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Showing posts with label Spectrum. Show all posts
Showing posts with label Spectrum. Show all posts

Wednesday, September 23, 2015

Experts: Tribal casino 'death knell' for Brockton bid





Experts: Tribal casino 'death knell' for Brockton bid


By George Brennan
Cape Cod Times

Posted Sep. 22, 2015 at 6:45 PM
Updated Sep 22, 2015 at 9:50 PM 


The state’s own casino study done in 2008 cautioned a tribal casino in the same region with a commercial casino would be “disastrous.”
Two casino experts who have observed the Massachusetts gambling market before and after casinos were legalized say the Mashpee Wampanoag’s federal land decision should put an end to the potential licensing a commercial venture in Southeastern Massachusetts, known as Region C.
On Thursday, the Massachusetts Gaming Commission will discuss a request by Mass. Gaming & Entertainment, which hopes to build a $650 million casino in Brockton, to issue a license regardless of the tribe’s status. The company is likely to argue the tribe faces a protracted legal fight, though no lawsuit has yet been filed and the tribe appears poised to move on with its Taunton casino plans while a court battle is waged.
That makes the commission's decision clear, experts say.
“It’s the death knell to the one in Brockton, period,” Richard McGowan, an associate professor at Boston College, said Tuesday.
“If you assume the tribe goes forward with its plans, it doesn’t make sense to issue a commercial license in Region C,” said Clyde Barrow, a casino expert with Nathan Associates Inc.
Rush Street Gaming, the company backing the Brockton proposal, has made it clear in statements it believes it can compete in the market and a study by Innovation Group reportedly shows the Brockton casino's market share would drop just 10 percent in head-to-head competition with the tribe.
“Innovation Group never factors in cannibalization,” Barrow said. In markets where a casino comes in to an existing market, the new facility takes 20 to 30 percent of the business, Barrow said. In Massachusetts, there would be three gambling facilities in a 25-mile radius if Brockton were to join the tribal casino and Plainridge Park, which is already open.
“There’s no scenario where that comes out better for the state,” he said.
In the case of the Mashpee Wampanoag proposal, it would be a devastating blow to the state’s coffers, he said. Under a tribal-state compact, the tribe would pay 17 percent of gross gambling revenues if there is no competition in the region. If there is competition, the tribe pays zero.
“There’s an inherent natural advantage for a tribal casino versus a commercial casino,” Barrow said. “That’s tens of millions of dollars per year, they can give to their customers in free slot play, free rooms, free food and free tickets for entertainment. They can make their facility more lavish and attractive. There’s a whole range of benefits.”
Ultimately, it may be difficult for any casino to contend with the $1.7 billion investment Steve Wynn has promised in Everett, McGowan said.

“I can’t imagine Brockton can compete with that,” he said.
Spectrum Gaming, a consultant for the commission which did a 2008 state study before casinos were licensed, warned that a tribal casino competing with a state-licensed casino “would have potentially disastrous effects” on revenue generated for the state.
“When tribal casinos do not fall under the same regulatory and tax guidelines as commercial casinos, they often have a distinct competitive advantage,” the Spectrum study stated.
Factoring in what’s being talked about in Rhode Island with a facility in Tiverton near the state line and a proposal by two Indian tribes in Connecticut to join forces on an East Hartford casino, McGowan said the threat of saturation is real.

http://www.patriotledger.com/article/20150922/NEWS/150928518/?Start=1



Friday, May 29, 2015

Spectrum's 2012 Projections


Worth re-visiting!
These were projections from Spectrum in 2012:


The Trends: Constant Expansion, Automation, Fewer Low Wage Jobs

N.J. casino conference labels U.S. gambling market saturated








N.J. casino conference labels U.S. gambling market saturated




By Wayne Perry
ASSOCIATED PRESS
Posted May. 28, 2015


ATLANTIC CITY, N.J. – The casino market in the northeastern United States is saturated, yet that's not stopping some states from approving gambling legislation and companies from building new gambling halls.

That's the consensus of participants at a major casino conference in Atlantic City.

Eugene Johnson, of Spectrum Gaming Group, says by the end of this year, there will be 60 casinos in the northeast. That figure will grow to 65 by 2018, according to his colleague, Joe Weinert.

"There's not a politician in the land who is going to choose a tax increase when gaming looks so good on paper," said Wendy Hamilton, general manager of Philadelphia's SugarHouse casino, which is operated by Chicago-based Rush Street Gaming, the company behind the proposed project in Brockton, Massachusetts. "We have to avoid the siren song. There's not a zip code in the region that doesn't have four or five (gambling) options within an hour."

Asked if casino closings outside New Jersey are likely, she said nothing appears imminent, but "of course it's going to happen" if expansion continues at its current pace.

"Pennsylvania doesn't care what happens to New Jersey, and New York doesn't care what happens to Pennsylvania," she said. "It just can't go on forever. There's a finite amount of gaming revenue out there. We are in a very volatile time and we're in a frenzy of gaming expansion. It needs to stop."

Ed Sutor, president of Dover Downs casino in Delaware, said the entire mid-Atlantic region saw decreasing revenue in the first quarter of this year.

"New Jersey, Delaware, Pennsylvania, West Virginia and Maryland — the entire market is down," he said. "That is, friends, saturation. You're just moving money around. You bring in a new operator and the money just moves around and the entire market doesn't go up."

Sutor noted his state is considering adding three more casinos, which he said "makes no sense."

Atlantic City has lost half its casino revenue and thousands of jobs to competition from Pennsylvania, which is now under pressure from casinos in Ohio and Maryland, said William Ryan Jr. chairman of the Pennsylvania Gaming Control Board.

"We in Pennsylvania know the competition we now confront will always be there, and the days of double digit growth in that area are probably gone," he said.

More casinos are planned soon for Philadelphia, Massachusetts, Rhode Island, Maryland and New York. Hamilton noted that a planned second Philadelphia casino is being appealed to the state Supreme Court.

