In a tough economy, governments will often carefully weigh their options on revolutionary ideas that have no chance (yeah, pot will be legalized in California the day that Schwarzenegger can properly pronounce the word propeller) or they just take money from public schools (yes, surely that will solve our nation’s financial troubles). Still, some areas erect casinos to combat their cash flow problems, yet a new study is showing that these areas would do better to get into the iGaming business than fund yet another neon book keeper.
A case study of one neighborhood outside of Portland claims that a land-based casino will in fact cost a city more than it takes in over time. The casino in question is expected to bring in roughly $650 in annual revenue to the community, create jobs and stimulate local businesses.
Yet an analysis of the deal reveals that the hidden costs associated with casino construction and regulation will actually drain between $29 million and $87 million from the local economy each year, according to the USAPlayers.com.
In contrast, online gambling provides relatively low start up costs and maintenance fees, making profit margins a lot cleaner than their land-based equivalent.