MGM Brings Concerns Over Mohegan-Mashantucket Pequot Venture To Congress

MGM Brings Concerns Over Mohegan-Mashantucket Pequot Venture To Congress

Kenneth R. GosselinProperty Line

MGM Resorts International, the developer of the $950 million casino and entertainment complex in Springfield, has opened another front in its battle against a jointly run tribal casino in the Hartford area — this time in the U.S. Congress.

In a June 1 letter obtained by The Courant, the National Indian Gaming Association wrote to key members of Congress on MGM's efforts to seek legislation that would stop Indian tribes from pursuing commercial gaming off reservations.

"Our understanding is that MGM is pursuing this legislation in reaction to a joint venture between the Mashantucket Pequot and Mohegan tribes that would present competition to MGM's proposed gaming facility in Springfield, Mass.," according to a letter, sent to leaders of the Senate's Committee on Indian Affairs.

The Connecticut tribes, which operate Foxwoods and Mohegan Sun casinos, have formed a joint venture to operate a "satellite" casino in the Hartford area. The state legislature has approved the search for a location, but still must back the actual expansion of gaming off the tribes' southeastern Connecticut reservations.

http://www.courant.com/business/hc-mgm-indian-gaming-battle-20160621-story.html

Oldies, but Goodies

In 2010, the articles below were posted along with their links, some of which are no longer valid.

This blog was begun and included articles posted in their entirety because frequently the articles are not archived.

The Propaganda is always the same, the outcome merely promises.

Casinos sold for bargains

This should have sent chills through the capital markets - meaning

they'll have to provide more equity and pay a higher interest rate,

although with the Fed trying to push down long term rates, who knows?

Casino Tribes Default

Florida: Gambling Addiction

**The results of the survey showed nearly one in five inmates were problem gamblers.
My note --

**That's 20% of the prison population that has a gambling problem. It's costs such as this that Beacon Hill has been asked to consider in an Independent Cost Benefit Analysis that they have refused to conduct.
What will this cost taxpayers of the Commonwealth?

 

Lenders Wary Of Indian Casinos

Mohegan Sun and Connecticut’s other resort casino to the north — Foxwoods in Mashantucket — have more than $3 billion in debt thanks to ill-timed expansions and payments due at the onset of the recession. Both casinos are attempting to refinance their debt, possibly forcing their lenders to take massive losses. [forcing investors and taxpayers to pick up the tab]
On Sept. 21, Moody’s credit rating service announced a possible downgrade of the Mohegan Tribal Gaming Authority’s rating, citing payments of $527 million and $250 million due in 2011 and 2012.Despite the tribe’s annual $1.4 billion net revenues for its Connecticut and Pennsylvania locations, Moody’s said weak consumer demand for casinos, limited near-term growth possibilities for the Mohegan Sun casino, and the possibility of Massachusetts opening to casinos could lead to the downgrading of the tribe’s rating.The rising debt payments for Foxwoods and Mohegan Sun couldn’t have come at a worse time for the two Connecticut casinos. Slot revenue dropped steadily over the past five years; and the fiscal year that ended in June was the worst 12-month period of gaming revenues since 2001 for Mohegan Sun and since 1996 for Foxwoods.

Las Vegas: $18 billion loans

http://middlebororemembers.blogspot.com/2010/10/las-vegas-18-billion-loans.html

This is being mailed all over --

Delaware: Racinos whine about costs

http://middlebororemembers.blogspot.com/2010/10/delaware-racinos-whine-about-costs.html

 The article below is available by subscription only so is

included in its entirety.

 

This is really significant because Steve Norton was posting as

himself [as far as I know] after all of the local articles and

touting how wonderful Atlantic City Casinos were.

 

If you go to my blog and enter 'Steve Norton' in the search,

I posted a lot about his comments - and went after him every

time I found his comments.

 

Steve Norton = Centaur = Northeast = Palmer & New Bedford

 http://www.ibj.com/indiana-live-swamped-by-debt-faces-potential-default/PARAMS/article/22866

Indiana Live swamped by debt, faces potential default

Francesca Jarosz

October 16, 2010

 

 

Related News and Opinion

• Indiana Downs cancels horse races after complaints

• Two central Indiana racinos debut amid tough economy

• Racinos may push gambling's limits

• Shelbyville, county plan economic development projects

• State gambling revenue expected to stay flat

 

 

Owners of the Indiana Live racetrack and casino face an interest payment on the lion’s share of their $544 million in debt next month, as credit analysts continue fretting about the company’s ability to pay its bills.

Rating agency Standard & Poor’s noted that the Shelbyville venue boosted revenue 25 percent in the first quarter of 2010. But they say that hasn’t allayed their concerns about Indiana Live’s massive debt.

Most of the debt is in the form of $440 million in bonds, which have required interest payments in May and November. The size of the November payment wasn’t disclosed in public documents; Indiana Live’s total interest expense this year is expected to be $54 million.

S&P analysts say default could be imminent.

“It’s something we’ve seen coming and are anticipating relatively soon,” S&P’s Ben Bubeck said. “You can only be generating less than you need for so long.”

In what could be another sign of financial distress, Indiana Live in recent months cut ties with The Cordish Cos., the Baltimore-based developer hired to manage Indiana Live.

Sources close to the matter confirmed the split, but would not share details while the parties try to reach a peaceful settlement on the early termination of the 10-year contract. The casino paid $7.2 million in management fees last year, according to a filing with the state.

A Cordish partner did not respond to requests for comment, and Ross Mangano, chairman of South Bend-based Oliver Racing LLC, which owns Indiana Live, would not discuss the Cordish contract.

Mangano also would not share details about Indiana Live’s finances. But he emphasized that the company is working to improve its financial condition, adding there is “no imminent problem.”

“We’re doing everything in our power to address our balance sheet and improve it,” Mangano said. “We’ve been dealing with this debt from day one and we’re still dealing with it.”

Both Indiana Live and Indianapolis-based Centaur Inc., owner of Hoosier Park in Anderson, borrowed heavily after the General Assembly in 2007 allowed the horse tracks to add slot machines in return for a $250 million licensing fee.

The slots parlors, which opened the following year, have drawn smaller crowds than projected, in part because of the recession. Centaur slid into Chapter 11 bankruptcy in March of this year and is selling off holdings in Colorado and Pennsylvania to reduce debt.
In the upcoming session of the General Assembly, lobbyists for both racinos plan to appeal to lawmakers for help. The want an adjustment to the venues’ taxing formula that could provide up to $12 million per year in relief.

But lawmakers say passing such a measure will be a tough task in a year when the state is hurting for money. And even if it were to pass, some predict that won’t be enough to put their debt-saddled owners on solid financial footing.

Feeling the strain

Indiana Live increased its gross revenue from $48 million during the first three months of 2009 to $60 million during the first three months of this year. But a July S&P report said the improvement wasn’t enough to justify a rating upgrade. Since October 2008, Indiana Live has carried a rating of CCC with a negative outlook, close to the bottom of S&P’s scale.

