Terrorism: Impacts on Poker and Gambling

The world as we once knew it changed on Sept. 11, 2001. Our way of life will never be the same again. The tragedy of that horrific day symbolizes our Pearl Harbor, our Kennedy assassination, our Challenger explosion – all rolled into one collective moment of shock and sadness. We will always remember exactly what we were doing when we first heard the news. None of us will ever forget what we saw that day.

The tragedy reminds us that all things – even living and dying – boil down to random chance. There are events that, quite simply, are beyond our control – as individuals and as a nation. Any one of us could have been at the World Trade Center or the Pentagon that day – at the wrong place, at the wrong time.

As it turned out, I was about a half-mile away from where a Boeing 757 jetliner loaded with passengers, American Airlines flight 77, slammed into the west side of the Pentagon. In fact, the explosion woke me up. It was a rude awakening to an unexpected course of events that are now certain to fundamentally change the way we all live our lives. The building where I reside just happens to be right across the street from the Pentagon. Perched on the ninth floor of a high-rise apartment in the Crystal City section of Arlington, I am blessed with what is normally a spectacular view of the Pentagon and Washington skyline.

The view was hardly spectacular at 9:40 a.m. on that fateful day. It was devastating. No words can describe what it's like to witness destruction and human carnage. It's one thing to see it on television or in the movies; it's another to experience it firsthand. Almost immediately, the entire area was engulfed in heavy smoke. There were reports that another hijacked plane was on its way and headed for Washington. Fire alarms went off. The building was evacuated.

Within minutes, I found myself standing near the Pentagon gazing at a burning black hole in the side of the building. Firefighters and rescue crews rushed to the scene. Military jets roared overhead, ready to strike. A few people sat in a field waiting to be treated for injuries. Later, we learned that many people lost their lives. Others lost their loved ones.

Measuring loss of life is an imprecise science. Ascribing "numbers" to human tragedy seems so highly impersonal. Predicting how the loss of thousands of lives might affect our political, economic, and social order seems callous. Trying to make some sense of irrational acts is not easy.

Yet, that's exactly what many people began to do while fires continued to burn and while bodies remained buried. Departments of government, leaders of industry, and public and private institutions began facing the hard facts in the aftermath of the nation's worst civilian single-day tragedy ever in its history. Within a day or two, damage control and loss assessments were under way. Sectors from every walk of life began evaluating the human and economic scope of the loss, trying to assess the overall impact on society. Airlines projected losses in the billions. Insurance companies contemplated record numbers of claims. Economists and market analysts predicted a recession. Energy companies inventoried oil supplies. All business sectors – from computer companies, to movie studios, to grocery store chains – began to calculate what effect the events of Sept. 11 will have on their respective industries. I presume that casino executives were among those searching for answers.

Hence, the question here is: How will the recent terrorist attacks affect poker and the gambling industry? Will this terrible tragedy have an impact on this sector? This is a broad inquiry that requires a great deal of speculation for anyone who attempts to provide answers. My initial thought is, it's far too early to tell. But if historical events during other times of national crisis are any indication, some facets of both the casino industry and poker industry could be in for a downturn.

Those unconnected to the gambling industry hold a more cynical perspective than the rest of us. They are likely to view gamblers as amoral, if not immoral, guided only by greed and dedicated solely to self-interest. As evidence, one may recall incidents surrounding the deadly 1980 fire at the MGM Casino in Las Vegas. While the hotel was engulfed in smoke and flames, gamblers in the casino continued to play. Reportedly, some gamblers persisted in pumping streams of quarters into slot machines while fire hoses were being pulled through the casino.

This disturbing account supports the assertion that many gamblers, regardless of the size and scope of any tragedy, will continue to gamble. Fear for one's personal safety doesn't impede gambling activity. So, why would serious gamblers be discouraged by larger social and political problems, including the onslaught of a global crisis? Some psychologists have gone so far as to point out that many people tend to be more willing to take unnecessary risks when their way of life is at stake. During the Great Depression, illegal gambling was at its height in this country. Every GI in World War II played poker on the front lines. Even Russian roulette is, after all, a gambling game.

