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Showing posts with label Gambling Playbook. Show all posts
Showing posts with label Gambling Playbook. Show all posts

Tuesday, June 9, 2015

Slot Machines: The Big Gamble


If Gambling was so successful in Pennsylvania, why is the Commonwealth proposing an expansion to fund budget shortfalls? 




60 Minutes Airs Story on Predatory Gambling

by spgadmin

60 Minutes hit the truth about electronic gambling machines so hard that if this was the NFL, they would have been fined for helmet-to-helmet contact against a defenseless receiver. It also established why the government program of predatory gambling will be one of the biggest stories of the new decade. Here is the video and a transcript of the segment is beneath it:

60 Minutes

Lesley Stahl Reports On The Debate Over New Slot Machines and Gambling Addiction

(CBS) It wasn’t that long ago that if you wanted to gamble, you had to travel a long way. Today, to shoot craps or play slots, all you have to do is get in your car: there’s probably a casino in your state, or right next door.

There is now casino gambling now in 38 states, which use the revenue from gambling to help solve their bloated budget deficits.

The main attraction at these gambling halls is now the new slot machines – there are close to 850,000 of them in the United States, twice the number of ATMs.

We Americans spend more money on slots than on movies, baseball and theme parks combined.

But with the modern slot machines, there is a greater potential for a dangerous side effect: gambling addiction, as more people are addicted to slots than any other form of gambling. Playing the Odds
If you’re casino bound, remember, the house always has the upper hand, but there are ways to increase your odds of winning. And ways to avoid becoming a “problem gambler.”

Old fashioned slot machines let gamblers pull the handle and hope for three of a kind, but the modern slots are like high tech video games that play music and scenes from TV shows.

You can play hundreds of lines at once and instead of pulling a handle, you bet by pushing buttons, which means each bet can be completed in as little as three and a half seconds. It looks like great fun, but it can be dangerously addictive.

“Whether or not it’s their intention, the gambling industry is designing machines that can addict people,” MIT anthropology Professor Natasha Schull told “60 Minutes” correspondent Lesley Stahl.

Schull has studied gambling addiction for over 15 years. She has interviewed gamblers, casino owners and slot machine designers.

“Do you think that most people would even think that a machine could addict you? That a machine could do the same thing that a drug could?” Stahl asked.

“What addiction really has to do is with the speed of rewards. And these machines, if they’re packing 1,200 hands per hour into play, you could see that as being exposed to a higher dose,” Schull said.

“A higher dose,” says Schull, because all that speed means more bets and that means more excitement.

And no machine is better for that than the “penny slot,” the most popular game on the casino floor. Because the bets are small, you can place hundreds of them at a time.

“Another core aspect of the addictiveness is their continuous nature. You’re not interrupted by anything; you’re not waiting for the horses to run, you’re not waiting for the guy next to you to choose his card to put down; there’s no roulette wheel spinning. It’s just you and the machine. It’s a continuous flow without interruption,” Schull said.

“I found that the machines were wonderful. I loved the excitement. I loved the people, I loved the camaraderie, the high fives when you win. It was just very exciting,” Sandi Hall told Stahl.

Hall lives only a short drive from thousands of slot machines in Rhode Island and Connecticut. Married with two daughters, she worked in a bookstore, and used to look at the casinos as an entertaining break. But eventually she was playing slots so much, she burned through her retirement funds.

“My every thought and every being, if I wasn’t at the casino, I was figuring out how I was going to get there, where was I going to get the money,” she remembered.

When Stahl pointed out she sounds like a heroin addict, Hall said, “It takes your soul, it takes your humanity. 

You drive home, pounding the steering wheel, promising yourself you’re never going to go again, you’re never going to do it again. And you know that you’re going down, and you’re going down, and you’re going down. I became from a nice person, I became a manipulative, deceitful, lying person.”

“Lies just manufacture themselves. You didn’t even have to think about it,” Marilyn Lancelot, another slot addict, told Stahl.

Lancelot ended up embezzling over a quarter million dollars from her employer in Phoenix, Ariz. “My daughters lived two houses away, they did not know I was stealing money or gambling until one day, seven police cars drove into my yard and took me away in handcuffs. That’s how they found out,” she remembered.

“This is gambling for gambling sake, and the aim is not to win a jackpot,” Natasha Schull said.

Schull is not talking about most people who go to casinos – she’s only taking about addicted gamblers.

“Are you saying they would rather stay in the game than win the money?” Stahl asked.

