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|New Jersey suggest legalizing sports betting, but...
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|Autor:||andinia2 [ Vie Dic 30, 2011 1:18 pm ]|
|Asunto:||New Jersey suggest legalizing sports betting, but...|
New Jersey lawmakers suggest legalizing sports betting, but investors are frowning It seems that some financially strapped administrations across the United States are repenting from their former stances against all forms of gambling now that they desperately need money to replace dwindling taxes; but will investors come back to build casinos, hotels and race tracks?
In the case of some other states such as Delaware, Nevada and New Jersey, however, more open - minded policy makers have, in the past, allowed gambling in one form or another to continue, and in some cases they have sought to expand such activities in order to get more cash, employment and to develop a gambling-based tourist industry.
Las Vegas and Atlantic City are two prime examples of such long-term policies, and in the case of both states, lawmakers have been quite busy trying to come up with means to counter the restrictive federal laws that go against betting, gambling and related activities.
In the case of New Jersey, now in some financial distress and with reduced activity in its prime gambling destination - Atlantic City - some lawmakers are trying to legalize sports betting in order to get more revenues and increased business activity.
They face two challenges: One is that federal laws that are not quite clear on the matter since some prohibit sports gambling completely, while others seem to allow it - after all, sports gambling is offered legally in some states. Plus, there have been and still are many constitutional challenges related to such laws. These lawmakers are confident that restrictive laws will ultimately be declared unconstitutional. For potential investors, this remains a grey area.
So the second challenge is maybe the most significant: Investor mistrust. In recent years, as online gambling was restricted in the U.S.A. federal authorities went after several online casino companies and even arrested their owners and directors on several charges. Now these laws are being questioned and seen by increasing numbers of people not as moral but business lobby issues.
But as complicated as such legal, moral and political situations might be, for prospective investors in the gambling market, be it online or traditional, the message was clear: There is no security in the U.S. legal system to protect you and your property. One day you could be doing business as usual, sanctified by the state and its mighty laws, and the next day, because some politician became a born-again whatever, you suddenly become harassed as a criminal, pestered with new taxes, and your whole business might be as finished as a burned-down hotel.
The need for funds at state-level is very real in the U.S.A., but potential investors are asking themselves if this renewed interest and apparent good will towards gambling business people will last. "Any S.O.B. Can smile at you for a while, and then continue to be the S.O.B. he always was."
So anyone putting money to make money in the long haul needs legal stability, and that is sorely lacking in the country regarding betting and gambling, whether in favour or against it. The U.S.A. is very attractive for the gambling industry,but those companies that survived the Bush-era prohibition by diversifying abroad, and those that never operated in the U.S. In the first place, are still looking for a reason to invest in the country, because as attractive as it might see superficially, the bottom line is that recent history shows that investing in the United States gambling market is unsafe.
Surely enough, some will dare to invest, but under such circumstances and the high risk involved, what would be the quality and stability of such investors and their investments? As a general rule in economy, more security tends to attract the best ones, in every walk of life. On the contrary, unsafe environments tend to attract the more adventurous and speculative, but you can't build a thousand-room, theme-based hotel and casino resort costing hundreds of millions of dollars just with a spirit of adventure and looking forward to make some quick cash.
So, even if lawmakers in places like New Jersey succeed, and while in the long run gambling might become again a good, profitable business activity in the U.S., short term prospects will be marred by the uneasiness of distrustful potential investors that would like to see the whole legal system clarify its views in one way or another before putting any more money and their names at risk.
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