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Friday, May 4, 2012

Frank Fahrenkopf: How to shovel manure





You can't fault a reporter for reporting propaganda, but the Massachusetts Gambling Commission can be faulted for believing without question!

Casino lobbyist gives advice to Massachusetts as it launches into expanded gambling era 05/03/2012
By Mark Arsenault, Globe Staff

Frank Fahrenkopf, the nation’s most prominent casino lobbyist, had some advice for Massachusetts regulators on Thursday. Don’t over-regulate. Keep taxes low. But just as important as what Fahrenkopf said is what he represents—the conquering of opposition by an industry that soon will be operating in 40 states.

“We are part of the gaming industry now,” said Stephen Crosby, chairman of the state gambling commission, in defending this week the commission’s choice of Fahrenkopf as the keynote speaker for its first-ever gambling information forum, over criticism from anti-casino groups.

Fahrenkopf, president of the American Gaming Commission, representing commercial casinos for the past 17 years, addressed the commission and a crowd of more than 100 at the Boston Convention and Exhibition Center.

“Growing up in Reno, gaming in Nevada was mostly about male gamblers playing table games, while a few slot machines were stuck in the back of the casino to keep the wives occupied while their husbands gambled,” said Fahrenkopf.

Today, there are 566 commercial casinos in 22 states, he said; plus more than 400 tribal casinos across the country.

“The typical casino patron has a higher than average annual income and is either a college graduate or has some college education,” Not true! said Fahrenkopf. “And they no longer need to come to Nevada to visit a casino because, chances are, with commercial or tribal casinos in 38 – soon to be 40 – states, there is a casino within easy driving distance.”


Posted on facebook:
Cin An
‎"High Rollers" Myth: In his meeting in Massachusetts Farenkopf claimed "higher income" people will be casino patrons - that's a highly misleading claim from casino industry surveys that looked at commercial casinos and with data skewed by inclusion of Las Vegas.

When you look at regional and Indian casinos the numbers change dramatically. Even in Las Vegas - research shows that "locals" who frequent the casino are low income while visitors from out of town are higher income. That higher income stat is $50K per year compared with national average of $40K per year. 50K is hardly "high income."

Connecticut experienced a significant increase in problems with low income gamblers, increased needs for social welfare and gambling addiction services as well as increases in embezzlement fro...m local government and small business employees who developed gambling problems. A casino in Taunton will likely attract mostly low-income locals - creating a wide range of problems. The whole focus on "slots" versus "tables" (check out the ratio proposed by the Wampanoag) clearly shows the focus on lower-income gamblers who favor slots. Also, as has been the case in other states - Massachusetts will not be able to regulate or influence the number of slot machines the tribe ultimately puts in... Today they may promote a "high end, high roller" picture, but in the end they know where the money will come from and they will offer games, play and market to that audience.
Cin An
This Federal Reserve study gives good insights into the demographics and other issues with casinos - and specifically notes about Indian casinos (like the one proposed for Taunton) -

“While tribal gambling is available in more states, cor...porate casino gambling has traditionally been perceived as a more appropriate tool for fostering general economic development through increased employment and tax revenues….”

http://www.stlouisfed.org/community_development/assets/pdf/CasinoGambling.pdf

Mary Tufts
Inside the smoke-filled slots box (of Parx Casino, PA), much of what casino bosses took for granted has changed. Gone are the days of wooing "whales" and dissing grannies in fanny packs. Parx president Dave Jonas says his revenue comes almo...st exclusively from local low rollers.

"We underestimated significantly how many trips our customers were going to make," Jonas said at last month's Pennsylvania Gaming Congress in Valley Forge.

"When I was in Atlantic City, to have 12 to 15 trips out of customers, they were VIPs," Jonas said. At Parx, "it's not uncommon for us to have 150 to 200 trips."

Moderator Michael Pollock, a well-regarded casino analyst, paused to digest the statistic.