"There's a lot of competition right now," she said. "If you look at the entire mid-Atlantic region, you've got people really hammering each other to win people over. There's not $400 million in new money in that market. There's just not. We're keeping a wary eye on what's coming down the road; it's a scary situation."



New Jersey is considering allowing a casino in the Meadowlands, and possibly a second one in Jersey City, both just outside New York City.

"We're at a point where we're just moving money around," said Chris Brown, a New Jersey state senator from near Atlantic City, who opposes a plan to extend casino gambling to other parts of the state. "All you're doing is cannibalizing the market you already have."

Lou Kirven, an executive with New York's Empire City casino, said adding two northern New Jersey casinos to a market also planning for three new southern New York casinos would be "one too many. We have saturation."

Bill Hayles, vice president and general manager of Pennsylvania's Hollywood casino at Penn National Race Course, said Maryland's casinos have cut into his business.

"We're feeling it from the Baltimore region, seeing some erosion in our business," he said. "The sad part is before they open, you spend all your time trying to figure out how to right-size your own property."




http://www.enterprisenews.com/article/20150528/NEWS/150526103/11288/NEWS/?Start=1


Sunday, May 24, 2015

Atlantic City: Ex-casino workers are fighting long odds as unemployment runs out and jobs are scarce



Massachusetts Governor "Slot Barns" Patrick paid Spectrum Gaming $189,000 Hard Earned Taxpayer Dollars to produce a report that promised a Gazillion jobs after construction of 3 'Super Duper Destination Resort" Casinos and a Slot Barn.

Accurate numbers from New Jersey seem had-to-come-by, yet with the closing of 4 active, functioning 'Casinos,' the EMPLOYMENT NUMBERS don't seem close to Spectrum's projections.

Those Gambling Gurus will tell ya that projections are difficult....are they really?

Nearly 4,000 people initially filed for unemployment benefits from just the three casinos that closed in August and September: Showboat, Revel and Trump Plaza. The Atlantic Club closed in January 2014.






VIDEO ON LINK

Ex-casino workers are fighting long odds as unemployment runs out and jobs are scarce

Kristi Hance needs a full-time job.

Nearly nine months after the boardwalk casino where she worked as a poker dealer closed its doors, she still doesn't have one. Hance said she works during tournaments at another casino in Atlantic City, but those competitions are only held five times a year.

"I need something that's more steady," she said. "Right now, I don't even know what I am. I'm just temporary-ish."

After a year in which four of Atlantic City's 12 casinos shuttered, eliminating roughly 8,000 jobs in a region with double-digit unemployment rates, Hance said she sees no future for herself in the gaming industry. She said she hopes to move into a new career, possibly in the medical field, but for now she's fighting to cover her expenses.

"It's a struggle every day because bills are going up and now we all lost our jobs. I mean there's thousands of us, there's not thousands of jobs here in the city," the former Showboat employee said.

"Now, at 49 years old, I have to go start all over again and learn something new."

"We're all just scrambling to get something," she said.

Though some of the people who lost their jobs last year found jobs out of state or in one of the remaining Atlantic City casinos, others like Hance remain without full-time work. Their savings are dwindling. Their unemployment benefits are exhausted. Their futures are unsettled in a state where the long-term jobless rate is among the highest in the nation.

A group of those workers, including Hance, gathered in a classroom at Atlantic Cape Community College in Atlantic City last week, looking for a way to move forward with the help of a state-run program funded with a $29 million National Emergency Grant from the federal labor department.

The program, which launched in March, provides workers impacted by the casino closings with services to help find a job or train for a new career.

Janice DeCicco Fipp, the director of the National Emergency Grant at Atlantic Cape Community College, led the morning session, during which she provided tips on building resumes, writing cover letters and recasting past experience in a way that would attract potential employers.

"The name of the game and the major goal is full-time employment," she said. "You need that full-time job."

Kerri Gatling, a spokeswoman for the state Department of Labor and Workforce Development, said up to 4,000 displaced workers may be helped through the grant that is "designed to prepare individuals with the skills needed by employers in the region." As of last Wednesday, Gatling said, nearly 900 people have attended orientation and eligibility sessions for the Atlantic City

Reemployment initiative.

Of those people, she said, 276 have joined the training program and 85 entered english language or adult basic education classes. Gatling could not immediately provide the number of people who have found full-time jobs.

Video: Atlantic City Re-employment Session for out of work casino workersAtlantic City Re-employment Session for out of work casino workers. After the closing of four casinos in Atlantic City last year put thousands of people out of work. With $29 million in federal emergency grant funding, the state Department of Labor has been working to find jobs for those workers. This particular session teaches a group of unemployed workers how they can recast their experience in the casino to attract potential employers. (Video by William Perlman | NJ Advance Media for NJ.com)
Barry Avila, 61, of Hammonton, said he worked for casinos in Atlantic City for more than 30 years, most recently as a stage technician for Revel Casino Hotel.

Avila, who attended the orientation session last week, said he's been looking for jobs since he was laid off, but he described the process as "terrible, especially in my area of expertise."

With his unemployment benefits tapped out, Avila said he's living off his savings for now.
Avila said he is "getting by right now but I don't know how long that's going to last. Maybe another month or two, tops. If I don't find something, I don't know what's going to happen."

Nearly 4,000 people initially filed for unemployment benefits from just the three casinos that closed in August and September: Showboat, Revel and Trump Plaza. The Atlantic Club closed in January 2014.

Data from the state Labor Department show roughly 600 people were still claiming unemployment benefits from those three properties earlier this month but that was expected to end for roughly half of those people in May.

At the Community Food Bank of New Jersey's southern branch, director Evelyn Benton said "we saw an immediate rise in the need for emergency food assistance in September and then it's been sort of gradually growing since."

Initially, Benton said many of the former casino workers made too much money to qualify for government food assistance so the agency solicited money to help purchase food for those individuals.

"Now that they are losing unemployment benefits," she said, "they are becoming full-fledged clients."

