Gaming companies are looking beyond Las Vegas and Macau to expand their operations. Baltimore-based Cordish Companies has plans for a casino in Madrid, and Melco Resorts & Entertainment is planning to open a casino in Cyprus.
Oneida Indian Nation-owned Turning Stone Resort Casino in Verona is about to embark on its largest expansion project in 20 years. It will nearly double its convention and meeting space, add a hotel and dining options.
In addition to casinos located in Las Vegas, Macau and other destinations, gaming companies are also looking to tap markets outside of their home states and territories. Baltimore-based Cordish Companies, for instance, recently submitted plans to develop Spain’s first Integrated Entertainment Resort Destination in Madrid.
Casinos are generally seen as a boon to local economies. However, they can have negative effects, too.
As one would expect, cities that want to attract a casino need to perform thorough due diligence on its viability. They need to consider the size and location of the proposed facility as well as how it will fit into the community.
The best casinos also make a good case for how much the casino will contribute to the local economy. In the long run, this can mean more jobs, higher tax revenues and more opportunities for residents to live and work near the facility. The key is to ensure that the casino’s effects don’t overwhelm or diminish other benefits to the community.
In recent years, casino developers and operators have been focused on non-gaming amenities. These projects have gotten bolder, larger and more diverse than ever before.
One of the most important elements to consider in these developments is the impact they will have on the local economy. Cities need to ensure that a new casino will create jobs for the local workforce and not just attract foreign workers.
Another major consideration is the size of the project, as a large casino will need a large staff to manage it and pay for the expenses. This could result in a significant increase in the unemployment rate for the original population, which is not always an attractive prospect for local officials.
When it comes to generating revenues, commercial casinos have a few challenges. They are not immune to recessions and cyclical economic conditions, and consumers tend to cut back on gambling during times of economic uncertainty or consumer confidence.
Nonetheless, as casinos have spread across the country over the past two decades, casino expansion and growth plans have created new revenue streams in some jurisdictions. The most obvious example of this is in Nevada, where the state’s casinos have generated record-setting revenues.
But the Northeast has seen the most rapid growth in commercial casinos, with Maryland and Virginia, as well as Massachusetts, pursuing casino projects. In addition to attracting gamblers, these states have created new businesses and jobs, which can be an important contributor to economic growth in a local area.
However, some of these communities have experienced negative consequences as a result of their casino developments. Theodos said that keeping negative factors in check is possible and has been done, but it depends on strong planning early in the development process.
Casino Expansion and Growth Plans
The gaming industry has been growing at a fast pace in recent years. This has led to new casinos being built throughout the country, including in many cities with large populations and a strong tourism economy.
While casino expansion and growth may provide economic benefits to communities, there are also negative consequences that can occur. Specifically, the presence of a casino can increase gambling behavior and addiction in disadvantaged areas of a community.
Additionally, a casino can draw skilled workers from outside the area, which reduces unemployment in the local community. This is especially true for communities that have a relatively less skilled work force, which can be the case in some rural areas of the United States.
One way to mitigate these negative consequences is to incorporate equity into the planning process, says Michael Laurie, director of Bangor’s Center for Urban and Regional Development. This includes hiring in low-income neighborhoods to ensure that the community’s economic development plan is inclusive.