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Money is like fire, an element as little troubled by moralizing as earth, air, and water.
CHAPTER SUMMARY. In this chapter, we examine the social and economic forces that led the “players” in the casino drama – proponents, players, government, and opponents – to act as they did. The decision-making process has not always operated as it should. The main points of failure are lack of knowledge and good information, and the choice of the players to consider only a subset of the benefits and costs. There must be an informed agent that makes decisions based on all benefits and costs, however, if the social good is to be enhanced, and this must be the government in cases where externalities are present.
THE PROPONENTS
SUMMARY. Economics teaches that above-normal profit is an inducement for businesses to enter the market. Enormouscasino profits, frequently based on government-granted monopoly rights, create pressure for gambling expansion that often finds expression in inappropriate attempts to influence government. Pressure for expansion will persist as long as entry is limited in any way so that casinos earn above-normal profits.
Owners
The evidence of tremendous casino profits is not difficult to find. In February 1993, The New York Times reported the success of investors in Argosy Gaming Company, which “has a monopoly on casino gaming in the St. Louis rea through its Alton Belle riverboat.”
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