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Showing posts with label Terry Watanabe. Show all posts
Showing posts with label Terry Watanabe. Show all posts

Saturday, January 25, 2014

Losing Everything to Gambling Addiction



Losing Everything to Gambling Addiction

More older Americans are problem gamblers, but are they betting against their health, too?

"It was like electronic heroin," Maureen O'Connor said of the machine she thought she could beat.

"You know, the more you did, the more you needed — and the more it wasn't satisfied."


But in the end it was the machine that beat O'Connor, leaving the former San Diego mayor and heiress to a $50 million fortune all but destitute. At 67, she now lives with her twin sister instead of in the beachfront estate in La Jolla that she and her late husband, the founder of the Jack in the Box fast-food chain, once called home.

O'Connor's addiction to video poker ("that machine," she called it) was all-consuming. In nine years she placed more than $1 billion in bets at casinos in San Diego, Las Vegas and Atlantic City. O'Connor, in fact, was such a high roller — a "whale," to use the industry's not-so-flattering term — that Vegas casinos would send a private jet to pick her up in San Diego. She didn't disappoint. "I could lose more than a hundred thousand in a day," she told an interviewer last February. (O'Connor, through her attorney, declined to be interviewed for this story.)


As her losses mounted — eventually reaching something like $13 million, according to her lawyers — O'Connor did what eventually landed her in a federal courtroom, charged with the felony crime of money laundering: She took $2,088,000 from a charitable foundation set up by her husband in 1966, depleting its assets and leaving it insolvent.

What caused O'Connor — a onetime champion swimmer, San Diego's hard-charging "Mayor Mo" from 1986 to 1992 — to fall into such an abyss? She herself blamed an addiction to gambling made worse by a brain tumor, diagnosed in 2011. Her lawyers noted in court filings that she turned to gambling in a big way sometime around 2001, as she continued to struggle with pain and loneliness following the death of her husband. "The pattern," her lawyers wrote, "fits the syndrome known as grief gambling."

Under a deferred-prosecution agreement, O'Connor promised to undergo treatment for gambling addiction, repay the money she took from the foundation and cover the tax liability associated with her misappropriation of funds.

While O'Connor will never see the inside of a prison, others aren't so fortunate. Marilyn Lancelot lost almost everything, too: two homes, her car and her life savings. But it wasn't until police arrived and led her off in handcuffs that her life finally hit rock bottom.

Deep in debt, she'd begun forging her boss's name on checks and cashing them to feed a runaway gambling addiction. "There wasn't anything I wouldn't do to get more money to gamble," says Lancelot, 83. Convicted of embezzlement, she spent almost a year in prison.





The number of casinos has exploded over the past few decades. In the 1960s, only Atlantic City and Nevada had casino gambling. Today, casinos operate in more than 30 states. Add state lotteries, Powerball and now Internet gambling sites, and there are plenty of ways to try your luck and lose a little cash. Many adult communities, assisted living centers and even churches organize outings to nearby casinos.

It's easy to understand why they are a big draw, says Jon Grant, M.D., a professor of psychiatry and behavioral medicine at the University of Chicago. "Casinos are full of sights and sounds where older people can feel safe. They're handicapped accessible. You can go in any kind of weather."

In fact, experts say, older Americans are the fastest-growing segment of gambling addicts. For about 8 percent, it's an addiction that can cost them their retirement nest egg.

"About 40 percent of the people we see are over 50," says psychologist Robert Hunter, who directs the Problem Gambling Center in Las Vegas. "Many of them are people who got into trouble after retiring and moving to a place where casinos are a big part of social life."

