Any casino operator (or in business owner for that matter) will tell you that talk isn’t cheap. When something is said enough people begin to believe it, especially when it comes from the nation’s leaders. There are some that believe that the recession is lingering longer than it is supposed to because everyone is scared. Why are they scared? The news reporters and the politicians have been telling the public and each other that the country is in bad shape economically. This causes the American public to not go out and spend, which trickles up to businesses and corporations which then trickles back down to the American consumer. With the midterm elections going into all out war mode, the rhetoric being passed back and forth between candidates could be doing just as much harm.

Deutsche Bank gaming and casino analyst, Andrew Zarnett, believes just that. He has been keeping tabs on the political sparring that has been taking place between Nevada Senator and Majority Leader Harry Reid and the Republican challenger for his U.S. Senate Seat, former Assemblywoman Sharron Angle. The exchanges between them have become a bit heated and sometimes nasty. Mr. Zarnett believes that their arguments over unemployment could be scaring the Nevada public and keeping them from spending, especially in the casinos.

Mr. Zarnett told investors this week that “We see no upside to a harsh campaign that reinforces the poor condition of the local economy and aggressively reminds residents of the economic crisis that afflicts their economy.” He strongly believes that the more people are reminded they are not doing well, the less likely they are to go out and spend, which would be helpful to the economy. This could have a profound effect on the locals market in areas like Las Vegas and Reno. Many casinos in Nevada are dependent on the locals market. While the tourists go to the big name strip casino resorts the locals tend to visit the smaller locally owned casinos.

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