Top Robert DeLeo aide called casinos ‘fool’s gold’

Top Robert DeLeo aide called casinos ‘fool’s gold’
By Hillary Chabot And Chris Cassidy

A top staffer to House Speaker Robert DeLeo once warned that Bay State casino revenue would amount to “fool’s gold” that would cannibalize a successful state Lottery and would be an economic wash in which the commonwealth would “scarcely break even,” in a set of memos being circulated by critics of expanded gaming.

“It’s a great example of how, depending on who the speaker is, employees develop research that supports (the speaker’s) point of view,” said Tom Larkin, president of United to Stop Slots in Massachusetts.

James C. Kennedy — now DeLeo’s general counsel — blasted casino gambling in two memos while working for then-state Rep. Daniel Bosley, a high-ranking casino critic.

In the 21-page memo, which was written in 2004, Kennedy wrote: “In conclusion, the reemergence of the issue of expanded gambling can only be described as an unscrupulous move by the gaming industry toward exploiting our present fiscal vulnerability with the promise of ‘fool’s gold.’ ”

Despite the influx of gambling revenue, “we will, with a bit of luck, scarcely break even,” Kennedy wrote.

Another memo in 2006 claimed casino gambling would cripple the state Lottery in a chapter called “Killing the Goose that Lays the Golden Egg” and goes on to run counter to DeLeo’s assertion that casinos will boost the state economy.

“The reality is that expanded gambling does not lead to economic development and any tax revenue generated by expanded gambling is regressive and unstable,” wrote Kennedy.

A spokesman for DeLeo’s office did not return requests for comment.

“When we look at the turnstile in Massachusetts politics, including the number of rank and file legislators that have flip-flopped on this issue, it’s clear that it’s more than a trend, it is a toxic pattern of behavior on Beacon Hill, and that’s why citizens are disgusted,” said Kathleen Conley Norbut, a member of the anti-expanded gaming group Citizens for a Stronger Massachusetts.

Casino critics have dusted off and recirculated the memos in the weeks leading up to the debate in the state Senate, which wrapped up for a second day yesterday.

“I would just say that I think it’s important for all legislators to take a look at those memos,” said state Sen. Jamie Eldridge. “They’re still relevant today.”