State gam[bl]ing commission hears advice [and misinformation]

State gaming commission hears advice [and misinformation] from those in know
By Steve Decosta
May 04, 2012


BOSTON — Taken to school by a host of current and former gaming regulators from other states, Massachusetts' five fledgling gaming commissioners were advised Thursday that they could never be too detailed, too deliberative, too flexible or too transparent.

The Bay State's five-week-old commission invited regulators from New Jersey, the only other state with full-time commissioners, and Pennsylvania, one of the most recent jurisdictions to introduce gaming, to share their best practices and lessons learned through their experience.

"There has been no shortage of regulatory missteps" in the relatively short history of legalized gaming in the United States, but newcomer Massachusetts can learn from the mistakes of other states, said Michael Carroll, principal of the N.J.-based law firm Michael & Carroll and former chief of compliance at Foxwoods. "To that end, Massachusetts is fortunate."

The advice from three separate panels was extensive and mostly general in nature. But the message was consistent.

"Protect the public," advised Steven Perskie, former chairman of the N.J. Casino Control Commission.

"Ensure the integrity of the regulatory process and casino operations," said Kevin O'Toole, executive director of the Pa. Gaming Control Board.

Generally, "You need to remain light on your feet and be flexible," particularly as the technology of the industry changes, Perskie recommended. "Your good decision will remain a good decision only as long as the circumstances under which you made that decision remain. You have to be able to recognize new reality."

And while panelists urged that Massachusetts' officials be wary of rampaging technological change, so should they embrace it as a regulatory tool.

"Technological changes present a host of new challenges, but offer new tools to more closely monitor casino management and financial activities," said Frank Fahrenkopf, president of the American Gaming Association.

"We are an unusual industry in that we want tough regulation," Fahrenkopf said. "It provides integrity to our industry."

Addressing the relationship between the commission and casino operators, Fahrenkopf repeated an old Ronald Reagan mantra: "Trust, but verify."

Of course, the lessons learned at the forum may never have a bearing on Southeastern Massachusetts, where a federally recognized Indian tribe has been given an exclusive window for a casino license through July 31.

A tribe will be allowed to operate a sovereign tribal casino under the authority of the federal government, not the state, and no commercial gaming license will be awarded for Southeastern Massachusetts if it satisfies the following conditions by July 31: negotiate a compact with the governor that wins legislative approval, conduct a referendum of voters in the community where the casino will be located, acquire property and convince the gaming commission that the property can be taken into federal trust.

The Mashpee Wampanoag have begun negotiating with the governor on their proposed casino at the junction of Routes 24 an 140 in East Taunton.

The Wampanoag Tribe of Gay Head (Aquinnah) is proposing casinos in Freetown, Lakeville, Fall River and on its sovereign land on Martha's Vineyard, but the governor is refusing to negotiate with the tribe, claiming it gave up its gaming rights in a 1980s land agreement.

Representatives of the Taunton mayor's office attended Thursday's forum, but no one from Freetown or Lakeville was spotted.