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Politics and casinos
The gambling world is getting tough. As the U.S. edges closer to a recession, people have less money in their pockets and casino revenues are dropping. There are many states that rely on these rules. It makes better politics than taxing people directly. Pennsylvania is no exception. It legalized slot machines back in 2004 and sold a casino license to Don Barden for $50m. The Detroit businessman agreed to build a casino called the Majestic Star in Pittsburgh on the North Shore. Unfortunately, he’s run out of money. There’s been no work on the site for the last two months. The construction workers are waiting for their pay. This is a real political headache. If Barden is allowed to go into bankruptcy, there’ll be pain all round. So the Pennsylvanian politicians have found a new partner for Barden in the form of Chicago real estate billionaire Neil Bluhm He’s leading a new group called Pittsburgh Gaming Holdings LP. There’ll be a white elephant half-built shell that no other company can take over until the bankruptcy is cleared. Construction companies and their workers will get no more than a few cents on the dollar. They’re supposed to hold free and open competitions for the license. It’’s a nightmare and the state is running short of money. If all else fails, there may have to be tax increases! No-one wants that.
