MA Legislature attempts to secretly hand ATMs to casinos in end-of-year lobbying push
End-of-year informal sessions in the legislature are somewhat notorious for sneaking through substantial policy shifts like this one. Keep your eyes open. - promoted by david
On Christmas Eve morning, when virtually no media, citizens or other state legislators were paying attention to legislative business, the Massachusetts Senate approved an amendment during informal session that would allow ATMs inside casinos. This stunning action occurred even though the intent of informal session is to move non-controversial legislation.
Casino ATMs are one of the most predatory and financially damaging business practices used by casinos and they were expressly prohibited when the casino law was signed by Governor Deval Patrick. The ban on ATMs was a core part of the political narrative that Patrick and other casino sponsors sold the public: “We’re going to do casinos right, better than everyone else.”
Why are casino ATMs an issue that you should care about and act on? A leading indicator of someone who is being harmed and financially damaged by casinos is if he or she chases their losses. ATMs are the primary vehicle used by casinos to lure citizens to chase. Their business model hinges on it. Over the last decade there are 11 different independent studies – studies not funded by gambling interests – that show 40%-60% of slot machine profits are taken from citizens who can’t stop chasing their losses.
This is how it works: A citizen goes into the casino and loses all their cash or the “free play” voucher mailed to them by the casino (most often, they lose it all on slot machines which predominate inside casinos.) This is a pivotal moment for the casino…can they get that citizen to chase his or her losses? Slot machine design and free alcohol are two of the critical factors that lure citizens to chase. If the casino is successful, then the next step is the citizen hits the casino ATM to withdraw more money. Most casino ATMs are owned by Global Cash Access (GCA) which then turns around and sells the name, credit info and other information of that citizen back to the casino. Then the casino focuses its most intense marketing efforts against that citizen because they know that if they can get him or her to return to the casino and keep gambling, it is almost inevitable that citizen will keep losing, chasing their losses over and over again. From a casino marketing standpoint, it is the equivalent of painting the citizen in neon orange fluorescent paint with a massive bulls eye on their back.
Removing the state’s ban on ATMs inside casinos does not qualify as “non-controversial” and no such legislation should be moved during informal legislative session. It is a major consumer protection issue that merits bright sunshine.
I ask everyone to please contact your state representative and state senator today or first thing Monday morning and call on them to remove the amendment language approving casino ATMs in House Bill 4110. You can find the contact info for your rep and for your senator here. You can view the full legislative history for House Bill 4110 here.
To learn more about Global Cash Access and their predatory and harmful business practices, I invite you to watch one of their own marketing videos:
Repeal of ATM casino ban is in bold.
Banking Laws
Banking Laws
Mr. Brewer moved that the bill be amended by striking out, in line 15, the figure “1206” and inserting in place thereof the following figure:- “1026”; and
by striking out, in line 75, the words “federal Community Reinvestment Act of 1977” and inserting in place thereof the following words:- “community reinvestment act in section 14”; and
by inserting after section 27 the following section:-
“SECTION 27A. The second paragraph of section 3 of said chapter 167B, as so appearing, is hereby amended by striking out the last sentence.”; and
by striking out, in lines 359 and 360, the words:- “; provided, however, that “financial institution” shall mean a bank for the purposes of the first, second and third paragraphs of section 3 and for the purposes of section 4”; and
by striking out, in line 834, the words “; provided, however, such” and inserting in place thereof the following words:- “. If, in the opinion of the commissioner, there is an unusual demand by depositors for withdrawals, the bank shall upon the commissioner’s order require such a depositor to give written notice of the depositor’s intention to withdraw the whole or any part of such deposits or to apply for a loan secured by such deposit. Such”; and
by striking out, in lines 1140 and 2212, the word “consistent” and inserting in place thereof the following words:- “not inconsistent”; and
by adding the following section:- “SECTION 65. Notwithstanding any general or special law to the contrary, the Massachusetts gaming commission shall prohibit a gaming licensee from (i) installing, owning or operating an automated teller machine in the gaming area, as defined in section 2 of chapter 23K of the General Laws, or (ii) allowing another person to install, own or operate an automated teller machine in the gaming area, as defined in said section 2 of said chapter 23K. For the purposes of this section, the prohibition shall include, but not be limited to, an automated teller machine or electronic branch of any state or federally-chartered bank, state or federally-chartered credit union or foreign bank.”
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