Atlantic City: Crime and Corruption

The brief summary below highlights the shortfalls of Beacon Hill's pending casino legislation. Although echoes of the false promises of "We'll do it right" can be heard, the focus is misplaced on slots at the race tracks, which are "No Bid" rewards to vested interests.

Beacon Hill has failed to assure the integrity, credibility and transparency required.

House Speaker DeLeo crafted legislation behind closed doors with Industry input.

Senator Rosenberg did much the same, with the Senate President's blessings.

The Conference Committee has excluded the public and the media.

Both proposals offer glaring flaws that require correction for public protection.

It's time for Beacon Hill shelf the process.


Atlantic City: Timeline of events since casino gambling became legal

GAME OVER

A timeline of key Atlantic City events since casino gambling became legal, culminating in a state takeover:

May 26, 1978: Less than two years after voters agreed to amend the state constitution to allow casinos in Atlantic City, singer Steve Lawrence, accompanied by Gov. Brendan Byrne and other dignitaries, throws the dice at Resorts Casino Hotel to open New Jersey’s first legal gaming hall.

1984: The Casino Reinvestment Development Authority is created to funnel casino money into public improvements and housing. To date, the agency has spent $1.8 billion on more than 400 projects statewide.

March 1984: Mayor Michael Matthews loses a recall election to James Usry. Matthews later pleads guilty to one count of extorting $10,000 from an undercover FBI agent posing as a developer tied to convicted crime boss Nicodemo "Little Nicky" Scarfo and enters federal prison in December. The former mayor serves 51⁄2 years and works as a golf director at a country club upon his release.

May 1989: Elsinore’s Atlantis Casino Hotel, the former Playboy, becomes the first casino to close, four years after creditors forced it into bankruptcy. As dealer Stan Kowal dealt his last hand, more gaming regulators were in the casino than customers, and gamblers were saying "Good luck" to Atlantis workers. Other casinos, including Resorts and Donald Trump’s Taj Mahal, will survive bankruptcies.

July 1989: Sen. Richard Codey (D-Essex), a co-sponsor of the law that legalized gambling in the state, is among legislators calling for the state to step in after Atlantic City Mayor James Usry and more than a dozen others are arrested on corruption charges. Most of those charges are later dropped.

June 1990: Gov. Jim Florio gives a speech in Atlantic City but dodges reporters’ questions about the possibility of a state takeover of the resort. Takeover talk subsides after Jim Whelan, now a Democratic state senator from Atlantic County, wins the mayoral race — ousting the then-indicted Usry.

December 1991: Usry admits taking $6,000 in campaign cash without intending to report it and enters a pretrial-intervention program. Taking that course allows his record to be expunged.

July 1992: An early wave of what is to become ever-increasing competition emerges for Atlantic City as more than a dozen states authorize casino or riverboat gambling — or are thinking about it. Atlantic City’s main competitor has been Las Vegas, but from now on, competition, economic downturns and the failure to establish a destination resort will cripple the city’s efforts to prosper.

August 2005: Down on their luck, Miss America officials announce they are waving goodbye to the city. They are leaving the resort in the rear-view mirror more than 80 years after local merchants started the famed pageant as a way to extend the summer tourism season.

November 2006: The Sands Hotel and Casino, where Frank Sinatra sang in his final years and comedian Jerry Seinfeld got his start, closes. It is only the second casino to close for good since the state legalized gambling in Atlantic City.

February 2010: Gov. Chris Christie warns Atlantic City Mayor Lorenzo Langford to "get his house in order" after a state audit finds $23 million in government waste, including 11 aides to council members earning $485,000 a year. Langford says things aren’t as bad as the audit suggests. Christie says he will use "gentle persuasion" rather than a state takeover, calling a similar action in Camden a mistake.

Wednesday: Gov. Chris Christie is expected to announce plans to take over the Atlantic City casino and entertainment district and sell-off or shut down the struggling Meadowlands Racetrack.

Sources: Star-Ledger archives; Encyclopedia of New Jersey; New Jersey Legislative Manual; Casino Reinvestment Development Authority website; Resorts Casino Hotel website; the Associated Press.

Problem gamblers shortchanged

Beacon Hill is no better than the article below that criticizes South Dakota for short-changing Gambling Addiction treatment programs.

Already inadequate funding in Massachusetts was slashed earlier this year until those waving the banner of Expanded Gambling recognized the flaw of their support. After all, how can you pretend to adequately fund Gambling Addiction when gambling is expanded when you can't fulfill your previous false promises?

House Speaker Robert "Racino" DeLeo proclaims that current legislation will increase funding for Gambling Addiction to

5 TIMES ITS CURRENT LEVEL!

WOW!

Ever the Gambling Industry Shill, DeLeo neglects to disclose we're talking

$5 MILLION

Using the Gambling Industry's own figures, the Beacon Hill Casino KoolAid consumers would provide only about $16 per Gambling Addict.

Have another glass!

[Governor Patrick tosses 308,580 under the Casino Bus]



Problem gamblers shortchanged

If South Dakota isn't embarrassed, it should be.

In 2007, legal gambling generated more than $92 billion in revenue nationwide.

In South Dakota, the lottery raked in nearly $5.9 million in revenue; tribal casinos more than $97 million, and non-Indian, commercial casinos more than $98 million.

That same year, according to the Association of Problem Gambling Services Administration, South Dakota spent only $244,000 to treat and prevent gambling addictions.

With an estimated 20,399 people in South Dakota struggling with gambling problems, that amounted to less than $12 per person to help them.

All but two states, Utah and Hawaii, have legalized gambling. and most of them do far more to help problem gamblers.

In 2007, only eight states spent less than South Dakota, whose numbers were the lowest among all of its neighboring states.

Colorado and Louisiana were at the bottom, spending nothing on gambling treatment and prevention in 2007.

Perhaps it's no coincidence that the South Dakota Council on Problem Gambling, set up in 1993 to find ways to help people with gambling problems, is primarily comprised of people with close ties to the gaming and liquor industries.

They should be represented on the council, but not as a majority voice.

Critics say gaming authorities have little interest in treating problem gamblers when those are the very people who generate most of their income.

Obviously people who develop gambling addictions are a small minority of the population. And eliminating gambling casinos won't solve their problems.

It's a matter of social responsibility, however, for those who offer gaming to help those who can't handle it, just as the liquor industry spends money on alcohol awareness.

