Brown: Another Republican Supporting Big Government

Slot Parlors epitomize failed fiscal policy and Big Government expansion.

Republican Senator Scott Brown easily discards Republican platforms opposing Big Government and taxpayer subsidies for profitable businesses when it comes to wealthy friends and campaign donors, it seems.

Where in this conversation is anyone asking what that BLOATED REGULATORY BUREAUCRACY will cost?

If a federal report determined that for every $1 in tax revenue provided by casino gambling, the cost to taxpayers was $3, surely the prudent thing would be for Republicans to insist on an Independent Cost Benefit Analysis, but then Massachusetts Republicans have been fraudulent in their opposition as well.

Brown pressed Senate leader on slots

Senator Scott Brown has lobbied both Governor Deval Patrick and Senate President Therese Murray to legalize slot machines at the state’s race tracks, according to the governor and a legislative official on Beacon Hill, advocacy that would benefit a longtime Brown friend and campaign donor.

Brown called Murray in April, shortly after the House passed a bill allowing slots at the race tracks, to voice his support and suggested that the Legislature authorize 1,500 slot machines at each track, according to a legislative official familiar with the call.




Revolving Door Trivia, from SHNS:

...if gaming comes in and we're not included, that's kind of a suicide mission.” [Gary] Piontkowski, a former state racing commission chair, said the track would probably bid for a casino license.

Mushroom Farming Flourishes on Beacon Hill

Mushroom Farming is what it is: Grown in the dark and fed a diet of manure. And it's flourishing on Beacon Hill.

In November, little noticed, I posted Beacon Hill: Democracy dies at gambling interests' request

Kathi-Anne Reinstein, a Revere Democrat who organized the SECRET CLOSED DOOR briefing, told the News Service the session was closed TO THE PUBLIC so state reps would "feel comfortable to ask any questions without having any type of criticism'' and surely at the request of gambling interests who can make undisputed wild promises that are unsubstantiated and never be held accountable.

OTB was crammed through after secret meetings and a voice vote.

Arrogance Prevails on Beacon Hill

So why did DeLeo close the caucus to the public and the press? What is he trying to hide?
The most likely answer is that keeping serious discussions secret is the default setting on Beacon Hill. When in doubt, lock everyone out.
The practice of having its most important debates behind closed doors, and the arrogance that practice reflects, has everything to do with the Legislature’s lack of credibility with the public. It may be unfair, even inaccurate, to assume corruption thrives behind locked doors in the Statehouse, but DeLeo and his colleagues only feed that notion with their actions.

House Speaker "Slots" DeLeo has two 'race tracks' in his district and is conducting meetings behind closed doors with whom?

The Industry?

There are many surrounding issues that require open, public and transparent discussions.

Who will pay the cost of the infrastructure required for DeLeo's fantasy being one of the most expensive?

How is the Speaker determining what should be in the legislation? Is it being based on promises made behind closed doors?

The voters expressed their disgust at the voting booth when they sent Scott Brown to Washington.


Why the secrecy, Mr. Speaker? Something to hide?

Mr. Speaker, why do you oppose an Independent Cost Benefit Analysis that the Governor, the AG, the Mass Chiefs of Police Assn., and others support? Are you afraid of the results?

Rep. Steve Canessa who represents a portion of Middleboro?

Taunton Gazette


State Rep. Stephen Canessa, D-New Bedford, said he hoped Southeastern Massachusetts would be selected to host one of the resort casinos. But if Boston and a site in western Massachusetts are awarded license, he might reconsider his vote.
"Boston gets enough. They don't need another resort attraction," he said.

Or making a comment about totally overinflated revenues at a non-public meeting that get quoted like this:


State Sen. Marc Pacheco, D-Taunton, said slot parlors and casinos could deliver $1 billion to state coffers, helping to fill the state's $2.5 billion structural deficit.

Or this?

Before a gathering of about 100 business professionals, [Rep. David] Flynn publicized the dates for the highly-anticipated gambling hearings in the House of Representatives.

Rep. "Racino" Flynn attended a non-public meeting and annouced the dates of the House casino/slot hearing are April 14, 15, 16.

Scheduling hearings, but not publicly posting the dates?

Why is this secret?

The last series of meetings were emailed directly to those with a "vested" interest, like the owner of Plainridge.

This needs to change!

If you don't want to be accused of corruption and back room dealing by the public, maybe you should amend your conduct.

