What they don't want you to know!

The casino debate’s Achilles’ heel
"Problem gamblers" account for a disproportionate share of casino revenues
BY: Michael Jonas
September 15, 2011

Richard McGowan, a professor at Boston College’s Carroll School of Management and a leading researcher on gambling, has called compulsive gambling the “Achilles’ heel” of the casino industry.

He’s right, of course, so the industry and its allies in government -- which now include Beacon Hill’s three top powerbrokers -- do their best to keep that painful foot well wrapped and taped, at least long enough for a casino bill to hobble over the goal line and be signed into law.

Problem gamblers, those who lose the mortgage money or the car keys or who leave their family otherwise strapped because they can’t put the brakes on their losses, are always treated by the industry and its army of lobbyists as more of an annoying distraction in the casino debate than the significant part of the gambling landscape they seem to represent. Gaming -- the sanitized term favored by the gambling companies and political allies -- is an entertainment industry, proponents insist, a place where the dashing men and shapely, party-dress adorned women seen in Foxwoods television ads enjoy an elegant night out, soaking in “the wonder of it all.”

To support that view, proponents invariably point to studies suggesting that just 1 or 2 percent of the adult population suffers from some degree of compulsive gambling. Other research says the figure could be somewhat higher, as much as 4 or 5 percent. But regardless of the exact number, it’s not actually the figure that should be of concern.

Whatever the prevalence of compulsive gamblers in the general population, they obviously account for a much larger share of those who actually visit casinos and a disproportionate share of casino revenues.

Just how much of the revenue casinos bring in is from the losses of those with gambling problems?

One of the most thorough studies of this issue was done in 2004 in Ontario, where researchers had a sample of residents maintain diaries logging their gambling expenditures. The study, prepared for the government-supported Ontario Problem Gambling Research Centre, estimated that 35 percent of Ontario casino revenues were derived from moderate to severe problem gamblers. Such gamblers accounted for 30 percent of revenue from casino table games and a whopping 62 percent of revenue from slot machines.

“It’s a huge cost borne by a small proportion of the population,” says Earl Grinols, a Baylor University economics professor who has done extensive research on the casino industry.

The research suggests problem gamblers are an integral part of the industry’s revenue model, not an unfortunate byproduct of the intoxicating hold casinos have on some people. Understandably, that is a tough pill for casino proponents to swallow.

Gov. Deval Patrick, when asked Wednesday morning following a speech to a Boston business convention whether the idea that such a large share of casino revenue comes from problem gamblers gives him pause, said, “Well, it’s given me some pause. Of course, we have $1.5 billion worth of Massachusetts gamblers today who spend that money just in Connecticut,” he said. “What we get from the casino bill is some dedicated funds, and more of those funds, to try to address the issue of problem gambling,” he said, referring to provisions in the legislation that would direct money from casinos to fund compulsive gambling assistance programs and research.

But Patrick nonetheless seemed to reframe the issue in terms of the overall low prevalence of problem gambling, not the share of casino revenue it accounts for, saying most studies “point to the very small proportion of people for whom this is not just harmless entertainment.”

Speaker Robert DeLeo, who is championing the casino bill that passed the House Wednesday night, scoffed at the idea that problem gamblers account for a sizable chunk of casino revenue when asked about it following a speech last year to the Greater Boston Chamber of Commerce.

State Rep. Kathi-Anne Reinstein, whose Revere district shares with DeLeo’s Winthrop-based district the Suffolk Downs and Wonderland racetracks, has been impassioned in her call for expanded gambling as a job generator for desperate constituents who have been hit hard by the recession. “This is a jobs bill,” she says. “It is something that my district literally is praying for.”

But when asked whether she is concerned about a third of casino revenue potentially coming from the pockets of problem gamblers, Reinstein simply refused to accept the premise. “I don’t agree with that research,” she said. “I don’t think that’s a reality.”

Never let the FACTS get in the way of a BAD decision!

It may be an uncomfortable reality, says Grinols, the Baylor economist, but it is a reliable estimate that’s been well established at this point. Grinols says the casino industry could probably still be profitable without money from problem gamblers. Of course that would throw off all the projections about jobs and revenue to state coffers, figures that are already pretty shaky. He says it would also require imposing limits on casino hours (the pending bill authorizes casinos to operate 24 hours a day), banning ATMs from gambling facilities, and other measures the industry is loath to accept.