According to the National Council on Problem Gambling, only one percent of gamblers become addicted, while another two to three percent develop problems. But experts on gaming addictions are seeing an alarming rise in gambling among teens and young adults.

Between 2001 and 2005, their rate of gambling skyrocketed by by 600 percent.

Young people are particularly drawn to internet gaming, though the spread of legalized gambling also helped fuel the rise.

As the number of young gamblers rises, so do the numbers of young gambling addicts.

South Dakota's gaming industry should be doing more to address the issue with better education about gambling addiction and more funding for treatment.

Why support a dead industry?

Whether it's Beacon Hill and House Speaker "Racino" DeLeo or Albany, all the arguments to 'Save Racetracks' with slots are the same flawed arguments to prop up a dead industry.

Maybe it's time to consider the collapse of greyhound racing and accept the inevitable.

NYRA needs to change course makes a few good points about government bailouts to racetracks and market saturation, but maybe we should be asking "Why?"

The funding mechanism for the New York Racing Association is kind of like the guy at the bar who vows to keep drinking so he can postpone the hangover.

Ultimately, the plan implodes and all you're left with is an empty wallet and a massive headache.

So even though it was probably wise in the short-term for the state to loan the racing association $25 million to keep it afloat while it works on getting video slot machines installed at Aqueduct, there's no way the state or NYRA can keep going with this plan forever. Eventually, the money will dry up and the pain will come.

State bailouts, OTB income, lottery receipts and video gambling are temporary and unreliable sources of revenue to sustain a $2 billion industry that employs thousands of people, sustains dozens of farms and other related support systems, and props up the summer tourist season in Saratoga.

And experts on the industry, including famous trainer D. Wayne Lukas and economist Richard Thalheimer, told the Associated Press last week that they're worried that the horse racing will become a drain on the money-generating slot machine parlors, eventually prompting them to disassociate themselves with racing so they can keep more of the gambling revenue.

"The horsemen need to make sure that when they embrace casinos, that they have a locked-in contract," Lukas told the AP. "because the casinos will eventually wake up and say, ‘We don't need the horses. We're doing fine without the horses.'"

If you want proof that that's occurring now, pop into the Saratoga racino, which was supposed to act as a draw for the harness races. Hardly anyone watches the racing unless they're escaping the slot area for a cigarette or a little air.

The growing competition and the uneasy relationship between gambling and racing over revenues means that slot machines to sustain the horse racing industry is unreliable and short-sighted as a revenue source.

Conroy: A bill we’ll later regret

Rep. Conroy prepared a report that considered only the costs of expanded gambling/slot machines in the Commonwealth that's available here:

United to Stop Slots in Massachusetts

Rep. Conroy was among the heroes who refused to vote in lock-step with House Speaker "Racino" DeLeo.

Here are his comments after the House vote:


Conroy: A bill we’ll later regret

By Tom Conroy/In The Arena

SUDBURY — Earlier this month my colleagues and I in the Massachusetts House of Representatives debated the issue of expanded gaming in our Commonwealth, and ultimately passed a bill that would usher in potentially as many as 15,000 slot machines located at four resort casinos and four racetracks. Mark my words today: if the Senate does likewise and the governor signs such a bill, we will regret this initiative and seek to unwind it at some point in the future.

The issue of expanding gaming in our Commonwealth is complicated, in part because it is being sold as a jobs proposal. Families are suffering and unemployment remains high. It is understandable for elected officials to try to create new jobs in such an environment; bringing a new industry into the state holds out that hope.

As a state, we also need revenues, because many folks around the state need support and services from their state government. Proponents of expanded gaming point toward bringing Massachusetts’ residents’ gambling dollars from surrounding states (e.g. Connecticut) back to Massachusetts. Certainly, by opening a casino in Massachusetts, we could recapture some of that spending from elsewhere.

Nevertheless, it is not clear to me that the benefits of expanded gaming outweigh the costs that would be imposed upon families and our Commonwealth. These costs are considerable, and entail:

· An increase in the number of gambling addicts in the state, and the destruction of families that would ensue;

· An increase in the educational, public safety, and infrastructure burdens placed upon municipalities that host or abut expanded gambling facilities;

· An increase in the number of families on public assistance, who cost taxpayers money;

· A loss of jobs in surrounding retail, hospitality, and entertainment businesses; and

· A decrease in the amount of state aid that flows to local communities through the lottery.

Do we want to place, in essence, a further tax on those who do not or will not acknowledge that slot machines are a losing proposition? Do we want to shutter small businesses in surrounding communities? Do we want to gamble with our local aid dollars?

Ultimately, I believe that we can help the private sector create more jobs in other, more productive industries that offer more middle-class jobs and opportunities for Massachusetts residents. If we focus our efforts, for example, on strengthening our sophisticated manufacturing sector, biotechnology, and alternative energy, we could create more jobs and wealth for families around the state.

My vote against the expanded gaming bill was part of a minority. The House-passed bill now shifts to the Senate, which will act upon the legislation in the next month or two. The governor will weigh in this summer, and may veto all or part of a bill that comes to his desk. Stay tuned.

***

The FY2011 state budget debate is in full swing this week, and unfortunately, the revenue news is still not good because of our weak economy. The state is expected to bring in about $19 billion in revenue from various sources for the period July 2010 to June 2011, which is about $2 billion less than pre-recession levels.

Like many private sector businesses that have experienced falling revenues in the past two years, the state government is tightening its belt and reducing spending. Last year, the final budget approved included over $1 billion in reductions to programs and services, primarily in the health and human services sectors. This year is no different, with the House Ways & Means budget proposal we are debating this week including $1.4 billion in spending cuts, including $745 million in reductions across nearly 300 line items, with 15 line items eliminated entirely. We estimate that over 1,500 jobs will be cut from the state government if this spending plan becomes law this summer. Such personnel cuts would be in addition to the 2,000 state employee reductions that have occurred in the past two years.

Over the past two weeks, many of you, along with lobbying and advocacy groups, have appealed to me via email or letter to increase funding for certain line items — from mental health funding, to assistance for seniors, to funding for summer jobs for inner-city youth, to state park maintenance, to local aid to our towns — all precious programs and services that help so many folks around our Commonwealth. I am keeping track of your appeals and would like to support line item increases for all of these programs. Many folks and families are struggling and I empathize with their situations, each as wrenching a story and as worthy of help as the next.