Kelly Johnson of Atlantic City said she was a "day one employee" of Trump Plaza and worked for 30 years in the facilities department as a groundskeeper. She lost her job with the casino when it closed in September.

Johnson said she's been on interviews that her union helped arrange but "with so many others that have been laid off. It's just rough." She said her unemployment benefits ended this month.

Though Johnson said she was conservative with her money and started saving more when she found out the casino was planning to close, the uncertainty about when she may again find work is prompting her to look for help in ways she never thought she would need.

"I've never been on welfare in my life. I've always worked two jobs. But it's rough," she said. "So I will be seeking any way to get more money or food or something to sustain me. I don't know how long this is going to last. I don't know what is going to happen."

Johnson said she hoped to find employment again in groundskeeping or maintenance work but said "I
will take any job that is a decent paying job that I can survive on."

She said she wants that new job to be near Atlantic City, the town where she was born and raised and still lives today.

"I got sand in my shoes. I don't want to leave. I love Atlantic City," she said. "I love my city and I have hope. I have hope. I still want it to be 'Do AC' not 'Done AC.'"



http://www.nj.com/atlantic/index.ssf/2015/05/ex-casino_workers_are_fighting_long_odds_as_unemployment_runs_out_and_jobs_are_scarce.html




Tuesday, September 16, 2014

Massachusetts Casino Proponents Delusion! Do the MATH!



Spectrum Gaming provided a glorious report that cost Massachusetts taxpayers $189,000.

In that report, the overstated JOB PROJECTION was
 
10,000!


[There were numerous other exaggerations, including OVERSTATED REVENUE PROJECTIONS not to be addressed here.]



Spectrum Gaming LOVES EXAGGERATION!




They've created the same alluring mythology in other states.


It's not guesswork, folks!




Massachusetts Casino Proponents have REPEATED OVER AND OVER AND OVER AGAIN those BOGUS Projections.





This from Atlantic City where Casinos continue to close and the tax base is eroding:

Do the math!

Revel, Showboat, Trump Plaza = 5,900 JOBS

5,000 JOBS PROMISED at Revel Alone!

FROM:
Do the math on Phony Casino Job Promises!


ARTICLES BELOW:

TRUMP PLAZA 1,100 WORKERS
TRUMP TAJ MAHAL 3,101 WORKERS



Layoff Notices Issued For 1,100 Workers At Trump Plaza Casino In Atlantic City



ATLANTIC CITY, N.J. (CBSNewYork)The Trump Plaza Hotel and Casino confirmed Monday that it is indeed expecting to close at the end of the summer, and more than 1,100 workers were sent layoff notices.



http://newyork.cbslocal.com/2014/07/14/layoff-notices-issued-for-1100-workers-at-trump-plaza-casino-in-atlantic-city/

Trump Taj Mahal employees issued layoff notices ahead of possible November closure


Trump Taj Mahal Entertainment Bankruptcy
In this photo taken on Wednesday, July 23, people walk on The Boardwalk near Trump Taj Mahal Casino Resort in Atlantic City. Trump Entertainment Resorts filed for bankruptcy Tuesday, Sept. 9, and threatened to shut down the Taj Mahal Casino Resort in November. The company owns Trump Plaza, which is closing in a week, and the Taj Mahal, which has been experiencing cash-flow problems and had been trying to stave off a default with its lenders. It's the fourth such filing for the struggling casino company or its corporate predecessors. (AP Photo/Mel Evans)
 
 
 
By Greg Adomaitis | South Jersey TimesSouth Jersey Newspapers
Follow on Twitter
on September 13, 2014
 
 
ATLANTIC CITY — The Trump Taj Mahal issued layoff notices on Friday to its 3,101 employees ahead of a possible closing date that's a mere two months away.

Trump Entertainment Resorts told The Associated Press it filed the notices earlier this week, saying it could close on Nov. 13. The company filed for bankruptcy on Tuesday and threatened to close the Taj if it "doesn't get concessions from its unions," the AP reported.

Rumors of WARN Act notices going out first broke last Friday, although there was no official confirmation at that time. The Trump Plaza remains on schedule to close this Tuesday.

"When this goes, that's the end," Philadelphia resident Betty Heston told the South Jersey Times last month of trips to Atlantic City while standing out front of the Taj Mahal — a casino she and her husband have been staying at for more than 20 years.

Atlantic City began 2014 with 12 casinos. It could be down to seven by mid-November.


 
 
 
 
 
 
 
”The growth potential is too large for the Trump opening to hurt the rest of us,” the executive vice president of Resorts International, H. Steven Norton, said. ”More casinos and more entertainment will only make Atlantic City a more attractive destination.”
 
 
 
 
 
 
 
 

Monday, September 1, 2014

Ohio: Disengenuous Media Propaganda, Phony Excuses and Irrational Spectrum Projections


When you've watched the CASINO SHILLS long enough, their PROPAGANDA is predictable, excuses to be expected....



PLEASE NOTE: When cases of EMBEZZLEMENT, a CRIME, are reported in the media, frequently ignored is that the EMBEZZLED FUNDS were used to feed SLOT MACHINES!

If for some inexplicable reason the American Corporate Media lapses and reports that the EMBEZZLEMENT was caused by....GAMBLING ADDICTION....the SLOT BARN that sucked in the previously law-abiding citizen's stolen $$$  is NEVER MENTIONED!

The SLOT BARN [the Gambling Industry] gets to keep the proceeds of a CRIMINAL ACT!

[The increased cases of EMBEZZLEMENT were reported in the Spectrum Gaming Report prepared for the CT DOSR - Dept. of Special Revenue that surely you have read.]

PLEASE NOTE: The Disingenuous CRIME STATISTICS below report CRIME

WITHIN A 2 MILE RADIUS!



Who could concoct anything more

 
BOGUS?



Only a Predatory Industry with WELL PAID SHILLS handing out PROPAGANDA!


