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Casino owner warns of oversaturation on East Coast
Express-Times ^ | May 18, 2012 | Express-Times Staff

Posted on 05/19/2012 8:34:57 PM PDT by JerseyanExile

Casinos are not like Starbucks stores: You really can’t have one on every corner.

That’s the word from David Cordish, whose company is opening a huge new casino next month in Maryland.

Yet Cordish warns that the expansion of casino gambling can’t go on unchecked forever. A big problem is the attitude of politicians nationwide who view casinos as free money.

“I don’t know how we can control the politicians; they certainly don’t understand the word ‘oversaturation,’” Cordish said Thursday. “They think you can have casinos like Starbucks.”

If that attitude continues, Cordish said, “it’s going to implode on them.”

That sentiment was voiced repeatedly at The East Coast Gaming Congress, a major annual casino industry conference, held this year in the newly opened Revel casino resort in Atlantic City.

The Cordish Co.’s Maryland Live!, opening on June 6, will have 4,750 slot machines and cost $500 million. He said the state will have four casinos with more slot machines “than anything in Las Vegas.”

Sands Casino Resort Bethlehem officials have always called Pennsylvania, northern New Jersey and the New York City area their chief market. Maryland, where the closest casino to Bethlehem is more than 120 miles away, has never been mentioned by Sands officials.

Sands Bethlehem President Robert DeSalvio declined to comment on the latest northeast casino expansion, calling it more of a mid-Atlantic than a Pennsylvania issue, spokeswoman Julia Corwin said.

State officials have been monitoring casino growth in both Maryland and fellow border state Ohio, said Richard McGarvey, spokesman for the Pennsylvania Gaming Control Board.

State Treasurer Rob McCord in September released a study that found casinos in nearby Maryland and Ohio locations will impact Pennsylvania’s slot performance but there are still viable markets for even more Pennsylvania casinos. Pennsylvania casino revenues will continue to grow, but not likely the double-digit year-over-year growth they’ve seen so far, McCord said at the time.

“We can expect future revenue growth that is more modest or that simply plateaus, but that is not a cue for casino operators to become complacent, as was the case in New Jersey,” he said.

Ohio opened its first-ever casino Monday in Cleveland, and officials plan to monitor its effect on western Pennsylvania casinos, McGarvey said. But though Cleveland is eastern Ohio, it is still more than 100 miles from the closest Pennsylvania casino, McGarvey said.

The new Resorts World Casino in Queens, New York City, has been doing incredible business, but Pennsylvania’s eastern casinos, including Sands, still have growing revenues, McGarvey said.

Sands also has amenities that a lot of the new casinos don’t yet, such as a large hotel, outlet mall, celebrity-owned restaurants and event center. DeSalvio last week said he expected Sands to be more competitive in the northeast market because of the casino’s new event center, which held its first concert Wednesday.

Several experts at the East Coast Gaming Congress said the solution to Atlantic City’s woes is the closure of one or more of its 12 casinos.

“Here in Atlantic City, we have assets for sale that literally nobody wants to buy,” said Gary Loveman, president of Caesars Entertainment, which counts four Atlantic City gambling halls among its 56 casinos. “There is simply too much supply in Atlantic City. The supply doesn’t go away. That’s a very bad thing. The problem here? Nobody ever closes.”

During a panel of Wall Street experts, Andrew Zarnett, managing director of Deutsche Bank Securities, said the new Revel casino might hurt, rather than help, Atlantic City’s overall casino market.

“Everybody’s a loser; when you add supply to a market that’s not growing very much, everybody gets cannibalized,” he said. “We need some of this capacity to close and go away. I would have thought that would have happened two years ago, but the properties are still here.”

Zarnett said he doubts any Atlantic City casino will close until they see whether New Jersey will approve Internet gambling and throw the struggling properties a lifeline. He also predicted that New York will approve a casino in Manhattan within five years.


TOPICS: Business/Economy; Government; News/Current Events; US: Maryland; US: Nevada; US: New Jersey; US: New York; US: Ohio; US: Pennsylvania
KEYWORDS: bethlehem; boardwalkempire; casinos; joisey; northeast; sandscasino

1 posted on 05/19/2012 8:35:05 PM PDT by JerseyanExile
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To: JerseyanExile

Same thing is going on here in the west. Indian casinos are popping up all over the place. Overkill.


