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Showing posts with label Stephen Wynn. Show all posts
Showing posts with label Stephen Wynn. Show all posts

Thursday, January 22, 2015

Mohegan Sun joins lawsuit against Massachusetts gaming authority





Clark Schultz, SA News Editor

  • Mohegan Sun will join a lawsuit against Massachusetts state regulators over the granting of a license to Wynn Resorts (WYNN +2.5%) for a casino near Boston.
  • The suit alleges Wynn received preferential treatment during the process.
  • The Mohegan Tribal Gaming Authority says it's the first time it has taken legal action over a license.
Read comments


Friday, December 12, 2014

Gambling Commission Unaware of Wynn Money Laundering Investigation




Wynn's casino project in Massachusetts faces new hurdles

Somerville wants judge to void Wynn license

Published 5:30 PM EST Dec 11, 2014
 
 
Casino Gambling generic
(Flickr Creative Commons/iotae)
 
 
BOSTON —New hurdles are emerging for Wynn Resorts as it prepares to build a $1.6 billion resort casino on the Everett waterfront after winning the lucrative casino license for the Boston area.

Somerville filed a lawsuit last week against the state Gaming Commission, asking a state court judge to void the Wynn license.

The city argues regulators should have disqualified the company or at least required it to abandon its proposed site after it became public that a convicted felon had a financial interest in the land deal, a violation of state law.

Meanwhile, the gambling commission's staff last week disclosed it is conducting an inquiry after the Wall Street Journal reported that the IRS's Criminal Investigation Division requested information on Wynn's clients, domestic and overseas marketing offices and internal controls. The newspaper said federal authorities are probing whether the Las Vegas-based gambling giant violated money laundering laws.

Those developments come as the casino is focused on plans to clean up the polluted former Monsanto chemical plant site ahead of breaking ground on the project.

And Boston Mayor Martin Walsh said this week that his administration is still in talks with the casino on a possible compensation agreement since the resort is expected to impact traffic in and around Sullivan Square.

Anti-casino activists say the Somerville lawsuit, which follows one filed in October by the city of Revere, is unsurprising.

"Somerville has been pretty open about its intention to try to slow down if not stop the project," said John Ribeiro, head of Repeal the Casino Deal.

The Gaming Commission said the suit repeats allegations already investigated by its staff. "The Commission continues to believe firmly that its approach to the land transaction was fully in keeping with its statutory and regulatory obligations and fully protected the public interest," it said in a statement.

But Somerville Mayor Joseph Curtatone, a vocal opponent of casinos, fired back this week: "The Gaming Commission hasn't really done much to really build the confidence of the public. ... To say they've thoroughly investigated the worst-kept secret in mankind is really a joke."

Boston College economics professor Richard McGowan, who studies the gambling industry, said the money laundering allegations could have wider implications than the lawsuits, which he considers long shots.

"It makes it look like the commission did not do a very good job of due diligence," he said. "It also puts a stain on the whole process."

Karen Wells, director of the Gaming Commission's Investigations and Enforcement Bureau, told commission members last week that her office was unaware of the IRS's August information request until a Wynn official emailed the Wall Street Journal article, which was published late last month.


Wynn maintains it is not aware of any criminal investigation related to money laundering and has declined to comment on the Somerville and Revere lawsuits.

"We've not received notice that the company is under investigation," said Michael Weaver, a casino spokesman. "Requests for information from agencies and regulators occur in the casino industry."

In other casino developments, MGM Resorts International hosted an information session Thursday in Springfield for contractors, vendors and construction suppliers. The company is preparing to break ground next year on an $800 million downtown Springfield casino.

And the owners of the former Raynham dog track say they may seek a state license to build a resort casino at the Brockton Fairgrounds.

The Carney family had hoped to convert Raynham Park, now a simulcast betting facility, into a slots parlor, but the gaming commission awarded that license to Plainridge Racecourse in Plainville.

The deadline to submit applications for the remaining casino license, which is reserved for the southeastern Massachusetts region, is Jan. 30.

