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BARACK OBAMA
The sovereignty issue will surely be tested as
new precedents are established.”
EMPLOYMENT AND LABOR
The dismal employment statistics in 2009
devastated industry workers. Thousands of
casino employees have experienced layoffs, pay
freezes or demotions. Only states like
Pennsylvania, with new gaming properties,
hired workers.
Nevada has been particularly hard hit due to
its location, the economy and increasing
competition from neighboring California and
Arizona. Las Vegas unemployment has reached
13%, and Nevada ranks number one in home
foreclosures.
The December 2009 Bureau of Labor
Statistics (BLS) government figures show that
20% of men aged 25-54 are unemployed, the
highest since 1948. The same study shows that
women’s employment has remained stable at
69.1%.
A January 2010 Associated Press (AP) report
described the skyrocketing bankruptcy rate in
2009 as the seventh-worst year on record.
More than 1.4 million bankruptcy petitions – a
32% increase from 2008 – were submitted.
Western states with large commercial and tribal
gaming casinos saw the highest bankruptcy
increases: Arizona (77%), Nevada (59%) and
California (58%).
imply that all businesses should forego Las due to new federal guidelines. Unemployment and investment losses on
Vegas for their corporate meetings and events, In late 2009, Obama invited bankers to the Wall Street and Main Street have had an
but the business community took the remarks White House, urging them to start loaning unexpected consequence. Arnie Wexler, a
quite literally… I don’t think the President money again. “This will certainly benefit all recovering compulsive gambler and problem
intended that reaction, but his remarks businesses if banks comply,” says Fahrenkopf. gambling expert, says, “Many newly-
impacted the bottom line of casinos in Vegas It is a vicious circle. Pollock says, “Insufficient unemployed people are accustomed to the
when they could least afford business losses,” access to affordable capital, plus greater excitement of working and investing. While
says Fahrenkopf. consumer savings, has hindered growth. If the working, they could lose some money and still
Obama’s sparse voting history opposed same players spend less, then operators have gamble. Many may psychologically replace the
gaming expansion. As an Illinois state senator in fewer available dollars for improvements and stock market’s ups and downs with casino wins
2001, he described himself as “generally marketing. Properties must attract new and losses, sports betting and lotteries, further
skeptical” of gaming as an economic customers to compensate, but are struggling to devastating their financial situations,” Wexler
development tool, comparing slot machine secure capital to do that.” says.
expansion to the state lottery. Obama said, Despite years of growth and revenues, many The American workforce is divided into the
“You’ll have a whole bunch of people who can’t tribal casino operations also face similar public and private sectors, often with opposite
afford gambling their money away, yet they’re economic losses. Phoenix attorney Heidi perspectives. Through continuous polling in
going to do it.” Staudenmaier, a partner at Snell & Wilmer, December, Rasmussen Reports released
Obama reversed his stance in 2008. He claims loan defaults, bankruptcy and statistics showing 46% of government
praised Nevada’s tight regulations while restructuring discussions are now employees see an improving economy; 31% see
campaigning there. Rose says, “He will make commonplace among tribes. it deteriorating. Conversely, private sector
political accommodations, which is why he She says, “Gaming operations on tribal employee percentages are almost exactly
slipped and commented about corporate trips sovereign lands may be ineligible for traditional reversed. Typically, government workers earn
on the taxpayer’s dime.”  commercial remedies through bankruptcy law more than their private sector counterparts.
An inability to secure loans has seriously and other creditor protections. The glitzy Stimulus Package supporters promised it
stifled industry growth. Gaming giants and Foxwoods Resort Casino, owned by the would “save or create” jobs. However, the US
small businesses such as the thousands of Mashantucket Pequot Nation, made headlines has lost millions of jobs since Obama took
private vendors who supply casinos and hotels by warning creditors of possible default. The office, and unemployment now tops 10%. Yes,
have struggled to attain credit. Both large Nation is currently negotiating to restructure government and public job numbers have
multi-state and small community banks have more than $2 billion in debt. increased because much of the funding has
restricted their lending, reluctant to take risks “Expect more tribal casino defaults in 2010. gone to federal, state and city employees.
42 FEBRUARY 2010
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