But we also need to be mindful of supporting a balanced budget, a constitutional obligation. With only a handful of my colleagues willing to increase taxes, there is little will in our representative democracy to increase revenues in order to pay for program and service funding increases. This is the unfortunate reality that we live in today. If there is a well-spring of support amongst the populace to raise taxes in order to pay for service increases, I have not heard it.

Once again, we will do our best on Beacon Hill to balance the needs of the many with the limited resources at our disposal. I remain optimistic that our economy is rebounding from recession, and that more employment opportunities and less pressure on funding for state services will be our narrative in the very near future.

Tom Conroy is state representative for Lincoln, Sudbury, and Wayland and can be reached at Thomas.Conroy@state.ma.us or 617-722-2460.

89 people died

If Toyota recalled

8,000,000 vehicles

because

89 people died

why would House Speaker "Racino" DeLeo and Senate President "Cha Ching" Murray support a business that claims 2% of their patrons become addicts?

Las Vegas has a high suicide rate because of Gambling Addiction. Las Vegas has the highest school dropout rate. Las Vegas has the lowest college graduation rate.

Massachusetts can do better.

NH: Unlike Massachusetts, Independent Study

When pressed to conduct an Independent Cost Benefit Analysis (which has never been done in the Commonwealth), House Speaker "Racino" DeLeo dismissed the call and instead presented his "Slap Dash" legislation crafted behind closed doors by lobbyists and industry. The grossly flawed legislation will directly benefit his district which contains two race tracks, creating two slot parlors.

Except for 37 heroes who conducted their own research, considered the future of the Commonwealth instead of their campaign coffers and voted the facts, Beacon Hill Bobble Heads voted in lock step with the Speaker, beholden for favors and chairmanships.

New Hampshire instead opted for an independent study that raises significant issues that "Slap Dash" ignored.

The pros and cons of more gambling


The 15-member Gaming Study Commission released a report Thursday on its study of models for expanding gambling in the state and the impact that would have on New Hampshire's quality of life, backed up with reams of data from the New Hampshire Center for Public Policy Studies.

The commission, created by Gov. John Lynch last year, said it was not asked to support or oppose expansion.

"However, if policy makers do decide to expand legalized gaming, what matters is how carefully they do it — not how quickly," the report said.

"Expanded gaming would generate additional revenues and economic activity, but it would also generate additional societal and economic costs. A fully informed decision about expansion requires a business model analysis that accounts for both benefits and costs. Such an analysis should center on the state's long-term interests, not just short-term financial or other needs," the report's first major finding states...."



The report said given the gambling that already occurs across New Hampshire, the state should support an independent review of its current regulations to determine their effectiveness and the state's capacity to handle an expansion "to assure that the interests of the state and its citizens are being protected now." Ferrini said that one of the commission's recommendations is that a very well-thought-out regulatory structure be put in place prior to any expansion, one that the report recommends should be independent, accountable and thorough, and that the state follow up any expansion by monitoring what comes of it.





New Hampshire Governor Lynch said of the proposed Massachusetts legislation --



“Since when did we ever do anything in New Hampshire because Massachusetts is doing it? When Massachusetts wants to do something it makes me want to do the opposite.”

DeLeo opening casino door to tribes

DeLeo opening casino door to tribes
By Paul McMorrow


ROBERT DeLEO wants to bring legalized gambling to Massachusetts. He wants two casinos and slots at four racing tracks, and right now, it looks like he’s going to get his wish.


And, potentially, a lot more. In DeLeo’s rush to appease the building trades and carve out some action for the two racetracks in his district, the speaker of the House is setting the table for a gambling expansion in Massachusetts that has the potential to be far broader than anything he’s pitching. He’s opening the door to new gambling halls on Martha’s Vineyard and the Cape, in Middleborough and Fall River. It’s also something neither he, nor anyone else on Beacon Hill, can control.

Forget, for a second, all the reasons we know we should worry about legalized gambling — its regressive nature, the way it cannibalizes money that would otherwise be spent at local businesses, the negligible benefits it offers strained government budgets, the staggering social and regulatory costs. None of that has swayed DeLeo, or anybody else on Beacon Hill whose opinion actually matters these days. Two years ago, the Legislature was debating whether to legalize casinos at all; now the body is just wondering how many to greenlight.

The Mashpee Wampanoag and the Aquinnah, the state’s two federally recognized Native American tribes, have each expressed serious interest in owning a gleaming gambling hall. They haven’t been able to follow through on those urges because, legally, they can’t.

The tribes are sovereign, but they’re only allowed to set up a gambling shop at the highest level of gaming that’s legal in their home state. Right now, they could peddle scratch tickets, or maybe hop into the high-stakes bingo game. There’s no serious money in either pursuit. That changes the moment the governor signs a casino bill into law this summer. Each will be freed to set up gaming operations on their tribal land, on the Cape and Martha’s Vineyard. And the state wouldn’t be able to touch a dime of whatever rolls in.

There is a bit of fine print to tackle first. A Supreme Court decision has stalled the Mashpee Wampanoag effort to take land into federal trust, establishing a sovereign homeland. Still, anyone who thinks Congress will not eventually override the decision is wholly unfamiliar with Congress and with money; money and Congress, though, are by no means strangers.

Clearly, state-backed gambling enterprises will get rolling before any potential tribal enterprises. These things have life cycles of years, not months, though. The Mashpee Wampanoag fought for decades for federal recognition. In that context, the difference between a groundbreaking in 2010 and 2015 isn’t necessarily a deal-breaker. And anyone who thinks the gaming interests that form partnerships with tribes are afraid of competition should take a drive up the California coast, where every exit seems to feature a gambling outpost.

The speaker, who has assumed a leadership role in pushing gambling in the Commonwealth, is fond of quoting figures. He says he knows how many jobs will materialize, and how much cash will flow to cities and towns. His guys have it all figured out. Except that they don’t. They have no idea how many gaming operations the state will eventually wind up hosting. These things can change quickly. And they’re completely beyond Beacon Hill’s reach. Until 2007, the Mashpee Wampanoag weren’t a federally recognized tribe; months later, they had financial backers, and were talking about gobbling up more than 500 acres in Middleborough.

The Legislature hasn’t appeared to be preoccupied with asking questions about the ramifications of votes it takes. DeLeo, in particular, has been steering the effort to broaden gambling’s reach and install 3,000 slot machines at the state’s four racetracks (only two of which still feature actual racing, but let’s not nitpick).