 
 
 
 
 
 
 

Saturday, June 14, 2014

Casino site’s owner to sign pledge





Casino site’s owner to sign pledge

Gattineri says he has no secret partners for property in Everett


Thursday, June 5, 2014

Follow The Trend And Short Las Vegas Sands And Wynn Over The Next Months



Follow The Trend And Short Las Vegas Sands And Wynn Over The Next Months

Saturday, May 31, 2014

Caesars lawsuit against gaming commission chief dismissed...for now




The lawsuit was filed in December, two months after Suffolk Downs dropped Caesars as a partner in a $1 billion casino venture at the East Boston racetrack, over concern that the company would fail its mandatory state background check. Commission investigators had raised red flags about the company, including that Caesars had signed a licensing deal with a hotel chain owned in part by a businessman allegedly tied to Russian mobsters.

Caesars said in its suit that Crosby was predisposed to favor a rival casino application by Wynn Resorts because of his past business relationship with Paul Lohnes, one owner of a plot of land in Everett where Wynn has proposed a casino.

The suit cited a controversy on Crosby’s failure to immediately file a formal disclosure of his association with Lohnes. Crosby disclosed the relationship one year after he became aware of the potential conflict, according to court documents.

In December, Crosby recused himself from a commission discussion of the Everett land, and in May he removed himself from the debate about awarding the Greater Boston resort casino license.

In a highly technical, 38-page ruling, US District Judge Nathaniel M. Gorton acknowledged that it would be unconstitutional for a state official to conspire to deprive an applicant of the opportunity to compete for a state license for the purpose of favoring a former business partner.

“Such actions would shock the conscience as truly outrageous and thus constitute a violation of substantive due process,” Gorton said. “Caesars can only reach that negative conclusion, however, by assuming a series of improbable inferences, themselves resting on the shaky foundation of a number of naked assertions.

“Stripped of its sensational accusations of Crosby’s nefarious motive, assertions the court does not assume to be true at this juncture, plaintiff has simply alleged a violation of procedural due process that the court considers a close call. Courts must accept well-pled facts as true but need not indulge in improbable conspiracy theories.”

Caesars strongly disagreed with the ruling.

“Caesars and the citizens of the Commonwealth deserve to know the truth about the conduct of the leader of the Massachusetts Gaming Commission, whose subsequent recusal from the [Greater Boston region] selection process has further impeded implementation of the 2011 Expanded Gaming Act,” Gary Loveman, chairman and chief executive of Caesars Entertainment said in a statement issued late Friday night.

The Expanded Gaming Act, signed by the governor in 2011, allows the establishment of three resort casinos and one slot machine parlor in Massachusetts.

“Throughout his ruling, Judge Gorton acknowledges the merits of the claims made by Caesars in its lawsuit,” Caesars stated. “The opinion states that the court is ‘disturbed by Crosby’s failure to avoid the appearance of impropriety and convinced that public trust in the casino licensing process has suffered as a result.’

“The ruling further acknowledges Crosby’s ‘ethical lapses.’ The company emphatically disagrees with the court’s assertion that it is not empowered to rule on these ‘lapses.’ ”

http://www.bostonglobe.com/metro/2014/05/30/caesars-suit-against-gaming-commission-chairman-crosby-dismissed/mk9LMTY7EV5aY5fGGojrsM/story.html



Friday, May 30, 2014

Gaming Board: There Won’t Be a Tie on E. Mass. Vote Because There Won’t Be a Tie on E. Mass. Vote



Gaming Board: There Won’t Be a Tie on E. Mass. Vote Because There Won’t Be a Tie on E. Mass. Vote




When the Eastern Massachusetts casino licensing process devolved into a hot mess earlier this month, headlined by commission chair Stephen Crosby’s recusal from any further business having to do with the license, one question stood out. What to do if the now-four-member commission’s vote on whether to award the casino to the proposed Everett and Revere sites results in a tie?
 
Worry not, because today the commission gave its answer. It translates pretty well to this: “Dude. C’mon. There won’t be a tie.”
 
From Commonwealth Magazine:



[Acting chair James] McHugh expressed confidence that the plan would avoid a 2-2 impasse. "The likelihood is nonexistent after going through those tools and still be tied," he said. "It's just not going to happen.
 

Those tools refer to a question-and-presentation protocol that is meant to build consensus across the commission. The board’s previous vote—awarding a slot parlor to Penn National Gaming in Plainville—resulted in a close 3-2 vote.
 
According to MassLive, McHugh, shrugging off the mathematics that suggest a tie is very possible in a four-person vote, added: “It’s inconceivable to me that we won’t reach a decision.”
 
