Monday, March 31, 2008

Casinos paying rivals to keep out

A recurring topic on this blog is companies' trying to make the rules to control competition. If you can't beat the competition, a good strategy is to try to keep them from competing at all.

Here's a short story from Business Week about Atlantic City casinos. Their business has been dropping off thanks to new slot machines at horse racing tracks in Pennsylvania and New York. So, what are the Atlantic City casinos doing to try to stop slots at New Jersey tracks?
A group of operators, among them MGM Mirage and Harrah’s, recently agreed to pay the state’s big horse tracks a total of $90 million over three years to keep slot machines out of the venues.

1 comment:

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