2 posted on 05/19/2012 8:41:53 PM PDT by FlingWingFlyer (Dumb, dependent and Democrat is no way to go through life. - Rep. Louie Gohmert (R-Texas)
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To: JerseyanExile

Casino gambling was legalized in Pennsylvania in 2005.

In the past seven years there has been an epidemic of PTA treasurers, little league treasurs, fire company treasurers, etc. absconding with tens of thousands of dollars.

Most say they have a gambling addiction.

Some “free money”. /sarc


3 posted on 05/19/2012 8:45:03 PM PDT by lightman (Adjutorium nostrum (+) in nomine Domini--nevertheless, Vote Santorum!)
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To: Tolerance Sucks Rocks; JerseyanExile

Maryland ping!

O Malley was against casinos when his competitor was governor,


4 posted on 05/19/2012 8:45:16 PM PDT by sickoflibs (Romney is a liberal. Just watch him closely try to screw us.)
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To: JerseyanExile
Despite all the casinos popping up all around the nation, I still prefer to go to Las Vegas. Nothing else compares to it, not even Atlantic City. It's actually sort of depressing to go to a non-Vegas casino. There is just something low-rent about them. Not to mention all the old ladies being bused in so they can spend their last dollars on bingo and penny slots.

Las Vegas is an adult Disneyland. Lots to do besides gamble and when you go out there, you allot money for gambling as an entertainment expense, so you don't feel bad if you lose.

5 posted on 05/19/2012 9:02:09 PM PDT by SamAdams76
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To: SamAdams76
I was just in Las Vegas yesterday. We hadn't been there in 10 years or so. When did they get rid of the coin slot machines? I miss the sound of the old coin slot machines. The casinos just didn't sound the same.
6 posted on 05/19/2012 9:28:33 PM PDT by TaxPayer2000 (Write In Sarah Palin)
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To: FlingWingFlyer

I wonder if it’s killing horse racing too? Horses are expensive to maintain compared to slot machines. Supposedly Pimlico and Belmont Park are losing money.


7 posted on 05/19/2012 9:35:32 PM PDT by scrabblehack
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To: JerseyanExile

Casinos are the new drug.


8 posted on 05/19/2012 9:36:59 PM PDT by Republican1795.
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To: SamAdams76

When you feel like a winner, you go to Vegas
When you go to Vegas, you lose everything
When you lose everything, you sell your hair to a wig shop
Don’t sell your hair to a wig shop


9 posted on 05/19/2012 9:38:54 PM PDT by dfwgator
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To: JerseyanExile

I was at the Bethlehem casino in August and we won both nights $300 plus. I was at the OC MD casino in October and we lost $300 in 2 hours, didn’t win at all. Will never go back to the MD casino no wonder it was empty.


10 posted on 05/19/2012 9:46:55 PM PDT by VastRWCon (There are no coincidences in politics)
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To: sickoflibs

I used to live in Prince George’s County. Jack Johnson ws the former PG sheriff and then the county executive. He and his wife got busted for big-time corruption. I can’t wait to see what comes from the casino at National Harbor. Old Jack will look like a saint by comparison, I’ll bet. It will be fun to see how those rich government-types and lobbyists from DC and the locals from Anacostia and PG interact as well.


11 posted on 05/19/2012 9:47:27 PM PDT by VanShuyten ("a shadow...draped nobly in the folds of a gorgeous eloquence.")
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To: scrabblehack

Clearly, it had a bad impact in Jersey when AC first got into the act. Horse racing was the only legal form of gambling before casinos. Those tracks which have managed to get casino licenses (like Delaware Park) see higher purses, but few bettors trackside. One of my beefs with Christie of N.J. is that he favors the AC casinos and won’t let the Meadowlands get slots. People who gamble on horses also choose OTB parlors and that drives down attendance at the tracks. I find it really sad to go to a track and see so few people.