However, he did provide a look at what might happen in the event of the inconceivable. Developers could try and sway commissioners who remained on the fence (despite the fact they already voted—hence the tie), or the commission could ask each to come back with a final offer and vote again. But, going back to Commonwealth Magazine, that part of the plan is still sort-of-kind-of a work in progress.
McHugh said that it would be difficult to precisely predict how the applicants would go about "improving" their offers to deal with any objections.

Anyway, don’t worry about all that because there totally won’t be a tie. There won’t! There just won’t.
 
The board said it would vote on the Eastern Massachusetts license in late August or September, according to MassLive.
 
 
http://www.boston.com/news/local/massachusetts/2014/05/29/gaming-board-there-won-tie-mass-vote-because-there-won-tie-mass-vote/U3TpwkyziMDWTLpZlzyIfL/story.html
 
 

Tuesday, May 27, 2014

"...the people who are living there now won’t be there [if] the casino gets built...."



A pretty good statement as to why casino development is not in the best interest of cities and towns of diversity of income and race which are seeking legitimate industry that will raise the quality of life of ALL it's rsidents...despite their false projections of increased revenue and jobs...
 
"That spillover would almost certainly wash away some of the neighborhood’s diversity, said Phil Bronder-Giroux, executive director of Tri-Cap, an antipoverty agency that serves Everett..., Malden, and Medford. He said the casino and the city’s revitalization plans will lead to higher rents, making the neighborhood unaffordable for many longtime residents.

“I can say pretty assuredly to you that the people who are living there now won’t be there [if] the casino gets built,” said Bronder-Giroux.

Even if Wynn’s plans are rejected, city officials say, the neighborhood is gaining momentum, enough to continue its upward swing. They believe they could lure other development to the former Monsanto site that would contribute to the area’s revitalization."

http://www.bostonglobe.com/business/2014/05/17/awaiting-casino-outcome-everett-neighborhood-faces-change/R0oZY1N67ldP4eBMcYzpOK/story.html?s_campaign=email_BG_TodaysHeadline
 
 
Change to the neighborhood, known as the Lynde, could come at lightning speed...
The Boston Globe
 
 
EVERETT — From a vacant parcel of land, choked with weeds and framed by smokestacks and storage tanks, you can look across the Mystic River. If residents of the adjacent neighborhood had access to this section of waterfront, they might see their future.
 
In the distance loom Charlestown and Somerville, post-industrial communities that have reinvented themselves to become among the most desirable in Greater Boston, attracting new people, businesses, and investment. Here, not far from the border with Boston, similar changes are underway as abandoned factories are converted to high-end housing and greener businesses, such as microbreweries, replace dirtier ones.
That change is likely to accelerate to lightning speed should Las Vegas mogul Steve Wynn gain approval to build a $1.2 billion resort casino on that vacant property along the Mystic — a development that many agree would transform a long-struggling neighborhood, remarkable for the diversity of people, income, and land use packed into 11 city blocks.
Known as the Lynde (pronounced “line”), the neighborhood stretches a half-mile on either side of Route 99, cut off from the rest of Everett by the

Sweetser Rotary to the north. Poor immigrants live next to middle-class whites, blacks, and Hispanics in single-, two-, and three-family homes and across Route 99 from young professionals in upscale condos.
 
Junkyards, auto repair shops, small manufacturers, and major international corporations are interspersed throughout the neighborhood. Giant oil tanks loom over wood-framed houses.
 
Much of what keeps Greater Boston moving is found in the Lynde. The MBTA services its fleet of subway trains here. Exxon Mobil’s tank farm stretches east to Chelsea. Distrigas of Massachusetts operates the liquefied natural gas, or LNG, terminal in Everett, the oldest facility of its kind in the United States.
 
The Distrigas complex, in turn, has connections to two interstate natural gas pipelines, as well as the Mystic Power Station, just over the border in Charlestown, which generates electricity for about 1.5 million homes.
 
“The things that power this area all come from Everett, which is great for the rest of us,” said Jason Schwartz, senior editor at Boston Magazine, who has written about liquefied natural gas deliveries and the casino proposal. “But Everett hasn’t necessarily shared in all of the prosperity that the rest of us have gotten from their work.”
 
The Lynde grew up at the turn of the 20th century when it was a thriving manufacturing mecca, a place where blue-collar workers, mostly Italian immigrants, lived and walked to jobs at the oil refinery, tool manufacturing plant, or Monsanto Chemical Co.
 
