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Good News for Pittsburgh’s Casino Fleeting

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The run of good news for the Rivers Casino was fleeting. Last week we noted that things may be looking up for the beleaguered slots parlor as a potential rival filed for bankruptcy and Ohioans heading to the polls were not certain to pass that state’s referendum on gambling. What a difference a week makes.

On Election Day the referendum legalizing gambling in Ohio passed. While the ballot question only authorized slots casinos in the four major cities-Cleveland the closest to Pittsburgh, is more than two hours away-it opens the door to competition for Ohio residents and their gambling dollars. It will certainly have a negative impact on wagering and gross terminal revenues at Pennsylvania casinos.

And now news reports indicate that workers at the Rivers Casino are in the process of organizing. Security and surveillance employees are scheduled to vote on Monday to unionize while other unions are actively recruiting remaining casino employees. It seems many of the retirees who frequent the parlor are former union workers who are providing contacts for these employees.

For a facility whose revenues are running woefully under projections, this news may be the worst of all. Competition and low wagering can be combated with marketing, promotions, and advertising. Unionization will raise labor costs and further weaken the viability of this underperforming facility. With so much riding of this casino, payment for the new hockey arena and host fees for the City and County, the events of the last week are disappointing to say the least.

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