12 posted on 05/19/2012 9:48:35 PM PDT by Amberdawn
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To: Amberdawn

P.S., horse racing offers far better returns than casino gambling. Too many people are content to stupidly pull a lever than learn how to bet on horses.


13 posted on 05/19/2012 9:50:41 PM PDT by Amberdawn
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To: Amberdawn
P.S., horse racing offers far better returns than casino gambling.

Playing the ponies is a game of skill. Playing the slots is a game of chance.

You can be a consistent winner in the one. You'll eventually lose in the other.

14 posted on 05/19/2012 10:03:26 PM PDT by okie01
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To: TaxPayer2000

“When did they get rid of the coin slot machines? I miss the sound of the old coin slot machines.”

Go downtown, you’ll find some there.


15 posted on 05/19/2012 11:03:21 PM PDT by Stormdog (A rifle transforms one from subject to Citizen)
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To: JerseyanExile
Never been to Vegas huh? How smart is that for a Casino owner?</sarcasm>
16 posted on 05/19/2012 11:04:39 PM PDT by itsahoot (I will not vote for Romney period.)
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To: JerseyanExile

Gambling is the next bubble and gambling is a boom and bust business.

Never place a wager if it doesn’t figure for positive expectations.


17 posted on 05/19/2012 11:06:13 PM PDT by Usagi_yo
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To: FlingWingFlyer

overkill is great....I want overkill of casinos....if they approved the dang things for every indian group and allowed them to build on non rez land, than I say let every group or state open up many casinos.....good for the goose, good for the gander...


18 posted on 05/19/2012 11:50:24 PM PDT by cherry
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To: JerseyanExile
When a supplier complains of "over supply" of the commodity he is supplying, what he real means is that he wants the government to muscle out the competition. At least Al Capone did his own wet work.
19 posted on 05/20/2012 4:32:13 AM PDT by Lonesome in Massachussets (The Democratic Party strongly supports full civil rights for necro-Americans!)
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To: Lonesome in Massachussets

Bingo! That’s how I read this statement as well.


20 posted on 05/20/2012 4:54:14 AM PDT by FreedomPoster (Islam delenda est)
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To: TaxPayer2000
I miss the sound of the old coin slot machines. The casinos just didn't sound the same.

Must be similar to what I experienced yesterday. The park across the street from me has a baseball diamond, it's quite a ways from my house but I walked over there to watch the little leaguers play.

The first sound I heard as I approached the diamond was the sound of a baseball meeting aluminum. Like fingernails on a chalk board to me.

21 posted on 05/20/2012 5:43:36 AM PDT by Graybeard58 (Romney vs. Obama? One of them has to lose, I'll rejoice in that fact, whichever it is.)
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To: TaxPayer2000
They still have some of the old coin slot machines over on Fremont Street. We used to be nostalgic about them too but we've gotten used to the coinless machines that cash out with tickets. Much cleaner and we don't have to be washing our hands all the time.

I have a pretty good system to make our money last longer. We put $100 into a slot machine and play it through once. That is, if we are at a $2 machine, we spin the reels exactly 50 times and then cash out. Most slots in Vegas pay 94-98% back so typically after 50 spins on a $2 bet, we usually have at least $80 left and sometimes we are over the original $100. If less than $100, we take what's left and go play another machine (adding whatever we need to make it $100 again). If more than $100, my wife stays at the machine while I take the ticket to a cash machine and I put the "winnings" in a separate pocket and we play the original $100 back again on the same machine. Sometimes you get a "hot" machine and one time we came out ahead on a slot machine something like 10 times in a row. We spent hours on that one machine and splurged on a nice dinner afterwards with the winnings.

Some people look down on casino gambling and I can understand why. Like alcohol or anything else, it can become addictive and ruin your life. However, if you go in there with a plan to have fun and budget your money accordingly with what you can afford to lose, it can be a very pleasurable experience - just another form of entertainment. I used to spend more money taking the kids to Disneyland. Now that they are grown up, it's time for the parents to have some fun!