The S&P report noted that, as of March, the company had no remaining availability under its $25 million line of credit.

“We still feel concerned that it’s not enough of a ramp-up to provide the cash they need to meet their fixed charges,” said Ariel Silverberg, an S&P credit analyst who helped write the report.

Silverberg and other analysts wrote in the report that debt restructuring is likely, a move that potentially could include bankruptcy.

In 2009, the company brought in $244 million in revenue. But after expenses such as $102 million in gambling taxes and $62 million in interest expense, it wound up with a $59 million loss.

In March, the company’s auditing firm, Somerset CPAs, echoed the concerns of credit analysts, estimating Indiana Live would need $25 million beyond the cash generated from operations to pay its bills this year.

“The company does not currently have enough capital to fund operations for the next year considering required debt term payments, related interest payments, and capital and operating lease obligations,” auditors wrote in the report.

In addition to borrowing to pay the state’s slots-licensing fee, Indiana Live spent $210 million to buy gambling equipment and design and build its gambling facilities. Interest on most of the debt is 11 percent.

Experts say the licensing fee and the slots rollout aren’t all that’s dragging down the racinos.

Alan Klineman, a chairman of the Indiana Gaming Commission in the 1990s, said the number of casinos in the state, plus competition from venues cropping up in other states, has saturated the market.

Excluding the racinos, statewide casino revenue was at a five-year low of $2.4 billion in 2009.

“We were very careful that we were not giving out licenses to people who were so actively competing with each other that they wouldn’t be successful,” Klineman said.

The S&P’s Bubeck said that, since the beginning of 2008, about two dozen of the roughly 70 gambling-sector companies the agency rated have defaulted as the weak economy cut into consumers’ discretionary spending. He is not projecting much of an uptick until at least 2012.
The challenges are especially acute for Indiana’s racinos, he said, because they’re not allowed to offer table games. In addition, he said, the stiff licensing fee limited their ability to build lavish facilities on par with those in places such as Las Vegas.

Expensive solutions

Under the current tax setup, both Indiana Live and Hoosier Park pay a 15-percent tax to the horse racing industry, plus another 4 percent in other taxes.

They also are taxed starting at 25 percent of the first $100 million they bring in. That tax increases to 30 percent for revenue between $100 million and $200 million and 35 percent of revenue in excess of $200 million.

That overall revenue tax includes the 19 percent in other taxes they pay, which means they are essentially being double-taxed on a share of their revenue.
Doug Brown, an Indianapolis attorney who lobbies for Indiana Live, projects that will cost both casinos $12 million this year.

“It puts racinos at an unfair competitive disadvantage and in an untenable financial position,” Brown said. “It’s an unfair situation that should be corrected.”

Some lawmakers agree, but are hesitant to concede that taxes and licensing fees are at the heart of the businesses’ financial troubles.

Sen. Luke Kenley, R-Noblesville, who oversaw much of the racino debate, said the underlying problem is that Indiana Live borrowed with abandon instead of raising more equity to fund its expansion.

Kenley, who sits on an interim study committee on gambling, said he agrees double-taxation for racinos needs to be eliminated. But he said this would be a tough time to make the change.

A report issued by the Indiana Fiscal Policy Institute last month showed dwindling tax revenue will cause a projected $1.3 billion budget gap as the state enters its next budget cycle.

Mangano said in addition to correcting the double-tax, he would like the Legislature to allow table games at Indiana Live.

Rep. Terry Goodin, D-Austin, one of two leaders on the interim study committee, said that is among the options the committee is exploring. Another possibility is taking the double-tax away in phases.

The committee is expected to issue a report Nov. 1.• 

http://www.ibj.com/articles/22866-indiana-live-swamped-by-debt-faces-potential-default

Racing to the Bottom at Taxpayer Expense

Predatory Gambling was sold as 'RiverBoat Gambling' for Tourists, now they're docked.
Race Tracks were allowed Slot Barns to 'save racing,' then whined about taxes, now want expansion. [It was already acknowledged that the Massachusetts Slot Barn will add Table Games because it's a 'given.']

The Saturation of the Gambling Market by the Gambling Industry caused declining revenues and the state, any state bails them out.

When Government partners with the Gambling Industry, taxpayers foot the bill.

Indiana casinos win few gains from Legislature

Associated Press

The Indiana Legislature turned down most of the proposals meant to boost the state's casinos as they face greater competition from neighboring states.

The compromise that received final approval from the Senate early Saturday won't allow live table games such as blackjack and roulette at the horse track casinos near Indianapolis, where only electronic versions of those games are now allowed. It also won't permit the 10 riverboat casinos to build new inland facilities nearby.

Republican Sen. Phil Boots of Crawfordsville had sought those provisions and said he was disappointed he couldn't get an agreement from House Republicans who regarded them as a gambling expansion.

The bill does give some tax breaks by allowing the casinos to deduct up to $5 million a year in free gambling given in promotions.




http://www.ibj.com/indiana-casinos-winning-few-gains-from-legislature/PARAMS/article/41037

[Any State]'s addiction to gambling - our state needs an intervention

Replace the name of any state because they all believe the myths and propaganda of Predatory Gambling.....just a few more will save the budget, just a few more will save public education, table games will save horse racing.....and on and on and on, ignoring the costs, ignoring failed economic policy.

Note how all of the flawed arguments are identical.

What does it say about the betrayal of the Common Good when government preys on its own citizens?

Matthew Tully: Indiana's addiction to gambling - our state needs an intervention

Apr. 26, 2013

Written by

Matthew Tully

SHELBYVILLE — The sprawling casino here was heavy with the scent of cigarette smoke on a recent morning as hundreds of slot machines occupied gamblers who, it seemed, could be the grandparents of the pretty and handsome twentysomethings smiling from the oversized signs outside.

There isn’t much around the casino — a few cows on a farm in the distance, across the interstate, and a fast-food joint nearby. Those driving onto the casino property these days are greeted by signs on a fence that urge state lawmakers to approve table games run by actual people as opposed to machines.

That would boost revenue and, casino advocates have been relentlessly pointing out for months, create new jobs.

The table games issue was one of several casino-friendly ideas that lawmakers debated this year in the wake of new competition from casinos in other states. One state lawmaker referred to the table games proposal as the biggest jobs bill of the 2013 legislative session, and he was probably right. What a shame.

Wouldn’t it be nice if the industries lawmakers had spent the session trying to protect were in high-tech or other start-up fields that don’t do as much harm to an economy as they do good? Imagine if Indiana, instead of setting out to be a gambling capital two decades ago, had decided it would be the Midwest’s high-tech engine. Imagine if the state legislature spent as much time obsessing over good jobs that truly build an economy as it spends worrying about well-connected casinos, the ones that flood the Statehouse with lobbyists every year.

