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Gambling thriving in weak economy
By The Associated Press
There appears to be at least one sure bet in the current economic downturn: People will keep gambling.
Despite hard times elsewhere, local casinos and the Illinois lottery are raking in money hand over fist.
Through November, Illinois casinos earned $93 million more than during the same time last year, an increase of 6 percent. And despite the Sept. 11 terrorist attacks, September and October revenue was up 3 percent from a year ago.
A five-year drop in state lottery sales appears to be over, with $621 million in ticket sales in five months. The lottery is expected to reverse the downward trend, which began after sales peaked at $1.6 billion in 1996.
Industry observers say bad economic news apparently makes some people even more eager to gamble.
"Gaming's been pretty recession-proof," said Doug Ferrari, general manager of the Empress Casino in Joliet, where revenue is up $22 million so far this year. "Maybe it's just the escapist angle. That's what we hear the most.
"People just want to get away. Where else do you go for $100 and $200 and forget all the bad news?"
The increased casino revenue comes despite fewer customers: Although admissions to Illinois casinos are down 3 percent this year, customers are spending an average $8 more per visit.
Stock prices for gambling companies fell sharply after Sept. 11, but have climbed ever since.
It's not unusual for entertainment to flourish in bad times, observers say.
"An old gambler in Las Vegas told me years ago that during the Depression, no matter how bad things were, people always saved enough to go to the movies," said Frank Fahrenkopf Jr., head of the American gaming Association. "Movies are an escape. He was making the analogy that even in (difficult) times, people save their money for entertainment."
But gambling also is how some people to deal with anxiety and depression, said Dr. Seth Eisenberg, a psychiatrist and former president of the Illinois Council on Problem Gambling.
"Here now, in these difficult times, we might speculate that there is more anxiety or depression, so those gamblers might be gambling more," he said.
Also, gamblers often are older people who crave social activities and are on fixed incomes that may not be tied to economic markets.
Retiree Pat Schmelz of Menasha, Wis., said she and her husband gamble about $2,000 during their twice-monthly casino visits.
"We don't play golf, we don't play tennis, we don't hunt. We don't do all those things," Schmelz, 67, said during a recent visit to Harrah's Diamond Lounge in Joliet.
"You have to have a little bit of entertainment."
December 26, 2001
There appears to be at least one sure bet in the current economic downturn: People will keep gambling.
Despite hard times elsewhere, local casinos and the Illinois lottery are raking in money hand over fist.
Through November, Illinois casinos earned $93 million more than during the same time last year, an increase of 6 percent. And despite the Sept. 11 terrorist attacks, September and October revenue was up 3 percent from a year ago.
A five-year drop in state lottery sales appears to be over, with $621 million in ticket sales in five months. The lottery is expected to reverse the downward trend, which began after sales peaked at $1.6 billion in 1996.
Industry observers say bad economic news apparently makes some people even more eager to gamble.
"Gaming's been pretty recession-proof," said Doug Ferrari, general manager of the Empress Casino in Joliet, where revenue is up $22 million so far this year. "Maybe it's just the escapist angle. That's what we hear the most.
"People just want to get away. Where else do you go for $100 and $200 and forget all the bad news?"
The increased casino revenue comes despite fewer customers: Although admissions to Illinois casinos are down 3 percent this year, customers are spending an average $8 more per visit.
Stock prices for gambling companies fell sharply after Sept. 11, but have climbed ever since.
It's not unusual for entertainment to flourish in bad times, observers say.
"An old gambler in Las Vegas told me years ago that during the Depression, no matter how bad things were, people always saved enough to go to the movies," said Frank Fahrenkopf Jr., head of the American gaming Association. "Movies are an escape. He was making the analogy that even in (difficult) times, people save their money for entertainment."
But gambling also is how some people to deal with anxiety and depression, said Dr. Seth Eisenberg, a psychiatrist and former president of the Illinois Council on Problem Gambling.
"Here now, in these difficult times, we might speculate that there is more anxiety or depression, so those gamblers might be gambling more," he said.
Also, gamblers often are older people who crave social activities and are on fixed incomes that may not be tied to economic markets.
Retiree Pat Schmelz of Menasha, Wis., said she and her husband gamble about $2,000 during their twice-monthly casino visits.
"We don't play golf, we don't play tennis, we don't hunt. We don't do all those things," Schmelz, 67, said during a recent visit to Harrah's Diamond Lounge in Joliet.
"You have to have a little bit of entertainment."
December 26, 2001