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The ailing economy has effected destination resorts in Las Vegas and Atlantic City drastically because of the lack of tourists. Atlantic City and the Las Vegas Strip have seen gaming revenue decline 14%. The financial conditions have led to some high profile bankruptcies and major write downs for gaming giants.
Surprisingly Detroit casinos, have whethered the recession fairly well, despite the cities 29% unemployment rate. However the cities casinos haven’t been totally immune to the economy.
According to the Michigan state regulator, Detroit casinos have seen a decline on the average of 2%. The cities three casinos have earned a combined total of $1billion from gaming to date in 2009, compared to the $1.4 billion in 2008.
Local casino operators contribute their good fortune to a combination of the smoking ban in neighboring Ontario casinos and the focus on ad campaign efforts to target the local market.
Gambling opponents argue that casinos make hard times harder for families strapped for cash. However proponents add that the casinos employ approximately 8,200 people and are one of the few sources of new jobs and city revenue.
Casino revenue is the second largest source of financing for the city after support from the state. Last year Casinos provided the city $189 million.
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