Our state business is gambling. It has been since the legislature took the easy route to new jobs two decades ago, sprinkling casinos around the state and sitting back as the money poured into state coffers. Now the state is addicted to the cash and lawmakers have to spend valuable time every year trying to protect casinos from competitive advances by counterparts in other states. This addiction leads to bad policies and proposals.

The addiction also leads to ridiculous arguments, such as the one put forward recently in an Evansville Courier editorial that said lawmakers who didn’t race to help Indiana casinos this year were negligently forcing them to “sink or swim without help to combat competition.” Oh, the horror of forcing a business to deal with competition! Listen, if a casino can’t make money, then it has bigger problems than the state legislature can solve.

As the four-month legislative session approached its end, Indiana’s ties to gambling were leading to all sorts of tired Statehouse debates. Should we allow live dealers to staff table games. (Who cares?) Should the phony riverboat law be changed to allow some casinos to move ashore? (Again, who cares?) Should casinos be allowed to give out betting vouchers without paying taxes on them. (Once again, who cares?)

This wouldn’t be so depressing if the legislature had tackled Indiana’s more serious issues this year in thoughtful ways. When I drive around Indiana I look at the landscape and wonder how it’s going to attract better jobs, revitalize dying rural counties and improve schools. I don’t worry much about the needs of casino bosses or factory farms that don’t want animal abuse videotaped — two topics of heavy discussion this session.

Even when the casinos don’t get everything they want, they still dominate the discussion and push more important issues to the side. It’s a distraction with a price.

Indiana is addicted to gambling. It needs an intervention. Its leaders need to tell the casino industry to go away for a while so they can focus on matters that will actually help the state’s future. Because adding a few blackjack dealers in Shelbyville will not be Indiana’s saving grace.

http://www.indystar.com/article/20130426/NEWS08/304260052/Matthew-Tully-Indiana-s-addiction-gambling-our-state-needs-an-intervention

 

This is Massachusetts' Future!

Just as in Massachusetts: Let's pretend a 'taxpayer subsidized' Slot Barn will save the Dead Horse Racing Industry.

In the case of Indiana, 'River Boats' were sold to the public on the pretense of 'tourist attractions.'  Pretense disappears and they're 'land based.'

Indiana bill to allow table games at racinos tweaked to improve its odds

Posted on February 22, 2013 by Gregory A. Hall

 

The Indiana bill that would put table games at the state’s two racetrack slots parlors was amended Thursday to give it a better shot of passage, according to an Indianapolis Star story. It sounds like there may be a Senate vote on the bill Monday.

The change in SB 528 restores some of the money that local casino communities get that the bill originally would have cut even further.

The bill would allow table games at the racinos in addition to letting existing riverboat casinos move to land. The larger intent is to make Indiana’s gambling industry more competitive as Ohio’s expands.

http://blogs.courier-journal.com/horsebiz/2013/02/22/indiana-bill-to-allow-table-games-at-racinos-tweaked-to-improve-its-odds/

Centaur

Subscription required --

Racinos ask permission to use mobile devices for gambling

The Indiana Gaming Commission might allow the use of casino issued iPads for gambling on casino premises.

 

http://www.ibj.com/racinos-ask-permission-to-use-mobile-devices-for-gambling/PARAMS/article/39207

Indiana: Addicted to Gambling

Because their neighbors are doing it, Indiana will rush to expand gambling.

Slot Barns, approved to 'Save Racing' will expand to table games on the pretext of 'job creation.'

River Boats, initially promoted to solely travel the river, now docked, will become land-based.

Don't kid yourselves. There are already plans in Massachusetts to expand.


Indiana considers gambling changes for racinos

Posted: Jan 23, 2013 6:13 PM EST

By Kevin Rader

 

 

 

INDIANAPOLIS - Indiana's gambling revenues have been falling and casinos are looking for high stakes help to keep up with the competition. Ohio, Illinois and Michigan are all expanding gambling, giving gamblers more options.

Gaming in Indiana is big business. It may have dropped from third to fourth in the nation in 2012, but it still touts staggering numbers: $500 million in charitable gaming and $2.6 billion in casino gaming. [Money lost by its residents.]

Neighboring states are now threatening those numbers. Legislation before the Indiana General Assembly is an attempt to curb the threat. It is asking lawmakers to allow the state's two racinos in Anderson and Shelbyville to introduce live tables.

"We are actually taking a robot and replacing it with a live program. It should increase our employment at the casinos by 650 people," said Sen. Phil Boots (R-Crawfordsville).

The advantage for the two racinos is obvious. This change would give them live tables, something they currently do not have and something that would make them more competitive with the riverboats.

Riverboats, meantime, get the opportunity to expand into land-based operations. They are also asking for free promotional play and for a repeal of the admission tax to be replaced by a wagering tax.

While that threatens to actually cost the state money, it also represents a direct threat to the casino in French Lick. Currently over half of its business is generated from Marion County and Louisville. By letting the racinos basically offer the same services, such as live gaming, it puts French Lick at a competitive disadvantage.

On the other hand, Hoosier Park Racing and Casino is going above and beyond to make Anderson a better place to live. It was recently honored as a Distinguished Donor for the Madison County Community Health Center which sees 50,000 Hoosiers annually.

"They have always stepped up to the plate. When there is a need they are there," said Teresa Rodebaugh, Community Health Center.

Now Hoosier Park says there is a need. State lawmakers have to determine who actually ends up paying the price.  [Ingratiating themselves to justify expansion.]

http://www.wthr.com/story/20662963/indiana-considers-gambling-changes-for-racinos

Indiana Slot Barn Bankruptcy

On the right side of this blog are categories that contain historical articles. [Click 'Older Posts' at the bottom to see additional articles.]

Centaur previously filed bankruptcy and is now purchasing another Slot Barn out of bankruptcy.

In addition, the overstated projections seem to be discredited with this comment:

The two racinos employ about 2,000 people altogether.

There is no indication that Slot Barns increase attendance at horse races, merely rewarding already wealthy investors.

Gaming board OKs sale of Shelbyville casino

Published : Thursday, 10 Jan 2013

INDIANAPOLIS (WISH) - The Indiana Gaming Commission on Thursday approved the sale of Indiana Downs and Grand Casino in Shelbyville, 24-Hour News 8 news partner The Herald Bulletin reports .

The owners of the Shelbyville casino and racetrack filed for bankruptcy in 2011.

Last fall, Centaur – owner of the racino in Anderson, Hoosier Park - made the winning bid for Indiana Downs and Grand Casino. A bankruptcy judge approved the deal in November, but it still needed regulatory approval from the Gaming and Horse Racing commissions. Centaur was to pay $500 million and assume the second racino’s debts.

The Horse Racing Commission approved the sale last month. A final review by the chairman of the Indiana Horse Racing Commission and several financing and federal regulatory and legal approvals will complete the purchase.

The two racinos employ about 2,000 people altogether.

http://www.wishtv.com/dpp/news/local/east_central/racinos-fate-in-hands-of-gaming-board

Saving a Dead Industry - Horse Racing

When you read about Horse Racing in Indiana, you might believe that it's miles away, with little connection to Massachusetts.

