DELAWARE: Heroin money laundered at casinos, police say

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Heroin money laundered at casinos, police say

James Fisher, The News Journal

May 17, 2016

A 31-year-old Felton man, Deangelo Mcglotten, is the "ringleader" of a large-scale heroin distribution effort that a two-year police investigation just broke apart, authorities said announcing the indictment of Mcglotten and 12 other people on drug, conspiracy, racketeering and money laundering charges.

Police also said the investigation uncovered a money-laundering scheme that sent proceeds of illegal drug sales through casinos. A Georgetown businessman, Salman Choudhary, 37, was charged with involvement in organized crime, racketeering, money laundering, attempting to evade tax and failing to file tax returns. He was held on a bond of $1.7 million, the largest cash bond of any of the people indicted after what authorities called "Operation Duck Hunt."

"A heroin distribution ring operating in Kent and Sussex Counties was led by Deangelo Mcglotten along with his closest associates, Timothy Felix and Adrian Coverdale," said Nathaniel McQueen Jr., superintendent of the Delaware State Police. "The illegal proceeds of the drug organization were being laundered by Salman Choudhary through casinos, businesses and personal property."

Felix, 30, of Dover, faces eight criminal charges including drug dealing, conspiracy, racketeering and money laundering. He was held on $750,000 cash bond. Coverdale, 34, of Blades faces six similar charges and was held on $400,000 cash bond.

Police declined to specify exactly how the suspects allegedly laundered ill-gotten money at casinos, saying the investigation had not yet wrapped up and pointing out some of that information should be withheld pending the suspects' trials. "I know you have some good questions, but we have to hold off on that," Bratz told reporters.

Comments law enforcement officials made at the news conference suggested the alleged money laundering happened at the Dover Downs casino, and that discovering it was key to getting the investigation off the ground.

"It began as a possible money laundering case and evolved into one of the largest heroin seizures in Delaware, along with other asset seizures throughout Sussex County to include money, property and guns," said Greg Nolt, director of the Division of Gaming Enforcement, at the news conference.

A DSP spokesman, Sgt. Richard Bratz, said the operation began in April 2014 and culminated in multiple search warrant executions and arrests on May 11. Earlier, on Jan. 13, he said, police searched Mcglotten's home and an Acura vehicle linked to him but didn't arrest him in connection with the probe until last week.

Still, Mcglotten had been detained on heroin-related charges during the course of the two-year probe. He was arrested by Dover police in July 2014 after a tip that he was in possession of a lot of heroin; at the time, police said 1,300 bags of heroin weighing 19.5 grams was in his car.

In all, police confiscated 1.75 kilograms of heroin during the investigation, with a street value of $1.2 million, Bratz said. On May 11, police arrested eight people, including Mcglotten, Choudhary, Felix and Coverdale.

Six others were indicted by a Sussex County grand jury but have not yet been located or arrested, police said. They are:

Linda Mcglotten, 49, of Milford, the mother of Deangelo Mcglotten

Reginald Mcglotten, 30, of Millsboro

Obrien Morris, 26, of Millsboro

Luis Manzanet-Garlaza, 27, of Milford

Sohail Zeeshan, 39, of Rehoboth Beach

Luis Manzanet-Garlaza, who police said has ties to Milford, northern New Jersey, Florida, and Puerto Rico.

If anyone has any information in reference to the location of the listed wanted subjects, they are asked to contact Sgt. M. Dawson at (302) 752-3815.  Information may also be provided by calling Delaware Crime Stoppers at (800) TIP-3333, via the Internet at www.delaware.crimestoppersweb.com or by sending an anonymous tip by text to 274637 (CRIMES) using the keyword "DSP."

"Where possible, we want to try to eliminate entire networks of drug dealers and hold those at the very top of the organization responsible. The time and the effort necessary to do that is extensive," said Delaware Attorney General Matt Denn at a news conference in Georgetown. "We are going to continue to diligently pursue ops like this one, to disrupt trafficking operations and hold responsible those who put this poison into our communities, but until our state is successfully treating the addiction crisis that has gripped our state, the demand for these drugs is going to continue, and eventually new dealers are going to seek to replace these ones.”

Contact James Fisher at (302) 983-6772, on Twitter @JamesFisherTNJ or jfisher@delawareonline.com.

EDITOR'S NOTE: An earlier version of this story had an incorrect number of people indicted. The correct number is 13 in all.


http://www.delawareonline.com/story/news/local/2016/05/17/heroin-money-laundered-casinos-cops-say/84439438/

Addicted to games: What is a gambling addiction?