"You said 150 to 200 times a year," he repeated. "That's three to four times a week, essentially."

"Yes," Jonas confirmed, most of his players fit that profile. In fact, because Parx players tend to live within 20 miles of Street Road, many go even more frequently.

"We have customers," Jonas boasted, "who give us $25, $30 five times a week."

Mary Tufts

http://www.spectrumgaming.com/news/?action=viewarticle&pubid=55&articleid=292

Philadelphia Inquirer

Originally Published:Sunday, March 07, 2010
http://www.philly.com/philly/news/local/86738417.html
The lifeblood of Parx casino in Bucks is low-roller locals
By Monica Yant Kinney
Philadelphia Inquirer


Las Vegas uses volcanoes, Emeril Lagasse, and spa treatments to make losing seem fun. Philadelphia's casino "experience" is shaping up to be neither entertaining nor exotic, defined instead by hot dogs, cigarettes, and convenience.
For proof, head to Bensalem, where Parx - formerly called PhiladelphiaPark Racetrack - made $400 million last year. Impressive for a not-spot plopped among strip malls.
Inside the smoke-filled slots box, much of what casino bosses took for granted has changed. Gone are the days of wooing "whales" and dissing grannies in fanny packs. Parx president Dave Jonas says his revenue comes almost exclusively from local low rollers.
"We underestimated significantly how many trips our customers were going to make," Jonas said at last month's Pennsylvania Gaming Congress in Valley Forge.
"When I was in Atlantic City, to have 12 to 15 trips out of customers, they were VIPs," Jonas said. At Parx, "it's not uncommon for us to have 150 to 200 trips."
Moderator Michael Pollock, a well-regarded casino analyst, paused to digest the statistic.
"You said 150 to 200 times a year," he repeated. "That's three to four times a week, essentially."
"Yes," Jonas confirmed, most of his players fit that profile. In fact, because Parx players tend to live within 20 miles of Street Road, many go even more frequently.
"We have customers," Jonas boasted, "who give us $25, $30 five times a week."

A new way of life

Besides work and the gym, there's no place I go three to five times a week. And, beyond Target and Wegmans, nowhere I drop as much cash.
Jonas should be proud of Parx's haul. But if frequency can portend problem gambling, should he - and we - worry about thousands of people who've made playing a way of daily life? It didn't take much to lure them, beyond proximity, free valet parking, and $50 comps. "If you live 15 minutes away, you really don't need a room," Jonas told the casino group. His customers "come in, grab a hot dog or maybe a chicken sandwich," gamble three hours, "then go home and sleep in their own bed."
This I had to see to believe. For expert observation, I took C.P. Mirarchi and Kevin Gregan on a field trip last week to Parx.
Mirarchi is a lawyer-turned-counselor (www.thegamblingcounselor.com) who treats fellow gambling addicts through Genesis Counseling Centers, based in Collingswood. Gregan is Mirarchi's boss, a veteran clinician who diagnosed his own addictive potential after "losing the baby's diaper money" in a poker game.
Neither man had been in a casino in years. Both did double takes at the full house we found on a Wednesday at 11 a.m.

Chasing the dream

"You can see that people who may not be doing anything are out doing something that breathes life into them," Gregan noted. "But at the same time, they're watching their money disappear. How many of these people can truly afford to be participating in this activity?"
If most Parx players go three times a week, what to make of the guy who tells me he's there twice a day? Regularity won't automatically breed depravity, but surely everyone knows the house always wins.
"Everybody in there is one pull away from a different lifestyle, one pull away from the dream," Mirarchi said from experience. "The hardest thing for any addict to do is give up that dream."
We tried to get lunch, but Parx's steak house serves only dinner, and the Foodies counter steps away from the casino floor didn't entice.
"This," Mirarchi marveled, "is the McDonald's of gambling." Fast food offers familiarity close to home. So does Parx.
Even better for that twice-a-day player I met? The casino never closes. I'll share his story Wednesday. He's having the time of his life.

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