Gaming industry could soon grow — or shrink — in these 5 places

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Mel Evans / AP

The Revel resort, right, is shown next to the closed Showboat on Monday, Sept. 1, 2014, in Atlantic City.

Fri, Oct 24, 2014 (2 a.m.)

In the not-too-distant past, Nevada and New Jersey were the only states with casinos.

Now, 39 states have some form of casino gambling — and the industry’s presence continues to evolve this year.

And as Las Vegas’ major gaming companies are considering further domestic growth, states such as Massachusetts, New Jersey and California are themselves debating the expansion — or retraction — of gambling.

At issue is a question as old as the gaming industry: morality versus money.

“I think, domestically, it’s always an issue for states looking to balance their budgets,” said Union Gaming Group analyst Robert Shore. Typically, the argument in favor of casinos is that residents of the state considering legalizing them are already gambling elsewhere, Shore said.

This year, that debate is playing out most prominently in Massachusetts, where next month voters will determine the outcome of a ballot measure that would ban casinos in the state.

With similar arguments underway elsewhere, too, it’s no surprise that this year the American Gaming Association launched a “Get to Know Gaming” campaign aimed at promoting the industry’s impact on communities.

The trade association is trying to boost the industry’s public perception by drawing attention to things like its $240 billion economic impact, which is touted in a recent study released by the AGA.

"While the AGA doesn’t specifically get in the middle of referendum battles in specific states, we do feel it’s our job to provide the facts about the gaming industry," said Sara Rayme, the AGA’s senior vice president of public affairs. "As gaming has expanded across the country, people have seen the benefits that the industry has provided in the communities in which it’s located."

Gambling expansion is being considered outside U.S. borders, too, most notably in Japan.

Despite all this, Las Vegas doesn’t need to worry about losing its status as an international gambling hub, Shore said.

He compared gambling expansion in other states to the minor leagues, with Las Vegas being the "real thing." And it will remain an "aspirational destination" for international tourism, he said.

Here’s a quick overview of five places where the gaming industry’s presence could soon change:

Massachusetts

Click to enlarge photo

A rendering shows the $800 million MGM Springfield in Massachusetts.

Question 3 on the November ballot would roll back a 2011 law that allowed the state to open its doors to casino-resorts. Supporters of the measure say casinos aren’t the economic engine that they claim to be, and they point to Atlantic City’s struggles as proof.

Success of the measure would be particularly bad news for Steve Wynn, who just won regulatory approval to build a casino-resort near Boston. But the outlook so far favors casino supporters, with polls showing more voters opposing the measure.

New Jersey

Gov. Chris Christie provoked a legal battle with major league sports when he signed a law this month allowing for sports betting at New Jersey casinos and horse-racing tracks. This week, the NCAA, the NFL, the NBA, Major League Baseball and the NHL filed court papers challenging Christie’s move.

New Jersey residents voted in 2011 to allow sports betting in their state, but the leagues successfully used the courts to block the law’s implementation. Their success this time appears to depend on whether the court agrees that Christie’s move violates a federal ban on state-sanctioned sports betting (New Jersey doesn’t plan to regulate it).

Nonetheless, bets could begin this weekend, according to NJ.com.

New York

Voters gave their approval in 2013 to build as many as seven casinos in the Empire State. Regulators are currently in the process of licensing the first four. Caesars Entertainment was among the 17 bids submitted for one of those licenses.

California

Proposition 48, if passed by California voters next month, will allow the North Fork Tribe to construct a casino in the state’s Central Valley. It would be the 69th Native American casino in California. The state has also toyed with the idea of legalizing online gambling, though legislation to accomplish that hasn’t made progress in the legislature this year.

Japan

The fate of a proposal, backed by Prime Minister Shinzo Abe, to legalize casinos in Japan remains up in the air. It’s unlikely to be voted on in the current legislative session ending Nov. 30, according to Reuters. Shore said it could get brought up early next year.

Legal gambling in Japan could lure some of the major Las Vegas casino operators, including Las Vegas Sands and MGM Resorts International, Reuters reported. ​

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