Two of those four — Suffolk Downs and Wonderland — lie in the speaker’s district. Suffolk essentially controls Wonderland, a greyhound track rotten with debt; DeLeo’s version of the gambling legislation would hand Suffolk’s politically wired ownership half of the state’s slots market, giving it a virtual lock on one of the two full casino licenses the state will be selling off. That’s the point, really.

DeLeo rose to his post at Sal DiMasi’s right hand. DeLeo was responsible for divvying up the state budget’s spoils — a process that has long rewarded leadership’s allies, and delivered punishing blows to political enemies. His path into DiMasi’s old office was cleared with budgetary earmarks.

The casino debate shows DeLeo still playing the part of the two-bit committee chairman. DeLeo has yet to fully grasp that the speaker’s office is a statewide position. Here he is, about to dramatically reshape the state’s economic landscape, and he’s obsessing over his district, his neighborhood guys, the tracks he grew up visiting. From the beginning, he has been out to get a piece of the action for his two tracks. And now he’s on the cusp. Once he opens that door, though, he should watch out — that’s when things get interesting.

Paul McMorrow is a staff writer for Banker & Tradesman.

Confessions of a Slot Machine Queen

When Middleboro became "Ground Zero" as a Tribal Casino was rammed through surrounded by lies while our questions were ignored or worse, we were graveled to silence.

We were to learn that was the way Casino Tyranny begins, just as the Massachusetts House Speaker "Racino" DeLeo exemplified. He refused to support an Independent Cost Benefit Analysis that the Governor, Attorney General and many others supported. He claimed he met with "Opponents," whatever that means. When asked who, he ignored the inquiry. He claimed MMA 'endorsed' his proposal, which they hadn't. He refused to allow public hearings, claiming they had already been held, which obscures the facts. Most Representatives deferred to the Speaker with their opinion by simply wimping out with "We don't know what the Speaker will propose."

When the truth is obscured and the facts of revenues and job creation are conspicuously exaggerated, personal and shared research and reading becomes the only reliable source of information.

United to Stop Slots in Massachusetts offers a reservoir of information and reports.

Many of us have read a wide array of books on the surrounding topics, but recently, a friend recommended "Confessions of a Slot Machine Queen: A Memoir," by Sandra Adell. The author's riveting account of her personal experience as her life spiralled out of control adds a human face to the slot addict that a predatory industry preys on to provide its profits.

Ms. Adell maintains a blog that provides her unique insight:

A Black Woman's Reflections on Casino Gambling

Phonies and Lies

Darling "home town boy" Sheldon Adelson, AKA Sands, is among those salivating at the prospect of draining discretionary income from Massachusetts residents.

With 3,000 slot machines, now they're down to 780 employees.

Revenue projections of $465 million didn't materialize. Don't let 'em kid you. It was predictable.

What's really telling is:

Slots revenue is taxed at 55 percent in Pennsylvania

Massachusetts' House Speaker "Racino" DeLeo proposed 25% in his Slap Dash package that the majority of Bobble Heads in the House voted to approve.

This month, groundbreaking is scheduled for the 300-room hotel, which will create about 350 construction jobs over the next 12 months.

Note the promise of 350 construction jobs. That falls far short of House Speaker "Racino" DeLeo promises of 15,000. Another 43 Slot Parlors would provide the construction jobs the delusional on Beacon Hill are promoting.

Job creation and economic development don't come from phony promises.

Let's get a clue and conduct an Independent Cost Benefit Analysis before we end up in the fiscal disaster we see elsewhere.

Layoffs at casino in Bethlehem
By Suzette Parmley

Inquirer Staff Writer

Less than a year after a grand opening that rivaled the glitz and glamour of a Las Vegas revue, Sands Casino Resort in Bethlehem is laying off 80 employees.

The cuts, announced Friday, will be across the board, said Sands president Robert DeSalvio, but more of them will occur in the casino's largest department: food and beverage. The casino houses four restaurants, two of which opened last fall.

The 9 percent reduction brings the casino's workforce to 780, down from its current 860, and nearly 200 fewer than when it opened last May 22 with 3,000 slot machines.

The attrition is attributed mainly to the economy and comes at a time when the state's casinos are gearing up to add table games.

"It's based on business demand," DeSalvio said Friday. "It's fairly common for casinos and other businesses to go back through and see where you can run things more effectively."

The $743 million casino debuted nearly a year ago with Gov. Rendell and Sheldon Adelson, Las Vegas Sands chief executive officer, on stage, along with the famous Blue Man Group, which performs regularly at the Venetian Resort Hotel casino on the Vegas Strip, also owned by Las Vegas Sands.

Sands had originally projected that the casino would bring in $465 million a year in gross slots revenue. Based on figures from the Pennsylvania Gaming Control Board, which regulates the state's gambling industry, the casino is expected, instead, to generate about $347 million in its first year.

Perhaps more telling is the casino's revenue in the first 39 weeks of this fiscal year. Sands appears likely to bring in less than $250 million this fiscal year, which ends in June.

Although the Bethlehem casino faces competition from two nearby casinos in the Poconos - Mount Airy Casino Resort and Mohegan Sun at Pocono Downs - as well as Atlantic City, DeSalvio said, the numbers were more a reflection of "opening up at a very difficult economic time."

"We're the only casino in the Lehigh Valley," he said. "We are pretty much alone out here. What was unexpected is the economy taking such a big turn.

"As the business gets more mature," DeSalvio said, "you have to look at the operation and match the number of team members to business volume."

Two bright spots, DeSalvio said, are the addition of 89 table games as early as July, and a hotel scheduled to open next to the casino in May 2011.

He said 400 workers would be needed to staff the table games, and an additional 100 for the new hotel. DeSalvio said those who have lost their jobs would have first consideration for the openings.

"Hopefully, we will get most of them back to work very soon," he said. "We feel the business will grow with table games coming."

This month, groundbreaking is scheduled for the 300-room hotel, which will create about 350 construction jobs over the next 12 months.

Slots revenue is taxed at 55 percent in Pennsylvania, compared with 9.25 percent in New Jersey. Pennsylvania uses the gambling proceeds toward property-tax relief (wage-tax relief in Philadelphia) and aiding the horse-racing industry.

So far, nine gambling halls have opened throughout the state. Five more are yet to open, including two in Philadelphia and one at the Valley Forge Convention Center.