Not so!

There is a significant link with Steve Norton, Northeast and Centaur, read here:

Steve Norton

After agreeing to the State's terms, the tracks began whining about being uncompetitive - in other words, the state should amend the terms of their bad business decisions.

Wait until that happens here.

Before the ink is dry, the Gambling Industry knows what they need to do to re-negotiate the terms.

When the phony job figures fail to appear, you'll hear about the need to expand.

When the phony revenue projections fail to appear, you'll hear pleas about the need to increase the numbers of slot machines.

And when the numbers of Gambling Addicts strap the state budget, you'll again hear cries for additional revenue.

In the case of Twin Rivers, they 're-negotiated' in bankruptcy court to dump racing and extend hours. You may remember that slots were supposed to 'save racing.'

The host community overwhelmingly opposed extended hours, surrendering local control in bankruptcy court.


Horse racing tracks fighting for their lives as local casinos pull away gamblers

The parent companies of Indiana's two race tracks, Hoosier Park and Indiana Downs, each filed for bankruptcy in the past two years. Both had to borrow heavily to pay the state's $250 million licensing fee and spent even more to upgrade their facilities. Then, earlier this year, Gov. Mitch Daniels said he wanted to make substantial cuts in the size of purses and the amount of money going to the breeding fund, which would have decreased the state's advantage over other tracks.

He later relented and made smaller cuts, but Maryland and Texas might not be so lucky. Penn National, the owner of race tracks in those states, has made it clear that it plans to decrease the number of racing dates and purse size. The company's CEO, Peter Carlino, indicated that he's essentially given up on the sport, saying in a February conference call, "there aren't a sufficient number of racing customers in the world anymore because they died."


Alex Waldrop, the CEO of the National Thoroughbred Racing Association, thinks the reliance on others to save the industry could prove to be its downfall.

Indiana: Race to the Bottom

State shouldn't depend on gambling
Lawmakers need to rein in their enthusiasm about this revenue source

A sharp falloff in Indiana gambling revenues certainly has much to do with the sagging economy and high gasoline prices, as the industry asserts. But it would be a mistake for state policymakers to wager that the losing streak is temporary and reversible.

True, working people have seen a reduction in the amount of money they have left over to plug into slot machines and slide across blackjack tables. But even if and when that changes, they'll be playing a market that appears to have hit its limit.

For lawmakers, this means tamping down their hopes that this alluring voluntary revenue source will produce ever-richer jackpots.

With admissions down 7 percent at the state's 11 casinos in the first half of 2011 compared to last year, total revenues from those venues and the two racetracks with slot machines fell to their lowest point in three years. Their $1.39 billion take was $22 million less than the first half of 2010.

Two straight yearly declines never have happened before, says the gambling newsletter publisher Ed Feigenbaum. And the years to come don't bode well.

The border states from which Indiana's casinos have drawn heavily are finally cashing in. A new casino is operating in Chicago, another is a month away from opening in Michigan, and more competitors are planned for those states and Ohio. If gambling in Indiana is already a "mature" enterprise, as some experts maintain, then old age should see a decline.

While many would applaud that decline on moral or social grounds, the reality is that the state would suffer acute withdrawal if the business deteriorated. Gambling tax revenues to the state exceeded $872 million in fiscal year 2010, down from nearly $876 million the previous year. Add in employment, local taxes and related economic development, and we are hooked.

At the same time, we shouldn't press our luck. Lobbyists who push casino expansion (while simultaneously asking for tax relief for flagging racinos) are asking lawmakers to ignore the odds.

The state needs growth industries. Gambling isn't one of them. It's not wise strategy to raise the ante.
-- The Indianapolis Star

Ohio: Lessons to be learned

Ahhhh...the Playbook!

Watching the Ohio process in which the Slot Barn Industry wrote flawed legislation that benefited only them and then spent buckets convincing voters to pass a Constitutional Amendment so neatly parallels the Massachusetts process. Well....except in Massachusetts, we let them off cheap.

In Massachusetts, The Industry merely had to convince a small number of the gullible, behind closed doors, on Beacon Hill with their grossly exaggerated revenue and job claims, make a few campaign contributions and who's to disagree?

The Massachusetts Governor, Deval Patrick, spent $189,000 hard-earned taxpayer dollars having an Industry BENEFITS report prepared to justify his position. The Legislature, likewise, duplicated the phony process.

No where have costs been revealed.

The significant difference, of course, is that in Ohio, this was determined by a Constitutional Amendment by the voters.

In Massachusetts, in spite of all the pretense and charade by the Governor, House Speaker "Racino" DeLeo and Senate President "Cha Ching" Murray, what is approved today, can and will be changed by the next legislature and the next Governor.

When the phony revenues fail to appear, when the undetermined costs mushroom, the legislature addicted to revenues over sound fiscal policy, will expand slot barns - coming to a neighborhood near you!

From: Casino Opposition

After Ohio voters said NO to casino gambling 4 times, $50 million was spent to persuade them otherwise. Who would think their money was wasted?

See also:
Ohio
Ohio

This revealing comment from the article below:

For more than 30 years, the Ohio Roundtable has opposed casino gambling based on the failed economic promises and the inevitable political corruption that historically attends legalized gambling.


Rob Walgate: Casino deal violates Ohio rule of law

Ohio Roundtable
In November 2009, Ohioans passed a constitutional amendment legalizing casino gambling. The state constitution, much like the federal constitution, is a sacred compact of the citizens. It is the controlling authority for law and practice in this state. When the people amend their constitution, it is imperative that all branches of the government abide by this highest ruling authority in the state.

The 2009 casino amendment, which the Ohio Roundtable opposed, was written by the casino industry. The gambling interests advocating passage of the amendment wrote every word, paid millions for their campaign and won an election. The voters approved State Issue 3, which is now the final word on casino gambling in Ohio. Those words can be changed only by the legal process of further amendments.

That language of Issue 3 specifically fails to exempt the casinos from paying the Ohio Commercial Activity Tax on gross revenues. The amendment specifically binds the casinos to pay all taxes levied in general against any other Ohio business. The Commercial Activity Tax clearly fits into this most obvious description.

The governor needs no other language to enforce the CAT on the casinos. They enforced it upon themselves in the construction of their own amendment. The failure to collect the tax would be a violation of the Ohio Constitution and state statutes.

The governor has consistently stated that he is trying to "get a better deal" for Ohio.

Issue 3 is a bad deal for Ohio; however, it is the law. It cannot be changed by backroom deals. If the governor is serious about getting a better deal for Ohio, he should ask the legislature to place an amendment on the ballot to reconstruct Issue 3. He could do this in short order, taking less time and money than all the backroom deals have spent to date.

In addition, any "deal" to place slot machines at Ohio racetracks is a clear violation of the Ohio Revised Code and the Constitution. Such a practice cannot become legal by edict of the governor or any "deal" struck with casino operators. If the governor wants to open racetrack casinos with Vegas-style slot machines, he is required by law to take such a proposal to the voters.

