ABCC: Casinos shouldn’t prompt ‘happy hour’ rule changes
January 31, 2013
Donna Goodison / Boston Herald
Don’t expect any free or two-for-one drink specials at your local pub when casinos are finally built in Massachusetts.
The Alcoholic Beverages Control Commission is recommending the state maintain its 29-year-old “happy hour” regulations and prohibitions.
Its report follows five public hearings last year to solicit feedback from citizens, liquor license holders, public safety officials and others, the “overwhelming consensus” of which was that changing the existing regulation would substantially compromise public safety and foster a poor business climate, according to the ABCC.
“Public safety was a key factor in conducting this review, and the overwhelming sentiment is that scaling back the ‘happy hour’ regulation would compromise the lives and well-being of the residents of the Commonwealth,” state Treasurer Steve Treasurer [sic], who oversees the ABCC, said in a statement. “The regulation is supported by bar and tavern owners, the law enforcement community, and public safety officials, who all believe that it has played a substantial part in preventing unthinkable tragedies.”
Under the state’s casino bill, the ABCC was charged with studying whether the happy hour law should be updated to level the playing field for liquor-serving establishments since gambling resorts will be able to offer free alcohol to their customers.
[Not all states permit FREE ALCOHOL to be served in Gambling facilities.]
Adopted in 1984 in part to prevent intoxicated people from being over-served and driving under the influence, the state’s happy hour law prohibits bars and restaurants from serving free, discounted or two-for-one alcoholic drinks.
The Massachusetts Restaurant Association and prominent restaurant and bar owners spoke out in opposition to easing the current regulations.
But the Restaurant and Business Alliance — a new trade group started by Phantom Gourmet CEO David Andelman — pushed for “flexibility” in the regulations, which require bars and restaurants offering drinks specials to keep the lower prices in place for a full calendar week.
“The (ABCC) conducted extensive research and sought comment from the hospitality industry throughout the commonwealth,” ABCC chairman Kim Gainsboro said in a statement. “Each hearing showcased the dedication and commitment to community on the part of small business owners and, after reviewing comments pertaining to economic fairness and public safety, we feel that we have provided the governor, treasurer and the Legislature with a complete and accurate report.”
The Alcoholic Beverages Control Commission is recommending the state maintain its 29-year-old “happy hour” regulations and prohibitions.
Its report follows five public hearings last year to solicit feedback from citizens, liquor license holders, public safety officials and others, the “overwhelming consensus” of which was that changing the existing regulation would substantially compromise public safety and foster a poor business climate, according to the ABCC.
“Public safety was a key factor in conducting this review, and the overwhelming sentiment is that scaling back the ‘happy hour’ regulation would compromise the lives and well-being of the residents of the Commonwealth,” state Treasurer Steve Treasurer [sic], who oversees the ABCC, said in a statement. “The regulation is supported by bar and tavern owners, the law enforcement community, and public safety officials, who all believe that it has played a substantial part in preventing unthinkable tragedies.”
Under the state’s casino bill, the ABCC was charged with studying whether the happy hour law should be updated to level the playing field for liquor-serving establishments since gambling resorts will be able to offer free alcohol to their customers.
[Not all states permit FREE ALCOHOL to be served in Gambling facilities.]
Adopted in 1984 in part to prevent intoxicated people from being over-served and driving under the influence, the state’s happy hour law prohibits bars and restaurants from serving free, discounted or two-for-one alcoholic drinks.
The Massachusetts Restaurant Association and prominent restaurant and bar owners spoke out in opposition to easing the current regulations.
But the Restaurant and Business Alliance — a new trade group started by Phantom Gourmet CEO David Andelman — pushed for “flexibility” in the regulations, which require bars and restaurants offering drinks specials to keep the lower prices in place for a full calendar week.
“The (ABCC) conducted extensive research and sought comment from the hospitality industry throughout the commonwealth,” ABCC chairman Kim Gainsboro said in a statement. “Each hearing showcased the dedication and commitment to community on the part of small business owners and, after reviewing comments pertaining to economic fairness and public safety, we feel that we have provided the governor, treasurer and the Legislature with a complete and accurate report.”
Mass. alcohol regulators say happy hours should remain banned
02/01/2013
Repealing the state’s happy hour ban would be economically and socially detrimental to the Commonwealth and would not substantially protect restaurants from losing business to casinos, according to a report by state alcohol regulators.
Some lawmakers had floated the idea of rolling back the happy hour restriction as a concession to liquor license holders, who have opposed a provision in the 2011 Gaming Act that allows casinos to serve free alcoholic drinks in their gaming areas.
But the report, issued Thursday by the Alcoholic Beverage Control Commission, found that many restaurant owners feared the changes would create a “race to the bottom,” in which establishments would try to undercut each other’s prices to the extent that their business models would no longer be viable.
“It was kind of this false premise that if you allowed restaurants to have happy hours it would level the playing field [with casinos],” Massachusetts Restaurant Association President Stephen Clark said.
“But restaurants can’t subsidize free drinks like casinos.”
The ABCC has banned businesses with liquor licenses from offering lower-priced drinks during happy hours since 1984, after a woman in Braintree was killed by a drunk driver who had consumed seven beers at a happy hour event.
Treasurer Steven Grossman, whose office oversees the ABCC, said the happy hour ban is an important factor in upholding the state’s reputation and protecting its citizens.
“I think it has served us well, and I think it is a very important public safety issue,” he said. “I am fully supportive of [the report’s] conclusions.”
Offering free drinks is a common practice among gambling establishments [not all states permit FREE ALCOHOL], which make most of their profits from the games they run and can therefore afford to offer drinks and other services as perks for customers. [COMPS]
The Gaming Act provision specifies that free alcoholic beverages can only be served on a casinos’ gaming floors, and not in restaurants or hotels that may be attached to the casinos.
“ABCC still has oversight at casinos,” Grossman said. “Casinos still have to serve in a responsible way.”
Restaurant owners know that any time a new source of entertainment enters the area they must find ways to make up for the business they will inevitably lose, Clark said.
“From the very beginning we wanted casinos to play by the same rules as restaurants,” he said. “But happy hours would create a race to the bottom and would actually hurt the industry.”
http://www.boston.com/metrodesk/2013/02/01/mass-alcohol-regulators-say-happy-hours-should-remain-banned/SSKktmznhrKSpFoudQwntM/story.html
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