Sunday, August 17, 2008

Massive gambling loss

Remember when the Patrick administration was suggesting that casino revenues could pay a projected billion-dollar-a-year deficit in capital funds for roads, bridges, buses and rails? It turns out that even a commission made up of casino boosters reckoned the gov's cash-flow estimates were a losing bet. The gov's now-dead three-casino proposal would have created only 6/10ths of the jobs Patrick originally predicted; and only a third of the construction jobs.

What's interesting is Dan Kennedy's post on Media Nation, earlier this week, calling out Spectrum Gaming Group, who did the analysis, as a solidly pro-gaming group. Here's the company bios, as Dan excerpted them Friday: 

  • Harvey Perkins, senior vice president, "has thirty years of casino gaming industry experience and has held high-level positions at major gaming properties in Atlantic City and New Orleans."
  • Tina Ercole LoBiondo, vice president for analysis, "has worked in the casino resort industry since 1988, having held various analytical, operational and developmental roles in Atlantic City and Las Vegas, and was instrumental in the opening of three major gaming resorts."
  • Bill LaPenta, director of financial analysis, "is a casino and hotel industry professional with more than 20 years of operations management and analysis experience, providing critical business decision support, planning, analysis, and performance management tools to casino hotel and resort operators."

So my question is, what cloud of fruitcake produced the original numbers, if these gambling boosters are pointing out there's only half a pie here. 

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