Frank Dascoli, 76, and Jim Marchant, 78, grew up in the neighborhood in the 1940s and ’50s, their families sharing a duplex on Lynde Street. They recalled the Lynde as a place of adventure, where industrial neighbors provided their playgrounds. In winter they ice-skated around oil tanks, and in summer they swam in the polluted Mystic, admiring the greens, blues, reds, and yellows spreading on the surface, and risking a spanking when they returned home.
 
“That water was loaded with sulfur, loaded with tar,” Dascoli said. “You’d go down there clean and you’d go home . . . filthy.”
A view of the Monsanto Chemical property in the 1920s.
Everett History Facebook page
A view of the Monsanto Chemical property in the 1920s.
 
Today, the neighborhood is a mere remnant of its industrial heyday, dotted with a few vacant lots, abandoned homes, and empty factory and commercial buildings, including the former Esso Office Building on Beacham Street, where graffiti and boarded windows tower over a small patch of unruly weeds.
 
Until a few years ago, revitalizing the neighborhood was never a priority for city officials, who long hoped that manufacturing would return. When it became clear it wouldn’t, they began looking for other ways to improve the area.
 
“I wouldn’t say it’s a no man’s land, but it’s an area where you don’t quite know what the neighborhood is supposed to be or wants to be,” said James Errickson, executive director of the Everett Planning Department. “So defining that is what the challenge is.”
 
Signs that the neighborhood was changing first appeared in 2005 when the former Charleston Chew candy factory was converted into a 69-unit condominium development. Nancy Koury and her husband, Steffen, were among those who bought, lured by an easy commute to their respective jobs at a Boston law firm and product design company.
 
LNG storage tanks seen from Robin Street in the Lynde.
Mark Micheli for The Boston Globe
LNG storage tanks seen from Robin Street in the Lynde.
 
The Kourys bought two units with exposed brick walls and ceilings with aged wood beams, then combined them into a penthouse suite with a deck and skyline views of Boston.
 
Nancy Koury said it was an opportunity to get more for their money than in other Boston-area neighborhoods, including the Charlestown Navy Yard, where they once lived.
 
“We pretty much fell in love with the space,” said Koury, who today is a member of the Everett Planning Board.
 
The city had plans to improve the neighborhood at least two years before Wynn set his sights on the former Monsanto property in 2012 as the location for his company’s casino. Over the past couple of years, it has repaved Route 99, added a bike lane, and installed new lighting. City officials also plan to study the feasibility of adding a commuter rail stop along tracks on the west side of Route 99.
 
Robert Burns is cofounder of Night Shift Brewing, one of two breweries in the Lynde. In the three years since the microbrewery opened on Charlton Street, Burns said he’s noticed new businesses, more young people, and more activity in the neighborhood.
 
“It just seems as if it’s going up and up,” Burns said. “And I think as more people realize the close proximity to public transportation and how close it is to the city, it’s going to be a great alternative to living in the more expensive communities around it.”
 
Smokestacks loom large from this vantage point on Bow Street.
Mark Micheli for The Boston Globe

Smokestacks loom large from this vantage point on Bow Street.
 
Developer Andy Montelli is betting on that. His company, Post Road Residential of Fairfield, Conn., is building the $91 million Batch Yard luxury apartments. Although rents have yet to be set for the 328 units there, they are expected to be lower than advertised rents in similar projects around the area.
 
“We’re pioneers,” Montelli said. “Everett hasn’t seen a lot of development. It hasn’t been a traditional community where developers go, where banks invest.”
 
Montelli had plans to build here before Wynn Resorts proposed the casino on the former Monsanto property. Later this year, the state Gaming Commission will decide whether to award the sole license in the Boston area to Wynn or to Mohegan Sun, which has proposed a casino for the Suffolk Downs racetrack property in Revere.
 
If Wynn gets the license, Montelli said, he is hopeful that the casino would make the neighborhood and his development more attractive. Other restaurants, hotels, and shops would likely open along Route 99, providing additional amenities for residents.
 
“When you put a billion dollars into a place, there’s got to be some spillover effect,” he said.
 
Las Vegas developer Steve Wynn gave details of his casino proposal last year in a meeting with Everett residents.
Wendy Maeda/Globe Staff/File
 
Las Vegas developer Steve Wynn gave details of his casino proposal last year in a meeting with Everett residents.
 
That spillover would almost certainly wash away some of the neighborhood’s diversity, said Phil Bronder-Giroux, executive director of Tri-Cap, an antipoverty agency that serves Everett, Malden, and Medford. He said the casino and the city’s revitalization plans will lead to higher rents, making the neighborhood unaffordable for many longtime residents.
 