Furthermore, the notion that the governor can issue a "moratorium" on expanding gambling sites by edict is equally legally absurd. By what authority does this governor or any governor suggest he has the right to grant casino operations to some people but not to others? Why are only certain cities being chosen? Why a 10-year moratorium? Why not 20 years or 100 years?

For more than 30 years, the Ohio Roundtable has opposed casino gambling based on the failed economic promises and the inevitable political corruption that historically attends legalized gambling. Sadly, the current actions of the governor and the casino industry are indicative of the grossest form of political corruption: the disregard of the rule of law by those in power.

Only 18 months after the passage of State Issue 3, the governor is caught up in closed-door deal-making with the casino industry. There have been no legislative or public hearings on these deals. Outside consultants have been hired who stand to make millions, pending the outcomes of such deals. The people of Ohio, their Constitution and their representative government are left standing on the curb.

Regardless of the governor's intentions, the rule of law cannot be displaced for any crisis, community or convenience. Every governor swears to uphold and defend the Ohio Constitution. If the governor wants to assist the casino industry, facilitate racetrack casinos and promote more gambling in Ohio, he has every right to do so according to the rule of law. Neither this governor nor any future governor has the right, however, to take the law into his own hands and overrule the Ohio Constitution.

These actions by the governor prove again that casino gambling and good government don't mix.

Rob Walgate is vice president of the Ohio Roundtable, a non-profit, independent public-policy organization.

Centaur, North East, H. Steve Norton, Massachusetts connections

The article at the bottom, addressing Centaur's Indiana bankruptcy, has an interesting history and Massachusetts connections --

H. Steven Norton Resigns from Diamondhead Casino - cbl

By citybizlist Staff

LARGO, Fla. -- Diamondhead Casino Corp. (OTCBB:DHCC) has accepted the resignation of H. Steven Norton from its board of directors, according to an SEC filing.

Norton's letter, which was attached to the filing, indicates that he resigned because the board felt that he had a conflict of interest due to the fact that his son, Mark Norton, is an executive with the CanCan casino project in D'Iberville, Miss.

Diamondhead Casino is developing a casino resort on the Bay of St. Louis in Diamondhead, Miss. Founded in 1988 and headquartered in Largo, Fla., the company owns approximately 404.5 acres of unimproved land to develop the resort.

H. Steve Norton was elected as a director of Diamondhead in 2002. Since 1998, he has served as President and CEO of Norton Management, Inc. Norton also serves as a Director of Centaur, Inc., a privately held company which owns a casino in Central City, Colo. Norton is also a Director of Colorado Casino Resorts, Inc. in Cripple Creek, Colo. and North East Resorts, Inc., a privately held company pursuing gaming in the state of Massachusetts.

As citybizlist reported last week, Diamondhead announced that it had entered into a Letter of Intent with Phoenix Gaming and Entertainment, LLC. In the letter, Phoenix proposes to purchase 25 acres of land for $1 million per acre to be used, in part, for the construction of a casino. Diamondhead has agreed to give Phoenix an additional 15 acres of land to be used for the construction of roadways and right-of-way requirements, greenery, buffering, on-site mitigation and/or the footprint for a possible parking garage.

Diamondhead's stock price closed at $0.95 on December 17.


Potential Churchill Downs-Centaur settlement in the works

LOUISVILLE, Ky. -- Churchill Downs Inc. may be ready to settle its $15 million claim from Centaur, its former minority partner and the current owner of Hoosier Park in Anderson, Ind.

When Churchill sold Hoosier Park in 2007, it was to receive $15 million from Centaur if the track got slot machines within a certain time frame. The slot machine time requirement was met, but Centaur filed for bankruptcy last March.

In a filing Wednesday in U.S. Bankruptcy Court in Delaware, Churchill said it has negotiated “a fair and equitable” settlement with Centaur that has yet to be filed. The filing also stated objections to an already filed Centaur reorganization plan in the event that Churchill’s planned settlement isn’t filed or isn’t approved.


Churchill spokeswoman Julie Koenig Loignon declined comment, citing a company policy not to discuss pending litigation.


Centaur Chairman Rod Ratcliff said in a statement that he was optimistic about a settlement.


“Considering the longstanding relationship with Churchill Downs, I am confident this issue can be resolved amicably,” he said. “While it is disappointing the parties find themselves in this situation, unforeseen circumstances have brought us to this point. Complex and intertwined events beyond the parties’ control have contributed to the situation.”


The unforeseen circumstances include the recession, the company said a subsequent statement seeking elaboration.


In Wednesday’s bankruptcy filing, Churchill repeated arguments made in a Dec. 30 filing that Centaur’s proposed settlement plan would treat Churchill unfairly by giving certain creditors half of what they are owed, with a cap of $650,000. The cap means Churchill would get about 4 percent of its $15 million claim while other creditors in the same settlement class would get the full 50 percent.


Churchill is the largest creditor in that class of debtors, followed by Ames Construction at $1.28 million and Anderson City Utilities at $136,649, according to Churchill’s filing.


Churchill argued in the Dec. 30 filing that the proposed settlement violates the bankruptcy code requirement of equal treatment of debtors. While acknowledging that courts have some leeway in interpreting what is equal, “no court has permitted a disparity of treatment anywhere near the magnitude of that proposed” in the current settlement, Churchill’s objection said.

Separately, Churchill filed suit in U.S. District Court in Indianapolis on Nov. 24 against Ratcliff and two investors, Mike Raisor and R. Michael O’Malley. The three signed a $4 million promissory note, which carried interest of 8.25 percent per year, to Centaur, which ultimately assigned the collection rights to Churchill.

In the district court case, Churchill claims it is now owed $5.07 million. The promissory note contained an additional interest charge of 5 percent a year if payments were more than 10 days late.

Ratcliff said the promissory note is separate from the bankruptcy but that he hoped it could be settled “in tandem with the company’s restructuring.”

At the time of the 2007 sale, Churchill owned 62 percent of Hoosier Park and Centaur owned the rest of the track, which opened as Indiana’s first pari-mutuel racetrack in 1994 after Churchill built it. At the time, Ratcliff was a minority partner.

The track started its slots operation in June 2008 and Centaur borrowed heavily to pay for a $250 million state license fee.

At the time of the bankruptcy filing, Centaur blaming the economy and the license fee for contributing to the company’s situation.

Stop me if you've heard it before ....

Another SLOT BARN about the default!

Slots were supposed to 'save racing' in Indiana. Where have we heard that before?

This article mentions Centaur = Steve Norton = Northeast = Palmer and New Bedford, another Casino Vulture salivating to suck discretionary income from poor communities in the Commonwealth.

Included in the poorly fashioned legislation drafted on Beacon Hill, behind closed door with Industry input, was inadequate wording about the financial solvency of potential partners. So far, it doesn't look good, does it?




