Three major casinos in Atlantic City, New Jersey, closed this month. Thousands of jobs were eliminated in a city already with substantial unemployment.
Competition from gambling outlets in nearby Pennsylvania, Delaware and New York were cited for declining Atlantic City casino revenues. The gamblers can play the electronic slots in their home states.
Potential competition and the impact on revenues are issues in Wisconsin as the state ponders a proposal by the Menominee Tribal Nation to build a major casino in Kenosha. The U.S. Bureau of Indian Affairs gave its approval last August.
In Wisconsin the governor makes the decision on whether to approve additional tribal-run casinos. More than a quarter century ago leaders in both parties eliminated any official role for the Legislature in casino siting decisions. Both Democratic and Republican leaders then saw a danger in letting big time money, be it for campaign contributions or just out-and-out bribery, to flow in the State Capitol.
Clearly, allowing a casino to be built and operated in Kenosha would create thousands of jobs in the construction trades and in the day-to-day operation of the casino.
But what impact would be felt by other casinos in the state? The Atlantic City closings and job losses indicate that distance to the casino is an important question. More casinos are not a win-win operation for everyone involved.
Agreements, negotiated by former Gov. Jim Doyle, provided financial protection for the Ho Chunk and Potawatomi nations in the event of new gambling competition. The Potawatomi nation, which operates a major hotel and casino in the City of Milwaukee, this summer failed to make its required revenue-sharing payment to the state.
"It is still unclear how the compacts negotiated by Gov. Doyle with the Potawatomi will play out," according to State Administration Secretary Mike Huebsch. "It appears the complicated provisions may have been designated to block a Kenosha casino."
Legislators from Kenosha and Racine have expressed frustration at the pace of making a decision on the Kenosha casino. Gov. Scott Walker warned the legislators that the state could be facing significant financial problems if a Kenosha casino were approved before new tribal agreements can be reached.
"At least one of the tribal governments appears to believe that they could recover about $100 million from the state - plus millions more through the process spelled out in the compacts and through the withholding of compact payments," Walker said in a letter to the lawmakers.
- Matt Pommer, a 35-year veteran of covering state government in Madison, writes the weekly State Capitol Newsletter for the Wisconsin Newspaper Association. His column is published Monday in the Times.
Competition from gambling outlets in nearby Pennsylvania, Delaware and New York were cited for declining Atlantic City casino revenues. The gamblers can play the electronic slots in their home states.
Potential competition and the impact on revenues are issues in Wisconsin as the state ponders a proposal by the Menominee Tribal Nation to build a major casino in Kenosha. The U.S. Bureau of Indian Affairs gave its approval last August.
In Wisconsin the governor makes the decision on whether to approve additional tribal-run casinos. More than a quarter century ago leaders in both parties eliminated any official role for the Legislature in casino siting decisions. Both Democratic and Republican leaders then saw a danger in letting big time money, be it for campaign contributions or just out-and-out bribery, to flow in the State Capitol.
Clearly, allowing a casino to be built and operated in Kenosha would create thousands of jobs in the construction trades and in the day-to-day operation of the casino.
But what impact would be felt by other casinos in the state? The Atlantic City closings and job losses indicate that distance to the casino is an important question. More casinos are not a win-win operation for everyone involved.
Agreements, negotiated by former Gov. Jim Doyle, provided financial protection for the Ho Chunk and Potawatomi nations in the event of new gambling competition. The Potawatomi nation, which operates a major hotel and casino in the City of Milwaukee, this summer failed to make its required revenue-sharing payment to the state.
"It is still unclear how the compacts negotiated by Gov. Doyle with the Potawatomi will play out," according to State Administration Secretary Mike Huebsch. "It appears the complicated provisions may have been designated to block a Kenosha casino."
Legislators from Kenosha and Racine have expressed frustration at the pace of making a decision on the Kenosha casino. Gov. Scott Walker warned the legislators that the state could be facing significant financial problems if a Kenosha casino were approved before new tribal agreements can be reached.
"At least one of the tribal governments appears to believe that they could recover about $100 million from the state - plus millions more through the process spelled out in the compacts and through the withholding of compact payments," Walker said in a letter to the lawmakers.
- Matt Pommer, a 35-year veteran of covering state government in Madison, writes the weekly State Capitol Newsletter for the Wisconsin Newspaper Association. His column is published Monday in the Times.