“I can say pretty assuredly to you that the people who are living there now won’t be there [if] the casino gets built,” said Bronder-Giroux.
 
Even if Wynn’s plans are rejected, city officials say, the neighborhood is gaining momentum, enough to continue its upward swing. They believe they could lure other development to the former Monsanto site that would contribute to the area’s revitalization.
 
“The only fear I would have is that it stayed the same,” said Everett City Clerk Mike Matarazzo, the city’s unofficial historian. “Its value is being looked at quite differently now, and I don’t think that is a realistic fear.”
 
This article was adapted from the documentary “Down the Lynde: A Neighborhood on the Verge of an Industrial Breakdown,” by Mark Micheli. The 67-minute video will be shown Wednesday, June 11, at 7 p.m. at the Malden Public Library, 36 Salem St., Malden. Micheli can be reached at markfmicheli@gmail.com.

Monday, May 26, 2014

MA: Chips still on web gambling

Clearly, none of these political hacks have watched those who can least afford it playing KENO or buying scratch tickets.



Chips still on web gambling


State to go forward despite loss of casino group support




Photo by: Ted Fitzgerald
YOU BET: Massachusetts Gaming Commission Chairman Stephen Crosby wants the state to continue to discuss legalizing online gambling despite withdrawal of support from a casino industry group.

Sunday, May 25, 2014
By: Jack Encarnacao


Online gaming proponents are vowing to push ahead despite a leading casino industry lobbying group’s withdrawal of support for expanded Internet gambling, which has proved to be a divisive issue among Las Vegas gaming titans.

State Treasurer and gubernatorial candidate Steven Grossman said the reversal by the American Gaming Association does not chill his interest in exploring online gaming to boost the state Lottery.

“They can have their squabbles out there all they want,” Grossman said. “We’ll continue to move forward … to study this issue and how it can potentially affect us, one way or another. Any smart business of any kind, public or private, would study that. You have to change to survive and flourish.”

The AGA announced this past week it would no longer push to expand online gaming into new states, an issue that has pitted opponents such as Sands chief Sheldon Adelson and Wynn Resorts head Steve Wynn against supporters such as MGM and Caesars Entertainment.

Grossman said the near $5 billion state Lottery still wants to explore if online gaming can help preserve its market share, so long as credit cards can’t be used to play and if it doesn’t increase gambling addiction or hurt Lottery retailers.

“I hear the differences of opinion out there,” Grossman said. “We’re not going to get dragged one way or another into that debate. We’ll simply study and be very careful with any approach to online gaming that doesn’t protect the people of this commonwealth appropriately.”

A bill is pending in the Legislature that would clear the path for the Lottery to experiment with online gaming.

Adam Krejcik, managing director at Eilers Research, which tracks online gambling, said the AGA’s move dampened the prospects for new states jumping into the arena, particularly in the wake of poor returns in New Jersey.

“I think a state would much rather have the AGA support … someone needs to be leading the charge,” Krejcik said. “It’s hard to put a positive spin on it.”

Krejcik said online gaming revenue this year in New Jersey, where casinos run gambling sites, “will come in below the most conservative estimates out there,” about $140 million. Projections were as high as $1.2 billion, he said.

The state Gaming Commission — whose chairman, Stephen Crosby, called a forum in March to discuss online gambling, saying “the time is now” to discuss legalizing it — said the AGA decision does not change its posture.

“The AGA’s decision to withdraw from discussions regarding online gaming reinforces the commission’s position on this topic,” the commission said in a statement. “The commission believes that a slow and deliberate approach to this issue is the most responsible way to move forward given the significant varying opinions on this matter.”


http://bostonherald.com/business/business_markets/2014/05/chips_still_on_web_gambling


Thursday, May 15, 2014

This has NEVER been about HORSE RACING!


Suffolk Downs offers to abandon racing for casino

Tuesday, May 13, 2014

A Whirlwind Week on Mass. Casino Scene



A Whirlwind Week on Mass. Casino Scene

Gaming Commission chairman Stephen Crosby has recused himself from proceedings involving the Eastern Massachusetts casino license.
Gaming Commission chairman Stephen Crosby has recused himself from proceedings involving the Eastern Massachusetts casino license.Credit: John Tlumacki, The Boston Globe

 

If you had mid-May of this year as the point at which implementation of the state’s gambling legislation would explode into a hornets’ nest of legal threats and perceived conflicts of interest, cash in now.
 