“Not only am I saying that, but I found instances where gamblers who won a jackpot then became irritated because it stopped the flow of play,” Schull replied.

Researchers at the University of Waterloo in Canada measured how players respond physiologically while they gamble, and showed that the new machines can make them think they’re winning even when they’re not.

The gambler almost always gets some money back: if he puts in a dollar, he might get back 50 cents. But the sounds and flickering lights trick his brain into thinking he came out ahead.

The constant feeling of winning creates so much pleasure, says Schull, that regular players can slip into a trance-like state, a place she calls the “zone.”

“One gambler told me that when he’s in the zone he couldn’t remember his children’s name,” Schull said.

“You go into that trance, that zone, that box. Nobody can touch you. You have escaped from reality. No one can ask you for anything,” Sandi Hall explained.

“When you sat in front of those machines, did you get into the zone? Did you have a buzz?” Stahl asked Marilyn Lancelot.

“I was having a love affair with that machine. That was my love. If anybody came it near it, touched it, ‘Back off. 

Don’t touch my machine.’ It was the same as a kiss from a lover,” she replied. “It was sweet. Sweet.”

And yet not everyone is convinced the machines addict people. Listen to Dr. Howard Shaffer, the director of the Harvard Medical School Division on Addictions, the man the gambling industry loves to quote.

“And your position is machines are not addictive, that machines, inanimate objects, are not addictive?” Stahl asked.

“Machines didn’t make me do!” he replied with a smile. “If slot machines caused addiction, then most people who played slot machines would develop addiction, and it’s the opposite.”

“But at one point you said that slot machines were the ‘crack cocaine’ of gambling,” Stahl pointed out. “And how does that square with what you’re telling me today?”

“Not everybody who uses crack cocaine becomes addicted,” Dr. Shaffer said.

“Yeah, but nobody’s going to sit here and try to tell me crack cocaine isn’t addictive. And if this is like crack cocaine, the conclusion is it’s addictive,” Stahl said.

“I don’t come to the same conclusion,” Shaffer replied.

“How could you not?” Stahl asked.

“Because a majority of people that have used cocaine have not developed cocaine addiction. Only a small minority have, and the same would be true with gambling,” he replied.

The problem is that that small minority that does get addicted is hit hard.

“You are getting a little dose of gambling in your brain every three seconds. It’s a gambling IV and there’s a ‘drip, drip, drip,'” Dr. Robert Breen told Stahl.

Drs. Breen and Henry Lesieur are gambling addiction specialists at Rhode Island Hospital. They’ve treated 1,300 slot addicts who, when they try to stop, look like heroin addicts in withdrawal.

“And they’re coming in and they’re quite literally, they have shakes,” Dr. Lesieur explained. “They’re physically having these responses. And you tell yourself: they gotta be on something and it turns out they’re withdrawing from the gambling.”

According to Lesieur, it’s slots in particular.

And yet state after state is turning to slots as an easy way to raise revenue and increase jobs. And no state has been more aggressive in luring gaming in the last few years than Pennsylvania, where the opening of the “SugarHouse” in September made Philadelphia the largest U.S. city to house a casino.

So far there are ten gambling halls in the state, with plans for 61,000 slot machines. An 11th casino, on the drawing board, would be near the main entrance to the Gettysburg National Battlefield.

Governor Ed Rendell, who’s about to leave office, championed the casinos. “Look, gambling is not anything we should say, ‘Oh, thank the Lord, we have gambling.’ But it is a decent way to raise revenue where the upsides that’s produced is significantly better than any downside that comes from it,” he told Stahl.

“You said there was downsides to gaming. What are they?” Stahl asked.

“The biggest downside is that some people lose their paychecks. But understand, Lesley, they’re not losing their paychecks because Pennsylvania instituted gaming. These people were losing their paychecks in Atlantic City, in Delaware at the racetracks or in West Virginia,” Gov. Rendell said.

“So why not lose it here,” Stahl remarked.

“Well if they were going to lose it anyway, let’s get the upside. We were getting all the downside and none of the upside,” Rendell said.

The upside, he says, is the $1 billion the state got in gambling revenue last year, which was used to provide a $200-a-home property tax reduction, plus more relief for senior citizens.

“People have been gambling since organized society was formed on the banks of the Tigris and Euphrates. They were gambling. And they will gamble as long as there’s life on this planet. And that’s a fact,” Rendell told Stahl.

“No one is saying that people can’t gamble. This is about government using gambling to prey on human weakness for profit,” Les Bernal, who heads the national organization “Stop Predatory Gambling,” told Stahl.

