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US to Nationalize Las Vegas Casino Gambling?

The subject presently being discussed in Congress is the banking system, but it could soon be the casino gambling industry that turns to government ownership to forestall collapse.

US institutions are facing crises, as investor selloffs drive market value of these companies plummeting down, high-risk investments become anchors dragging companies under, and excessive spending returns to haunt them. Perhaps the only solution to save hundreds of thousands of jobs and prevent further chaos is to nationalize the industry.

The subject presently being discussed in Congress is the banking system, but it could soon be the casino gambling industry that turns to government ownership to forestall collapse. While Las Vegas gaming and resort operators struggle to avoid bankruptcy, some economic planners thinking outside the box say nationalizing the gambling sector makes as much or more sense than taking over the banks.

Washington economist Pete Dobson says, "If the government took over the casino operators that are tumbling toward bankruptcy, taxpayers could soon see a profit on the investment. Ridding those companies of the toxic assets they committed to in the name of endless reckless growth would put such companies as MGM Mirage back to the times of huge earnings."

Gambling has become an integral part of generating public money across the US, as states are constantly expanding games and changing laws to increase revenue. According to Dobson, "Nationalization of the casinos would assure the safety of all those jobs, plus provide the US with massive cash flow. Why continue to take just a taste of gaming income, when industry leaders can't maintain profitability in such a simple business?"

Online Casino Advisory senior gaming analyst says, "This plan probably has no shot politically, but actually would work out better for US taxpayers than a nationalization of Bank of America. Once the debt problems involved in headlong expansion are controlled, the casinos could be sold off one at a time, recovering government funds invested.

"Meanwhile, the casinos owned by the US, no longer encumbered by the credit problems caused by overleveraging, would once again return to raking in money, bringing billions to federal coffers."

Neither the Treasury Department nor the office of Barney Frank had comment on the casino plan. Washington insiders said a nationalization of gambling would meet too many obstacles from special interests and lobbyists.

Published on February 21, 2009 by VirginiaMaddox

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Recent Comments

Posted by: Jim GodingWhen: 02/28/2009 03:28:42 PM EST
The idea of the federal government taking over any industry and actually turning it into a paying proposition is so laughable my sides are hurting. I may sue this person for making me laugh too hard.

At what time in the history of the United States has anything done by the Federal government turned a profit?

This is the outfit that spent hundreds of thousands of dollars for the design of a toilet seat, that is currently operating with a deficit of trillions of dollars, and is headed by a person who doesn't have the common sense to engage his brain before opening his mouth: witness the millions of dollars in cancelled conventions in Las Vegas, resulting in hundreds of thousands in losses of deposits by American businesses, losses of millions of dollars in hotel and restaurant income, and most likely, losses of tens of thousands of jobs depending on the convention business in Las Vegas, all because the current president made a snide remark about businesses who host their conventions in Las Vegas, which is one of the most cost-effective towns in the US to do a convention.

This is the same outfit (the US government) run by pork-barrel politicians, legendary for solving problems by throwing money at them, which invested billions of dollars in a space program and then dropped it when it was close to getting to something useful. The only people who made a profit on the space program were the people who sold them their hardware.

And this is the outfit this so-called economist wants to take over the casino industry?