Jen Rini, The News Journal 11:15 a.m. EST December 16, 2014

 

 

Lately, counselors have found that most gambling addicts have a history of loss that initiates the gambling.(Photo: Getty Images/iStockphoto)

 

Psychologist Susan Edgar knows firsthand how difficult it is to recognize the signs and symptoms of a gambling addiction.

 

In her seven years as deputy director of the Delaware Council on Gambling Problems, she's counseled, mentored and sympathized with gambling addicts and their families.

 

But even with that experience, her own father's gambling addiction completely blindsided her.

 

"I found out my father had a gambling problem about five years ago," Edgar said. When she asked her mother why she didn't tell her, her mother's response was shocking.

 

"I didn't want to talk bad about your father," was the answer, Edgar explained. "She saw more shame attached to the gambling than to the drinking."

 

The shame and stigma attached to compulsive gambling has placed it low on the totem pole when it comes to addictive vices.

 

It's not a drug after all, so why can't a person just stop?

 

OPINION: Do you want a slots parlor close by?

 

But a compulsive need to gamble is not just a bad moral habit, said Marc Richman, assistant director of Community Mental Health and Addiction Services for the state. It's a risky, uncontrollable urge.

 

Though gambling contributes hundreds of millions of dollars to the state's budget, it has the power to destroy a person's fortune, and also their well-being,

 

"We know from the science that folks who have gambling addictions look very similar to those who have other addictions. I know it is a relatively young science, but there's more and more attention being paid to it now," Richman said.

 

Though a person may not be physically ingesting an addictive substance, he or she is still getting high, Edgar said.

 

"When the gambler is in action it doesn't matter if they are winning or losing. It's the doing that causes the dopamine rush," she said.

 

Edgar, Richman and Arlene Simon, executive director of the Delaware Council on Gambling Problems, give us the rundown on what gambling addiction is and how to get help.

 

How does someone become addicted to gambling?

 

"What makes a gambling addiction such an insidious addiction, I think more so than drugs and alcohol, is you don't see it. You know someone is drinking and you know they are doing drugs.

 

Unfortunately (with gambling) most times you get to totally rock bottom before you look for help," Simon said.

 

Simon also lived with a family member with a serious gambling addiction.

 

"I lived with this person and had no clue whatsoever. You couldn't do anything. That person hits rock bottom," she said.

 

A gambling addiction can be genetic as well, as can heroin or alcohol addiction.

 

"I won't put myself in a gambling situation because I know I am a sitting duck," Edgar said.

 

Gambling addictions often co-occur with other mental health challenges, such as anxiety, depression and substance abuse, Richman added. That can cause an individual to become dysfunctional.

 

Lately, Edgar said that counselors with the council have found that most gambling addicts have a history of loss that initiates the gambling. People turn to gambling as a release after they've lost a job or a loved one. Most often it's after experiencing a death, Edgar said. A lot of older women see a casino as a place where they can be treated with respect and can feel like they are in pleasant company.

 

"Where else is a person who is 70 going to go for entertainment," she said.

 

It's become a serious problem with senior citizens, added Simon.

 

"They are lonely. They get entrapped in gambling so innocently and it's very difficult because they are so embarrassed. Consequently many of them are up against the wall," she said.

Edgar's quick to note, though, that the council is not anti-gambling.

 

"Gambling is entertainment. There's only a small percentage of people who get into trouble," she said.

 

What are the signs and symptoms of a gambling addiction?

 

Edgar said that council asks people to answer these questions if they are worried they have a gambling addiction:

• Do you play longer than you intend?

• Are you spending more money than you intend?

• Are you using money that should be used for necessities?

• Are you maxing out your credit cards?

• Are you preoccupied with it?

• If you don't do it do you feel bad?

 

If a person answers most of those questions with a 'yes', they have more than just a fondness for gambling.

 

Money drives the addiction.

 

"One thing we know is you cannot drink yourself into prosperity, but people think you can gamble yourself into prosperity," Edgar said.

 

One of the symptoms of gambling addiction is "chasing." People will bet more money to see if they can win back the money they lost. Compulsive gamblers also are motivated by the thought that they can break even or come out from under the money rut.

 

They may start to solicit family members for money or steal money to feed the addiction. As with any addiction, people will begin to be withdrawn, depressed and secretive. Family members may think a spouse or loved one is having an affair.

 

"You don't go to sleep, you don't overdose. People ruminate on what happens. You've taken money that doesn't belong to you, gone to (a casino) and blown it all," Edgar said.