Regardless of the circumstances, most serious gamblers chose to gamble, even during a national crisis. However, what about recreational gamblers? How might recent incidents of terrorism here in the United States affect their attitudes and actions regarding gambling at casinos and cardrooms? Here are my projections:

© A downturn in the economy is certain to hurt the gambling industry. People worried about their jobs will not visit casinos with nearly as much frequency as consumers with confidence in the economy. If a global recession comes, as many economists now predict, casino profits (overall, as a sector) may actually fall for the first time since the Gulf War crisis. This could ultimately create a major shakeup in management at many properties and force competitors to fight for a smaller slice of the gambling pie. This could also mean fierce competition amongst the casinos for business, including more incentives for players.

© Economic problems would hurt poker rooms somewhat less than other casino departments (such as the hotel, food and beverage, entertainment, and other gaming). While many slot and table-games players gamble recreationally during family vacations and make weekend trips to casinos, poker players tend to be a more dedicated group by nature. Rank and file casino visitors, with economic worries and less disposable income, will not make as many casino visits. On the other hand, many poker players tend to view the poker room as a "home away from home" where they have established many social contacts. Slot players may be a mile wide in terms of sheer numbers, but their level of commitment is only an inch deep. The poker market may be only an inch wide, but it's a mile deep. Figures during a recession will reflect this.

© Visits to casinos and cardrooms in some areas will decrease during the next several weeks, and this could extend all the way until the end of the year, as major holidays approach. Hardest hit could be Atlantic City and Foxwoods in Connecticut, which are in close proximity to New York and Washington – the two cities attacked by terrorists. With so many people so deeply affected by the tragedy, the number of visits is certain to decrease in the short term.

© Visits to Las Vegas will decrease in the coming months. With serious concerns about air travel nationwide, there are sure to be many cancellations to the most popular destinations. Some consumers who may have been contemplating a vacation to Las Vegas will change their plans and opt for a "safer" alternative that does not include air travel. Conversely, as the airline industry becomes more desperate for passengers, fares will be very low in key markets (large cities, including Las Vegas) and will ultimately attract buyers who want to travel at a deep discount.

© Casinos and cardrooms that depend on local players for the majority of their business will probably not be affected. Areas where poker is well-established and dominated by local traffic, such as Los Angeles and the Bay Area, will be in a good position to ride out any overall downturn in the industry. Barring a catastrophe, most of the local poker scenes will continue to prosper.

© Poker tournaments – particularly those where the majority of players must travel long distances – will see numbers decline in the short term. Although it's far too early to say, next year's World Series of Poker could see the first decrease in number of entrants in its history. It's hard to imagine 600-plus entrants again in 2002 given the current international and economic climate. But that's what critics worried about last year – and look what happened.

© Security will increase at most casinos. Since casinos are easy targets as a result of their size and nature, management at larger properties is likely to beef up security. Although it's hard to image metal detectors at the front doors of cardrooms, some of the larger, most vulnerable properties may install measures designed to prevent acts of violence.

© Finally, many poker players will tend to play worse when times are bad. People who are distracted or in despair do not play good poker. Burdened with worries, both personal and worldly, there is a percentage of players who will not think as clearly, nor manage their money as wisely.

There is no doubt that everyone will be affected in some way by this tragedy. The consequences will be felt for months, and perhaps even years, to come. While the ramifications for poker and the gambling industry are negative to a certain extent, there is a contrary point to be made. Some believe that crisis actually increases the human need for entertainment and diversion. Gambling and poker will certainly be the benefactors if this proves to be true.

There is one final question as to what role poker can serve in a time of crisis. It deals with healing and returning to normalcy. Consider this: Three days after the collapse of the World Trade Center, Broadway shows were back in business and playing to capacity crowds. Prior to the start of one production, Mel Brooks' The Producers, the actors struggled with mixed feelings about doing a Broadway show while bodies were still being pulled from the wreckage only blocks away. "I asked myself how I could go out there tonight and be funny," star Nathan Lane said in an interview just as the curtain was about to be raised.

The show began. Nathan Lane sang. He laughed. The audience laughed with him. In its majesty and seemingly so out of place amidst all the chaos, no show ever seemed quite as funny as The Producers on that night. Never before was there a moment when common, ordinary people needed to laugh so badly, where people were so utterly desperate to divert their attention from what horrors they had seen, away from the ugliness of the real world. Hidden in the darkness amidst the laughter, many in the audience were crying while they watched. Laughing and crying. Watching a Broadway show for them became an instant reminder of just how lucky we are to be able to enjoy the little things in life, while some are not so lucky and are no longer among us.