Public Policy Consulting

As public policy makers examine the pros and cons of introducing or expanding gaming activities in their jurisdictions, it is important that they understand the effects that public policy decisions can have on gaming development. Many factors must be considered.

The first step is to establish clear objectives. Is the purpose of gaming development to generate tax revenue? Is its primary purpose to stimulate economic development or job creation? While governments would like to maximize tax revenue, a high tax rate may not be the best policy to maximize the economic impact. High gaming taxes may limit capital investment which can limit a developer's ability to build non-gaming amenities such as restaurants, a hotel and conference space. The optimal tax rate may not be the highest tax rate.

The kinds of casino games that a jurisdiction may allow can also have a profound effect on economic development. Slot machines are very labor efficient and do not create many jobs. Table games, on the other hand, require significant amounts of labor and thus create new jobs. It is therefore important that public policy makers have clear objectives and implement the correct tax structure and gaming regulations that achieve those goals.

Often, states may need increased tax revenue immediately. If this is the ultimate goal of the legislation, allowing the implementation of slot machines at racetracks could be the answer. However, if legislation is not passed in a responsible fashion, it could have negative repercussions for years to come.

Public policy makers must also determine how many casinos to allow, their size and the kinds of games and amenities they can offer. Gaming Market Advisors' analytical models can accurately forecast a given market's revenue potential and the number of casinos, gaming devices, table games and other amenities that a market can support.

Gaming Market Advisors has analyzed the effects of public policy on casino development in virtually every jurisdiction in the United States and Canada. As such, the Consulting Team can help public policy makers develop policies that best achieves government's goals. Our team has the experience and expertise to assist both in understanding market potential and to lead discussions to ensure that proper legislation is created that meets the ultimate goal of the governing body.