Bernal and Massachusetts State Senator Sue Tucker have been fighting a move to bring casinos and slot parlors to the Bay State.

“We are in the worst economic crisis since the Great Depression and the daily voice of government to most Americans is: We’re going to push casinos and we’re going to push lottery tickets,” Bernal said.

“Well but you have a situation where states are desperate, they’re way over budget, they have to find revenue somewhere. They know people will gamble,” Stahl pointed out.

“As a revenue raiser it defies every principle. It’s regressive. In other words, it takes far more money out of lower income people’s pockets than higher income. It is cannibalistic. In other words, it eats other forms of revenue. When you have your citizens dumping two billion dollars down the slots they’re not buying a new car, and you lose that tax,” State Sen. Tucker said.

“You brought these casinos to the state. Do you ever just say to yourself, ‘Oh, my God, there are a lotta people who are suffering. And they’re taking whatever money they have…,” Stahl asked Pennsylvania’s Ed Rendell. “…and they’re throwing it away in these casinos.’ And do you ever just say…’Oh, what have I done?'”

“You don’t listen. Anyone who has that bent would be doing it in other places had Pennsylvania not legalized gambling,” Rendell argued.

“The counter argument is that you’re creating new gamblers. And lots of new gamblers,” Stahl said.

“We’re not creating new gamblers,” Rendell replied.

“Well, ’cause it’s down the street,” Stahl said.

“Those people play the lottery. They bet on football. How much money is bet on the Super Bowl,” Rendell said.

“People are losing money for the state to get its revenue. They’re losing money,” Stahl said.

“Let me answer this. I’ve known of for two or three decades, you’re a very smart person,” Rendell said.

“But not now,” Stahl remarked.

“But you’re not getting it,” Rendell replied.

“I’m dumb now,” Stahl said.

“You’re not getting it. Those people would lose that money anyway. Don’t you understand?” Rendell replied.

Our pressing him on this point led to an angry response from Rendell: “You guys don’t get that. You’re simpletons. You’re idiots if you don’t get that!”

We couldn’t figure out why all the emotion. But his main point was that gambling is good entertainment, and people should be allowed to make their own decisions about it. But since the first casino opened in Pennsylvania five years ago, calls to gambling addiction hotlines in the state have tripled.

Sandi Hall says her problems didn’t start until three casinos opened near her. “I cannot read my local newspaper without having full-page ads of upcoming events and slot play, with free this and free that. The exposure is phenomenal because of the proximity of three casinos,” she said.

“Fewer than 25 percent of Massachusetts residents went out of state to gamble,” State Sen. Tucker told Stahl.

“But that’s a lot of people,” Stahl remarked.

“Seventy five percent didn’t,” Tucker said.

“I know, but 25 percent…,” Stahl said.

“That’s the group industry wants,” Tucker replied. “They want the 75 percent that can get on the T and go to a nearby casino and get in trouble with gambling. That’s the playbook.”


- See more at: http://stoppredatorygambling.org/blog/60-minutes-airs-story-on-predatory-gambling/#sthash.25jUG79t.dpuf






Sunday, March 24, 2013

Casinos squeeze......

Sent from a friend --- is Massachusetts next? It's in the Gambling Playbook!

This entire site is a very valuable resource for casino opponents.

Casinos squeeze West Virginia

Paul Davies March 11, 2013 11:05 pm


Those who support casinos should keep an eye on the gambling industry evolution currently playing out in West Virginia.

First the casino industry spends hundreds of thousands of dollars on campaign contributions and lobbying fees in order to get state lawmakers to legalize gambling. (In some instances, lawmakers get busted for corruption and go to jail.) Then the casinos open and everyone is happy as the states enjoy a spike in tax revenue from the casinos and create some jobs. But the revenue doesn’t do much to lower taxes, improve education or any of the other promised reasons lawmakers used to rationalize their support for gambling in the first place. Often the projections of gambling windfalls are wrong.

Then casinos open in neighboring states and gamblers begin to get tapped out, causing the tax revenue to level off or drop. (See Pennsylvania, Indiana and Atlantic City.) Some casinos are forced to lay off workers.

Then the casino industry and their high-powered lobbyists go back to lawmakers seeking lower taxes and fees.

Since money talks, the lawmakers jump. The taxes and fees are lowered leaving the state with less tax revenue. But the profit margins increase for the casino owners. And isn’t all that matters?