Gaming analyst Andrew Zarnett of Deutsche Bank AG said what's happening in Bethlehem was a result of difficult economic conditions.

In addition to the 80 layoffs, a spokesman for the Sands said, 120 workers left on their own over the last year, and those positions were never filled.

"There is a natural attrition rate with casinos," Zarnett said. "Secondly, the economy has been softer than expected and has put pressure on casino revenues.

"It's happening in almost all regional jurisdictions."

A report released this week by the Gaming Industry Observer showed that the average length of stay for U.S. casino customers exceeded 15 hours last year - a full hour longer than just three years ago.

But the same study found net revenue per visitor fell to an average of $8.84 an hour, down from a peak of $10.54 an hour in 2006.

Vegas bristles at Wall Street gibe

Straight-dealing Vegas bristles at Wall Street gibe

"You don't get to be regulated [in Las Vegas] unless you successfully complete an examination that may take years to complete," he said. "Every aspect of the applicant's life is examined and there are minimal internal control standards [within each company], which are exhaustive."

While it's interesting to note the Las Vegas resentment of being compared to Casino Capitalism, Massachusetts' House Speaker "Racino" DeLeo's Slap Dash proposal falls short of even necessary vetting and oversight.

Stein Gets It Right!

Stein Stands Alone Against Gambling


By Maureen Turner
Earlier this month, as the Massachusetts House took up—and quickly passed—Speaker Robert DeLeo's bill to build two casinos and add slots machines at four racetracks, Jill Stein, the Green-Rainbow party's gubernatorial candidate, headed to the Statehouse with other opponents to deliver a petition calling for a casino and slots boycott.

The online petition (http://gopetition.com/online/35348.html) calls on the Legislature and Gov. Deval Patrick "to reject attempts to establish a government-endorsed program of predatory gambling in Massachusetts.

"The predatory gambling industry is harmful to local businesses, undermines sound job growth, and fosters addiction, bankruptcy, crime, divorce and other social problems," the petition reads. "Building casinos locks us in to high greenhouse gas emissions and make[s] our economy vulnerable to oil price shock. In the final analysis, these problems will consume more tax dollars than we can recover from gambling taxes."

Signers also pledged to not go to casinos or slots parlors and to "strongly encourage my children and family members to avoid such establishments. Instead, I pledge to direct my discretionary expenditures into locally-owned, productive businesses that are good neighbors in the community, that do not exploit people with addictions, workers, or the environment, and which are the best way of creating permanent jobs in a sustainable economy."

The petition was posted on April 6, and by the end of last week had collected about 500 signatures.

*

In announcing her support of the effort, Stein had especially harsh words for DeLeo, who declined to hold public hearings on his bill. (Senate President Therese Murray, who in the past has supported casinos but not slots, has said that body will hold public hearings before it votes on any casino bill. The Senate is expected to take up its own version of a casino bill in the next couple of months, after the passage of the new state budget.)

Stein accused the speaker of "attempting to ram [the bill] through the House," just days after accepting campaign contributions from casino lobbyists. DeLeo held a major campaign fundraiser the week before the House casino vote. The list of donors won't be available until Sept. 7, the next filing deadline for legislators' campaign finance reports.

According to the Associated Press, in 2009, DeLeo received $8,000 in donations from lobbyists for firms that count casino interests among their clients. Murray received $7,800; Patrick, $4,900; Lt. Gov. Tim Murray, $8,100.

Stein also took on the claim, made by gambling supporters, that casinos will create much-needed jobs. "Rather than letting casinos suck money out of our economy, we should be supporting local small businesses, and creating good wage green jobs that will be here for the long haul," she said. "We can create more jobs per dollar spent by avoiding casinos and slots. And we can also avoid the burden of permanent casino blight, which includes failed small businesses, gambling addiction, bankruptcies, broken families, crime, sprawl and pollution.

"Casinos kill more jobs than they create. And coping with the problems caused by casino gambling will cost taxpayers more than will be received in tax revenue. This is a bad deal for the people of Massachusetts, and truth needs to be told before an irreversible mistake is made by the Legislature."

Among the other gubernatorial candidates, Patrick supports casinos but opposes racetrack slot machines. His opponent for the Democratic nomination, Grace Ross (the Green-Rainbow candidate in 2006), neither supported nor opposed DeLeo's bill "because it pits 'different good forces against each other'—advocates for jobs and revenue against people concerned about the social impact," the Boston Globe recently reported. Independent Tim Cahill and Republican Charlie Baker both support casinos, while Republican Christy Mihos opposes the creation of casinos but does support racetrack slots.

Gambling against democracy

From a friend and regular reader:

Gambling against democracy


How nice that things are looking rosy for Mr. Piontowski ("Gamble on law pays off for owner of Plainridge owner" Sunday, April 4, 2010). Apparently, his interests were heard by House Speaker DeLeo. Promoters of gambling can afford the best PR, the loudest lobbyists, the best polling firms to determine which words to use to elicit support and the biggest shills to loudly promote their false claims.


Speaker DeLeo's bill was crafted behind closed doors and will not be afforded a public hearing. The Speaker insists he already met with opponents. Really? He did NOT meet with the long-time statewide organizations that have opposed legalizing slots and casinos like the Mass Council of Churches, Mass Family Institute, National Association of Social Workers, Western MA Substance Abuse Providers, Mass Catholic Conference or the citizen’s group United to Stop in Massachusetts. Mr. DeLeo's prevarications and lack of transparency are beginning to look very much like those of his (indicted) predecessors.


So what is Speaker DeLeo hiding?


Slots gambling sucks discretionary income from the local economy. The jobs created are low wage, dead end jobs, cannibalized from existing jobs. (The great majority of jobs at casinos can regularly be found on the Forbes list of worst paying jobs in America - including that of 'gaming dealer'.) The National Gambling Impact Study determined that gambling addiction escalates, along with crime, within a 50 mile radius of gambling facilities. Research from the University of Nevada Las Vegas regarding the effect of gaming facilities on suburban neighborhoods in Philadelphia found that a typical Philadelphia home owner living within a mile of a casino saw her home's value decline between $9,638 and $2,032. This is a claim echoed in every state where gambling has expanded into suburban neighborhoods.