It’s been a busy week on the casino front.
 
On Thursday, Gaming Commission chairman Stephen Crosby, in the face of claims that he has gotten cozy with the brass at the competing Everett and Revere casino sites, stepped away from any decision-making around the licensing of an Eastern Massachusetts casino.
 
Given that he’s supposed to be the head decision maker, Crosby is now facing calls for his outright resignation. The chorus includes five candidates for governor in this fall’s election. The Boston Globe reports:
Democrats Steve Grossman, Martha Coakley, and Juliette Kayyem, Republican Charlie Baker, and Independent Evan Falchuk all said Crosby should resign to allow the awarding of the license to move forward without controversy.

Among the first things Crosby recused himself from was the commission’s Thursday vote to determine whether the City of Boston has claim to “host community” status for either of those sites.
 
Had the commission said yes, East Boston would have had the opportunity to vote on whether or not to allow the Mohegan Sun-Suffolk Downs proposal in Revere, and Charlestown to do so for the Everett site. East Boston, of course, already once voted whether to allow a casino that straddled its border with Revere and soundly rejected it, leading the Suffolk Downs proposal to scoot itself fully within Revere’s borders.
 
Boston Mayor Martin Walsh on Friday said his administration believes it has “multiple options available” to continue the fight for host community status.
 
Meanwhile, the Boston Business Journal reports that Somerville’s negotiations for mitigation compensation from Wynn Resorts, the developer behind the Everett casino, have reached the point of bitterness. Each side has objected to the other’s proposed arbiter in determining what Somerville should get in mitigation of the potential effects of having a casino so nearby.
 
Keep in mind, the gaming board hopes to issue the Boston-area license by the end of the summer.
 
All of the above, however, is moot if a voter referendum makes its way on to ballots this November and results in a repeal of the 2011 gaming legislation. In order to make that happen, the group advocating for the question will need to convince the Supreme Judicial Court to allow it. On Sunday, however, the Globe reported that one judge—Justice Robert Cordy—has past ties to both the Suffolk Downs and Everett sites.
It turns out Cordy has more than a passing familiarity with the difficulties casino companies have doing business in Massachusetts. In the 1990s, Cordy was a lawyer and a lobbyist for Suffolk Downs, one of two possible locations for the Eastern Massachusetts casino, and a second gambling company that was seeking to build a casino in the state.

Cordy also served as senior adviser to Governor William Weld, who is now an attorney for Steve Wynn, Suffolk Downs's rival for the Boston-area casino license.

In fairness to Cordy, his work for Suffolk Downs came under previous ownership. But it’s still not a very good look. A court spokesperson told the Globe Cordy has recused himself from some cases in his career, but did not offer any specific cases.
 
So, to recap. The gaming board commissioner won’t play a role in deciding which Eastern Massachusetts casino receives a license. Boston is going to continue its quest for host community status while Somerville’s standoff over the Everett proposal remains terse. And the group that wants to just do away with the casino laws altogether is presenting its case to somebody with ties to the sites desperately vying for said casinos.
 
Let the games begin.
 
 
http://www.boston.com/business/news/2014/05/12/whirlwind-week-mass-casino-scene/JBSE5YCr2ET5TYHx6cMo8L/story.html
 
 

Don't Bet the House: Online Gaming Ban Faces Uncertain Future



Don't Bet the House: Online Gaming Ban Faces Uncertain Future

 

Currently, it's up to the states to decide whether to allow casinos, lotteries or other forms of gambling, including the online variety. Already facing new competition from the ever-expanding number of bricks-and-mortar betting facilities on Indian reservations and in states that have only recently allowed gaming (Pennsylvania, New York and Maryland, to name a few), some of the old Vegas guard are attempting to fight further encroachment by pushing a federal ban on online gaming. The prohibition would shut down Internet gaming in the U.S. wherever it already exists (three states) and prevent any new states from entering the market.
But not everyone in Vegas (or Atlantic City) takes that view. Some major casino companies are betting they can extend their brand from the Strip to the Web and make money online. And it's not just a fight between casino magnates: Indian tribes, racetracks, online game makers, states that run lotteries and financial institutions all want a say in the matter.