Without such aggressive steps, Grinols said in a 2005 CommonWealth story, states are turning the traditional role of government on its head. “This is an industry, like it or not, that is making its money off the sickness of its clients,” he said. “Government is supposed to be the protector and guardian of the community, not the predator.”


http://www.commonwealthmagazine.org/Voices/Back-Story/2011/Summer/010-The-casino-debates-Achilles-heel.aspx

From: Stop Predatory Gambling

Government needs to get out of the predatory gambling business because it is a failed policy. This excellent story by Michael Jonas goes to the very heart why the policy is such a major failure.

The reason why predatory gambling supporters rarely stray from their scripted "jobs" message is because no one wants to discuss or defend the truth that casinos (and lotteries) are almost totally dependent on creating and exploiting addicts.

To put the phony "jobs" narrative in context: there are presently more people in Illinois who have come forward to be banned from the casinos there because they are addicted - what the predatory gambling business calls the "self-exclusion list" - than there are people who work at the casinos in that state.

The question that Jonas asked is one of the key questions every journalist needs to be asking until it is thoroughly answered: "What percentage of casino and lottery profits come from problem gamblers?"

Perhaps then someone will ask the even bigger question which is how can government, in a nation founded on the ideal that everyone is equal, relentlessly promote a policy that renders the lives of hundreds of thousands of citizens to be virtually worthless? Who lobbies for the Lottery Class?  

    

DeLeo Finally Honest: We Need to Protect Gambling Investors

Whoever thought we would finally see the day that House Speaker "Racino" DeLeo would finally be honest?

Cracking down on 'cybercafes' isn't about 'consumer protection' at all.

It's all about the Gambling Vultures circling the Commonwealth hoping to suck up the discretionary local income.

Note to DeLeo: You sold yourself cheap. They spent $60 million in Pennsylvania and $50 million in Ohio [on the 5th attempt]. Don't you think you're worth more?


DeLeo said he is concerned that cybercafes may threaten his attempts to attract full-scale casinos and slot parlors to the state’s race tracks, two of which are in his district. The Legislature plans to debate casino legislation in September.


“If we’re asking people to invest millions of dollars [on casinos],’’ DeLeo said, “and you’ve got 10 or 20 of these rogue gambling places out there, they’re going to say, ‘Why are we going to invest that much money if they’re going to be taking money away from us?’ ’’


From:
State cracking down on cybercafe gambling
Businesses are legal, owners say

Massachusetts Corruption

In view of the recent conviction of former House Speaker Sal DiMasi, the Democrats, some Democrats, seem convinced 'same old, same old' will do.

Not so!

DiMasi's conviction was preceded by Dianne Wilkerson, a legislator who showed great promise and City Councilor Chuck Turner and others.

For reasons unknown, Beacon Hill has been content to pretend transparency reigns, even as casino deals are being discussed behind closed doors and the People's Business remains paralyzed.

There is no budget. Legislation has been stalled.

Human Trafficking legislation was only recently passed.

The People's Business is ignored. Where's 'Right to Repair,' the 'Bottle Bill,' and numerous other matters that are stalled?

Beacon Hill has become the definition of dysfunction - held hostage by House Speaker "Racino" DeLeo's Gambling Obsession, as if nothing else existed.

Recently, Republicans proposed reforms.

This is a Democrat's wrong headed response:

Representative John J. Binienda, a Worcester Democrat who has served in the Legislature since 1987:

On Wednesday, Binienda, who heads the House Rules Committee, called the proposal revolting and went on to make the historical analogy.

Hitler, during the concentration camps, tattooed all of the Jewish people so he would know who was a Jew and who wasn't, and that's something that I just don't go along with, Binienda told State House News Service for an article posted yesterday.

From:
House leader apologizes for Holocaust remarks
Badge analogy˜inappropriate™
By Noah Bierman, Globe Staff


When voters elect grown adults, the assumption is made that they behave like adults and are capable of thinking independently, not supporting 'leadership' that is tone deaf to the scandals swirling around him.

Not to be outdone, Tom Keane felt the need to liken badges for lobbyists to Nathanial Hawthorne's Scarlet Letter:

Power on
Punish corruption, but don’t weaken the Legislature
By Tom Keane


Sorry! But I've witnessed the LOBBYISTS, stroking egos, dictating policy and legislation, voters be damned!

It's time for change.

And it begins with an Independent Cost Benefit Analysis that has NEVER been conducted to consider the costs and impacts of Predatory Gambling. Otherwise, one must wonder what is being concealed.

