Goss: Casinos follow economy

COUNCIL BLUFFS — Gambling revenue at local casinos — down for the past three years — may not rebound for another year or more, economist Ernie Goss said Wednesday.

Goss, who holds the Jack A. MacAllister Chair in regional economics at Creighton University, was the keynote speaker for the Council Bluffs Area Chamber of Commerce’s 2010 Mid-Year Update at the Mid-America Center.

“I think we’re probably well into the second half of 2011 (before any rebound),” he said.

While noting that additional gambling facilities are being developed in Iowa, Goss said the added competition won’t keep revenues from increasing again, once the economy gets stronger.

And he said he believes the economy is improving.

“This economy is responding and growing — growing for the first time since 2007,” he said. “This economy, even outside the metro area of Omaha-Council Bluffs, is doing better.”

The global economy is strong, for the most part, Goss said.

He is especially bullish on the Midwest and on agriculture.

“We’re well above growth-neutral,” he said. “This is a good place to do business. We’re seeing the cost to do business much lower here.”

Goss said he expects a 12 percent increase in farm income. However, corn producers could experience a setback if government tax credits for biofuels are not continued, he said.

The government is likely to continue to provide an incentive for fuel blenders to mix a greater amount of ethanol than what is mandated by the EPA, Goss said, but that might be all.

“I think the incentive on the mandated level is probably going to go away — and I’m not sure it’s a real good use of taxpayers’ money,” he said.

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