No state has ever solved its economic difficulties by expanding gambling. Connecticut, New Jersey and Rhode Island all have casino gambling and all have higher taxes than Massachusetts. Under the ruse of property tax relief, Pennsylvania passed a bill to legalize slots two years ago and today their Governor is calling for a major increase in the sales tax rate. These states pay higher taxes in part because they need to make up for the unmet revenue needs that were promised by the casinos. Non-gamblers pay for the massive social costs like child neglect and bankruptcies that the casino gambling industry brings along with it. The industry certainly doesn't pay the bill.


With gambling facilities going bankrupt across the country (just Google 'casinos bankrupt' to see), gambling is a particularly bad industry on which to hang our hopes for economic stability. When Twin River Casino — the first "racino" in the country — was going bankrupt, they asked R.I. taxpayers to pick up anywhere from $4 million to $11.4 million of the slot parlor's annual marketing and management costs.


The Governor's revenue estimates, with numbers provided by the casino industry, do not account for the reality that New Hampshire would put two casinos right on the state border if we legalize them here — Rockingham Park in Salem, NH (already owned by a casino developer) and Seabrook Dog Track on Rt. 95. Rhode Island would also expand its slot machine locations into full scale casinos in response to Massachusetts.


On a personal note, I worked on a Paiute reservation in Nevada some years ago. Every week, when I went to Reno for supplies, I stayed in a hotel where I saw the same people playing the slots. I saw the same children waiting outside in cars or playing on the sidewalk. Pawn shops, used car lots and same day cheque-cashing and payday loan stores had replaced small businesses killed by the casinos. There were cash machines to max out credit cards and businesses offering "instant" mortgages. Poverty was everywhere I looked. There's a reason slot machines are called the "crack cocaine of gambling".


They tell you it's "inevitable" because they don't want you to ask questions or speak up. Ask questions! Speak up! Call or email your representatives. Speak with members of your local government. Go to http://uss-mass.org/myths.html to get the view of the people and organizations excluded from the "democratic process" by Speaker DeLeo. Act now, before it's too late.

Spectrum: $144 Million Lottery Loss/Local Aid Cuts

In the Speaker's haste to ram (pardon the pun) a Slots bill through at any cost, even at the cost of ignoring important things ...oh, like the $144 Million Spectrum Gaming predicted would be cut from cities and towns and the willingness of Representatives to follow like sheep (with a 37 impressive exceptions), where's the $144 Million?

Photo by Tackling Groupthink: red flags and solutions How appropriate?



USS Mass has been using the conservative figure of 90 million loss to lottery/local aid...here's Spectrum Gaming's analysis. This is addition to the FY 11 local aid cuts that have been announced.

p135
With that in mind, we suggest the following: For the first three years following the opening of each destination casino, the revenue required to ensure that the lottery‘s ability to distribute funds should be the responsibility of the casino operators, rather than requiring that it be funded from the Commonwealth‘s share of gross gaming revenue, as presently proposed.
The Massachusetts Taxpayers Foundation assumes that lottery net profits before distribution (the amount returned to the Commonwealth) would be about $1.07 billion in 2012,
The Impacts of Expanded Gaming on the Commonwealth of Massachusetts p.136

the base year. Thus, each 1 percent annual increment would be $10.7 million. If we accept the foundation‘s analysis, which assumes a 5.5 percent decline in lottery revenue followed by a 1.5 percent growth rate in 2013, the annual amount needed to ensure that the Lottery maintains its 3 percent growth rate is not adversely affected, as per the proposed legislation, would be $144 million, under the legislation as constituted.

Gaming bill poses risk, high costs

Brian Watson: Gaming bill poses risk, high costs


The proposal to build two casinos somewhere in Massachusetts and install 3,000 slot machines at the state's four racetracks, would fold quicker than a pair of twos in a back-room poker game if it were subject to the kind of scrutiny and analysis it should be receiving. But House Speaker Robert DeLeo and the track owners, casino developers and lobbyists who favor this proposal will try to get the legislation passed this week.

Proponents of the gambling bill have touted the recent report by the Spectrum Gaming Group, which outlines the anticipated revenues that could come from the new casinos and slot machines. The state would receive licensing fees and a yearly percentage of the casino and slot winnings.

But nowhere in the 78-page document are there estimates for the costs to the state and its taxpayers that would accompany legal gambling. There is indeed a substantial financial downside to the proposal that supporters of the legislation have refused to tally.

The experiences of other states with casinos also show that the costs increase over the years while revenues decline. The licensing fees, for example, are one-time, one-year, gains. And invariably, after a few years, casino owners renegotiate sweeter deals for themselves, with smaller revenue percentages for the state.

Meanwhile, as costs associated with problem gambling expand over time, the state is left to address them. Gambling can cause some degree of hardship or disruption in up to 30 percent of players, and these problems spill into society in many costly ways.

The worst cases — addicted gamblers — lose their jobs; destroy their families; default on loans, bills, and credit cards; and steal and commit crimes. Their actual financial burden on the taxpayers is significant. You and I pay for the extra costs that they place on financial institutions, insurance companies, the medical system, law enforcement agencies, the court system, social service agencies, and the prison system.

In milder cases, where poor people simply gamble away their paychecks, society pays in subtler ways. First, there are the losses to the gamblers themselves. Their money won't be used to support more constructive endeavors in their own lives that would have a much bigger economic multiplier effect for the growth and productivity of society as a whole.

Secondly, other members of their families then often need financial assistance and other help to compensate for the lack of family savings and resources simply to pursue normal, educated, productive lives.

Want numbers? If we end up with roughly 40,000 problem gamblers (or families) every year, each of whom requires an average of $10,000 in state services — ranging from brief counseling to full incarceration — that would total $400 million a year in costs, which is exactly the average annual revenue that the state would receive from the casinos and slots.

Furthermore, the casinos and racetracks themselves require oversight and regulation. Hundreds of new state officials would be added to the Attorney General's office, the State Police, and to a new "Gaming Commission." Incredibly, an entire new prison could become necessary.

Add all the costs together, and the gambling legislation is a money-loser for the commonwealth. Not in the first few years, to be sure, but for all the years thereafter.

Speaker DeLeo is fond of saying that this is a jobs bill. I say let's take the more than $400 million that casinos and slots would cost the state every year and use it to build jobs programs that are much more constructive and economically productive.


Brian T. Watson of Swampscott is a regular Salem News columnist.

CT: Increased taxpayer costs

The Spectrum Report is available in its entirety on the United to Stop Slots in Massachusetts web site.

