Dichotomy
I love quoting dictionary explanations. The one I resteal from Webster today is #4.
4 : something with seemingly contradictory qualities <it's a dichotomy, this opulent Ritz-style luxury in a place that fronts on a boat harbor — Jean T. Barrett>
That seems the ideal one to use with Riggstad's recent remarks on why Atlantic City will win.
He seems to be a proponent of competition improving an area for all by driving added traffic. I am familiar with that and have seen it work. However, big box stores have ground that into the ground. It may work for AC if they can develop the big box attitude for efficiency and customer goals. But, when he expects a corrupt local government to contribute to that it goes back to iffy.
He assigns attributes to gambling. He believes it is inherent in our genes. Well, we got to where we are with a lot of gambling. It is the American way. But, coupled to that is the individual's silent recognition of what we like to call pot odds. Entrepreneurial gamblers are all about risk:reward. Casino gambling doesn't provide that.
Today's economy wouldn't have impacted old Las Vegas or Atlantic City. That was an era of $3.95 prime rib buffets and $.99 shrimp boats. Then, throw in an inexpensive show. Table games in the era started at $2.00 in the better places and as low as $.50 in the strip mall joints. They sold a value destination. That changed with the influx of junk bond funding and the business plan was rewritten. Perceived value is a thing of the past.
People may gamble and more of them probably will with the proximity that the various states are providing. Governments – the biggy excluded – are looking at legalization as another form of sin tax. This is like tobacco and alcohol where they believe that such taxation is accepted by the electorate. To a legislature it is looked on as free money. And, in these times, it has proliferated without any conscious thoughts about viability over the longer term.
The only advantage that I see to the major markets is their perceived superiority in marketing. Free hooch isn't allowed in many jurisdictions. Limits are place on river boat properties by the very nature of the beast. This is changing as they seek to compete. Governments are rather the blue noses. Just how far this will progress is arguable.
Shake outs will happen. Business plans will adjust. Governments may or may not contribute assistance. I really don't see the slam-dunk Riggs' proposes.
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