 

"The depression is phenomenal. How do you recover $100,000 that you owe? You've lost your home. You've lost everything."

 

A person cannot escape that reality.

 

"With alcohol you eventually pass out; with gambling that doesn't happen," she said.

 

On top of that, relationships tend to be unmendable once financial ruin is involved, added Richman.

 

"In some cases relationships are so disrupted and damaged that the individual needs tremendous support and the support is not there anymore. If you burn so many bridges, how can you expect the supporting network to stay," he said.

 

What are some common gambling games?

 

Blackjack, Texas Hold-em, craps, online poker, sports betting, scratch-off tickets, bingo, Mahjong, video lottery, slot machines.

 

Can a gambling addict go through withdrawal?

 

Yes. People become anxious, depressed, distressed and irritable.

 

"You feel like you can chew on the counter. You want something, but don't know what you want," Edgar said.

 

Who is addicted to gambling?

 

"Gambling, like substance abuse, crosses over all socioeconomic status," Richman said. "It's across the board."

 

Gambling can detrimentally affect anyone, but Edgar said that married, employed white males, usually between the ages of 40 and 60, come in for treatment.

 

Is there a difference between problem gambling and gambling addiction?

 

Up until last year, compulsive gambling was characterized as an "impulse control disorder" in the Diagnostic and Statistical Manual of Mental Disorders, the bible for mental health professionals, along with compulsive hair pulling and pyromania.

 

Now in the latest edition it is considered a substance-related and addictive disorder, which Edgar sees as great progress, and said will change treatment in the future.

 

"It's not just a matter of impulse," she said.

 

People may go through a period where they choose to go to a casino and bet some of their weekly earnings, but it's not necessarily pathological gambling.

 

"A problem gambler is someone who gets into a situation where it creates difficulty in their life, where it interferes. If they decided they are not going to do it, they can do that," she said.

 

If you have a gambling addiction, you can't just shut down the urge.

 

"Well, wouldn't that be easy if we can just turn it off?" added Richman.

 

What treatment is available for someone with a gambling addiction?

 

The Delaware Council on Gambling Problems offers up to 20 sessions of counseling with no cost to the person. People can also seek help through private practice or through Gamblers Anonymous.

 

Cognitive behavioral therapy is most effective, Edgar said.

 

Therapy can be one-on-one or in a group setting. People can discuss triggers, how the gambling has affected their families and issues that exist alongside the grambling such as drinking. There's no specific medication for gambling addiction, but a person can take antidepressants or medication for anxiety.

 

Richman said it's not yet known whether prescribed opiate treatments like suboxone and methadone would help curb a gambling addiction, like it can do for heroin.

 

"Anybody can quit anything for a brief period of time. Doing it alone is very, very difficult," she said.

Rebuilding trust within a family is crucial. And going forward, families have to understand that gambling is an addiction, not just a bad choice, emphasized Simon. Like with any addition, gambling is a family disease.

 

"There's hope. People do get better. It's a matter of sustaining treatment and continuing to get therapy and support," Richman said.

 

Gambling Helpline: 888-850-8888

 

 

 

 

http://www.delawareonline.com/story/life/2014/12/16/addicted-games-gambling-addiction/20474749/



 

A Slot Machine on Every Corner!

Do you want a slots parlor close by?

Our View 5:45 p.m. EST November 27, 2014

 

 

Slot machine(Photo: Getty Images/iStockphoto)

 

 

 

Welcome to Delaware, where there is a slot machine on every corner. Or so the state government hoped for a while.

 

 

Welcome to Delaware, where there is a slot machine on every corner. Or so the state government hoped for a while.
 

The news is that the Markell administration approached the state's three casinos with the idea of creating satellite slots parlors spread around the state. The idea was, we suppose, that with more slots out in the open, the casinos could draw the cash of Delawareans too lazy to drive 10 or 15 minutes to a casino. Or perhaps, they had the idea of putting in an ocean-side slots parlor to give parents something to do while the kids play away at Funland in Rehoboth Beach. Even the casinos thought it was a dumb idea.
 

 

But if we are trying to be creative and cook up ideas as the administration suggests, why doesn't Delaware roll all the legalized sin industries in a single package and place them on the borders with neighboring states? We could promote little islands of slots/sports bets/cheap cigarettes/cheap liquor parlors and let them dot the entrances to the state. If we really wanted to rev up the state's take, Delaware should drop the cigarette and liquor taxes so our neighbors would really be enticed to visit the First State. (Don't worry about the lower taxes on smokes and booze. We will make it up in volume.)

