Mississippi Continuing to Feel the Sting of Casino Losses

Mississippi Continuing to Feel the Sting of Casino Losses

Mississippi is a state that has long relied on revenue from gambling operations to form a large part of the state’s budget and now that gambling seems to be in a downward spiral in the state, nobody is quite sure what to do. Gambling venues historically have been able to at the very least hold their own in periods of economic downturn and in fact when there is an economic downturn working its way through the state many people would argue that casinos actually do better as there are more people around that have a mindset that is conducive to gambling than you would normally expect. However, there is a big difference between a downturn and a recession and since the primary task of a casino is to simply move money around, a recession means that eventually casino revenues are going to be affected as people that might gamble normally simply do not have the money left anymore to sustain that particular habit.

Mississippi Casinos

According to a report that was released by the Associated Press however, the November figures for Mississippi casinos as a whole are not particularly encouraging. When November 2008 is compared to November 2007, the resulting conclusion is that nearly double-digit declines in overall casino revenue have transpired from the year-on-year comparison. Revenue for a casino is defined as the differences between the casino wins and the casino losses in terms of bringing in revenue. These do not represent the profit figures however and for that reason it is reasonably possible that there are some casinos out there that are still doing well despite the tough economic situation the casino revenues have been in as of late. Riverboat casinos in particular have been hit quite hard by the economic recession and while the coastal casinos have not exactly been able to escape unscathed, their financial position at this point is a lot less precarious than their river counterparts. For this reason, many gambling analysts wonder if there will be riverboat closures before the United States is able to get its economy back on track.

Gambling Days

For a state that has been culturally defined in part by the riverboat gambling days when casinos were all over the place along the Mississippi River, the prospect of losing the entire riverboat gambling industry is not a particularly comforting one. It would be akin to Kentucky losing its horse racing industry and at the current moment in time it does appear as though both states are headed in that direction. In Kentucky it is clearly due to a lack of leadership on the issue, but in Mississippi it may just be due to a sign of the changing times. Riverboat gambling used to be the way to gamble but now as more and more people start to gravitate towards online casino venues for their gambling action, riverboat gambling continues to be something that is reserved for people with lots of time and lots of money. For that reason, many people wonder whether revenues will reverse and start increasing again even if the recession ends. It is an open question that will likely not be answered anytime soon.

February 21, 2011 by : posted in Gambling Abroad No Comments