While some states, such as Kentucky and Alabama, have been aggressively prosecuting people for gambling activities, there are many states that are expanding their existing gambling market. The times are tough and states are over budget and in dire need of revenue. For that reason, many are looking to gambling as a source of more money. Now you can count South Carolina in that group, thanks to the city of North Charleston.
On Thursday, October 28, the North Charleston City Council voted to approve a new law allowing casino boats to operate within the city. To do so, they needed to repeal an ordinance that prohibits gambling devices within the city limits. The plan is for the casino boats to sail out of the former Navy base on the Cooper River. Already, several hotel chains in the area are creating travel packages for guests that include trips on the boats.
The law also establishes a charge for all gambling cruises, one that has an estimated earning potential of $700,000 annually. The casino boat operators would have the option of either paying 10% of each ticket sold plus 5% of the gross income to the government or using a flat rate of $7 per passenger.
With the law passed, companies now have to bid for gambling licenses to be able to run their gambling boats. If the approvals are speedy, North Charleston could see some boats launched as early as January of 2011.
Not everyone is optimistic about the earning potential of the new boats, though. Gaming analyst Brad Dawkins said that “gaming boats have had a hard time surviving in the current economy.” He said that the businesses are being hurt both by the struggling U.S. economy and by the expansion of land-based casinos in many states. With some form of land casino in most states – often only on tribal land – it’s difficult for casino boats to compete.
In addition to the revenue the casino boats will inject into the economy, new casino boats will result in new employment opportunities, something that is sorely needed right now.