Indiana Live swamped by debt, faces potential default


Owners of the Indiana Live racetrack and casino face an interest payment on the lion’s share of their $544 million in debt next month, as credit analysts continue fretting about the company’s ability to pay its bills.

Rating agency Standard & Poor’s noted that the Shelbyville venue boosted revenue 25 percent in the first quarter of 2010. But they say that hasn’t allayed their concerns about Indiana Live’s massive debt.

Most of the debt is in the form of $440 million in bonds, which have required interest payments in May and November. The size of the November payment wasn’t disclosed in public documents; Indiana Live’s total interest expense this year is expected to be $54 million.

S&P analysts say default could be imminent.

“It’s something we’ve seen coming and are anticipating relatively soon,” S&P’s Ben Bubeck said. “You can only be generating less than you need for so long.”

In what could be another sign of financial distress, Indiana Live in recent months cut ties with The Cordish Cos., the Baltimore-based developer hired to manage Indiana Live.

Sources close to the matter confirmed the split, but would not share details while the parties try to reach a peaceful settlement on the early termination of the 10-year contract. The casino paid $7.2 million in management fees last year, according to a filing with the state.

A Cordish partner did not respond to requests for comment, and Ross Mangano, chairman of South Bend-based Oliver Racing LLC, which owns Indiana Live, would not discuss the Cordish contract.

Mangano also would not share details about Indiana Live’s finances. But he emphasized that the company is working to improve its financial condition, adding there is “no imminent problem.”

“We’re doing everything in our power to address our balance sheet and improve it,” Mangano said. “We’ve been dealing with this debt from day one and we’re still dealing with it.”

Both Indiana Live and Indianapolis-based Centaur Inc., owner of Hoosier Park in Anderson, borrowed heavily after the General Assembly in 2007 allowed the horse tracks to add slot machines in return for a $250 million licensing fee.

The slots parlors, which opened the following year, have drawn smaller crowds than projected, in part because of the recession. Centaur slid into Chapter 11 bankruptcy in March of this year and is selling off holdings in Colorado and Pennsylvania to reduce debt.

In the upcoming session of the General Assembly, lobbyists for both racinos plan to appeal to lawmakers for help. The want an adjustment to the venues’ taxing formula that could provide up to $12 million per year in relief.

But lawmakers say passing such a measure will be a tough task in a year when the state is hurting for money. And even if it were to pass, some predict that won’t be enough to put their debt-saddled owners on solid financial footing.

Feeling the strain

Indiana Live increased its gross revenue from $48 million during the first three months of 2009 to $60 million during the first three months of this year. But a July S&P report said the improvement wasn’t enough to justify a rating upgrade. Since October 2008, Indiana Live has carried a rating of CCC with a negative outlook, close to the bottom of S&P’s scale.

The S&P report noted that, as of March, the company had no remaining availability under its $25 million line of credit.

“We still feel concerned that it’s not enough of a ramp-up to provide the cash they need to meet their fixed charges,” said Ariel Silverberg, an S&P credit analyst who helped write the report.

Silverberg and other analysts wrote in the report that debt restructuring is likely, a move that potentially could include bankruptcy.

In 2009, the company brought in $244 million in revenue. But after expenses such as $102 million in gambling taxes and $62 million in interest expense, it wound up with a $59 million loss.

In March, the company’s auditing firm, Somerset CPAs, echoed the concerns of credit analysts, estimating Indiana Live would need $25 million beyond the cash generated from operations to pay its bills this year.

“The company does not currently have enough capital to fund operations for the next year considering required debt term payments, related interest payments, and capital and operating lease obligations,” auditors wrote in the report.

In addition to borrowing to pay the state’s slots-licensing fee, Indiana Live spent $210 million to buy gambling equipment and design and build its gambling facilities. Interest on most of the debt is 11 percent.

Experts say the licensing fee and the slots rollout aren’t all that’s dragging down the racinos.

Alan Klineman, a chairman of the Indiana Gaming Commission in the 1990s, said the number of casinos in the state, plus competition from venues cropping up in other states, has saturated the market.

Excluding the racinos, statewide casino revenue was at a five-year low of $2.4 billion in 2009.

“We were very careful that we were not giving out licenses to people who were so actively competing with each other that they wouldn’t be successful,” Klineman said.

The S&P’s Bubeck said that, since the beginning of 2008, about two dozen of the roughly 70 gambling-sector companies the agency rated have defaulted as the weak economy cut into consumers’ discretionary spending. He is not projecting much of an uptick until at least 2012.

The challenges are especially acute for Indiana’s racinos, he said, because they’re not allowed to offer table games. In addition, he said, the stiff licensing fee limited their ability to build lavish facilities on par with those in places such as Las Vegas.

Expensive solutions

Under the current tax setup, both Indiana Live and Hoosier Park pay a 15-percent tax to the horse racing industry, plus another 4 percent in other taxes.

They also are taxed starting at 25 percent of the first $100 million they bring in. That tax increases to 30 percent for revenue between $100 million and $200 million and 35 percent of revenue in excess of $200 million.

That overall revenue tax includes the 19 percent in other taxes they pay, which means they are essentially being double-taxed on a share of their revenue.

Doug Brown, an Indianapolis attorney who lobbies for Indiana Live, projects that will cost both casinos $12 million this year.

“It puts racinos at an unfair competitive disadvantage and in an untenable financial position,” Brown said. “It’s an unfair situation that should be corrected.”

Some lawmakers agree, but are hesitant to concede that taxes and licensing fees are at the heart of the businesses’ financial troubles.

Sen. Luke Kenley, R-Noblesville, who oversaw much of the racino debate, said the underlying problem is that Indiana Live borrowed with abandon instead of raising more equity to fund its expansion.

Kenley, who sits on an interim study committee on gambling, said he agrees double-taxation for racinos needs to be eliminated. But he said this would be a tough time to make the change.

A report issued by the Indiana Fiscal Policy Institute last month showed dwindling tax revenue will cause a projected $1.3 billion budget gap as the state enters its next budget cycle.

Mangano said in addition to correcting the double-tax, he would like the Legislature to allow table games at Indiana Live.

Rep. Terry Goodin, D-Austin, one of two leaders on the interim study committee, said that is among the options the committee is exploring. Another possibility is taking the double-tax away in phases.

The committee is expected to issue a report Nov. 1.•

State Budget cuts eliminate programs for problem gamblers

WXIN-TV Indianapolis reports --

State budget cuts will eliminate planned programs for Indiana's problem gamblers. Family and Social Services Administration officials say new programs for Hoosier retirees face the same fate.

"We believe the programs we have in place are addressing those individuals that really need that help." FSSA spokesperson Marcus Barlow said.

When fiscal year income in the state came in $309 million below budgetary forecasts cuts became inevitable.

FSSA said last week it was planning to cut Medicaid reimbursements to hospitals by 5%, but now those addicted to gambling and Indiana's oldest citizens will have no new options in 2010.