Of course, we could always follow the lead of Washington, Colorado and Alaska and legalize recreational marijuana. That would pull in customers until the neighboring states catch up.
But that would be immoral, you say. Of course, it would be. Yet except for a matter of degree, what is the difference between a fantasy cynical ploy like that and a genuine suggestion to spread slots parlors? The goal is more revenue. The harm to the social structure is collateral damage.
These activities were once considered sinful, or at least inappropriate for a state government to push on its citizens. The attitude follows the philosophy of Napoleon III of France, who allegedly said about his country's tax on tobacco: "This vice brings in one hundred million francs in taxes every year. I will certainly forbid it at once – as soon as you can name a virtue that brings in as much revenue."
These are signs of the state's addiction to gambling revenues. The administration and the General Assembly must face the facts. The regional monopoly for casino revenues is gone. Competition from Pennsylvania and Maryland, much larger states, is killing Delaware's gaming business. With that goes the easy revenues of star-crossed gamblers pumping money into slot machines.

It has been a good ride. It enabled the state government to spend a lot of money without controlling costs and raising taxes. A shakeout is enveloping the regional gaming industry. Casinos are closing in Atlantic City. The shakeout will hit Pennsylvania and Maryland. And it will hit Delaware.

Desperate measures like neighborhood slot parlors show how much magical thinking is going on in the capitol complex. It is time to face the facts.

DELAWAREONLINE

Delaware is trapped in casino business

 

 

http://www.delawareonline.com/story/opinion/editorials/2014/11/27/want-slots-parlor-close/19592189/

 

 

 

 

Bailing Out the Casino Industry! Duh?

Casinos are no beginning to bail on their revenue sharing agreements with the states. Instead, they are appealing to states to look upon their contributions to state revenues on the basis of income taxes paid by employees.

Food for thought for Massachusetts voters taxpayers . . .

http://www.greenfieldreporter.com/view/story/6c6880abf53c401ebd7127e6e1ded998/DE--Final-Day

Casino bailout among final issues for Delaware lawmakers as legislative session ends
By RANDALL CHASE Associated Press
First Posted: July 01, 2014 - 5:07 am
Last Updated: July 01, 2014 - 5:10 am


DOVER, Delaware — Delaware lawmakers approved a $10 million financial bailout for the state's three casinos early Tuesday in one of the final acts of this year's legislative session.

House lawmakers approved the bailout on a 27-10 vote just minutes before adjourning at about 3:30 a.m. The Senate, which finished a few minutes before the House, had approved the legislation last week.

The casinos have complained repeatedly that they are struggling with increased competition from neighboring states and have to share too much of their gambling revenue with the state.

Supporters of the bill touted it as an effort to save jobs in Delaware's gambling industry, a key source of revenue for the state's general fund. They also noted that the state has repeatedly increased its share of casino revenue since approving gambling in the mid-1990s.

"The revenue sharing arrangement no longer works in today's saturated market," said House sponsor Rep. William Carson, D-Smyrna.

Critics said the casinos have not been forthcoming in opening up their books to state officials and noted that, even with the bailout, there are no guarantees the casinos won't lay off workers.

"I hope the casinos show good faith and do not cut their work force," said Rep. Dennis Williams, D-Wilmington, who withdrew an amendment that would have required the casinos to return the money if they reduced their work force by 3 percent or more.

With the exception of the casino bill, there was little drama on the final night of the session.

House lawmakers had given final approval last week to a $3.8 billion operating budget for the fiscal year that started Tuesday. The budget represents an increase in spending of 2.4 percent over the fiscal 2014 budget, with Medicaid and public education accounting for much of the increase. But lawmakers also approved a $500 pay increase for most state employees, effective Jan. 1, at a cost of about $22 million, less than the cost of Markell's proposal for a 1 percent pay raise.

Lawmakers agreed with Markell to balance the budget by increasing the annual tax on limited liability companies and business partnerships, and by raising the minimum annual corporation franchise tax. They also went along with his proposal to use $40 million designated for transportation projects to balance the operating budget.

Lawmakers waited until after midnight Monday before approving a $421 million capital budget, which includes $155 million for transportation projects and about $200 million in new bond authorizations for school construction and other capital improvements.

Markell had proposed raising Delaware's gas tax by 10 cents a gallon to boost spending on road and transportation projects by $100 million annually over five years, but lawmakers balked at the election-year proposal.

Similarly, lawmakers had no stomach for the governor's proposal to impose an annual fee on Delaware households and businesses to pay for a comprehensive plan to clean up the state's waterways, many of which are so polluted that they are subject to fish-consumption advisories and are not safe for swimming.

