Politics and gambling
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. This 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 Golden Rain in Pittsburgh on the North Shore.
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. 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. But now the legal problem is whether the Gaming Control Board can transfer the license to this new group. 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.
