726 Euclid Avenue, Berkeley, CA

While it seems obvious not to cook the goose that lays golden eggs, it is amazing how little attention is often given at times to his continued proper care and feeding. With the advent of a new casino, developers / tribal councils, investors and financiers are legitimately anxious to reap the rewards and there is a tendency not to allocate sufficient benefits to the maintenance of assets &improvement. So the question begging to how profits should be earmarked for reinvestment, and to what purposes. To the extent that each project has its own particular set of circumstances, there are no absolute rules. For the most part, most major commercial casino operators do not distribute net profits as dividends to their shareholders, but rather to reinvest in improving their existing sites while seeking new places. Some of these programs are financed by additional debt instruments and / or issues of shares. The reduced tax rate on corporate dividends is likely to shift the focus of these financing methods, while retaining the heart of business prudence being reinvested.