22 posted on 05/20/2012 5:46:07 AM PDT by SamAdams76
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To: Lonesome in Massachussets; FreedomPoster
Good thing I read all the comments first, I was about to say the same thing. How dare someone set up a lemonade stand right next to my lemonade stand!
23 posted on 05/20/2012 5:48:07 AM PDT by Graybeard58 (Romney vs. Obama? One of them has to lose, I'll rejoice in that fact, whichever it is.)
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To: lightman

It does prove that P.T. Barnum was right.


24 posted on 05/20/2012 6:22:28 AM PDT by ops33 (Senior Master Sergeant, USAF (Retired))
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To: Graybeard58

You’ve been reading Milton Friedman again. (Actually, Adam Smith said more or less the same thing.)


25 posted on 05/20/2012 6:24:47 AM PDT by Lonesome in Massachussets (The Democratic Party strongly supports full civil rights for necro-Americans!)
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To: dfwgator

I like those commercials! But in my case, I don’t have enough hair left to sell to a wig shop so I better manage my money wisely!


26 posted on 05/20/2012 6:30:35 AM PDT by SamAdams76
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To: Amberdawn

What do you mean by “better returns?”

Tiger Walk 30:1 = 0.0323
Teeth of the Dog 15:1 = 0.0625
Pretension 30:1 = 0.0323
Zetterholm 20:1 = 0.0476
Went the Day Well 6:1 = 0.1428
Creative Cause 6:1 = 0.1428
Bodemeister 8:5 = 0.3846
Daddy Nose Best 12:1 = 0.0769
I’ll Have Another 5:2 = 0.2857
Optimizer 30:1 = 0.0323
Cozzetti 30:1 = 0.0323
TOTAL = 1.2721

So it looks like the house is getting a 27% cut. With slots it’s something like 2%. On the other hand, a person can lay many bets on slots in the time it takes to run a horse race.

Now yes, it takes some skill to pick a horse or win at blackjack or poker, while slots are dumb luck. (Although they have slot tournaments).


27 posted on 05/20/2012 8:46:38 AM PDT by scrabblehack
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To: scrabblehack

I have rarely failed to come home in the black after a day betting at the track while it’s normal for me to lose at a casino. Granted, I’ve been around horses and tracks all my life and slot machines are all I’m “qualified” to play, but with an average of 12 horses per field, it’s pretty hard to lose if you know what your doing. P.S., I don’t play only to “win” but exacta’s and trifecta’s.


28 posted on 05/20/2012 12:34:14 PM PDT by Amberdawn
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To: scrabblehack

I have rarely failed to come home in the black after a day betting at the track while it’s normal for me to lose at a casino. Granted, I’ve been around horses and tracks all my life and slot machines are all I’m “qualified” to play, but with an average of 12 horses per field, it’s pretty hard to lose if you know what your doing. P.S., I don’t play only to “win” but exacta’s and trifecta’s.


29 posted on 05/20/2012 12:34:33 PM PDT by Amberdawn
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To: Amberdawn

I assume that the house’s cut on the exactas/perfectas/trifectas/super perfectas is roughly the same as on win?


30 posted on 05/20/2012 1:01:35 PM PDT by scrabblehack
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To: scrabblehack

Probably. My point is that one’s chances are higher with fewer variables and the payoff greater on an exacta/trifecta bet. Whereas slot gambling is truly hit or miss, given the number of machines and their odds of payoff.


31 posted on 05/20/2012 2:24:26 PM PDT by Amberdawn
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To: JerseyanExile; Abundy; Albion Wilde; AlwaysFree; AnnaSASsyFR; bayliving; BFM; ...
Can't have too much competition. Too many hoi polloi joining the country clubs is not a good thing. /sarc

Maryland "Freak State" PING!

32 posted on 05/20/2012 5:13:46 PM PDT by Tolerance Sucks Rocks (Occupy DC General Assembly: We are Marxist tools. WE ARE MARXIST TOOLS!)
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To: Tolerance Sucks Rocks

I gotta laugh at the guy in Pennsylvania complaining about “dilution” because of competition from Maryland——he wasn’t saying any such thing when he was hoping to take customers from the Delaware tracks.

What goes around - comes around!


33 posted on 05/20/2012 5:43:16 PM PDT by Gabz (Democrats for Voldemort.)
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