Spectrum Gaming Lists Casino Trends

ATLANTIC CITY, New Jersey – (PRESS RELEASE) -- Spectrum Gaming Group, an international consultancy with more than a quarter-century experience analyzing the potential impact of casinos in markets ranging from Atlantic City to the Catskills to Guam, lists seven "universal truths" for communities seeking to capture the benefits of gaming:

-- Gaming never evolves the same way twice. The factors that can influence any region are varied, ranging from tax rates to population to the political climate.

-- Casinos create new competition. Gaming venues do not simply compete against other forms of gaming, but against any industry that targets discretionary income. "The winners in a gaming economy are the businesses that know their customers and invest in themselves," said Spectrum Managing Director Michael Pollock. "The losers are those businesses that refuse to rise to the challenge."

-- Gaming creates unrealistic expectations. Local businesses often assume that they can reap riches simply because of their close proximity to a proposed racino or casino. Governments often expect that they will attract major conventions or airport traffic, which are often unrealistic. "Leaders who keep their expectations realistic and plan accordingly are in the best position to prosper," said Spectrum associate Kenneth Platt, Ph.D., former director of planning for Atlantic City.

-- Government must play a key role in marshalling gaming's benefits. "Government's job does not end when gaming is up and running. That is when the hard work begins, from establishing a positive investment climate, to training the local workforce," said Pollock, author of "Hostage to Fortune: Atlantic City and Casino Gambling," published by the Center for Analysis of Public Issues in Princeton, NJ.

-- Tax rates are inversely proportional to capital investment. Low-tax gaming states such as Nevada and New Jersey are havens for capital investment, while high-tax racino states enjoy minimal investment.

-- Public policy cannot be built on expectations of enjoying a regional monopoly. From Nevada to Delaware, and from Atlantic City to Connecticut, one-time monopolies continue to erode, ensuring that only the markets with sufficient high-quality investments will succeed.

-- Gaming's impacts do not stop at municipal boundaries. Communities far from casinos must be aware of how gaming can affect everything from their wage rates to traffic to their local businesses.