Wednesday, April 7, 2010

Gambling is not the cure

Resorts Atlantic City, the USA's first casino outside Nevada, says it may not survive. Another Atlantic City casino hasn't made a loan payment since last summer. Three others are in bankruptcy court.

Atlantic City's 11 casinos have been struggling for more than three years. Financial documents filed with the state of New Jersey this week show just how bad things have gotten.

The news was worst for the two casinos believed to be the most endangered: Resorts Atlantic City, which was taken over by its lenders in December, and the Atlantic City Hilton Casino Resort, which defaulted on its mortgage in July and could be headed for the same fate.

Now that casino gambling is pretty much everywhere, the era of legalized gambling being the cure all for local budgets and development is over.

There's no need to travel hundreds of miles to a fancy casino in a decaying city if there's a casino within a few hours drive of my house.

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