Splitting the Strip

The driving force behind the effort to ban online gaming nationally is Sheldon Adelson, billionaire owner of the Venetian casino. Adelson and his wife, Miriam, spent at least $92 million in 2012 supporting his favorite conservative candidates by giving to outside spending groups -- including $15 million to a super PAC supporting former Republican House Speaker Newt Gingrich's bid for the White House and $30 million to the one backing GOP presidential nominee Mitt Romney. (That's why possible Republican 2016 presidential hopefuls were practically tripping over themselves to speak at his confab, dubbed "the Sheldon primary," earlier this year.)
At the time, Adelson's main interest appeared to be electing a GOP president who would be strongly pro-Israel, although he's said to be concerned as well about a federal investigation into whether anyone connected with his company, Las Vegas Sands, bribed foreign officals; Las Vegas Sands is the world's largest casino company, and its operations in Macau account for much of its revenue.

Now, though, Adelson has taken on what he says he views as a moral issue, telling Bloomberg News -- in one of many interviews he's done on the subject in recent weeks -- that Internet gambling is "a train wreck, it's a toxicity, it's a cancer waiting to happen."

At the end of March, Lindsey Graham (R-S.C.) in the Senate and Jason Chaffetz (R-Utah) in the House introduced the Restoration of America's Wire Act, which would mandate the reversal of a 2011 decision by the Department of Justice to allow online gambling except when it came to sports betting. Graham has picked up two co-sponsors, Sen. Mike Lee (R-Utah) and Sen. Dianne Feinstein (D-Calif.)
Adelson strongly supports the bill. And as it happens, in the first half of the 2014 cycle alone, Graham received $10,400 from the Adelsons and $20,600 from employees of Las Vegas Sands. Adelson, in fact, threw a fundraiser for the South Carolina lawmaker in 2013 at the Venetian. None of the co-sponsors appear to have received any money from Adelson.
And Adelson picked up an industry ally earlier this year when Steve Wynn, the owner of Wynn Resorts, flipped to support a ban on online gaming.

Wynn's political contributions show that he, like Adelson, is a reliable Republican booster. According to an OpenSecrets Blog analysis, Wynn and his current wife, Andrea, have given more than $1.1 million overall since 1990, of which $949,000 has gone to Republican candidates, PACs or party committees.

So far in this cycle, the couple has written multiple five-figure checks to three big Republican national party committees. Otherwise, they've donated only to Nevada lawmakers -- Senate Majority Leader Harry Reid, a Democrat, and Republican Rep. Joe Heck. The Wynn Resorts corporate PAC has only given out $2,500 so far this cycle to House Speaker John Boehner (R-Ohio). In past cycles, the PAC has given exclusively to Republicans.

But Wynn's comments about Internet gaming seem focused on the fact that he sees little in it for him, rather than any principled desire to see online gambling banned. His company did report lobbying on online gaming in the first quarter of 2014, but it spent just $30,000.
Lining up on the other side of the issue -- and for the most part, the political aisle -- are the two names that control just about every other iconic casino on the Las Vegas strip.

MGM Resorts, which owns the MGM, the Bellagio, the Luxor, CityCenter and the Mirage, to name a few, has publicly backed an expansion of online gaming. MGM also a history of political donations on the other end of the political spectrum from Adelson and Wynn. The company's corporate PAC and employees have favored Democrats since 2010, but the company has also made donations to outside groups. In 2010, MGM gave $300,000 to Patriot Majority, a liberal super PAC closely affiliated with Harry Reid. In more recent cycles, Patriot Majority has changed its status and become a politically active "social welfare" nonprofit that does not disclose its donors, but rails against conservative megadonors and outside spending.

Joining MGM in backing legalized online gambling is Caesar's Entertainment, which owns not only Caesar's Palace, but Harrah's and numerous other casinos across the country. Caesar's corporate PAC also leans Democratic, though less so than MGM's.

Not only do both companies publicly oppose a federal ban on gambling, but both have casinos that have been licensed in New Jersey to run online gaming operations.

Adelson's Sands Corp., in contrast, has only one non-Vegas casino, in Pennsylvania. Still, that state is considering legalizing online gambling, meaning that Adelson could yet be poised to reap the rewards of the "toxicity," if he so chooses.

A representative for the Sands would only confirm the company's support for a ban on online gaming and declined to elaborate.

