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How will the Tiverton Casino gamble play out?

In a landmark study now 20 years old, the University of Chicago’s National Opinion Research Center (NORC) found that communities closest to casinos experienced a 12- to 17-percent drop in government assistance, unemployment rates and unemployment insurance after the introduction of a casino. NORC also found that communities with casinos have 43 percent higher earnings in their hotel and lodging sectors than those communities farther from casinos. Though this doesn’t account for an already busy tourist region like Aquidneck Island. But casino revenue in the meccas of Las Vegas and Atlantic City is down considerably, while the same is happening in the convenience casinos located in smaller, out of the way places. According to David Frum at Atlantic Monthly, no one should look to casinos to revive economies. “‘That’s not what casinos do.’ So explained the project manager for a new Wynn Casino rising near Philadelphia.

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Dan Gilbert is said to be looking to cash out of casinos

He's worth an estimated $7.8 billion, according to the Bloomberg Billionaires Index. The gambling industry is in the midst of an acquisition wave, thanks in part to the emergence of casino-based real estate investment trusts that allow bidders to pay higher prices for properties. The U.S. Supreme Court's legalization of sports wagering in May has added to their potential growth prospects. Caesars completed the acquisition of two Indiana racetrack-casinos for $1.7 billion in July. MGM Growth Properties LLC, an affiliate of MGM Resorts International, paid $1.06 billion for another such property, the Hard Rock Rocksino Northfield Park, near Cleveland, the same month. Still, the business is competitive. Greektown Casino-Hotel consistently ranks last in revenue among Detroit’s three casinos. Gilbert's properties only ranked third and fourth in terms of gambling revenue this year among Ohio's four stand-alone casinos, even though the Jack Entertainment properties are located in the center of the state's two largest cities.

For the original version including any supplementary images or video, visit http://www.crainsdetroit.com/news/dan-gilbert-said-be-looking-cash-out-casinos

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