"I remain committed to addressing our transportation funding gap and what I believe to be the embarrassing condition of our waterways," Markell said shortly before signing the budget bills at 4 a.m. "Both of those efforts will create jobs and economic opportunity immediately and in the long term."

In addition to the operating and capital budgets, lawmakers also signed off on a $45 million package of grants for community organizations, volunteer fire companies and nonprofit groups. Republican lawmakers urged members of the joint finance committee to follow through on plans to strengthen oversight of recipients of the annual grants to ensure that the money they receive is spent for legitimate purposes.

A proposal introduced late in the session to decriminalize possession of small amounts of marijuana was not brought up for a floor vote before lawmakers adjourned.

House members also adjourned without trying to resurrect a measure to abolish the death penalty.

 

The measure failed to gain enough support to clear a House committee last year after winning Senate passage by a single vote.

 

 

 

Delaware proposes $10M taxpayer-funded bailout to save casino jobs

(Photo: GARY EMEIGH/THE NEWS JOURNAL)

Casino owners have warned of layoffs and a dip

in revenue to the state should the measures fail

Casino bill, amendment head to House floor

Jon Offredo, The News Journal6:02 p.m. EDT June 30, 2014

A bill giving financial relief for Delaware's casinos is heading to the House floor for a full vote on the last day of the General Assembly, but there's a catch.

General Assembly: Casino bill

A proposed amendment to a $9.9 million casino relief package filed Monday afternoon requires the state's three casinos to give back any state money they receive if they lay off more than 3 percent of their workforce.

The amendment, supported by House Democratic leadership, is a last-minute addition to the mix and could complicate matters if the House approves it because it would require another Senate vote. The bailout package is one of the last big-ticket items left in this year's legislative session and is expected to be heard at some point during Monday night's marathon session.

The amendment was not filed to kill the bill, but to allay fears that the casinos would lay off people even if they got the money, said Rep. Dennis E. Williams, a Talleyville Democrat, and sponsor of the amendment. Casino owners have said that no money would result in layoffs and a loss in service and revenue to the state. But it's not certain that job loss would be prevented if they received a bailout.

"I'm still not in favor of the bailout, but I think it's important that if it does pass that there are guarantees that those jobs will be saved," Williams said. "If that's why they are saying they need the money, then let's make sure they retain those jobs."

The package, whittled down from an original proposition of $9.9 million in the first year and $20.1 million in each subsequent year, was released from the House Gaming and Parimutuel Committee with a 6-4 vote on Monday.

Bill Rickman, Delaware Park owner, said the casino wouldn't lay anyone off. Delaware Park employs just over 1,000 people.

"If we had problems, we gave people incentives to retire earlier," he said. "We don't lay people off."

Lawmakers have debated the legislation, with some arguing that the state money could be used for other needs, and others saying it is a stabilizing measure meant to keep the state's partners in the casino industry afloat.​

Contact Jon Offredo at (302) 678-4271 or at joffredo@delawareonline.com or on Twitter @jonoffredo.

http://www.delawareonline.com/story/news/politics/2014/06/29/casino-aid-debate-reaches-final-day/11730345/

Revel's 2nd Bankruptcy,Gambling Market Saturation, Declining Revenues and Tax Breaks

Declining Gambling Revenues in Louisiana:

Even with Margaritaville bringing in nearly $11.4 million, statewide gambling revenues were lower in May than they were a year before. The 14 riverboats, four racetrack casinos and Harrah’s land-based casino brought in $213.9 million during May, compared with $214.2 million the year before. That was the third consecutive month in a row the state’s gambling winnings were down.

What’s going on in Louisiana is mirrored in other casino markets.

According to The New York Times, casino revenues in Atlantic City were $3 billion for 2013, down 41 percent from the 2006 peak of $5.2 billion. One Atlantic City casino already has closed this year, and the operators of the $2.4 billion Revel Casino Hotel said earlier this week that the property could close by mid-August if a buyer is not found.

Advertisement:Replay Ad

Nevada gaming revenues have been down three times for the first four months of the year when compared with 2013 figures, according to The Las Vegas Review-Journal.

In neighboring Mississippi, casino revenues are down nearly 5 percent through May when compared with 2013 figures. The decline could become worse: On June 2, Harrah’s Tunica, the largest casino in the state, shut down, putting nearly 1,000 employees out of work. Caesars Entertainment said it closed the casino after years of trying to find a buyer because it wasn’t making enough money to keep the property going.

