gambling may get approved on a federal level. . .
Nevada also enacted modifications to their internet gambling law to allow for interstate compacts, among other provisions in hopes to draw higher stakes jackpots, similar to the Mega Millions and Power Ball lottery games that are played in multiple states.
With this in mind, it seems the niche that Las Vegas and Atlantic City once offered as a gambling and entertainment hub is heading toward the dustbin of history.
Time will tell if these two cities will end up like Detroit. However, the fact that they are losing their biggest industries to major competition, much like Detroit did, with depressed housing, casinos bankrupting/closing and businesses fleeing, makes their fate seem eerily similar.
With this in mind, it seems the niche that Las Vegas and Atlantic City once offered as a gambling and entertainment hub is heading toward the dustbin of history.
Time will tell if these two cities will end up like Detroit. However, the fact that they are losing their biggest industries to major competition, much like Detroit did, with depressed housing, casinos bankrupting/closing and businesses fleeing, makes their fate seem eerily similar.
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.