RISKING YOUR HEALTH

Compulsive gambling is linked to a range of serious health problems, including obesity, heart disease, intestinal problems, fibromyalgia, migraine, depression, insomnia and other stress-related disorders.
Compulsive gamblers are also likelier than others to show up in emergency rooms, reflecting their poor health and chaotic lives.
"The worse the gambling disorder, the worse the chronic health conditions we typically see," says University of Iowa psychiatry professor Donald M. Black, M.D., one of the country's leading experts on compulsive gambling.
In 2013, for the first time, the American Psychiatric Association officially recognized compulsive gambling as an addiction (rather than a personality disorder), acknowledging that it shares many features with alcoholism and drug addiction.
Alarmingly, in one recent study, 32 percent of problem gamblers reported that they had considered suicide within the past year. 




The nation's $40 billion a year gambling industry aggressively targets older customers, as they have accumulated wealth and are especially vulnerable, experts say, to wagering more than they can afford. The enticements range from free bus trips, meals and even discount prescription cards to "comped" hotel accommodations — not to mention the private jets dispatched to pick up high-rollers like O'Connor.
"One of the lessons of the Maureen O'Connor case," says Philip Halpern, the assistant U.S. attorney who prosecuted her, "is that it demonstrates the extreme lengths to which casinos will go to lure in high-stakes customers."
Gambling-industry marketers also know that advancing age, and the declining cognition that sometimes goes with it, can reduce a person's aversion to risk. "With age, there can be a decrease in the activity of decision-making parts of the brain related to executive functioning," Grant says. "If you have a deficit because of age, gambling may become riskier for you."
Older people with dementia are at especially high risk because they are unable to recognize limitations or use appropriate judgments. And dopamine agonists, a class of prescription drugs used to treat the symptoms of Parkinson's disease and restless legs syndrome, seem to be associated with compulsive gambling as a side effect, according to Marc Potenza, M.D., a professor of psychiatry at Yale University who studies problem gambling.

Psychologists also suspect that people are more likely to run into problems if they turn to gambling for the wrong reasons — to escape loneliness, depression or even chronic pain.

"For a lot of the older people we see, it was never about the money," says Gordon Greco, 62, a compulsive gambler most of his life who now works as a counselor for the Problem Gambling Center in Las Vegas. "They go to the casino to escape regrets, loneliness, isolation, sadness. And when they start losing money, they find themselves with even bigger problems and regrets."

Video gambling machines, now permitted in more than 40 states, are the overwhelming favorite among older casino-goers, Hunter says. And that puts them at even greater risk. Although any kind of gambling can become addictive, video slot and poker machines are the most seductive because they offer the greatest escape, experts say. "Machine gambling is really the crack cocaine of compulsive gambling," says Lia Nower, the director of the Center for Gambling Studies at Rutgers University in New Jersey.

Indeed, in Addiction by Design: Machine Gambling in Las Vegas, Massachusetts Institute of Technology anthropologist Natasha Schull argues that mechanical rhythms that lull players into a trance-like state are deliberately built into electronic gambling machines. In what Schull calls the "machine zone," gamblers quickly lose track of daily worries, social demands and even their bodily needs.

Some psychologists and psychiatrists specialize in treating gambling addiction. Compulsive gamblers, these experts say, suffer from low self-esteem and fall into two broad categories: action gamblers, who relish excitement and believe they can beat the house, and escape gamblers, who seek to forget about pain or trauma in their lives.

Gamblers Anonymous programs are available in most parts of the country. Breaking a gambling addiction isn't easy, but GA programs do help some people.

"It saved my life," says Marilyn Lancelot. After being released from prison, she began attending GA meetings. She slowly paid off her debts and has managed to steer clear of gambling. "For a recovering gambler, there's always the itch to try it again," she admits. "But I know now that if I give in to it, I'm dead."

