Wednesday, September 27, 2006

Pennsylvania seems eager to make up for lost time. According to the
Associated Press, the state hasn't even opened a slot machine but officials
are already talking about table games. At a recent hearing, the state Gaming
Control Board asked racetrack owners seeking slot-machine licenses if they
were prepared to go to table games. They all answered yes. Table games, such
as roulette and poker, pull in bigger spenders than do slots. So in the war
between the states over gambling revenues, table games are emerging as the
latest weapon. Delaware should take note. The First State's slot machines
have boosted the state's revenues for years as legislatures in Pennsylvania
and Maryland bickered. Now Pennsylvania will soon have slots and who knows
what next. Pennsylvania has authorized 61,000 slot machines. It expects $3
billion in revenue. Both are ambitious goals.

The big question is: How much, if any, of that business will be pulled from
Delaware racinos? And what effect will that have not only on Delaware's
state treasury but also on the purses at the state's three racetracks?

In other words, is state-authorized gambling a zero-sum game? If
Pennsylvania wins, does it mean that Delaware automatically loses?

It's hard to imagine that the market for gambling operations is unlimited.
That certainly wasn't true for state lotteries. As more of them grew, the
first states lost their advantage. A similar tale can be told about the
slots in other parts of the country.

Delaware's slot-machine bonanza will not last forever. If Delaware wants to
stay in the game, it has to get going now.