Nevada: The Death Of The Original "Gulag Casino Model"

01-11-2011 • MyBudget360.com

The gambling economy – Nevada GDP contracted 6.4 percent during the crisis. A state where 1 out of 4 people is unemployed or underemployed. States trying to balance budgets with gambling and casinos. Nevada has really taken a hard hit from the current recession. Most Americans at some level have felt the repercussions of the current financial crisis but Nevada has felt the pangs of the crisis much deeper. Nevada now holds the highest unemployment rate of any state in the country. Nevada’s GDP is $131 billion with approximately $97 billion coming from the Las Vegas area. Where Vegas goes so goes Nevada. Las Vegas is also facing major challenges from the commercial real estate debacle. Gambling revenues that depend on an economy with healthy discretionary spending have taken large hits and many of the commercial developments made large bets on continued growth. That proposed growth has not come to fruition and unlike a stock that can plunge to zero, it is hard to undo a large condo project with very little buyer interest. Whereas some areas of the economy might recover sooner, areas that depended heavily on real estate and leisure spending are falling on difficult times.