California-Nevada Gambling Relationship
With the discussion in this section of the economic success of an area being dependent on a place's ability to get out-of-region residents to gamble, it is fitting to discuss California and Nevada. To many observers, it is probably obvious and not worth discussing. The relationship is simple: California sends gamblers and Nevada receives them. A recent newspaper report gives an idea of how most people view the relationship:
"But there is something vaguely parasitical about Nevadans, who try their damnedest to suck money from Californians."51
With California exporting so much money to Nevada, there are obvious questions as to what might happen if California made gambling legal. A report by the Governor's Office of Planning and Research estimated that it would increase net income in California by about $1.5 billion.52 Any estimate would have to be speculative as nobody knows how attached Californians are to going to Tahoe or Las Vegas. Also, if a California casino was developed it would allow more types of games to be offered in Indian casinos. What effect that might have on gambling behavior and where the dollar is spent is uncertain. Nevertheless, it is possible that California would bear added social costs such as those arising from the pathological gambler if casinos are legalized.
An interesting point to ponder is that California may gain from having the gambling center of North America so near its borders. Although Californians drop a large amount of money in the neighboring state, Nevada orders goods and services from California and California workers bring money or send remittances from Nevada. Nevada orders could never cancel out California spending alone, but when one considers the gambling activity of all the other visitors and all of the orders it generates, that could well be a net plus for California.