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Just look to MD and the recently legalized slot machine locations. They went out to bid and one location didn't even have a taker. The rest of the bidders submitted for lower numbers of machines than were authorized and one, Magna, was disqualified because they couldn't come up with the bid bond. That location, Pimilico, was considered a prime one and the winning bidder ignored it and wants to build a slots hall beside Arundel Mills Mall, which the bidder also owns. Also, WVA and DE have increase their slots options and DE recently, or will shortly, approved adding table games. Gambling is not recession proof.
The Tulalip is in my neighborhood and I drive by there about twice a week. The parking lot is consisently more full than it has ever been, but I think they shot themselves in the foot by opening that expensive hotel and spa next door. Every premium dollar spent there is not being spent in the casino. In reality the tribe is probably making plenty of money, but the article you quoted was focused on casinos so it doesn't take that into consideration. After many years of a career in accounting, I am well aware of how companies can legitimatly make one and one add up to anything they want it to in order to support their adgenda.
People used to come down from Canada on group bus tours and stayed overnight in Everett hotels which are quite a bit cheaper. Now even the cheapest local dive motel where the long haul truck drivers used to stay is over $100 per night with no amenities. Due to my proximity to Tulalip and recreation, even I am currently contemplating renting my home by the night to pay the mortgage when I move south next year.
The other drag on Tulalip's income is the 100% expansion and increased amenities of the nearby Stilliguamish Casino (Angel of the Winds) It specializes in penny slots , $2 blackjack and 99 cent food specials like shrimp cocktail, salmon and chips and strawberry shortcake. The seniors who used to go to Tulalip are now going to Stilliguamish. I go there myself a couple of times a year. My $20 gambling budget lasts about 10 minutes at Tulalip but about 3 hrs at Stilliguamish. The buffet at Tulalip is $15.00 but my meal at Stilliguamish is less than $5.00.
Any business that specializes in entertainment or avoidance, like casinos, pharmacies, bars and liquor stores does a lot better than average in bad times because people need relief from their desperation.
The main reason Las Vegas is now in trouble is two-fold.
Why should people play for a plane ticket when they have a casino in their own neighborhood .
When President Obama told businesses that were getting bailed out on the taxpayers dollar to stop booking junkets to Las Vegas, he inadvertantly caused the cancellation of over 400 such conventions that will end up costing LV over 100 million dollars not including the gambling revenue that would have been realized by having that many visitors. This may have been a faux-paux on the President's part but it was an expensive one.
The recession is not responsible for everything, times and people's priorities are changing. Businesses will rise and fall accordingly.
I agree that the folks running casinos are pretty wise about cash flow. I expect discretionary spending to drop quite a bit in the next year or so as there are a lot of folks with job uncertainty. The only gambling I do is in the stock market, and I'm nibbling at values I see but have been storing up for a long winter otherwise.
I agree with you. I had saved up enough to pay off all of my debt except for my mortgage and take a long awaited 2 year break from work for "personal enrichment" (extended vacation LOL). 6 months later the parent company closed down our facility and put 1200 people out of work in a rural area. I am greatful, I choose this time to do this because I have until 04/2010 to relocate and worry about getting another job. I also was lucky enough to transfer all of my assets out of the stock market and into money market and CD's 2 years ago. I figured, I was already getting matching funds in my 401K so I already had a return, and although the earnings were poor, I wasn't loosing anything. Many people I know who are appproaching retirement lost as much as 75% of their life savings. A lot of people I worked with were totally invested in company stock that in two years went from $50.00 to a low of $1.87 and even now is less than $6.00.
Now, I am looking into purchasing real estate in a down market. I don't care as much about the resale value as being assured of a place to live without a mortgage in my senior years.
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