Here are the reasons:

1. CRIME PATROLS, INCREASED POLICING is usually accomplished within the immediate proximity of the SLOT BARN, regardless of whether the Predatory Industry funds the increase.

You will generally not see INCREASED CRIME within the immediate vicinity, although CRIME within the Slot Barn Facility is generally recorded.

2. VERACITY OF REPORTING CRIMES


Early in the Massachusetts process, I met 2 women in Middleboro, both of whom had been SEXUALLY ASSAULTED IN CASINOS, yet the ENFORCEMENT AGENCIES REFUSED to enter Police Reports.

In one case, the SEXUAL ASSAULT occurred in one of the Tribal Casino in Connecticut.
They're SOVEREIGN!

You sacrifice your protection on Tribal Property.

The other woman was SEXUALLY ASSAULTED at a Glamorous Slot Barn in Las Vegas.
Police REFUSED to take a report!

Local Police Department become beholden to Slot Barns for their largesse....who wants to KILL THAT GOOSE?




3. CRIME INCREASES BEYOND THE ARBITRARY 2 MILE LIMIT

FBI CRIME STATISTICS are readily available for consideration by the public.

Since studies have determined that GAMBLING ADDICTION increases with PROXIMITY, it is reasonable to assume CRIME does as well.

In other words, the 2 MILE LIMIT is BOGUS!


4. EMBEZZLEMENT, THEFT, FRAUD AND OTHER NON-VIOLENT CRIMES


There are + 300 POSTS related to EMBEZZLEMENT posted...at the bottom, CLICK on OLDER POSTS to view additional:

EMBEZZLEMENT


There are + 100 POSTS related to FRAUD posted here:
FRAUD

GAMBLING ADDICTION increases PERSONAL BANKRUPTCIES:
GAMBLING BANKRUPTCY




...a 1997 study found that Atlantic County, the only county in New Jersey where casino gambling is legal, had a personal bankruptcy rate 71 percent higher than the rest of the state.


 
From Texas Republicans Got It Right About Slots!

Skyrocketing Crime

Sept. 2004 research showed casinos hiked violent crime 13%.

Everywhere video slot machines have been legalized, crime rates have skyrocketed, including aggravated assault, rape, robbery, larceny, burglary, auto theft, embezzlement, and fraud.

1st 3 years of gambling in Atlantic City, New Jersey went from 50th in nation in per capita crime to 1st in the nation.

FROM:



We can accept the SLOT BARN PROPAGANDA, as



OR WE CAN REPEAL THE CASINO DEAL! based on FACTS!



Ohio casinos’ revenue promises haven’t panned out
By
The Columbus Dispatch


Proponents said there would be more jobs and tax revenue.

Opponents warned of more crime and addiction. But were they right?

During a fiercely contested statewide campaign in 2009 that cost $47.1 million, casino supporters made promises to persuade voters to approve four casinos in the Buckeye State.







Despite soundly rejecting gambling issues in 1990, 1996, 2008 and 2010, Ohioans approved the casino proposal 53 percent to 47 percent.

Now, five years later and two years into legalized casino gambling in Ohio, the promises made during the 2009 campaign remain largely unfulfilled.

And it appears doubtful they ever will be fulfilled. At the same time, some of the consequences critics feared, such as increased crime around the casinos, have not materialized.

For those advocating for casinos, there was an unforeseen development in gambling in the state: thousands of slot machines added at horse-race tracks creating more gambling options — and competition.

“Our estimate was based on four casinos in Ohio. In May of 2009, there was no reason for anybody to anticipate that the state was going to authorize seven racinos,” said Bob Tenenbaum, spokesman for Hollywood Casinos in Columbus and Toledo and a member of the 2009 campaign team.




“It’s difficult to make an apples-to-apples (comparison), because the landscape is so different than we anticipated in 2009.

”The promises: 34,000 new construction and permanent jobs, $1 billion in gambling money retained in-state, and $651 million in tax revenue funneled annually to the state, counties, cities and schools.


 The reality:

• There are 4,844 employees at the four casinos.

Add 10,600 temporary jobs created during construction and the total is 15,640 jobs, less than half the 34,000 promised.

• In the fiscal year ending June 30, gross revenue from all four casinos was $825.1 million, short of the $1 billion.

For the campaign promise to be close to true, every dollar gambled in Ohio casinos would have previously been spent out of state.

• In more than two years, the casinos have paid a total of $518.6 million in tax revenue to the state, cities, counties and schools, short of the $651 million promised in the first year alone.

The shortfall in promises doesn’t faze Mandy Ulicney, a Kent State University professor of casino and hospitality management, who says the casinos are “doing great.”

SPOKEN LIKE A TRUE CASINO SHILL!

“The numbers are down a bit from what they hoped for, but their sales are excellent,” she said.

“When you’re going into an operation where it’s discretionary income, it’s also a guess-timate. The state of the economy being shaky is always going to be a factor.”

Ulicney said studies and statistics consistently show Ohioans like to gamble — and will continue to do so.

“There’s a kind of bounce-off effect. A new racino is opening close to where I live in Youngstown. It pretty much guarantees the business on state Rt. 46 will see a huge increase in numbers.

For our community, this is going to be a big boost economically — for the gas stations, for the restaurants, the bars, the convenience stores.”

There have been economic benefits derived from the Columbus casino, including a moderate surge of business development on the West Side, new income taxes paid by employees, property taxes paid by the casino and sales tax on food sales on site.

The Rev. John Edgar, of Church and Community Development for All People, an outspoken foe of casinos in 2009 and today, sees nothing positive about the gambling rollout.

“The state gambled, and it lost,” he said. “Sadly, the last two years confirmed many of the arguments and reasons we were articulating in 2009.

The evidence is clear: The casinos are guilty of a whole series of broken promises.”

Edgar said casinos were approved “on the basis of convincing the electorate of Ohio that it would create jobs and prosperity.

The reality is, the casinos have done nothing to improve the well-being of the citizens in those areas.”




