Back in the day when casinos were coming to the Mississippi Coast I wrote a piece about the Law of Diminishing Returns to argue against an unlimited amount of casinos….it seems that they were building casinos to have something to do……..
Law of Diminishing Returns simply put is if there is a finite amount of casino revenue, say $10 million, then the more casinos there are the more diluted the revenue will be…..now with the slowdown of the economy the casinos have suffered the same fate……when the bill passed the state legislature the deal was that the tax revenue would be used to sure up the sagging education system……well we stilkl have one of the worse systems around and the funds found there way into the “general fund”…….
But could the casino become a burden on the state? Under normal conditions they should not……but there is nothing usual about the Mississippi gaming system……what could be a possible result of a casino failure?
Well, let’s look at Delaware, shall we………
Lawmakers appear ready to support Gov. Jack Markell’s plan to use $8 million from higher-than-expected state tax collections to bail out the state’s casino industry. But it’s not clear if the state aid will forestall layoffs threatened by casinos that have seen revenues plummet from intense regional competition.Sen. Robert Venables, who chairs the General Assembly’s join Bond Bill committee, said Tuesday $8 million is “better than nothing” for the industry, which has pleaded with lawmakers and the governor in recent weeks for help to reduce its tax burden.
If the proposal makes it into the final draft of the Bond Bill, tied in with hundreds of millions in school and infrastructure spending, it’s likely to pass the General Assembly without debate.
Now how is that? An industry that makes obscene profits could get a government bailout…….could this be the future of the failing casinos of the Gulf Coast?