FROM: BR casino revenues down again


RACETRACK casinos used to contribute as much as $US240 million ($255m) a year to Delaware’s tax coffers. But as the northeast becomes saturated with gambling venues, the state’s casino revenue has tumbled, prompting a new industry request — for a tax break.

“It’s a different world for the Delaware casinos,” said Democratic Governor Jack Markell, who supports reducing the tax burden on casinos by $US20m a year to help them compete.

FROM:

WDEL 1150AM US northeast's chips are down in casino boom The Australian But as the northeast becomes saturated with gambling venues, the US state's casino revenue has tumbled, prompting a new industry request — for a

Week capsulizes changes buffeting Atlantic City

 

 

ATLANTIC CITY, N.J. (AP) — A luxury casino goes bankrupt and threatens to close, struggling to survive in a cutthroat market. The world's largest poker website renews its efforts to operate in New Jersey. A new agency ramps up its drive to attract more midweek convention business.

 

That all happened this past week, showing three of the major changes buffeting Atlantic City and reshaping the nation's third-largest gambling market.

 

The biggest development came Thursday, when Revel Casino Hotel filed for bankruptcy for the second time in a little over a year. But this time, the casino that cost $2.4 billion to build warned that it will be forced to close this summer if a buyer can't be found through a bankruptcy court auction.

 

It is the latest manifestation of a problem that has been afflicting Atlantic City since 2007, shortly after the first casino opened in neighboring Pennsylvania: close-by competition in an increasingly saturated market taking customers and dollars away from Atlantic City. The casino that many had hoped would be a game-changer when it opened just two years ago didn't change the game after all; it just lost it.

 

"They did so much in the early days to be a resort hotel that had a casino rather than a casino hotel and that turned off a lot of casino customers," said Steve Norton, an Indiana casino analyst who was vice president of Resorts when it opened in 1978 as Atlantic City's first casino. "They've done a lot since then to change that."

 

If a buyer can be found, Revel is expected to sell at a steep discount. Such a buyer could succeed where two previous sets of owners have failed, Norton said.

 

"They'll be getting it for pennies on the dollar, and coming in that low, as long as their varying revenue can cover their expenses, they'll do well," he said.

 

The day before Revel's bankruptcy filing, a Canadian company that's buying the PokerStars website began talks to get it licensed for Internet gambling. PokerStars, the world's largest poker site, had tried twice to get approved in New Jersey, one of three states that have legalized Internet gambling.

 

PokerStars tried to buy the Atlantic Club Casino Hotel, but the deal fell apart, and the casino closed in January. PokerStars then teamed with Resorts as its online partner, but New Jersey's Division of Gaming Enforcement suspended PokerStars' application for up to two years, citing an unresolved indictment against the company's founder for the alleged violation of federal gambling statutes and the involvement of certain PokerStars executives with Internet gambling operations in the United States after they were outlawed.

 

But now that Amaya Gaming Group is buying PokerStars and Full Tilt Poker for nearly $5 billion, the PokerStars executives who concerned New Jersey regulators are stepping down. Amaya began talks with the gaming enforcement division Thursday, and its director, David Rebuck, said he is optimistic Amaya could get PokerStars licensed by fall.

 

The presence of PokerStars, which had 70 percent of the U.S. Internet gambling market before it became illegal, could breathe new life into New Jersey's fledgling Internet gambling market, which has hit a wall after just six months. The online market has declined for two months in a row and is taking in a fraction of the $1 billion that Gov. Chris Christie predicted for its first year of operation.

 

And Meet AC, a new group set up to attract meeting and convention business to Atlantic City, hired an executive director with experience running convention bureaus in Kentucky and Rhode Island.

 

Atlantic City has been working for eight years to try to diversify itself and not rely solely on gambling revenue, which has been plunging for seven straight years. Attracting more meetings and conventions would help fill casino hotel rooms during the week, when hotels are much less busy and rooms sell for break-even prices or even at a loss.

 

Caesars Entertainment, which is building a $126 million convention center near Harrah's Resort Atlantic City, estimates Atlantic City gets 1 percent of the $16 billion Northeast U.S. convention and meetings market.

 

 

http://www.sfgate.com/news/article/Week-capsulizes-changes-buffeting-Atlantic-City-5569466.php

 

 

Taxpayers Subsidizing the Casino Industry

Bill Kearney

Massachusetts ‘GAMING’ Future

First casinos giveth, then they taketh away

News Works - MAY 13, 2014 - Lawmakers introduce bill to help Delaware’s ailing casinos

To improve the fortunes of Delaware's casinos, lawmakers have proposed reducing the state's share of gaming revenue.