Post-election reality

Eighteen months after the gambling issue passed and a year before the first casino opened, a state-commissioned study by Spectrum Gaming reduced tax-revenue estimates for the state, schools and government to as low as $364 million, nearly $300 million less than the campaign promised.

Gee! Didn't Spectrum conduct the First Phony Ohio Report that overstated projections?
Gee! Didn't Spectrum conduct the Massachusetts Report that cost .... was it $189,000?
The projections contained in that report are IRRATIONAL!
The premise is based on illusory assumptions and a comparison with AGA [American Gaming Association] statistics disprove the results that were employ to generate support.


Racinos were mentioned as a reason for the lowered forecast.

Earlier this year, a memo from Gov. John Kasich’s Office of Budget and Management warned county officials about overdependence on casino revenue, labeling that source “subject to considerable uncertainty” and “a large degree of error.”


The budget memo blamed the shortfalls on competition from out-of-state gambling, racinos, illegal gambling in Ohio (such as Internet cafes), “restrained enthusiasm” for casinos, and access and parking issues.

The racinos, with thousands of slot machines but no table games — allowed by former Gov. Ted Strickland’s executive order in July 2009 — are the biggest reason advocates cite for why casinos haven’t lived up to their election promises.

Six racinos are open now, with a seventh, in Austintown in Mahoning County, set to ring the opening bell in mid-September.

With more than 13,000 slot machines among the seven facilities, it was inevitable that some gambling dollars that would have gone to the casinos migrated to the racinos, some of which are owned by the same corporations that own the casinos.

The seven racinos have produced 4,171 new jobs, according to the Ohio Lottery Commission. But they were not publicly voted on and cannot be counted as part of the 2009 campaign promises.

The Ohio Lottery Commission gets 33 percent of the take from racinos, with the facilities keeping the rest.

The lottery transfers the money to K-12 education.

The Ohio Constitution requires that 51 percent of the casino tax revenue go to county government and cities, with 34 percent to schools, 5 percent to the four casino host cities, 3 percent to the Ohio Casino Control Commission fund, 3 percent to the Ohio State Racing Commission Fund, 2 percent to the Law Enforcement Training Fund and 2 percent to the Problem Casino Gambling and Addictions Fund at the Ohio Department of Alcohol and Drug Addiction Services.

While the host casino cities and the four other largest cities get a piece of the casino pie, none of the other cities or any townships get casino revenue.

Tenenbaum insists that “it’s way too early in the game for anybody to have a good handle on what the long-term revenue situation is going to be.

In the casino business, you can make estimates, but you don’t know for a couple of years what the revenues will be.”

John Payne, chief executive officer of Caesars Entertainment Operating company, which oversees the Cleveland and Cincinnati casinos, said those properties have “had a tremendously successful impact on the revitalization of downtown in those areas.”

Payne said the number of employees in the casinos doesn’t tell the full story, because each casino attracts 4.5 million to 5 million guest-visits each year. That has a huge impact on hotels, restaurants and other businesses, he said.

For example, the Cleveland casino partners with five hotels and 15 restaurants. Since opening, the casino has filled 114,000 hotel rooms and covered $2 million in meals that otherwise wouldn’t have been used, he said.

The critics still aren’t buying it. Rob Walgate, of the Ohio Roundtable, a public policy group, accuses casinos and racinos of “destroying families, communities and lives.”

Walgate’s group filed a lawsuit, now pending in the Ohio Supreme Court, challenging whether the state, during the Strickland administration, illegally expanded gambling by permitting slot machines at racetracks.

The Roundtable argues the expansion violated the Ohio Constitution. Walgate, who struggled with gambling addiction earlier in his life, said “gambling and government don’t mix.”

Leaders of Ohio’s 88 counties might not agree with Walgate, but many are unhappy with the money they’re receiving from casinos.

“We realized that the rhetoric of the original campaign was just that. I don’t think any of us expected to receive the money that was promised, and we haven’t,” said John Leutz, senior policy analyst for the County Commissioners Association of Ohio.

“Most of our counties are looking at it as one-time revenue rather than a consistent revenue stream.”

Leutz said none of the counties has built casino money into its regular budget, instead opting to use it for capital improvements.

Problems forecast

Opponents of the casinos warned that crime and gambling addiction would be part of the casino harvest.

The crime concern has not panned out, for the most part.

Three-year statistics from the Franklin County sheriff’s office for the area within 2 miles of the casino show that crime has steadily gone down.



The total number of crimes fell from 3,514 in 2011 to 2,979 in 2012 and 2,671 last year.

There was one homicide each year, while sexual assaults and thefts declined slightly.

None of the other host cities — Cleveland, Cincinnati and Toledo — has reported a measurable increase in crime near its casino, statistics show.



Crimes inside the casinos or on their property are tracked by the Ohio Casino Control Commission.

In the year ending June 30, there were 319 criminal charges involving 268 people at the four locations.

Columbus led the pack with 87 charges involving 83 people, although Cincinnati had 87 crimes and 54 people charged.

Cleveland’s numbers were 81 charges and 71 people arrested, while Toledo reported 64 charges and 60 people arrested.

Criminal trespass was the most common charge, with 91 (28.5 percent), followed by theft (57, 17.9 percent); casino cheating (46, 14.4 percent); underage entry (40, 12.5 percent) and fake identification (20, 6.3 percent).

There was only one assault charge filed for all of the casinos in the past year, one robbery charge, five drug charges and no prostitution charges.

However, the concern about an increase in gambling addiction appears to be more well-founded. Ohio Department of Mental Health and Addiction Services statistics show the problem began ramping up in 2013, when 682 people were treated for gambling disorders and 14,355 people were screened after showing problem signs.

That compares with 184 people treated and 5,898 screened in the previous three years total.

Two percent of the tax revenue from casinos goes into a statewide problem-gambling fund.

ajohnson@dispatch.com


http://www.dispatch.com/content/stories/local/2014/09/01/promises-dont-pan-out.html



Sunday, August 31, 2014

The Failure of Atlantic City: "....It doesn’t trickle down. “






The last old home on a block, center left, is seen near the Revel hotel and casino in Atlantic City, N.J.
 
