The gaming industry is on watch. During the panel, Holman outlined the story of the Revel Hotel and Casino in Atlantic City, N.J. “Revel was to be a virtual indoor city with dining—a $2.2 billion project, to be constructed in 2008, just prior to the economic collapse.” After the collapse, the casino suffered a huge hit. After a significant write-down, it opened in 2012 with $1.1 billion in debt. “The property was never profitable, and Hurricane Sandy dampened crowds,” said Holman. It finally filed for bankruptcy protection in January 2013, with a pre-pack that brought the debt load down to $272 million. After months of operating at a loss, the project collapsed in June 2014. Revel filed for chapter 22 on June 14, and after being coaxed by Governor Christie, it closed on September 2.

The lesson: While many states are trying to take advantage of this form of revenue, it’s a limited market. It’s saturated. And the industry is changing and under pressure. Still, said Holman, “It’s like catnip for governors and voters.”