The proposal crafted behind closed doors by Speaker "Racino" DeLeo lays the groundwork for Massachusetts taxpayers to pick up the tab for gambling investors, just as CT taxpayers have done.

(Please note that Spectrum was only asked to consider communities within a 10 mile radius. The impacts on the state are far greater than that.)

From:
Page 13

Some of the perimeter municipalities have documented impacts such as increased traffic accidents, DUI arrests and the need for special programs to help non-English speaking students learn the English language.

In recent years, the General Assembly increased the compensation to some of the perimeter municipalities, but local officials say it is not nearly enough, and the level of funding often depends on the state‘s fiscal health.

Norwich, the largest municipality in the region, is coping with a number of problems. It is located within eight miles of both casinos.

DUI arrests have more than doubled since 1992.

In hot pursuit of a Casino in Palmer, this is what they now claim:

Hartmann said the Mohegan Sun trains employees to stop serving alcohol to customers who drink too much, and is committed to working with local police to eliminate drunken driving, he said.

Rhetoric must mean a lot to those killed by drunken drivers.



Montville and Ledyard have also experienced significant increases.

Roughly 20 percent of the motorists in Montville, Ledyard and North Stonington arrested for DUI acknowledged to police that their last drink was at a casino.

One such motorist was charged with manslaughter in March 2009 for allegedly causing a fatal accident by driving the wrong way on I-395.

Norwich Public School administrators identified on a yearly basis nearly $2 million in casino-related costs. In order to handle the influx of immigrant workers attracted to casino jobs, the district had to create English for Speakers of Other Languages ("ESOL") program because students speak nearly 30 different languages. They come from Haiti, Peru, the Dominican Republic and Eastern Europe.

In addition, thousands of Chinese-speaking workers were recruited from New York City in late 2001 to work at the casinos.

This is what they now claim:

Jeffrey E. Hartmann, chief operating officer of the Mohegan Sun, said he was confident that the proposed Palmer casino would hire all its employees from Palmer and Greater Springfield. Hartmann said the Mohegan Sun needed to look outside Connecticut to hire workers because the economy was strong and there was a shortage of labor.

Hatmann doesn't tell you that these are low wage dead end jobs that don't provide a living wage.

Norwich Public Schools reported the following to us:

In 1999, it enrolled 40 ESOL students. Today, the figure stands at nearly 400.

About half of the ESOL students are proficient in math; less than a third in reading.

The district, as of the 2008-2009 school year, operates two bilingual programs – one in Spanish and another in Haitian Creole. It may soon have to offer a third program in Mandarin Chinese.

Budgets cuts forced the district to eliminate a full-day kindergarten program, close an elementary school and use outdated textbooks.


The City of Norwich copes with significant impacts as well. City officials estimate casino-related costs to be anywhere from $1 million to $2.5 million a year. They include:

A 27 percent increase in motor vehicle accidents from 1991 to 2004.

An increase in police overtime from $85,000 in 1991 to more than $280,000 in 2008.

A 76 percent increase in calls for service from people needing the assistance of the police from 1992 to 2004.


Other area municipalities and school districts have sustained similar impacts but not to the same extent as Norwich.

They include:

Norwich Free Academy (Norwich‘s public high school):

Its current ESOL enrollment is nearly 200, seven times the 1993 figure.

Ledyard Public Schools:

Educates children who live on the Mashantucket Pequot reservation yet receives no property taxes from families who live on land within the reservation because the Tribe is a sovereign nation.

Montville Public Schools:

Expending more resources to educate Chinese-speaking students. The number was 54 in 1994; 183 in 2007.

Automobile and pedestrian accidents:

Three casino workers walking to Mohegan Sun have been killed in car accidents in the past 16 months, the last of which was a hit and


Page 14


run that occurred on April 14, 2008. The motorist was charged in early 2009 with manslaughter. Mohegan Sun has spent $2 million to erect sidewalks and install lighting along a portion of Route 32 to cut down on the accidents.

Spectrum Gaming: CT Report

The Spectrum Report is available in its entirety on the United to Stop Slots in Massachusetts web site.

The slap dash proposal presented by Speaker "Racino" DeLeo lays the groundwork for Massachusetts taxpayers to pick up the tab for gambling investors, just as CT taxpayers have done.

From:
Page 11

Are taxpayers picking up part of the tab for casino regulatory costs?

The agreements negotiated with the Indian tribes require them to pay for all "reasonable
and necessary" regulatory costs. That money is in addition to the 25 percent contribution on gross slot win. At issue is whether the state can recover its indirect costs.

State Attorney General Richard Blumenthal issued an opinion in 1998 that said the state
could and should recover all of its indirect costs. Blumenthal concluded that ―proper and accepted accounting practices‖ require that such costs be recovered.

Yet, despite the opinion, the state has – according to information provided to us in the
course of this research – failed to collect all of those costs, putting Connecticut taxpayers in the position of paying for a portion of regulatory costs, something that was not supposed to occur based on the agreements negotiated with the tribes.

At our request, the state Office of Policy and Management provided us with budget data
for the regulatory agencies from the 2004 to 2008 fiscal years. It shows that the state sustained deficits totaling nearly $16 million during that period – $8.6 million at Mohegan Sun and $7.3 million at Foxwoods.

Speaker Flunks Arithmetic

Maybe this is why an Independent Cost Benefit Analysis is needed?


NEW GAMBLING REGULATION TO COST $5 MILLION, ACCORDING TO SPEAKER’S OFFICE: The expanded gambling market called for under legislation proposed by Speaker Robert DeLeo would require $5 million in costs to cover new state regulatory and enforcement expenses, but the industry would pick up the tab, according to a DeLeo aide.

DeLeo spokesman Seth Gitell said the estimate of state costs the gambling industry would reimburse is $5 million.

The bill creates a five-member Massachusetts Gaming Commission to oversee the expanded industry, establishes a Division of Gaming Enforcement in the attorney general's office to work with the gaming commission to enforce criminal violations of gaming laws; creates a gaming enforcement unit within the State Police; and establishes new crimes of money laundering and enterprise crime in connection with industry expansion.

The Racing Commission costs ~ $4.4 million supervising 4 tracks, 2 of which no longer have live racing.

Speaker "Racino" DeLeo would have us believe that adding 3 24/7 365 casinos and converting 4 race tracks into 24/7 365 slot parlors, adding 3 enforcement agencies will only cost an additional $600,000? Or does he mean that taxpayers will pick up the rest of the tab?

