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Cordish Companies Chairman David Cordish on the impact of oversaturation on the casino industry.
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Thanks again so is -- -- over saturation problem when it comes to America's casinos with 27 casinos within a 150 miles of Philadelphia including twelve and Atlantic City.
My next guest says it's like having a Starbucks on every corner of -- joining me now is David -- chairman of the court -- companies thanks much for joining us David we appreciate it.
My point.
Now I.
You have said that -- that politicians.
Don't understand a word over saturation may think casinos are like Starbucks you can happened and every quarter but at the same time.
You yourself are opening a new casino on June 6 adding another -- 5000 almost slot machines to the area as so how do you sort of reconcile those two points of view.
Well -- Merrill and the stated that legalized.
Casinos legalized gambling on several years ago.
And they amended the constitution Merrill in the voters.
Approved it fairly overwhelmingly.
And maybe put in the constitution that there would be five casinos for the entire state.
And only two in the Baltimore Washington DC.
-- And you know if the politicians would -- that deal alone that they struck.
The other half of the deal being that we would pay -- tax to the stage a 67%.
Of the gross.
Revenues with no deductions that's an enormous.
Amount of money to -- education fund.
So it's it's it's that they all that we all entered into them.
I would pay the 67%.
Parents you know would there wouldn't be any competition.
Itself.
Of the borrow more than a Rundle mills where we are building.
But instead it kind of -- -- study precinct -- a kind of sounds like it act you know the problem is what you just said that you don't want competition.
Now that is in it I want them to stick to the deal that we made in other words the deal that we may realize this is the highest tax in the United States.
67%.
Of the gross is that -- tax.
Did but we're willing to do it provided we know that the market -- the statement said it would be our market.
It continues as such the problem -- it simply supply and demand.
They're not an unlimited number of gambling dollars to go around and if you.
As it's happened in other states yeah where where you -- over saturate the market.
You end up with bankruptcies and failures Atlantic City which you mentioned in your latest.
He's a good example.
Where there had.
Month after month after month for years now declining.
And again in the Reagan they do have a huge new casino that's about to open there as well but if that's the deal you struck in the first -- don't have recourse because they're apparently not honoring it.
Well that's a great question thank you for phrasing it the way he did.
The problem you had is the state is a sovereign and the sovereign.
And would like to think they can do whatever they want whenever they want and not live up to the agreements and some states have done it right Pennsylvania's a good example -- where they've created stability.
And they set a certain number of casinos they kept of that number and that's that's encourage.
The casino operators to do more and more investment who -- -- stable environment.
Legal legal recourse is a very difficult.
Equation when you're dealing with the -- I I bet David I hate -- -- as we have got to break be kinda won me over there right I was ready to give you a terrible time but I don't know they made a deal in the first place anyway thank you for coming up we appreciate it.
My pleasure you.