8 BIG LOSERS

Ben Affleck The actor and filmmaker checked into a $33,850-a-month rehab center in Malibu, Calif., in 2001 for gambling and alcohol addictions.
Charles Barkley In 2006 the former NBA star pegged his gambling losses at $10 million, including $2.5 million blown in just six hours at the blackjack table.
William Bennett Dubbed "one of the nation's most relentless moral crusaders" by the New York Times in 2003, Bennett was a high-rolling gambler who racked up losses of more than $8 million at casinos.
Pete Rose The former Cincinnati Reds player and manager, who faces a lifetime suspension from baseball for betting on his own team, once incurred a debt of $400,000 to a bookmaker over a three-month period in 1987.
John Daly The so-called bad boy of the PGA Tour has put his gambling losses at more than $50 million over 12 years.
Gladys Knight The Empress of Soul once had a $40,000-a-night addiction to baccarat that she beat with the help of Gamblers Anonymous. "I would play every day if I could," she recalled in her autobiography.
Omar Sharif The film star and bridge expert ran up such mammoth gambling debts that he'd tell his agent to "accept any part, just to bail myself out," he said.
Terry Watanabe The ex-president of his family's party-favor import business in Omaha, Neb., lost at least $205 million to casinos in Las Vegas, including more than $120 million in 2007 alone.


http://www.aarp.org/health/brain-health/info-01-2014/gambling-addiction.1.html

Tuesday, October 29, 2013

Deadbeat gamblers....

Bill Kearney
Massachusetts ‘Gaming’ Future

Before reading this article I want to give you the real reason why casino operators can eat what they call deadbeat gamblers bad debt.

By the time these so-called deadbeat gamblers reach the point were they can not pay back their markers (debt) they have already lost that amount and more of their own money, along with what ever other money they could get their hands on to feed their casino gambling addiction. And let’s not forget that besides the rooms, food, beverage, entertainment, and in some cases transportation the only other thing these patrons got was chips to play with along with a very slim chance of winning. Now when it comes to those ‘COMPED’ amenities that casino operator’s use when seducing their prey they always end up costing their patrons a 100 times more than what they’re worth.

Atlantic City Press - Oct 29, 2013. - Q&A: Deadbeat gamblers as economic indicator

How do you know the economy is coming back? High rollers are paying their gambling debts.

All four major U.S. casino corporations bumped up their allowances for bad debt during the recession, with one company estimating that fewer than half of outstanding debts would be repaid. Now, companies have lowered their estimates to pre-recession rates.


The casino business was among the industries hardest hit by the economic downturn, and has been slower to recover. Visitor numbers are only now returning to 2007 levels in Las Vegas, and gambling revenue still has not completely bounced back. Even during fat times, most patrons were never offered the opportunity to gamble on credit, making this quirky economic indicator one of the lesser known corners of the gambling world.

A look at how the other half gambles:

_WHY DO CASINOS ALLOW HIGH-ROLLERS TO TAKE ON DEBT?

Read more:
http://www.pressofatlanticcity.com/news/ap/nation/q-a-deadbeat-gamblers-as-economic-indicator/article_611b0a49-4b5c-5d62-bd20-9e6c77a29bf3.html
See More








_WHY DO CASINOS ALLOW HIGH-ROLLERS TO TAKE ON DEBT?

No one likes to give away money for free, but casino bosses believe they must issue credit to their best customers or risk losing their business. Rob Goldstein, president of global gaming operations for Las Vegas Sands says casino companies would be at a "significant competitive disadvantage" if they didn't offer credit in Las Vegas, the home of high-end gambling in the U.S. On the Strip, it's not uncommon for big spenders to place million dollar bets on a single roll of the dice. Regular players, of course, play on their own dime.

_WHY ARE GAMBLERS PAYING BACK THEIR DEBTS NOW?

Las Vegas executives say people are especially likely to skip out on their gambling losses when times are hard. While other kinds of companies can threaten to repossess high-end purchases, casinos ask gamblers to pay debts on experiences that are intangible, and, worse, already over. As 2008 drew to a close, casinos jacked up their estimates for how much of their outstanding debt would go bad. Wynn Resorts Ltd. increased its rate by 40 percent, estimating that less than half of debtors would pay up.