Indiana Racinos Ask for Tax Break

Indiana ---
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The General Assembly passed legislation in 2007 allowing Hoosier Park and Indiana Live — then called Indiana Downs — 2,000 slot machines each at their pari-mutuel venues.
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Track officials said revenue from the slots was needed to keep their tracks and the horse racing in Indiana viable, and they agreed to pay $250 million each over two years to get the slots, as well as spend at least $100 million each to build the new casinos. The state imposed a graduated tax on revenue from slots at the so-called "racinos," which opened last summer.
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And then --
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the track and the state had misjudged revenue projections from the slots.
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And then --
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Racinos Ask for Tax Break
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If you want to see how whacked out our system of taxation is just look to Indiana. In June 2008, horse track owners asked the state to allow slot machines. This idea was sold as a means of 1) reviving the dying horse racing industry, and 2) raising substantial money for the state. Politicians who would rather allow gambling than impose taxes, readily agreed. The tracks have to pay a fee to provide slots, and then must pay a tax on their gross revenue. The tax is how the state was going to make its money. It turns out that even slots can't save horse racing and the tracks are losing money by he bushel. So naturally, the track owners are asking the state for a tax break. Now that is not all that surprising. Industries routinely show up at the legislature with their hands out looking for tax breaks. But the whole point in allowing the slots was to raise more tax revenue.
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This is just another example of what's wrong with the system. If the public wants services -- say police officers -- it should pay for them with broad based taxes. No gimmicks. No free money.
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See a pattern here?
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Remember that Indiana voted for 2,000 SLOT MACHINES at each location.
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In Misplaced Decimal Points, I included the text of legislation proposed by State Senator Marc Pacheco that included --

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The Attorney General is hereby authorized and directed to promulgate rules and regulations that allow for the installation of
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6,000 gaming devices, also known as slot machines,
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The licensing fee to be paid to the state for a license to operate a slot machine facility will be $25 million.
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INDIANA
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$250,000,000 (That's million)
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for 2,000 SLOT MACHINES
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EQUALS $125,000 PER SLOT MACHINE FOR LICENSING FEES
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SENATOR PACHECO'S RACINO & SLOT PARLOR PROPOSAL

Since 2 of the proposed locations are greyhound racetracks which will cease to exist, by law, on December 31, 2009, this proposal includes creation of 2 Slot Parlors.
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$25,000,000 (That's million)
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for 1,500 SLOT MACHINES at each of 4 locations - Raynham (Greyhound Dog Track) Park, Wonderland Greyhound Park, Suffolk Downs, Plainridge Racecourse
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EQUALS $16,666 PER SLOT MACHINE FOR LICENSING FEES
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The text of Senator Pacheco's Slot Parlor proposal deceptively labeled "Local Aid" can be found here: The DiMasi indictment

SECTION 11M. The Attorney General is hereby authorized and directed to promulgate rules and regulations that allow for the installation of 6,000 gaming devices, also known as slot machines, at any racing facility licensed under Section 3 of Chapter 128A as of January 1, 2009, in Bristol, Suffolk and Norfolk counties, and 300 gaming devices at the International Terminals operated by the Massachusetts Port Authority at Logan International Airport.

3. The licensing fee to be paid to the state for a license to operate a slot machine facility will be $25 million.

Those decimal points are so confusing, maybe we should appoint an impartial Blue Ribbon Commission to evaluate the numbers to ensure that any action taken by the legislature is in the best interests of Massachusetts residents.

Follow the losers

Indiana added slot machines to race tracks because --

Track officials said revenue from the slots was needed to keep their tracks and the horse racing in Indiana viable

This is the claim made around the country. Frequently, it works.

Of the Raynham Dog Track --

“It’s not doing as well as it once did, but that’s only because we haven’t allowed them to compete,” said state Sen. Marc R. Pacheco, D-Taunton.

[Rep. Slots] Flynn has estimated the state would reap $700 million from slots in their first year and $400 million annually thereafter, but since the economy has continued slumping, he has backed off any firm figure.


Wow! Such revenue! Except it wasn't true then and isn't true now.


And NOW ?

The discussion [by the Indiana state Senate Committee on Gaming] is expected to include tax breaks for so-called "racinos" and whether to allow table games....

That's the way it works! Promise anything and push for expansion when reality sets in!

Of the most recent push, for slots at race tracks or racinos, Raynham Selectman Joseph Pacheco repeated the oft-heard and untrue refrains --
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'This will not only create revenue, but also create and maintain jobs.”
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Wow! Mr. Pacheco has got the canned casino rhetoric down pat!

Let's copy the recipe of failure offered by others --
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The study, appearing in the latest issue of "The Journal of Economics," found that
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the average salary of racino employee is less than $14,000 annually.

From Treasurer Cahill's Suicide Pact? --
Slot parlors around the country are collapsing; Rhode Island may have to use PUBLIC money to buy out their own racetrack slot parlor

In a speech by State Treasurer Timothy Cahill to the Greater Boston Chamber of Commerce, he offered --

...licensing fees for 15- to 20-year operating rights could bring in between $2 billion and $3.3 billion in up-front payments, ....up to $244 million annually by collecting a 27 percent tax on revenue from the slot machines...

...the governor's 2007 estimate, which was $600 million to $900 million. (which was an overestimate at the time)

Twin River in Rhode Island has about 4,000 slot machines; in Connecticut, Foxwoods Resort and Casino has more than 7,000 and Mohegan Sun has 6,600.