Gamblers Still Play But Spend Less During Economic Recession

MILFORD – As reported by the Nashau Telegraph: "Brok Griffith, a 22-year-old restaurant worker, went to The River Card Room in Milford to play in a $10 poker tournament. A few years
  ago, he might have plunked down four times that amount.

The deepening economic recession hasn't sent card players packing, but by most accounts they are spending less, both in card rooms and at convenience stores where they buy state lottery tickets.

"This has been a hard recession" for the gambling industry, said Jim Rafferty, owner and operator of The River Card Room, who has spent more than three decades in the business. "The recessions of 1987 and 1992 both affected the industry, but this recession seems to have impacted it a little more."

For the most part, that means fewer players betting less money. Unless a gambling addiction is involved, most players have less money to spare after paying off their basic obligations, like rent, gas, food and electricity.

Of course, the lure of winning is attractive, but the prospect of losing is equally daunting.

Griffith, the 22-year-old restaurant worker, said he plays cards for pleasure, not to change his financial situation, and stays within his budget.

"I'm careful about what I spend," he said. "This is entertainment. Some people go the movies, I play cards."

And with increased gambling opportunities here and away, including state lotteries in 48 states, there's more competition for the public's entertainment dollars, which has dispelled the notion that gambling is recession-proof.

That concept stems from a time when gamblers were limited to horse racing and a few Nevada resorts. Now, casino-goers are spending as much or more for entertainment and lodging, according to some industry experts.

Nationally, the number of states that are reporting a drop in gambling revenue continues to increase, from about half of the 19 states with casino or race track gambling in 2007 to about 12 of the 19 states in 2008, including Nevada.

Rafferty, who teaches a course in casino management at the Whittemore Business School at the University of New Hampshire, has introduced recession-fighting specials like the $10 tournament. Players put down a ten and may "re-buy" into the game two more times, at $10 for each re-buy.

"There's been a move to pennies in the slots," Rafferty added.

"The penny move is definitely a reaction, how you let players play what they want to," he said. "People are playing less, but we still have great activity."

Rafferty said receipts were off by between 20 percent and 30 percent in September, following the 9,000-point drop in the stock market.

A week later, business began picking up. By the week of the ice storm, he estimated they were off about 5 percent..."