"FSSA is not going to fill 400 vacancies that we have right now. A few of our programs in the division on aging we've said we're not going to add new people to those programs and those are the things we are trying to do to save money," Barlow said.

Revenue from gaming in the state is beating the budgetary forecasts, but that $15 million of unexpected money is not being shared with Indiana's problem gambler programs for the foreseeable future

The state's problem gambling help line gets approximately 1500 calls a year.

In 2008 nearly 300 Hoosiers asked for professional treatment to help conquer their gambling addiction issues.

The Indiana FSSA cuts announced so far only represent a portion of the 10% budget cuts ordered this month by Governor Mitch Daniels.

Bailouts for Indiana Slots

Slots were permitted to save race tracks in Indiana, creating what are called 'racinos.'

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The "Arms Race" to the bottom continues with bailouts being sought --

INDIANAPOLIS – Gov. Mitch Daniels on Friday discounted the idea of tax restructuring or bailouts for Indiana’s casino industry while remaining open to the idea of new land-based casinos in the state within the existing license structure.
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He was reacting to news that Ohio voted for four land-based casinos this week, and the detriment it could have on state coffers.
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“One – I’m not very worried. And two – I’m against any expansion,” Daniels said.
He said casino gambling revenue makes up 5 percent of the state budget, and while the state would feel a reduction in that amount, “there are worse things than being a little less dependent on gaming.”
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A legislative committee has been studying various gambling issues this summer.
During those meetings, casinos around the state have asked for aid from the state including changing the tax structure, adding table games and moving one of two Gary casinos to Fort Wayne or another northeast Indiana location.
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But Daniels said he doesn’t support modifying the tax structure to benefit the casinos.
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“If they are asking for tax relief, if they’re asking for cash, if they’re asking for money they voluntarily put up for those licenses to be given back, no,” he said.
“If we start bailing out industries in this state, we’re not going to start with a very profitable one like that.”
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Riverboats were cruising down the river, providing gambling for limited periods of time. Now, they're tied up and forced to employ crews. Any pretense of "riverboat" gambling is gone.

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Daniels was more open to freeing the casinos from “riverboat” regulations such as having an engine and a captain even though they don’t move.
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And he would look at land-based gambling in new areas so long as it was within the existing 13 licenses.

“I wouldn’t rule that out,” he said.

House Speaker Pat Bauer, D-South Bend, said he isn’t sure what the solution is for the casino industry but said he wouldn’t rule anything in or out before the legislative committee gives recommendations.

Daniels says no but gambling issues persist

From Indiana -- the ongoing saga of the Arms Race and Centaur --

When Gov. Mitch Daniels weighed in last week on a debate about how or whether to help Indiana casinos deal with competition coming from newly approved casinos in Ohio, he did so definitely.

No tax breaks for the gambling industry. No way. No how.

“If they’re asking for tax relief, if they’re asking for cash – no,” Daniels said. “If we’re going to start bailing out industries in this state, we’re not going to start with a very profitable one like that.”

It was an interesting declaration from a governor whose administration has for the most part looked kindly on the industry.

Daniels signed into law a property tax deal that authorized the state’s two horse track casinos.

The Indiana Gaming Commission has given casinos more latitude in their construction standards, so the most recent projects have been bigger and fancier than ever before.

But the Republican governor seems to have soured a bit on the industry.

Those horse track casinos — particularly Hoosier Park in Anderson — have been vocal in their criticism of the $250 million licensing fee that Daniels pushed for.

And the racinos were seeking tax breaks even before the latest out-of-state threat came from Ohio.

It seems Daniels hasn’t liked the attitude.

In fact, just last week, he instructed Ernie Yelton, the gaming commission’s executive director, to send reporters that cover gambling a newspaper story describing another state’s efforts to impose $200 million licensing fees.

“A deal is a deal,” the governor appears to be saying to the racinos. “And the deal was fair.”

But the two racinos and the state’s other 11 casinos — most of them located on water — do seem to have the ear of some legislators.

Already, a committee has been studying what — if anything — the state should do to adjust for competition. Tax breaks to encourage more player promotions and new capital investment were among the ideas considered.

That group has not yet made any recommendations, but there is sure to be legislation promoting some of those ideas when the General Assembly convenes in January.

And while Daniels is putting the kibosh on any tax breaks, he said he might be open to other things that could help the gambling industry — like eliminating the requirements that riverboat casinos have the ability to cruise and keep crews on staff.

He said he might even be open to letting them rebuild on land or letting the two boats in Gary relocate.

But such changes would help only some of the state casinos and lawmakers have found that it’s tough to pass gambling legislation unless there’s a little something for all the venues.

That’s probably why gambling will almost inevitably be a controversial issue come January — just like it is in almost every legislative session.

Steve Norton and Centaur and Another Bankruptcy

After an exciting day on Beacon Hill, listening to the glistening promises of the Predatory Gambling Industry and watching elected officials with their eyes glazed over simply visualizing piles of money from a predatory industry and hearing few facts, I raced home for yet another RACINO DEFUNK story!

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Thanks Steve for not disappointing!

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Steve Norton, who has been posting what might appear to be innocuous little blurbs, from Alton, Il, is none other than this Steve Norton ---

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Forbes
H. Steven Norton
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Director
Diamondhead Casino
Largo , FL
Sector: FINANCIAL / Real Estate Development

75 Years Old
H. STEVEN NORTON was elected a Director of the Company on August 6, 2002. Since 1998, Mr. Norton has served as President and CEO of Norton Management, Inc., a consulting company in Alton, Illinois and Las Vegas, Nevada. Mr. Norton also currently serves as a Director of Centaur, Inc., a privately held company which owns a casino in Central City, Colorado and owns Hossier Park, an Indiana race track, located in Anderson, Indiana. Mr. Norton is also a Director of Colorado Casino Resorts, Inc. in Cripple Creek, Colorado and North East Resorts, Inc., a privately held company pursuing gaming in the state of Massachusetts. Mr. Norton recently became a Director of 8th Wonder International, Ltd., an entity formed in Jersey, in the Channel Islands, which is involved in the concept design and development of casino resorts. Mr. Norton is also a major creditor of and has provided consulting services to Onnam Entertainment, Inc., a privately held Las Vegas based company, with contracts to develop and operate Native American casinos in various U.S. locations. Prior to Hurricane Katrina, Onnam received permission from the Mississippi Gaming Commission to develop a casino site in Biloxi, Mississippi. The casino, if constructed, would compete with any casino resort subsequently developed by the Company. From 1993 to 1998, Mr. Norton served as President and Chief Operating Officer of Argosy Gaming Corporation, a public company and operator of riverboat casinos. Mr. Norton also previously served as President and Chief Operating Officer of the Sands Hotel & Casino in Las Vegas, Nevada; as President and Chief Executive Officer of the Gold River Gambling Hall & Resort in Laughlin, Nevada; as Executive Vice-President of Resorts International, Inc. and Resorts International Casino Hotel in Atlantic City, New Jersey; and as Vice-President, Treasurer and Comptroller of Paradise Island, Ltd/Paradise Island Casino. Mr. Norton has also previously served as a founder and a Director of the American Gaming Association; as a founder, a Director and Vice-Chairman of the New Jersey Casino Association; as Chairman of the Indiana Gaming Association; as a Director and Vice-President of the Missouri Gaming Association; as a Director of the Illinois River Boat Association and as Chairman of the Casino Commission of the American Hotel Association. Mr. Norton has also served on the Board of Directors and Executive Committee of the American Hotel Association; as Chairman of the Board and President of the New Jersey Hotel Motel Association; as Director and Vice-President of the Bahamas Hotel Association; as Chairman of the Bahamas Hotel Employers Association; as Director and Treasurer of the Bahamas Employers Confederation; as a Board Member of the Nevada Hotel Motel Association; as Chairman of the Atlantic City Convention & Visitors Bureau; as Chairman of the Nassau Paradise Island Promotion Board; and as a member of the Advisory Board of the Governors Office of Travel and Tourism in New Jersey.
Options Exercised
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National Council of Legislators from Gaming States
Steve Norton, Director, American Gaming Association, Alton, IL
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Some might think that at 75, Steve would be content to sit back, collect Social Security and count his millions. Not so!