Now, with the economy strengthening, people once again seem comfortable spending their money on gambling. The amount of money waged at Las Vegas casinos has steadily grown every year since 2010, as has the number of gamblers coming through. Still, casino executives tend to adopt a conservative attitude toward balancing their books, in part because the business relies almost entirely on discretionary spending.

_HOW MUCH MONEY ARE WE TALKING ABOUT HERE?

Casino companies write off tens of millions of dollars in bad debt each year. Last year, Sands' provision for doubtful accounts_ the amount of old debt the company thinks might go bad_ rose to $492 million. Caesars Entertainment Corp's allowance was $202.2 million, and Wynn and MGM Resorts International both made allowances of about $100 million.

That sounds like a lot of money, but it's a pretty small chunk of these companies' income. Sands, for instance, reported more than $1.5 billion in profit last year, and $9 billion in revenue from its gambling operations.

Wynn reported about $500 million in profit, and $4 billion in gambling revenue.

An AP analysis found that the four U.S. gambling giants set dramatically different bad debt rates. Sands, the casino company controlled by billionaire Sheldon Adelson, is generally the most optimistic, estimating that it will get back about 75 percent of its outstanding debt. Wynn budgets for the highest number of deadbeats, estimating that less than two thirds of its outstanding debt will be repaid. MGM and Caesars, which do less business in Asia, rank in the middle when it comes to confidence about getting their money back.

_HOW DO CASINOS COLLECT THEIR DEBTS? BY BREAKING KNEECAPS?

Casinos actually have a limited number of options when their best customers turn into liabilities. They generally negotiate with the gamblers, and as a last resort, file suits in court. But while debts are legally enforceable everywhere in the U.S., that's no guarantee companies will collect. In one high-profile case, Nebraska businessman Terrance Watanabe was indicted by a grand jury for failing to pay $14.7 million in debts he incurred at Caesars Palace and the Rio Hotel Casino in Las Vegas. He turned around and sued Caesars Entertainment, saying the company plied him with alcohol and pain killers without a doctor's prescription, rendering him incapable of gambling responsibly. Watanabe ended up paying only $100,000 when the two parties settled in 2010.

_WHAT HAPPENS IF A HIGH ROLLER ISN'T FROM THE U.S.?

Overseas, collection can be much harder. In China, the world's largest gambling market, casino debts are not legally enforceable. Over the summer, a bilingual Chinese website posted a list of high rollers the site said were dodging their gambling debts. The site offered bounties for tracking the deadbeats down, and said it had helped recover millions. Sands has recently begun increasing its cushion for bad debt because of problems with collection in Singapore, where high rollers sometimes take out hefty lines of credit and then leave the town. Goldstein says that in most Asian countries, Sands has "absolutely no recourse" if someone decides to walk away from their debts.

_IT SEEMS LIKE CASINOS EXPECT A LOT OF DEBT TO GO BAD. IS THAT NORMAL?

Bad debt forecasts are a fungible number, and one that might be massaged as companies stretch to meet quarterly financial goals. Across the board, however, casino companies take a more skeptical view of the creditworthiness of their customers than other kinds of businesses. Last year, the rental company Hertz estimated that it would have to write off about 1 percent of the money it was owed. Chrysler guessed 5 percent, and Target's credit card business estimated 6 percent.

John Kempf, a casino industry analyst with RBC Capital Markets, says casino companies tend to set higher allowances for debt more because they are depending on a few individuals to pay up. In some cases, a single customer might make up a quarter or more of a casino company's outstanding debt. Casinos are also unique in that they sometimes volunteer to forgive debts to keep big spenders coming back. ITG casino analyst Matthew Jacob says debt forgiveness has become another perk just like comped meals, free suites and private jet rides. Another reminder that good times or bad, if you're going to gamble, it's nice to be a high roller.


Thursday, October 24, 2013

Caesars/Suffolk Downs: Not so simple

A comment was posted earlier about Richard Fields being unable to raise funds to purchase a bankrupt Atlantic City Casino at a bargain basement price. This seems consistent with the investigative findings.