The last old home on a block, center left, is seen near the Revel hotel and casino in Atlantic City, N.J.
Mel Evans/AP
 
Impending casino closures foreground Atlantic City’s great divide
Updated
 
When her hometown first legalized casino gambling in 1976, Atlantic City native Turiyah Abdur-Raheem had her doubts.

“I wasn’t here then, I was still away at college, but I was concerned about my family and friends who still lived here,” said Raheem. “I think my biggest concern was whether or not people in the community were going to really benefit; or was it going to still be a situation where these casinos and other casino-related businesses were going to thrive, and the community was going to suffer.”

That was nearly four decades ago. For three of those decades, Raheem lived elsewhere. When she returned to her hometown in 2008, what she found was “heartbreaking,” she says.
“It benefits one side of the city and not the other. It doesn’t trickle down.
Atlantic City councilman-at-large Moisse Delgado
“I was hearing more and more stories about hopelessness, about people not being able to be hired,” said Raheem, the author of a recent book about growing up in “the other Atlantic City.” “Last hired, first fired. Whereas we always had jobs as teenagers, the teenagers here were not being hired. Other teenagers were able to come in and get work, and our teenagers were not.”
For Abdur-Raheem and some other residents of Atlantic City, impending casino closures are just another bump in the community’s long, fraught relationship with legalized gaming. They see an industry that has grown fat in their backyard, while sharing little of the profit. In 2010, Atlantic City casinos took in $3.6 billion; meanwhile, the city’s median household income between 2008 and 2012 was just under $30,000.

Yet the gaming industry nationwide is on the ascent, even as three major Atlantic City casinos threaten to close within the next few weeks. Roughly two decades ago, casinos could only be found in six states; as of last year, 22 states have commercial casinos, according to an American Gaming Association (AGA) survey [PDF]. That same survey found that casinos raked in $37.34 billion nationwide in 2012. Only in 2007, the year before the financial collapse, did the industry collect more in revenue.
Melissa Harris-Perry, 8/31/14, 10:49 AM ET

The changing face of Atlantic City

MSNBC contributor Dorian Warren, Carmen Rita Wong from NYU Poly Tech, MSNBC.com’s Ned Resnikoff and Michael Pollock from the Spectrum Gaming Group join to discuss the changing face of Atlantic City and the closing of some of its major casinos.

The question facing Atlantic City, and a growing number of other communities around the United States, is where all that revenue goes. While industry spokespeople argue that commercial casinos do wonders for a local economy, not all Atlantic City residents agree.

“It benefits one side of the city and not the other. It doesn’t trickle down,” said Atlantic City councilman-at-large Moisse Delgado. “Tourism dollars are good for the industry. It’s not as much for the municipality and its residents.”

A significant chunk of the city’s revenue does come from casinos. According to Atlantic City’s 2013 audit report [PDF], local government collects about 65% of its taxes from the gaming industry. While in earlier times that might have allowed the city to share in the industry’s prosperity, today it means the municipality has no safety net when casino revenues decline. Earlier this month, Atlantic City Revenue and Finance director Michael Stinson told Reuters that impending casino closures could wipe out as much as half of the city’s tax base.

Adding to the city’s financial woes, its unemployment rate is markedly higher than the national average, and wages tend to be lower. Delgado alleges that’s because “front of the house” casino jobs – relatively high-paying jobs that require a greater degree of customer interface, such as tending bar or manning the blackjack tables – usually go to people who don’t live within city limits.

“People who have those jobs don’t live on this island,” he said. “They live in farther towns. They live 60 minutes away, two hours away. They don’t call it home, they don’t see it as home, they don’t invest in home.”

People who live in the city – most of whom are either African American or Latino – do the back of the house jobs, such as cleaning rooms and doing line cook work, said Delgado. But Joe Kelly, president of the Greater Atlantic City Chamber of Commerce, argued casinos “have done a wonderful job in creating employment opportunities.”

“I don’t think that’s consistent with what I’ve seen,” he said of Delgado’s concerns. “I’ve seen a number of professionals come through the local market that have gone on to take leadership roles in the casinos that were local citizens.”

For industry leaders and experts, the watchword in Atlantic City is “diversification.” The local Chamber of Commerce is trying to resuscitate business in Atlantic City by expanding tourism and hospitality services beyond just gambling. If that effort is successful, the city will come to more closely resemble Las Vegas, where gambling now accounts for just about 36% of revenue in the main tourism center known as the Las Vegas Strip. Dining, musical entertainment and retail have come to occupy a larger chunk of that city’s income. Industry analysts believe that developing those industries in Atlantic City would help to distinguish it from the myriad other Mid-Atlantic towns that now host casinos.

“It’s a tourism destination,” said Sara Rayme, senior vice president of public affairs for the AGA.

“As more markets have come online, clearly it’s up to the policy makers in tandem with the operators to make sure their business models are evolving and changing with what’s going on around them.”
“As an Atlantic City native, I can see it’s definitely been a boon.”
David Schwartz, the director of the University of Nevada
Rayme also believes that casinos have been good to Atlantic City overall, saying “gaming has been incredibly successful in Atlantic City for the past 30 years.” The AGA estimates that Atlantic City casinos have “directly supported 1.4 million jobs” and “generated $9.3 billion in tax revenue,” according to a fact sheet [PDF] shared by Rayme.
David Schwartz, the director of the University of Nevada, Las Vegas’ Center for Gaming Research, said “the city was completely moribund” before legalized gambling.

“As an Atlantic City native, I can see it’s definitely been a boon,” he said. “Created a lot of jobs, brought in a lot of development.”

The Federal Reserve of Philadelphia has expressed a little more ambivalence regarding the industry’s effects. In a recent survey [PDF] of the available literature regarding gambling’s economic impact, the Philadelphia Fed found that casino revenue can do some good for state tax revenues and generate jobs; however, the same report offered a grim prognosis for Atlantic City’s gambling industry.

