Monday, April 04, 2005
A report for West Virginia points to a growing national trend...an increasing dependence of state governments on gaming revenues. Read more.
The report points to the economic development value of gaming...so called tourist gamblers. There's only one problem. For gambling to generate an economic development impact, more than 60% of the gamblers need to come from outside the region. (I base my conclusion on detailed financial models I built to analyze casinos in Louisiana.) Few casinos can meet the test.
Meanwhile, in Cleveland, the local paper discovers that gambling did not solve the problems in Detroit. Read more.
The scope of Detroit's market is a major part of the reason that casinos don't work to build economic development. According to a 2002 report by Michigan State, nearly 80 percent of gamblers come from the three counties surrounding Detroit. Casinos do more to suck money out of the regional economy than they do to inject new money into the economy.
Relying on casinos as an economic development tool is a little like heating your house with a blow torch. You might be able to do it, but it's not a smart move.
posted by Ed Morrison |
Some Background on EDPro Weblog
The purpose of this weblog is to help economic development professionals -- EDPros -- keep up with the changes sweeping our profession. Strap on your goggles. It's a whole new game. There are no experts any more. The only place to learn about economic development is from other EDPros who are doing it.
One other point: the prevaling approach (paradigm, if you like) in economic development is shifting from competition to collaboration. There are a lot of reaasons underlying this shift, but here's the important insight: You, your community, and your region will do better by collaborating and sharing information.
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Speaking and workshops on Open Source Economic Development
As the idea of Open Source Economic Development starts spreading, more people are asking about it. Visit the I-Open web site to learn more. My colleagues and I are happy to explain the basic concepts in a talk or a workshop. E-mail Susan Alshuler if you'd like to learn more about workshops and speaking.
Background on Ed Morrison
Download some background information on me here.