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First, casinos should attract tourists. Second, casinos must look out for the welfare of the community. Third, casinos must be proactive in the attempt to reduce problem gaming. Finally, gaming needs to be positioned as a form of entertainment.
Mark Edwards, Jr., manager of the gaming section for a firm that tracks legislative issues on a state and federal level, claims that "gaming popularity comes in waves." He states that, "Right now, we are at the crest of an anti-gaming movement that started in 1994. It's only a matter of time before the issues start to swing the other way."1 Despite being on the crest of an anti-gaming movement, riverboat gaming has flourished.
Riverboat revenues in 1995 increased by 42.7 percent more than 1994. The handle increased by 38.1 percent in 1995, from $63.8 billion in 1994 to $88.1 billion. Riverboats increased their share of the handle in all casinos (Nevada, Atlantic City, Indian Gaming, and Riverboats) from 17.3 percent in 1994 to 20.8 percent in 1995. Riverboats accounted for almost half of the $55.6 billion increase in the total casino handle for 1995. For the most part, this growth in the riverboat handle came from the addition of new projects and the expansion of casinos in existing jurisdictions. It was not due to the opening of new jurisdictions. Only $64 million in revenue can be attributed to Indiana. Gaming was approved in Indiana in 1993 and the first boat opened in 1995. The slowdown in the opening of new jurisdictions is leading to the maturation of existing markets. Product offerings are becoming more elaborate and attracting more play. In addition to providing more elaborate facilities, casinos are also putting their products on sale. Match play coupons and better odds for the player are reducing the casino's win as a percentage of handle. The casino's advantage in slot machines has dropped by about 2 percent in Iowa and Illinois.2 The end result is the market for riverboat gaming expanded in 1995. The win per device and win per machine in all of the riverboat markets increased in 1995.
In 1996, some markets may have become saturated. The south Chicago market saw a decline with the opening of the boats in northern Indiana. The...