Bad Bet

"Is there truly no place left in Las Vegas without slot machines?"
--Sara Sidle (CSI: Crime Scene Investigation)

On the surface the 'casino' issue (Issue 3) seems the right thing to do, as it permits commerce in a sector that up until this point in time has been banned by the state of Ohio.

As written, however, this is not a 'market-oriented' proposal.

Issue 3 will grant monopoly rights to a single operator in particular geographic areas. This shuts out competition, which over time will stunt efficiency and innovation.

Moreover, a significant layer of bureaucracy will be created to oversee and regulate the operation. Not only does this sap resources away from productive means, but it creates a condition for regulatory failure and moral hazard down the road. As such, chances of us propping up a too-big-to-fail institution increase.

The right thing to do is to let industry operate freely. Entrepreneurs who perceive an attractive risk/reward profile will allocate capital accordingly. Buyers will ultimately determine whether those resources are being properly allocated.

In free market situations, the real vote happens when buyers vote with their wallets.