Another report focusing on Atlantic City in particular [PDF] noted that the local gaming industry “has typically provided jobs for more than 10,000 city residents,” but added that “many of the problems that gambling was supposed to alleviate remain severe.”

The paradox of Atlantic City, they write, is that it is “a place where plentiful jobs are juxtaposed with high levels of poverty and unemployment.” The way forward is not yet clear.




http://www.msnbc.com/msnbc/atlantic-city-casinos-boon-for-city-not-residents



 

Saturday, April 12, 2014

Don't bet on a fix to Florida's gambling rules anytime soon





There are still three weeks left in the legislative session, but if I were a betting man, I'd say the chances for a major overhaul of Florida's gambling laws in the near future are nil.

Last week, the Florida Senate dropped its big gambling-reform bill. The votes weren't there to move the bill out of it's first committee. This week, House Speaker Will Weatherford slammed the door on any gambling bills coming out of the Legislature.

Somewhere Gov. Rick Scott is smiling. He wasn't thrilled about having the final say on a bill that creates a new gaming commission or allows casino-resorts set up shop in South Florida. Gambling expansion is still a dicey subject, particularly in an election year.

I've followed the many twists and turns of the state's "efforts" to better regulate a part of Florida's economy that over the years has grown — pretty much like melaleuca. Gambling creep is a reality in our family-friendly state, but our state's leaders don't seem in a hurry to find a solution.

I've sat through hours of public testimony with state senators who dutifully listened but probably wished they were somewhere else. I've watched House members set up "information-sessions" at pari-mutuels only to cancel them because of the lawmakers' lack of interest.
 

I've followed the many twists and turns of the state's "efforts" to better regulate a part of Florida's economy that over the years has grown — pretty much like melaleuca. Gambling creep is a reality in our family-friendly state, but our state's leaders don't seem in a hurry to find a solution.

I've sat through hours of public testimony with state senators who dutifully listened but probably wished they were somewhere else. I've watched House members set up "information-sessions" at pari-mutuels only to cancel them because of the lawmakers' lack of interest.
 

I've flipped through the Spectrum Gaming Group's Gambling Impact Study, the $400,000 analysis paid by Florida taxpayers that is full of interesting gambling trivia but lacking in any clear policy direction. Don't blame the authors. That's the way the lawmakers wanted it. Go figure.

[Spectrum only soaked Massachusetts taxpayers $180,000....oh...but then got paid to 'advise' the Gambling Commission.]

I also poured through Scott's "Let's Get to Work" political committee website and found thousands and thousands of dollars in campaign contributions from — and please forgive the pun — just about everyone who has a dog in that race. Gaming has been very very good to the governor.

It's been a long road, and I have the scars to prove it. So, allow me a few takeaways

•The pari-mutuels got zilch. They didn't get any of the incentives they wanted to boost gaming operations or develop their properties. Fat chance if they will do better next year in competing with the destination casinos that want in and the Seminole Tribe of Florida that's already here.

•Kiss dog racing goodbye. Over half of the nation's dog tracks are in Florida, and most of them are losing money on greyhound racing. The industry wanted lawmakers to change the law to allow them to run fewer races and keep their more lucrative cardrooms and slot machines.

Those odds are long to be polite, and next year's prospects won't be any easier, particularly if lawmakers seriously consider an idea from Sen.Tom Lee, R-Bradenton, who suggested the state simply outlaw greyhound racing and have track owners apply for new gambling licenses.

[In Massachusetts, taxpayers continue to subsidize greyhound owners for the outlawed industry.]

•The Seminole Tribe holds all the cards. Scott got in the game late in negotiating a new "table games" provision. So it'll be interesting to see if he can cut a better deal than the current one that gives the state $1 billion over a five-year period in exchange for the tribe's big competitive advantage over the pari-mutuels. Advantage: Seminoles.

•So does Central Florida. Orlando is home of one of the nation's largest convention-center venues, and they don't want to lose business to a budding gaming mecca in South Florida. By the way, guess where Andy Gardiner, the next Senate President lives? Hint: think Mickey Mouse. Steve Crisafulli, the incoming House Speaker, lives down the road in Brevard County.

Lost in all this is the simple fact that our state gambling regulations are a hot mess. For the past two years, the Legislature pondered and pontificated. With little time left in the session, state lawmakers finally rolled the dice and crapped out.

Doug Lyons can be reached at 954 356-4638 or by email at dlyons@sun-sentinel.com., or on Twitter @douginflorida

Editor's Note: A month ago, Doug Lyons appeared on WPBT-Channel 2 Issues to talk about gambling. Compare those comments with this column at Sun-Sentinel.com/Floridasgamble.



http://www.sun-sentinel.com/news/opinion/fl-dlcol-gambling-20140412,0,171408.column

Thursday, March 27, 2014

Casino mogul’s political allies to propose internet gambling ban



Casino mogul’s political allies to propose internet gambling ban

ReutersMarch 26, 2014

— Casino mogul Sheldon Adelson became a major player in Republican politics in the 2012 elections, when he spent more than $90 million in an unsuccessful effort to oust Democratic President Barack Obama.
 Now the 80-year-old billionaire wants something from Washington: a ban on internet gambling, a growing industry that Adelson says could hurt the casino industry. On Wednesday, some of Adelson’s allies in Congress, including South Carolina Senator Lindsey Graham, plan to propose legislation that would do just that.

The bill is not expected to go far; analysts say Congress may not even bring the measure up for a vote this year.

Even so, the Las Vegas Sands Corp chief executive’s push against online gambling could force Republican politicians to confront an issue that pits religious conservatives who agree with Adelson against more pragmatic elements in the party.

