It could be asked: what do an analyst at a roundtable discussion on the real estate market and the head of the Mohegan tribe have in common? The answer is the realisation that gaming is no longer the be all and end all of a booming economy. Las Vegas is a case in point, and an article in the Las Vegas Review-Journal reports an analyst at Union Gaming Group commenting that new casinos are not going to rescue the local economy from the current recession.

In the not so distant past many authorities looked at gaming expansion with dollar signs in their eyes, whether those dollars were Australian, Singaporean, or USD - or whatever other currency denomination. The revenue made in Las Vegas and around the world from gambling will not rebound until local and international economies rebound. Until, in fact, people have more disposable income in their pockets. The report from the Nelson A Rockefeller Institute of Government on trends in state revenues from gambling concluded, “Thus, new gambling operations that are intended to pay for normal increases in general state spending may add to, rather than ease, long-term budget imbalances.”

The new head of the Mohegan Tribe is the first woman in its long history to be elected to the position. Lynn Malerba, who was voted vice-chairman in 2005, said the election results were a vote of confidence in the tribal council, which had presided amid unprecedented economic and legislative challenges. She added that more challenges lie ahead, given the economy's continued effect on gaming in general and Mohegan Sun in particular. ”We need to have the economy rebound and that hasn't happened yet. If the recession has taught us anything, it's that we need to diversify.”

Gaming investment and operations contribute significantly to local economies and job creation, to the point of having surpassed some traditional industries such as the US motor industry, as Frank J Fahrenkopf Jr commented recently in Buenos Aires. He also described the current economic downturn as being close to the economic disaster of the 1930s. The gaming industry can only promote development and job creation, and help balance state budgets, if sensible fiscal and regulatory policies are in place. (E-10.06.09)

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