The Sands has beefed up its lobbying operation, however. In the first quarter of 2014, the company reported spending $170,000 on lobbying -- more than half of what the company spent in all of 2013. All four lobbying disclosures filed by firms representing the casino listed Internet gambling as an issue. The firms representing the Sands include powerhouse K Street names like Patton Boggs and Steptoe & Johnson. The Sands also added former senator-turned-lobbyist Blanche Lincoln, the Lincoln Policy Group, and her firm to its roster of lobbyists.

Each side has formed an alliance to get its message out. Those sharing Adelson's point of view put together the Coalition to Stop Online Gambling. In response, the casinos on the other side created the Coalition for Consumer and Online Protection, which told OpenSecrets Blog that federal ban on lobbying would interfere with what are properly state-level decisions.

"With the proposed Adelson bill banning all Internet gaming, Congress would block important consumer protections, threaten state and individual rights and stifle innovation -- all in one legislative action," said that group's spokesperson Kristen Hawn.

Deal them in

Outside of the major casino interests, a diverse array of groups has tried to chime in on the subject: Indian tribes, gaming tech companies, banks, law enforcement and even Zynga, the company that makes Farmville and other games for Facebook.

One lobbyist representing several groups that oppose the ban said that many in the industry simply "want the issue to go away," maintaining that Adelson was solely responsible for the push. The rest of the industry, even those who might be disadvantaged by online gambling, is happy to have the issue decided at the state level, the lobbyist told OpenSecrets Blog.

Among Indian tribes, there's no broad consensus on the question, said Larry Rosenthal, a lobbyist with Ietan Consulting. Rosenthal represents the National Indian Gaming Association as well as 10 individual tribes -- including ones with major gaming operations like the Mashantucket Pequot Tribal Nation.

"Everyone is all over the map," Rosenthal told OpenSecrets Blog. "You have some tribes who want online gaming, and some who want to protect their bricks-and-mortar operations. There is no monolithic position."

"Some of the more rural tribes are worried -- they're not going to compete on the level of Las Vegas, so some folks would probably support Adelson," Rosenthal said. Still, he noted, some tribes feel they have the resources to compete and have been meeting with technology companies to try and set up online gaming operations.

Given the huge range of resources and pre-existing operations, the only consensus position on any action by federal government is that it must not step on existing tribal rights, Rosenthal said.

"Many tribes are saying that if something is going to happen, they want to be protected -- they want to make sure Indian Country is protected," he said. "If there is legislation it should respect tribal sovereignty."

States, too, are eyeing federal legislation warily -- though their lobbying records so far this year show little activity on this front. But the Democratic Governor's Association has issued a strong condemnation of Graham's legislation, citing two main concerns similar to those raised by tribal leaders: Decisions over regulating gambling traditionally have been ceded to the states, and a proposed ban on Internet gambling could hurt existing operations, in this case state lotteries; 10 states have online lotteries and more are considering it.
The concern about the impact on lotteries, though, cuts two ways. One of the few non-casino groups to sign on with Adelson is the National Association of Convenience Stores. The trade organization's first quarter 2014 lobbying reports show an interest in the issue, and the group's website points out how meaningful in-store (not online) lottery sales are to its members: In 95 percent of visits by lottery customers, they bought merchandise in addition to tickets, the group claims.

The Republican Governor's Association hasn't followed the DGA's lead with a similar declaration against the ban -- which has some observers wondering if the slew of sitting Republican governors with presidential aspirations, and so possibly a desire for Adelson's millions, might be a factor. At least four Republican governors who fall into that category -- South Carolina's Nikki Haley, Texas' Rick Perry, Louisiana's Bobby Jindal and Indiana's Mike Pence -- have all recently issued statements of support for restricting online gambling, which have been trumpeted by the coalition supporting the ban.

But even if some governors are calling for the ban, they're facing pressure from groups of their own public employees. For example, law enforcement, which is not generally known as a friend of gambling, has expressed some opposition to Graham's legislation. The National Fraternal Order of Police, one of the leading police unions which has spent $55,000 lobbying this year on a variety of issues including online gaming, released a statement of its own criticizing the proposed ban. The union's opposition was two-fold -- concern that without regulated online gaming, "black market" online gaming happens anyway, and, the loss of revenue for law enforcement agencies.


The legislation is pending in both the House and Senate Judiciary Committees. As the fight heats up, visit our new Issue Profile on Online Gaming.

Images: This Nov. 29, 2013 photo shows a losing game of Internet blackjack on a computer screen in Atlantic City NJ. (AP Photo/Wayne Parry)



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