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September 12, 2010 / jimnv

Casinos and Nevada

Recently, an editor said that there needs to be a different and better oversight of the casino industry. I second that and have been saying this for the past few years.

Nevada casinos have it great when it comes to taxes (lowest on the planet) and there has been little oversight regarding their investments here and abroad. They were no different from the guy who bought a house with no money down and not enough income to pay the mortgage. He was hoping the house price would continue to rise and somehow his salary would increase. It didn’t work out, did it? It hasn’t for casinos either.

Consequently, we have seen the gaming industry staggering around economically, some going bankrupt and laying off  thousands and in turn, negatively affecting every business it works with, especially construction.  The fall out has been less income for the state which is dependent on gaming and a dreadful Nevada economy with high unemployment, foreclosures and bankruptcies.

The reason we have the highest unemployment rate  is because of casinos and their investments. This answers the question why Nevada has it so bad while every other state is better off in general and many are recovering.

I will now say what no one will… Nevada’s casinos crashed Nevada’s economy because of their hubris and incompetence.

This must never happen again… ever. We are too dependent on casinos which provide billions in revenue and income for hundreds of thousands of Nevadans and when they fail, we all fail.

We must regulate how they do business by focusing on how they invest and where. It would also help to limit the number and types of casinos in operation in any one area. Finally, let’s end our total dependence on gaming and truly diversify Nevada’s economy.

Do I think this will happen? Nope.

Casinos  control our economy, they buy politicians and access to politicians and write regulations and laws which benefit them and not the economy. They like it this way. It scares them to give up this control.

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