It also could lead to some interesting moments this week as four potential candidates for the 2016 Republican presidential nomination – New Jersey Governor Chris Christie, Wisconsin Governor Scott Walker, former Florida governor Jeb Bush and Ohio Governor John Kasich – pay their respects to Adelson and his deep pockets during a four-day meeting in Las Vegas.

The meeting in Las Vegas could be particularly awkward for Christie, who last year signed a law legalizing internet gambling in New Jersey, which along with Nevada and Delaware have approved online gambling as a way to boost tax revenue at a time when earnings from land-based casinos have flat-lined. Christie’s office did not respond to a request for comment.

The others who may be courting Adelson’s political support likely will be reluctant to take a public position on online gambling, which is not a big issue for most Americans, said David Damore, a political science professor at the University of Nevada-Las Vegas.

“I think they would try to tiptoe around it as much as they can,” he said.

Similarly, the lack of a national consensus on online gambling probably will discourage many members of Congress from taking up the issue, Republican strategist John Feehery said.

“On these things, if you can avoid taking a stand for as long as possible, that’s always the best policy,” he said.

STATES WARM TO ONLINE WAGERING

Online gambling was effectively outlawed in the United States until December 2011, when the Justice Department backed a court’s decision that said a 1961 law banning interstate sports betting did not apply to other forms of gambling.

In the absence of action by Congress, states have moved to allow online gambling operations within their borders.

Nevada, New Jersey and Delaware now offer some form of internet gambling, and eight other states considered legislation last year. New Jersey, Delaware, Georgia and Illinois sell lottery tickets online. Several Native American tribes that operate casinos are preparing to offer internet play as well.

Some gambling companies see an opportunity to boost revenue as earnings from the 900 land-based casinos in the United States have stagnated.

Adelson’s Las Vegas Sands is not among them.

In an opinion piece on Forbes.com last year, Adelson called internet gambling “fool’s gold” that could hurt business at existing casinos and turn video game-playing children into gambling addicts.

Adelson did not respond to a request for comment.

Las Vegas Sands likely wouldn’t be affected if online gambling became widespread in the United States because it makes most of its revenue abroad, said Morningstar analyst Chad Mollman. But a federal ban could hurt rival casino companies that are counting on online gambling revenue to offset flat or declining earnings from their casinos, he said.

In Washington, Adelson has set up a lobbying group called the Coalition to Stop Internet Gambling.
“It’s common sense that putting a virtual casino in the pocket of every American with a smartphone is bad public policy,” the group said in a statement.

In response, Adelson’s rivals, including Caesar’s and MGM Resorts International, have created their own group, the Coalition for Consumer and Online Protection. They argue that efforts to block online gambling haven’t worked and that states should be able to regulate the issue.

“For Congress to come along and stop these efforts is a mistake,” said Mary Bono, a former Republican representative who is a spokeswoman for the group.

In Congress, Senator Graham, Republican Representative Jason Chaffetz and Democratic Representative Tulsi Gabbard will introduce the Adelson-backed legislation that would outlaw internet gambling. Graham faces re-election this year in conservative South Carolina, while Chaffetz and Gabbard are from Utah and Hawaii, respectively, where all forms of gambling are illegal.

Adelson also has enlisted religious conservative groups, who play an influential role in Republican presidential primaries.

Bob Vander Plaats, head of The Family Leader, a social-conservative group in Iowa, said online gambling has not come up in his meetings with potential candidates for the Republican presidential nomination in 2016.

“But as it becomes more and more of a threat, I do believe you’ll see full-spectrum conservatives definitely taking a stand,” said Vander Plaats, who has not worked with Adelson’s group.

Advocates opposed to limits on online gambling say that such restrictions would conflict with the Republican Party’s traditional suspicion of federal regulation.

“I think you’re going to see a real divide in the Republican electorate,” said John Pappas, executive director of the Poker Players Alliance, which has mobilized thousands of members to support Internet-based poker games.

LOOKING TO 2016

Adelson has another ace up his sleeve: the promise of campaign cash in the 2016 presidential race. Adelson and his wife, Miriam, donated at least $93 million to Republican candidates and causes in the 2012 election, making him by far the biggest publicly known donor in either party that year.

Adelson told The Wall Street Journal shortly after the election that he intends to spend more on the 2016 elections.

So far, Adelson has lined up support for his online gambling ban from Republican governors Rick Perry of Texas and Bobby Jindal of Louisiana, both potential presidential candidates.

Adelson will have the chance to discuss the issue with Christie, Bush, Walker and Kasich in Las Vegas this week, when the governors attend a meeting of the Republican Jewish Coalition. Adelson is hosting a dinner for which Bush is the keynote speaker.

Adelson has backed Christie despite their disagreement over online gambling. Adelson hosted Christie for a fundraiser in Las Vegas last August and donated $3,800 to his re-election campaign, New Jersey records show.

Adelson has been a particularly enthusiastic supporter of Walker, donating $250,000 when the Wisconsin governor fought back a recall campaign in 2012, according to the National Institute on Money in State Politics.

Walker has not taken a stand on internet gambling but may have to confront the issue soon because of growing support for it among Native American tribes in Wisconsin. His office did not respond to a request for comment.

The Lac du Flambeau band of the Lake Superior Chippewa is planning to offer internet gambling to those who are physically on the tribe’s lands. Tribes oppose a federal ban on such gambling on the grounds that it would interfere with their revenue-raising efforts, said Jeff Nelson, a lawyer with the Indian Gaming Alliance.

In Ohio, Kasich oversaw an expansion of casino gambling in his state but has not take a position on internet wagering, an aide said. Bush also has not taken a public position.

Even if Adelson lines up support for the ban among potential 2016 candidates, that will not do much good if Congress does not act soon, analysts say.

“The cat’s out of the bag, to be sure,” said Michael Pollock, managing director at Spectrum Gaming Group, a research firm.
———
(Additional reporting by Hilary Russ in New York; Editing by David Lindsey and Eric Walsh)


http://www.bellinghamherald.com/2014/03/26/3552184/casino-moguls-political-allies.html?sp=/99/101/235/