Beacon Hill Malady: Unknown Cause

House Speaker "Racino" DeLeo unveiled his long awaited secret gambling legislation proposing two casinos, except it's really three casinos [see images below].

But since there are really 2 "Recognized Tribes" and 6 Tribes that have applied for Recognition, maybe it's really TEN? It's a good thing Spectrum didn't confuse the already confused Speaker with more numbers!

DeLeo seemed confused that he met with 'opponents,' yet when asked to name them, ........ he just drooled. There are simply too too many lobbyists to worry about those opponents who are all nameless anyway. After all, they're just voters who don't stroke his ego and make endless promises of riches.

And besides, opponents tell depressing tales like Gladys, local impacts, crime, addiction, effects on children, effects on families, effects on local business, organized crime, and facts.

And then that silly MMA for denying their endorsement and eroding the Speaker's credibility!

DeLeo, who has been crafting the legislation for months [behind closed doors with lobbyists and the Industry], said lawmakers have already held two public hearings on other gambling bills this session .... When?

Did House Speaker Racino DeLeo forget?

One of those Public Hearings was a one-sided Love Fest orchestrated by Senator Spilka, choreographed by the Speaker?

The most recent farce .....

A special commission would determine where the casinos go. [While DeLeo would promise anything behind closed door to get the needed votes, for those like ....

State Rep. Stephen Canessa, D-New Bedford, said he hoped Southeastern Massachusetts would be selected to host one of the resort casinos. But if Boston and a site in western Massachusetts are awarded license, he might reconsider his vote. "Boston gets enough. They don't need another resort attraction," he said.....

That "Commission" sure faked you out, huh, Steve?

With the land he owns along Interstate 495, Carney said, he has enough space to develop a nine-hole golf course, or he could partner with or buy an 18-hole course.

Wow! Even though there are golf courses galour being eliminated, going bankrupt, being turned into subdivision...Wow!

“Two hundred million dollars is a very big thing in the town of Raynham,” selectmen Chairman Don McKinnon said. “I have no idea how much of that would be taxable, but ... $200 million would be very large to any municipality.”

Wow, again!

When it comes to those big numbers, this malady must be contagious!

Since you can't do the math, Raynham, why not offer Carney TIFs?

And to think, Senator Pacheco's "Local Aid" Bill was pathetic!

Mushroom Farming Flourishes on Beacon Hill

Mushroom Farming is what it is: Grown in the dark and fed a diet of manure. And it's flourishing on Beacon Hill.

In November, little noticed, I posted Beacon Hill: Democracy dies at gambling interests' request

Kathi-Anne Reinstein, a Revere Democrat who organized the SECRET CLOSED DOOR briefing, told the News Service the session was closed TO THE PUBLIC so state reps would "feel comfortable to ask any questions without having any type of criticism'' and surely at the request of gambling interests who can make undisputed wild promises that are unsubstantiated and never be held accountable.

OTB was crammed through after secret meetings and a voice vote.

Arrogance Prevails on Beacon Hill

So why did DeLeo close the caucus to the public and the press? What is he trying to hide?
The most likely answer is that keeping serious discussions secret is the default setting on Beacon Hill. When in doubt, lock everyone out.
The practice of having its most important debates behind closed doors, and the arrogance that practice reflects, has everything to do with the Legislature’s lack of credibility with the public. It may be unfair, even inaccurate, to assume corruption thrives behind locked doors in the Statehouse, but DeLeo and his colleagues only feed that notion with their actions.

House Speaker "Slots" DeLeo has two 'race tracks' in his district and is conducting meetings behind closed doors with whom?

The Industry?

There are many surrounding issues that require open, public and transparent discussions.

Who will pay the cost of the infrastructure required for DeLeo's fantasy being one of the most expensive?

How is the Speaker determining what should be in the legislation? Is it being based on promises made behind closed doors?

The voters expressed their disgust at the voting booth when they sent Scott Brown to Washington.


Why the secrecy, Mr. Speaker? Something to hide?

Mr. Speaker, why do you oppose an Independent Cost Benefit Analysis that the Governor, the AG, the Mass Chiefs of Police Assn., and others support? Are you afraid of the results?

Rep. Steve Canessa who represents a portion of Middleboro?

Taunton Gazette


State Rep. Stephen Canessa, D-New Bedford, said he hoped Southeastern Massachusetts would be selected to host one of the resort casinos. But if Boston and a site in western Massachusetts are awarded license, he might reconsider his vote.
"Boston gets enough. They don't need another resort attraction," he said.

Or making a comment about totally overinflated revenues at a non-public meeting that get quoted like this:


State Sen. Marc Pacheco, D-Taunton, said slot parlors and casinos could deliver $1 billion to state coffers, helping to fill the state's $2.5 billion structural deficit.

Or this?

Before a gathering of about 100 business professionals, [Rep. David] Flynn publicized the dates for the highly-anticipated gambling hearings in the House of Representatives.

Rep. "Racino" Flynn attended a non-public meeting and annouced the dates of the House casino/slot hearing are April 14, 15, 16.

Scheduling hearings, but not publicly posting the dates?

Why is this secret?

The last series of meetings were emailed directly to those with a "vested" interest, like the owner of Plainridge.

This needs to change!

If you don't want to be accused of corruption and back room dealing by the public, maybe you should amend your conduct.

Beacon Hill Bullying - All For Show

This week, Beacon Hill is expected to vote on "Anti Bullying" legislation. For show.

Meaningless legislation!

Since the bullying tactics of predatory gambling began in Middleboro, some of us have considered the genesis of 'legalized gambling' in this country that can thank the illegal drug trafficking, money laundering, political corruption, the worst sacrifice of democracy and bought and paid for politicians. Toss in a lifetime FBI Director corrupt to the core, and what do you get?

Predatory Gambling.

This isn't sound fiscal policy.

This isn't sensible business planning.

This is bullying plain and simple.


Where do we lament our Democracy with a big D?

Russia outlawed GAMBLING because of the detrimental effects on society.


How stupid are we?



“Normally, the state at least pretends to care about us, we have regulations for prohibiting smoking in public venues, eliminating candy in school vending machines, no bullying or roughhousing at school and no trans fats in restaurant meals.” said Ms. Norbut. “In a state where three out of the last four Speakers of the House have either been convicted or are facing federal corruption charges, Beacon Hill wants to legalize gambling and then let a “commission” decide who wins.”