It begins with a serious debate and consideration of taxpayers subsidizing wealthy investors, destroying local businesses and theaters, the cost of regulation and enforcement, and a transparent discussion.

One need only consider the Vote Buying Scandal trial currently underway in Alabama to see the similarities.

DeLeo: Same Old, Same Old, Ignoring Tornado Victims

House Speaker "Racino" DeLeo, to outward appearances, has experienced a sudden epiphany [after recommending incompetents and "No Shows" for Probation Dept. jobs, inter alia] when confronted with the reality after the DiMasi verdict that those 'back room deals' and secret promises can lead to prison.

This is the Speaker who doled out Chairmanships [translation: extra pay, more staff, bigger offices] based on blind obedience and not competence.

The budget was passed with NO DEBATE, after being discussed behind closed doors. Transparency? You jest!

And the final vote on the Slot Barn legislation passed on July 31st, 2010, with no debate with few members of either House wasting their time informing themselves of its contents which included ERRATA - pages of errors concocted in closed door meetings.

And Mr. Speaker is too busy genuflecting before vested interests to get the Bottle Bill passed - one measure that would save municipalities money in solid waste disposal.

Below is the Speaker's public comment and most surely gagged on its content [wonder who wrote it for him?]:

A Statement from House Speaker Robert A. DeLeo

“Today‟s news delivers a powerful blow to the public‟s trust in government. I don‟t think I can imagine anything more damaging than the idea that the defendant‟s conduct was nothing other than „business as usual‟ on Beacon Hill. This was definitely not business as usual – and it is a slur on every hardworking public servant to suggest otherwise.

“One of the things that I find most disturbing – and the thing I am most committed to changing – is the public‟s view of politicians and public sector employees. This conviction makes that job no easier.

“What came out at trial was deeply troubling. I feel angry and disappointed.

“Given the cumulative effect of recent cases of public corruption, I understand the negative feelings many have for public officials right now. That is something we are working to change. Our efforts over the past couple of years have been focused on government reforms that make our work and our decisions more transparent and ensure that we can be held accountable for what we do on behalf of the taxpaying public.

“As we move away from this verdict – in our actions and in our deeds – we will work to restore the public‟s faith that public servants can be counted on to work for the greater good. I intend to lead by example.”

This is the Speaker who paralyzed Beacon Hill during the last legislative session while he remained closeted, having his ego stroked by Gambling Industry Lobbyists and was obsessed with the Glitz and Cash of a Slot Barn in his district.

Instead of focusing on his JOB, the People's House, remember this?

Massachusetts House leaders to huddle in Amherst on casinos....

Even the Taunton Gazette criticized in:

OUR VIEW: Slow action on Beacon Hill hurting Massachusetts...

Beacon Hill's Sleazy Conduct is writ large with the conviction of former Speaker DiMasi, but there are no clean hands, Mr. DeLeo.

We have residents of the Commonwealth suffering, traumatized, homeless, having lost EVERYTHING - homes, mementos, pictures, family treasures of strictly sentimental value, memories as a result of the devastating tornadoes.


And what are the Beacon Hill Clowns discussing? Slot Barns!

Governor Deval Patrick, who did himself no service testifying about his willingness to "Go Along, to Get Along" and signed onto the Cognos deal, is cavorting with House Speaker "Racino" DeLeo in much the same fashion. This after the Governor secretly met with a group and seemingly promising a 'state land into trust' slot barn deal in Freetown.

Governor, You spent $189,000 hard earned taxpayer dollars conducting a lopsided BENEFIT Analysis filled with exaggerated claims of jobs and revenues, but where is the INDEPENDENT COST BENEFIT ANALYSIS that has never been conducted?

Some articles about the DiMasi decision:
DeLeo distances himself from DiMasi
Speaker’s statement doesn’t mention his mentor by name
DeLeo’s caustic statement was a marked departure from earlier this year when he invited DiMasi and two other former speakers, Thomas Finneran and Charles Flaherty, to attend DeLeo’s reelection and swearing in as speaker. At that time, DiMasi was preparing to stand trial, while Flaherty and Finneran had both been convicted.


Picture of corruption

With DiMasi’s disgrace, it’s time to end the imperial speakership
DiMasi found guilty of corruption, maintains innocence
By Steve LeBlanc and Bob Salsberg, Associated Press
Graphic: DiMasi Trial Verdicts
By Jesse Costa
Former AG Harshbarger: Beacon Hill Has Culture Of Corruption
By Bob Oakes
Scott Harshbarger, a two-term state attorney general, and the former CEO of Common Cause in Washington, D.C., had harsh words for the business as usual on Beacon Hill.