 The legislation would save the casinos about $20 million a year by reducing the state’s cut of gross table game revenue from 29.4 percent to 15 percent. The state would also eliminate its table game licensing fee and would share the cost of vendor fees.

The three casinos, which contribute more than $200 million to the state budget annually, have reported low revenues due to the recession and increased competition from neighboring states. To help fill a budget deficit in 2009, the state also increased its share of gross revenue from slot machines from 36.8 percent to 43.5 percent.

Read more - http://www.newsworks.org/index.php/delaware/item/67899-lawmakers-introduce-bill-to-help-delawares-ailing-casinos

May 13, 2014

Lawmakers introduce bill to help Delaware’s ailing casinos

To improve the fortunes of Delaware's casinos, lawmakers have proposed reducing the state's share of gaming revenue.

The legislation would save the casinos about $20 million a year by reducing the state’s cut of gross table game revenue from 29.4 percent to 15 percent. The state would also eliminate its table game licensing fee and would share the cost of vendor fees.

 

The three casinos, which contribute more than $200 million to the state budget annually, have reported low revenues due to the recession and increased competition from neighboring states. To help fill a budget deficit in 2009, the state also increased its share of gross revenue from slot machines from 36.8 percent to 43.5 percent.

Senate Bill 220, sponsored by Sen. Brian Bushweller, was developed following recommendations from a study by the Lottery and Gaming Commission.

Bushweller said that the state can’t afford not to help the casinos, as they create jobs and are a major revenue stream for the state.

“At its heart, this is a jobs bill because Delaware Park, Dover Downs and the casino at Harrington Raceway either directly or indirectly employ thousands of our friends and neighbors,” Bushweller said. “If we don’t try to fix some of the things the state has done that, along with increased out-of-state competition, are undercutting those businesses, we could see dramatic job losses and that’s something that we can’t afford either as a state or as caring neighbors.”

The legislation, currently assigned to the Senate Finance Committee, also asks for an independent report, commissioned by Secretary of Agriculture, to examine the harness and thoroughbred industries.

“I think this bill represents an honest first step that makes the state a better business partner with our gaming industry while ensuring that we can meet our financial obligations as a state,” Bushweller added.


http://www.newsworks.org/index.php/delaware/item/67899-lawmakers-introduce-bill-to-help-delawares-ailing-casinos

Delaware Casino Bailout

Delaware Casino Bailout Plan Is Analyzed by Lottery & Gaming Commission

By Steve Larson

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Delaware Park Would Save Millions of Dollars under the Plan

 

 

The Lottery and Gaming Commission of Delaware created an estimate of the planned $20 million bailout of the states casinos. A panel of lawmakers have suggested the state give back some twenty million dollars in fees to the land-based casino industry, to help their gaming venues compete against tough competition in nearby states.

The final vote will happen later this year, with most expecting some form of relief for the gaming interests in the state. The other major alternative plan is a $14 million bailout plan by another panel member.

Sharing Vendor Costs

Effective July 1st, the state would share vendor costs with the casinos at Dover Downs, Delaware Park, and Harrington Raceway & Casino. The taxpayers would pay 75%, while the gaming venues would pay 25%. Though this would not hit the state fully in the 2014 fiscal year, it should cost the state about $9.9 per year.

Reduce Tax on Table Games

The table game revenue would be reduced from the current 29.4% down to 15%. These fees are collected only on winnings. The reduced table game revenue include the traditional table games like blackjack, craps, and roulette. It also includes poker, which in online gaming is often considered a different form of gambling.

If this reduction went into effect, it would save the casinos $7.2 million per year, or cost the state the same amount, depending on perspective. It should be noted that 4.5% of this revenue is used to fund purses at the Delaware horse races.

Eliminate Annual Table Game Tax

Since 2010, the casinos have had to pay an annual table game license fee of $1 million apiece. The panel suggests these annual fees be waived, starting July 2015. If this were applied, it would cost the state $3 million.

Total Cost to Taxpayers

Add these three changes to the way revenues are collected and it will cost the state $20.1 million.

Once again, the full amount of the discount for the three land-based gaming venues in Delaware will not be felt until 2015. For the 2014 fiscal year, Delaware will lose $9.9 million in revenues.

If the current proposals were enacted, then provisions call for these issues to be addressed again for the 2015-2016 fiscal year. Given recent history, it appears these discussions may take place every or so. Last year, deliberations were held to bailout the casinos in a similar way, though the amount offered was only 40% of what’s being proposed this year.