West Virginia has been hurt by increased competition from Pennsylvania, Ohio and Maryland, which have all opened casinos in recent years. So to help the struggling casinos in West Virginia, lawmakers there slashed the taxes and fees they pay by nearly $30 million a year. Lawmakers also allowed the casinos that operate at racetracks to scale back on racing. Never mind the reason, the reason casinos were first legalized there was supposedly to support the racing industry.

This is the playbook the casino industry follows in state after state. (See similar deal in Delaware. Gambling interests are working to lower taxes in New York as lawmakers there debate legalizing commerical casinos.)

As more and more states, legalize casinos, one sure bet is that this life cycle will continue to play out. One big difference: As the gambling market becomes more saturated, there will be less time between the boom and bust. The upshot is lots of loser and a state hooked on gambling.




 

Saturday, February 16, 2013

Massachusetts: Before you sell your future.....

If you watch the patterns of Predatory Gambling across the nation and around the globe, they're always the same, same rhetoric, same promises, same overstated projections....and then the EXPANSION! THE BAILOUTS! THE TAX BREAKS!  

All according to the Gambling Playbook, just as my favorite nosy neighbor told you in 2009 when you didn't listen.

Massachusetts will follow the same pattern as Indiana....it's already been discussed. Were you listening?

Caesars is $20 BILLION - not million - in DEBT. Their cash flow goes to their debt. Will they file bankruptcy in the future? Will Massachusetts be forced to bail them out?



Mohegan Sun and Foxwoods are mired in debt, revenues declining, salivating to invade Massachusetts, maybe believing the overstated projections by the 'experts' who have been wrong elsewhere.

Foxwoods DEFAULTED - stopped paying Tribal Members and stopped paying their debtors.
Wants to partner with David Nunes in Milford whose history should be reviewed [begin with categories on the right of this blog].

The best Mohegan Sun could do was drag the swamp for investors because the gambling market is saturated -- only so many discretionary dollars you can suck from people's wallets.

MGM left Atlantic City because of ties to organized crime, yet Springfield welcomes them with open arms.


Plainridge hasn't made money in....is it 12 years? And the Plainville Pickles can't wait to complete the deal they've been negotiating behind closed doors to 'save Plainridge money.' Plainridge's concept of silencing opposition is to file SLAP suits and intimidate abutters.

There's more that maybe we should all question.....

Bill would halt payments to Indiana casino counties

Feb 15, 2013
Written by Lesley Weidenbener  TheStatehouseFile.com
 
 
INDIANAPOLIS — The state would end millions of dollars in annual payments to communities that have casinos under legislation the Senate Appropriations Committee approved Thursday.
But those local governments — including Harrison County — would still keep millions more from tax payments and local agreements with the gambling operators.

The phased-in change would save the state $24 million in 2015 and another $48 million each year thereafter — all money that’s now being collected from gambling taxes and sent to cities, towns and counties.

The state would then use much of that cash to offer a new tax credit to casinos to encourage them to renovate and rebuild to better deal with competition from casinos in Ohio, Illinois and Michigan.
Senate Appropriations Chairman Luke Kenley, R-Noblesville, said he wants to have the “local units share in the commitment” to helping the casinos thrive.

Senate Bill 528 would reverse a policy the General Assembly approved a decade ago that capped the revenues that local communities collect from wagering and admissions taxes but also guaranteed they’d never receive less than the amounts they collected in 2002.

Kenley said the state made that promise when riverboat tax revenue was at one of its highest levels and lawmakers believed it would continue to grow. But recently, an economic downturn and competition from other states has depressed those revenues and the state is consistently paying out some of its gambling taxes to local governments to make good on the guarantees.

On Thursday, the Appropriations Committee voted to end the payments as part of a larger bill that aims to help shore up the casino industry and the taxes it pays to the state. Kenley said the payments change is an effort to “rectify something that appears to be getting out of hand.”

“We need to get them in line with whatever the activity (at the casino) is,” he said.

But Sen. Earline Rogers, D-Gary, said she’s concerned because the two Majestic Star casinos in Gary are now in bankruptcy and are unlikely to produce much revenue or take advantage of a tax credit that would help them renovate or rebuild.

“For our city to be losing I guess what would be $5.5 million at this point in time, that trade-off doesn’t work. That balance doesn’t work,” she said. “We might want to look at exempting cases where there’s a bankruptcy situation.”

In some communities, the losses could be mitigated somewhat by other changes the bill makes to the casino tax structure. Also, the bill would not affect local development agreements through which casinos make direct payments to communities and community organizations.