Since the report is 558 pages long, it seems to indicate a thorough consideration of related issues.

 The Massachusetts Gambling Commission has an obligation to ensure the financial solvency of partners. Since Caesars is neck deep in debt, one must wonder if this is a bankruptcy waiting to happen, Gary Loveman's assurances aside.

Ceasars signed deal with hotelier accused of having tie to Russian mob

Monday, October 21, 2013

Casino foes rally against Suffolk Downs plan


Casino foes rally against Suffolk Downs plan

Activists oppose possible new operator, postponement of vote on East Boston project



 
 
JESSICA RINALDI FOR THE GLOBE
Ezekiel Jaidan of Lynn held his daughter, Ezelyn, 3, at an anticasino rally Sunday outside Most Holy Redeemer Parish in East Boston.

Emboldened by the abrupt pullout Friday of Caesars Entertainment from a proposal to build a $1 billion resort-style casino at Suffolk Downs, anticasino activists took to East Boston streets Sunday to rally against the plan.

“It shows you there’s something sinister . . . about this whole process,” organizer Pedro Morales, 40, said of Caesars’ decision. “It’s not opinion. There’s evidence now, clear evidence, that this deal had something unsavory about it.”

The international casino giant withdrew late Friday, after state investigators recommended Caesars be disqualified from participating in the competition for the Greater Boston resort casino license.

Suffolk Downs reiterated Sunday it will seek a new casino operator and push ahead with its application.

Casino opponents from neighborhood groups Friends of East Boston and No Eastie Casino packed Maverick Street outside Most Holy Redeemer Parish Sunday to hear leaders from Catholic, Protestant, and Evangelical churches, as well as a Muslim imam, speak against the proposal.

Don Nanstad, pastor at Our Saviour’s Lutheran Church, was one of several who quoted from religious texts as he addressed about 200 people at the rally.

“Beware of false prophets that come dressed in sheep’s clothing but inwardly are ravenous wolves,” Nanstad said.

 
 
JESSICA RINALDI FOR THE GLOBE
Casino opponents say the vote on the casino project should remain on the same day as mayoral and city council elections to encourage voter turnout.
 
Casino foes said they oppose efforts by Mayor Thomas M. Menino to postpone the Nov. 5 East Boston vote on the project, if racetrack operators cannot replace Caesars quickly. They said the vote should remain on the same day as mayoral and city council elections to encourage voter turnout.

“I want more people to get more information and more people to vote,” said Jesse Purvis, 31, a three-year resident of East Boston’s Jeffries Point section.

George Kougeas, a resident the Eagle Hill section since 1995, said the loss of Caesars was good news for casino opponents trying to warn their neighbors of the problems they fear would accompany the casino, such as increased crime, traffic, and gambling addiction.

“I find it hard to believe any of the other partners would be substantially different,” Kougeas, 61, said.

Caesars withdrew its participation in the casino plan after running afoul of the extensive background checks the state gaming law requires.

State investigators raised red flags over Caesars’ soaring debt, its association with a hotelier reputed to have mob ties, and a wealthy high-roller’s claims that his $100 million-plus loss at two Caesars casinos was fueled by alcohol and painkillers the casinos provided, according to people familiar with the report, which has not been released publicly.

Chip Tuttle, the racetrack’s chief operating officer, said by phone Sunday that Caesars’ ouster would not affect the substance of the casino plan.

“Our proposal to build a world-class resort at the racetrack that creates 4,000 jobs and lots of opportunities for local business and makes substantial improvements to local roads is the same today as it was last week,” he said. “Suffolk Downs has always been the entity seeking the license.”

Tuttle said that, if anything, the racetrack’s efforts to get its message out to the community had been bolstered by Friday’s news.

“One of the great things about East Boston . . . is we probably had more support Saturday in the community, after this news, than at any other time in the campaign,” Tuttle said. “We had 250 people knocking on doors, holding signs, calling voters.”