“The fact is that the culture is such that people don’t say no,” Harshbarger said. “This is not just about one person. It is about a culture that has been created that does not invite debate, does not invite dissent, does not invite open and accountable government. And we are all paying a price for that.”

It wouldn’t take a huge effort to turn around that culture of entitlement on Beacon Hill, Harsharger said.

“Its about the character of the leadership here,” Harshbarger said “Are they going to insist that there is open accountable honest integrity in terms of the performance of the public interest?”

House leadership, Harshbarger said, has to say “this is now going to be the people’s house.”

Ex-speaker blasts conviction
Guilty of 7 charges, Dimasi vows to appeal
By Laurel J. Sweet

Robert DeLeo escaped taint of mentor’s crimes

Let's not forget who elects the Speaker like Bobble Heads.

Beacon Hill: Costs Greater Than Anticipated

Incapable of walking and chewing gum at the same time, Beacon Hill combined a much-needed crime bill with grossly flawed predatory gambling legislation. Maybe it was a political ploy or merely consistent with Beacon Hill's non-productive performance or maybe, the Speaker's willingness to cater solely to vested interests and allow the People's House to be held hostage.

The Crime Legislation should have been presented and voted on separately, but never expect House Speaker "Racino" DeLeo to succumb to reasonableness. [Remember that the Speaker recommended campaign contributors, incompetents and 'no-shows' for Probation Dept. jobs before providing a budget larger than requested.]

Attorney General Martha Coakley wisely was quoted as commenting:

...warned lawmakers that the cost of making it happen may be larger than anticipated. New regulations must be drawn up and new agencies created to enforce the regulation, she said.


The Speaker is incapable of providing the COSTS because of their willingness to be blinded by the false promises of Predatory Gambling. [See Las Vegas or Atlantic City]


From: Speaker Flunks Arithmetic


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


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

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


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


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


From: Coakley speaks on foreclosures and immigration
By Jesse Roman


On the proposal to allow some form of legal gambling in Massachusetts, Coakley did not weigh in on the policy or moral aspects of the decision but warned lawmakers that the cost of making it happen may be larger than anticipated. New regulations must be drawn up and new agencies created to enforce the regulation, she said.

Coakley said Massachusetts is overdue to adopt legislation against human trafficking — the state is one of just four that doesn't have a law on the books.

"In every community on the North Shore, there are people selling other people, mostly for sex, but also for labor," she said.

Translation: This means it's going to cost you buckets that they are hiding.

Sinus problems on Beacon Hill

Widespread sinus problems seem to be afflicting Beacon Hill leaders when they fail to detect the stench covering the Commonwealth.

Beginning with the Probation Dept. Scandal that has been ignored by House Speaker "Racino" DeLeo who continues to conduct his single-minded Dog and Pony Slot Barn Show state wide after accepting campaign contributions from the Gambling Industry and its promoters and conducting business behind closed doors.

Buying a judgeship for $39,775?

DeLeo, The Buffoon!

As the Boston Globe editorial below points out, 'appearance' is everything:

With family ties to lobbyists, Walsh doesn’t fit health post

NEXT TO the budget, the thorniest issue the Legislature will deal with this year will be changes in health care financing. Lawmakers will consider bills that may completely change how health care providers are paid. That shift — from fee-for-service payments towards a system based more on per-capita reimbursements — will set off a free-for-all among insurers, doctors, and hospitals.

To referee this on the House side, Speaker Robert DeLeo has chosen a health-finance committee chairman, Steven M. Walsh of Lynn, whose family is to lobbying what the Mannings are to NFL quarterbacking. Walsh’s father-in-law represents the state’s health insurers, while his uncle’s firm blocks and tackles for Steward Health Care, new owners of the Caritas chain of Catholic hospitals. (Walsh’s father is also a lobbyist, but mainly for the American Federation of Teachers.)

...While Walsh, a Wesleyan graduate and practicing attorney, gets high marks from some State House observers, DeLeo’s decision to put him in charge of the committee overseeing organizations that are paying his uncle’s firm and his father-in-law can only undermine public confidence in the Legislature. DeLeo’s tone-deafness on conflicts of interest was painfully visible in the recent probation scandal, and alarm bells should again be sounding around the health-finance committee.