2013 Bailout Price Examined

In 2013, state lawmakers offered an $8 million rebate to the gaming interests in the state. At the time, officials from the various racecourses claimed they were having difficulty competing with gaming facilities in other nearby states. Management at these establishments said they might have to make significant layoffs to remain a viable business.

This is not to imply the casinos are making up their financial difficulties. Taxes on the casinos generated for the year ending in June 2014 equal $180 million. That figure is down $58 million from the amount collected just four years ($238 million), showing that the three venues are facing major troubles from the increased competition of casinos in Pennsylvania and New Jersey.

State Lottery Sales also Decline

The state lottery also has shown a marked decline in the past 10 years. The state lottery generated $235 million in revenue in the last fiscal year. When you account for inflation, the amount collected is down 20% over a 10 year period.

That represents a major decline, due to alternative options like the multistate lotteries (Powerball, Mega Millions). Gamblers want ever-larger jackpots, which is something the Delaware state lottery simply cannot deliver.

What makes these figures more disturbing is the fact the lotto has added keno gaming and online play in those same ten years. Despite finding various other ways to collect money, citizens seem to be turning away from the traditional lottery games.

Why Taxpayers Should Pay More

Faced with the need to give back more to the gaming businesses, some taxpayers ask why the state should pay more. Severals reasons exist. One, the three gaming locations employ thousands of residents, so the bailout helps to keep thousands of people employed.

Two, the state funds education and Medicaid with the casino money it collects. If these businesses failed, then the taxpayers would lose a whole lot more money than they are being asked to give back now.


http://www.legaluspokersites.com/news/delaware-casino-bailout-plan-is-analyzed-by-lottery-gaming-commission/3290



Delaware taxpayers will be out $20 million if a casino-bailout plan passes the Legislature. One of the unspoken attractions of casino gambling for states is that it’s industry that pays its own. When it’s got its hand out for a taxpayer subsidy, it’s time to reexamine

the premises under which the industry operates. In the Delaware giveaway, taxpayers would be on the hook directly for $10 million in costs paid to slot vendors. (In effect you’re playing the slots even if you never put a coin in one.) The yearly table-game tax would be zeroed out. And the annual tax rate of 29% on table game revenue would go down to 15% from 29%. The whole magilla will also be renegotiated in 2015-16.

Racinos in Delaware were approved both to help the state and its horseracing industry. Now the casino industry is playing the role of mendicant, begging for a handout. Has anybody thought of suggesting to the racinos that they cut costs by $20 million, instead of panhandling John Q. Taxpayer?

http://dmckee.lvablog.com/?p=13102

Why are taxpayers subsidizing horse racing?

Why isn't anyone asking?

In Massachusetts, Plainridge and Suffolk Downs haven't made $$$ in years.
Taxpayers are bailing them out? Why?

A dead industry...how many other industries should Massachusetts taxpayers support that make greater sense?

Dianne M. Berlin

"SAVING HORSE RACING". State’s horsemen weigh in on Delaware’s gambling revenue structure | WDDE 91.1 FM | Delaware's NPR News station

State’s horsemen weigh in on Delaware’s gambling revenue structure
           By James DawsonDecember 4, 2013

                                                

Both arms of the horse racing industry in Delaware say the state needs to decrease in the its share of gambling revenue if racing in the First State is to remain viable.

Representatives for standardbred and thoroughbred racers spoke to the Lottery and Gaming Study Commission Tuesday, echoing appeals from the state’s three casinos have made before the panel tasked with up righting the ailing gaming industry.

Standardbred purse totals declined $18 million from 2007 to 2013 while tracks trimmed 41 racing days during that same time period.

This summer’s thoroughbred racing schedule was the shortest since 1984.

Former longtime State Representative Bill Oberle told the commission he thought it was a mistake to raise the state’s share of gambling revenue in 2009 to bridge an unprecedented funding gap, even though he signed off on it.

“You have these licensees who have made capital commitments, have operating expenses – long term capital commitments – and we pulled the rug out from underneath them and I’m not sure that, in hindsight, that was the best thing to do,” said Oberle.

Finance Secretary Tom Cook chairs the commission and says similar state committees have tried to fix the industry in the past, but they’ve acted more like band-aids.

“We’ve been able to start table games, sports betting, internet gaming, but I’m out of tools right now. At one point, we have to decide where do we go from here? What is the next step and what is the most fair and equitable structure that should exist?”

Cook urged commission members to submit proposed recommendations for the panel consider in two weeks. The commission is required to issue its official report by the end of January.

 - See more at: http://www.wdde.org/53776-delaware-horsemen-gambling-revenue#sthash.SX1PA6S8.dpuf