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We should all be appreciative of Steve's efforts to save Massachusetts taxpayers money and protect our freedoms when he posts things such as his comments below because we know what great prosperity predatory gambling has brought to Atlantic City --

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In today's article by Scott VanVoorhis, the question of NIMBY, not in my backyard, has a perfect example in New Jersey's gaming experiment. In 1976 a Statewide referendum would have allowed any community in the State to have gaming, subject only to a second County vote approving casinos. The vote was 60% to 40% against. But two years later, a Statewide referendum passes 57% to 43%, when gaming was restricted only to Atlantic City. [Sometimes, you just gotta wear 'em down before they vote your way!] I would expect similar results in Massachusetts. As several polls have indicated, a majority of State residents favor casino gaming, whether for their own enjoyment, to reduce the out flow of $1 billion to CT and RI gaming establishments, or just because of personal choice; where any Massachusetts adult ought to be able to decide how he spends his own earned income. [Wow! This man truly cares that we should be free to line his pockets!] What the State may want to consider is to have a vote in those communities that have an interested developer, before a special commission determines casion [sic] or racino locations. This step will save a lot of time in a State badly in need of new taxes, construction and employment.

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And Steve is soooo anxious to create low wage dead end jobs, he promises --

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...few positions would require even a high school diploma; unlike the bio-science industry the state is so vigorously pursuing.
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In response to Mr, Norton's op ed, I sent the following letter to the editor, not expecting that the casino cheerleaders would print it --

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I read with great interest the comments Kevin Thomas made about
the prospects of a casino in New Bedford and was impressed by
his research, his logic and his unwillingness to believe the one-sided
promotion of predatory gambling.
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Steve Norton's response fails to fully convey his interest. He can't
honestly be labelled a mouthpiece for the industry because he
IS the industry and stands to gain from promoting fictitious numbers.
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Forbes: Mr. Norton is also a Director of ... North East Resorts, Inc., a privately held company pursuing gaming in the state of Massachusetts.
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Mr. Norton promises "...few positions would require even a high school diploma."
In other words, you are guaranteed low wage, low skill, dead end jobs.
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We need jobs we can be proud of, where there's an opportunity for advancement,
promotion, jobs with a future that provide hope.
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Even Bernie Madoff gave people jobs, better paying than a casino job, with his phony prosperity scheme.....casino capitalism is the same rouse.
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Predatory gambling sucks discretionary income out of the local economy.
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Professor Kindt's research indicated that 1 slot machine permanently
removed 1 job from the local economy.
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We need a fair and balanced public discussion about predatory gambling.
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The more I learned about the experience of other states, the more
I understand how Mr. Norton accumulated his wealth by creating dead
end jobs that destroy the fabric of our communities.
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Mr. Norton doesn't live here and can count his millions from afar.

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Centaur defaults on loansHoosier Park parent company misses interest payment

Anderson, Ind. — Hoosier Park Racing and Casino’s parent company, Centaur LLC, missed an interest payment to its senior lenders Tuesday, causing the company to default on one of its loans.

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The lending situation won’t affect Hoosier Park’s operations or number of employees, however, said Jim Brown, the racino’s general manager of gaming.

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“Our customers can expect the same entertainment experience that they have come to expect from us, and there will be no impact on our employees,” Brown said. “It will be business as usual for Hoosier Park, regardless of how we go about restructuring our company.”
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Brown said the slot machines will not be tightened and rewards will not be reduced in the casino.
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With the missed interest payment, however, two of Indianapolis-based Centaur’s affiliated entities in Pennsylvania, Valley View Downs LP and Centaur PA Land LP, filed voluntary Chapter 11 bankruptcy petitions. Brown said the bankruptcy filings were designed to help Centaur keep its gaming permit in Pennsylvania, with which it plans to build another racino called Valley View Downs & Casino.
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“We have the last gaming license in Pennsylvania, and we are deeply committed to building that facility,” Brown said. “This was the best mechanism to preserve it.”
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In the meantime, Centaur continues to negotiate with its creditors to restructure its corporate debt. Brown said those negotiations would affect the company’s future actions.
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“We have numerous options,” he said. “Chapter 11 for the entire company is a possibility. This is simply an effort to redo a debt structure and make your company healthy and ensure the possibility of long-term success.”
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Centaur Chief Financial Officer Kurt Wilson said the company had been negotiating with its lenders since July. The company’s existing facilities, which include Hoosier Park and Fortune Valley Hotel & Casino in Central City, Colo., are healthy but not generating enough money to cover Centaur’s capital structure, Wilson said.
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Weakness in the economy and a heavy fee burden — Centaur paid $250 million for its Indiana license — has contributed to the existing facilities not being as profitable as needed, Wilson said, as has a delay in the Pennsylvania project that has held up cash flow from that location.
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The Pennsylvania project had been funded at the same time as Hoosier Park’s casino was built, but Centaur was unable to receive its Pennsylvania gaming license before credit markets froze and it was forced to give back the loan, Wilson said.
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“It has been stymied and delayed since then,” he said. “Now there’s an opportunity with this credit market thawed, it clears the path to move forward,” he said. “We filed Chapter 11 to protect the status of that license so we can continue uninterrupted. We believe it’s the shortest route.”
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Wilson said he believed Centaur could accomplish an agreement with its lenders soon. It is unclear how much the missed interest payment was for, as Wilson said Centaur’s finances are private, but the company does not have any principal payments on its loan until 2012.
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Brown said he hoped Centaur’s loan default doesn’t affect whether customers come to Hoosier Park.
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“Nothing will change,” he said. “I am optimistic that our customers will understand what this is. Everyone can expect a great time a Hoosier Park and for a long time to come in the future.”

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