Credit play and casinos: Profitability,legitimacy, and social responsibility

The purpose of this paper is to explore casino granted credit in both the business operation of a casino and the regulatory and statutory structure in which casinos operate. How credit policy is developed, how it is implemented, and how it might be abused are explored for the existing statutory and regulatory structures which prevail for the Nevada and Atlantic City casino industries. Casino credit policy in other countries is discussed, and various alternative approaches to the casino credit issue are examined. Parallels to other forms of credit allowed in other businesses, such as bank credit and retail credit, are made. Finally, alternative regulatory policies to deal with credit play are outlined, in terms of their likely effect on both the business and economic performance of casino operations, and the likely effects on players, the regulatory process, and the general image of the gaming industry.