If passed into law, the bill — with all changes taken into account — mean $4.4 million less in 2015 and $12.1 million less for the town of Lawrenceburg in Dearborn County where Hollywood Casino is located. But the community would still receive about $45 million in taxes and local payments from the casino.

For Harrison County — the home of Horseshoe Southern Indiana casino — the loss would be about $3.3 million in 2015 and $8.2 million in 2016. But the county would still receive $18.5 million in taxes and other payments.

For Evansville, home of Casino Aztar, the loss would be about $900,000 the first year and $2.5 million in the second. That will leave the community with $6.9 million in annual taxes and payments.
Eight other communities would also be affected by the changes.

The bill — which now moves to the full Senate for consideration — would also:

• Permit the state’s racetrack casinos to offer table games with live dealers. Currently, table games are currently available only electronically. [GAMBLING EXPANSION! This is already planned in Massachusetts - don't kid yourself!]

• Require Indiana Live in Shelby County to make payments for three years to the casino in French Lick. That’s to make up for business that could be lost when Indiana launches live table games.

• Eliminate the admissions tax paid each time a person goes through the turnstiles and increases the supplemental wagering tax to make up the revenue.

• Create a tax credit of up to $40 million annually for casinos that invest in their properties.

• Reduce tax rates for the state’s lowest-revenue casinos.

• Permit the owners of the French Lick Resort & Casino to use money from a historic preservation fund for projects. Currently law allows only the use of the interest for projects.


http://www.courier-journal.com/article/20130215/NEWS02/302150069/Bill-would-halt-payments-Indiana-casino-counties

Friday, November 23, 2012

Revenue leaking across state lines

Another state that believes Gambling Revenue is inexhaustible - Indiana!

The Solution? Why, of course: EXPANSION!

It's in the Gambling Playbook. Did you read it? They did.


 



Indiana gaming revenues continue to fall
By Staff reports
Posted Nov 23, 2012
 
HAMMOND, Ind. — A top legislative leader wants to make Indiana’s riverboat casinos more attractive so they can compete better with newer venues in neighboring states.
 
Indiana Senate President David Long, R-Fort Wayne, told the Times of Munster for a report Thursday that he wants the Indiana General Assembly to do something to reverse the decline in state tax revenues from casino wagers and admissions.
 
“There is an all-out assault on the system that Indiana has implemented, which was to take other people’s money. They’re out to get it back,” Long said, referring to neighboring states.
Ten of Indiana’s 13 casinos are in counties adjacent to other states. Most of the gamblers going to northwest Indiana’s five casinos come from Illinois or Michigan, The Times reported, but several tribal casinos have opened in southern Michigan near the Indiana border, and Illinois has proposed casinos for Chicago and its south suburbs. Two of Ohio’s four casinos will be in Toledo and Cincinnati, both near the Indiana border.
 
“They are going to resolve that (in Illinois), and they are going to build casinos probably one right on the Indiana border, according to my sources,” Long said. “So they will be trying not only to keep their residents there but to take some of ours over.”
 
Indiana casino tax revenue from wagers and admissions were 5.4 percent lower last year compared with 2008. Gaming taxes remain Indiana’s third-largest source of revenue after income and sales taxes but now make up just 4 percent of the state’s total revenue stream.
 
“There’s a lot of pressure on us as a very important source of revenue is going down,” Long said. “Gaming revenue is under assault right now.”
 
Indiana doesn’t need more casinos, just “more competitive” ones, Long said.
 
“That could mean a lot of things, so we’ll just have to see what the proposal is,” Long said. “Then we’ll have to run it past our caucus and see if there’s an appetite for doing anything about it.”
 
Attempts to win approval for moving Gary’s Majestic Star casinos inland from the Lake Michigan shoreline have foundered in the legislature in the past, in part because of Hammond Mayor Thomas McDermott Jr.’s efforts to protect his city’s Horseshoe Casino.
Long said he’s more open to a Gary casino deal now, but said any plan for gaming changes will need support from the entire northwest Indiana delegation.
 
State Sen. Earline Rogers, D-Gary, who sponsored the legislation creating casino gambling in Indiana and championed a land-based casino in Gary, was pleased by Long’s remarks.
 
“Just the recognition of the surrounding states and their impact on our gaming industry in Indiana, I think that’s the first step in terms of trying to move the idea of land-based casinos forward,” Rogers said.
She said she hopes a Gary-specific legislative proposal that includes a land-based casino and a teaching hospital with a trauma center and other economic development programs will have enough of everything that all lawmakers from the region will support it.