Business Development

The resort gaming industry is not a typical business in the sense that organizational revenues are affected by the globalization of commerce and the loss of traditional revenue markets related to geographical provincialism. This industry increasingly enjoys revenue success as a result of the needs of society to temporarily escape the pressures of the current global business conditions and the greater global conditions of society in general. The leisure industry in this country and around the world has enjoyed consistent profit and growth as a result. The gaming industry is no exception; gambling in this country is growing and expanding into markets traditionally thought to be impenetrable to the perceived vices opponents of the industry claim as examples of societal degradation. The following examination of slot proposals for the lone available Pittsburgh slot license will not be presented as an attempt to morally sway opinion one way or the other. These debates are left to special interest groups, political entities, and all stakeholders/registered voters. The examinations and analyses of the following proposals, projection comparisons with related criteria, and potential economic impact of the winner to the surrounding communities are the interrelated goals of this report.

The original impetus for the addition of the gaming industry to the state of Pennsylvania is the result of certain levels of economic depression within the state that have effectively curtailed necessary economic development and growth that would serve to maintain long-term financial security and stability for the state and its citizens. The resulting stagnation of economic growth combined with the continuing loss of potential revenues from the gaming industry to neighboring states that support the gaming industry has provided sufficient motivation for state interests to create a gaming industry in Pennsylvania. The potential for revenue from state gaming interests is obviously enormous; the ramifications of the increased revenue are and will continue to be debated in Harrisburg and throughout the state by all related stakeholders and stakeholder groups. Certainly, the potential for economic recovery and growth within the state are well served with the introduction of the gaming industry.

The industry also carries the potential for social problems, including various forms of the aforementioned social degradation. Loss of disposable income by patrons to the gaming establishments may create certain social problems of family sustainability. The social problems on both and individual and collective scale that are created by the introduction of gaming to a social fabric have been well-documented. Furthermore, congestion, industrial pollution, and rapid change might diminish the quality of life for some. Businesses offering competing products might suffer. Land-use patterns might diminish rather than enhance some property values in the region. Also, the gaming industry can potentially introduce a criminal element into a social fabric, as has also been well-documented throughout the country. Gaming revenues, particularly casino revenues, have been unstable and appear to be cyclically sensitive as well. Furthermore, the gaming industry in its locations around the country has created a legion of gambling "addicts" that typically lead to further state and national revenue expenditures in order to alleviate individual suffering and social problems. As stated, the potential detriments to the individual and social fabric are well known throughout the industry, and are used as weapons of control by those who oppose the introduction and continuance of gaming interests.

The potential benefits and detriments to the introduction of the gaming industry in Pennsylvania must be examined and analyzed extensively if the industry is to provide the potential benefits, as well as to limit or eliminate completely the potential individual and societal hazards. In focusing on the sole Pittsburgh slot license, this certainly is the case throughout the City Council, the Sports and Exhibition Authority, the city and state gaming control boards, local representatives in Harrisburg, and all concerned citizens and interest groups. Such expected benefits as tourism development, economic revitalization, tax revenue generation, job creation, investment stimulation, or contributing to a deserving cause or disenfranchised group are typical of the reasons why jurisdictions legalize gambling. Other societal benefits from the legalization are recognized, such as the reduction of illegal gambling and nefarious linkages, the protection of customers and vendors of gambling services under the law, and a decline in public resources to combat illegal gambling. The license and resulting revenue collection can create a foundation for economic recovery and growth that can move the city toward a financially stable and prosperous future in the initial stages of this century. The potential implications and ramifications of the revenue increases can only provide financial impetus for future economic growth, provided the industry and resulting revenue is properly managed from both a business and a standpoint of greater social responsibility to all concerned stakeholders. Analyses of the economic environment, economic projections, and the potential economic impact of the eventual holder of the license must be priorities for all concerned parties.

The economic environment that presents itself to the local license winner will be determined at least in part by the economic developments the winner proposes and maintains. However, the environment mostly is predetermined for the winner. Pittsburgh is a small market city that has been slowly but consistently deteriorating economically for a period of years. The natural economic progression of the city seems to be one that mirrors familiar aspects of the greater national economy; the city has suffered from an economic "downsizing" that has included the loss of business industry and economic infrastructure. Part of this syndrome is the result of greater economic, and part must be attributed to the structure of the city government that necessarily supports more working class and union interests. Of course, these interests are representative of a desired corporate commitment to greater social interests, yet the corporate community has clashed with the interests of the city and its government concerning these issues, often the a point that various corporations in question have moved financial and manufacturing interests away from the city in order to avoid further contact with strong and conflicting interests dedicated to curtailing corporate revenues in favor of more proletarian interests. As corporate interests have chosen to relocate to more favorable local economic conditions, the local Pittsburgh economy has predictably suffered. Furthermore, the