Casino supporter Felix Bezeredy, 60, watched the anticasino rally from Lombardi Memorial Park across the street from the church. Bezeredy said he disapproved of religious leaders, whose houses of worship are tax-exempt, getting involved in politics.

“I know that my Lord, if he was here today, he would say, ‘Shame on you,’ ” said Bezeredy, who said he was raised Catholic but later joined the Pentecostal Church. “I think that the church should stay out of it unless the church wants to pay taxes.”

Other neighborhood residents were more receptive to the anticasino message, even if they required a little persuasion. As they walked through Jeffries Point, knocking on voters’ doors, casino opponents Tanya Hahnel, 30, and Michael Jacob, 37, encountered a neighbor who initially said she supported the casino.

“I’m all for gambling,” said the woman leaning out a Sumner Street window, who declined to give her name but said she was a lifelong East Boston resident and the granddaughter of Italian immigrants. “My mother was a bookie. All their lives, they made money booking from the house, the women.”

After a brief conversation with Hahnel and Jacob about detrimental changes they believe the casino could bring to the neighborhood, she changed her mind.

“We really don’t need it,” she said. “There’d be a lot more crime. There’d be everything you don’t want, and it would just gravitate to that place.”


http://www.blogger.com/blogger.g?blogID=382861050640300397#editor/target=post;postID=2811875364886420311

 

Sunday, October 20, 2013

Caesars ouster puts casino vote in doubt

There are some great books available that examine Gary Loveman's genius in revolutionizing Harrah's and creating Caesars as it exists. He was clearly ahead of his time, a leader in innovation who targeted and marketed to Gambling Addicts, unlike any organization.

After determing that 90% of their profits originated from 10% of their patrons in some of the poorest communities in the nation, Loveman targeted, comp'd, pursued, developed techniques to entice to Play to Extinction, divorcing himself from the consequences of Gambling Addiction.



Caesars ouster puts casino vote in doubt

Casino chain’s boss says state’s regulators have excessivedemands


Wednesday, March 20, 2013

NJ Fines Caesars [Harrah's] for Watanabe Incident



Interesting commentary below about the technology connection.

New Jersey Fines Caesar for 2007 Casino Gambling Incident

Based on the reports submitted by Caesars to the NJDGE regulatory body, the casino’s executive management failed to exercise sound judgment and tact, in dealing with the intoxicated Mr. Watanabe. At the time of the incident, he was in possession and use of illegal drugs while playing inside a Caesars Las Vegas casino. One of NJDGE’s concerns is that the lack of appropriate action failed to protect the casino employees from Mr. Watanabe’s sexual advancements and lewd conduct, during the gambling binge.

Although Caesars Entertainment has instituted disciplinary actions against three of the Las Vegas casino executives, as well as overhauled the company’s ethics and compliance policies, NJDGE still regard the mishandling of the incident as a violation of New Jersey’s licensing conditions. By allowing Mr. Watanabe to use illegal drugs while engaged in gambling activities and by ignoring the sexual advancements made against the casino employees, the highly publicized incident tarnished the reputation of New Jersey and the casino gaming industry, through Caesars’ affiliation as a licensed Atlantic City casino operator.

http://www.adi-news.com/new-jersey-fines-caesar-for-2007-casino-gambling-incident/214917/

Man lost $127M at casinos owned by Cisco customer, Harrah's Entertainment

To its good karma and clear conscience, the Las Vegas Wynn Casino barred the man for compulsive drinking and gambling.

By Brad Reese on Tue, 12/08/09

Off topic warning: The following post is not really about Cisco, but it did get me wondering about compulsive gambling and technology’s role in it.

The Wall Street Journal is reporting that current Bay Area resident - Terrance Watanabe, lost a staggering $127 million during a single year at the Las Vegas casinos owned by a very important Cisco customer - Harrah's Entertainment (read the NetworkWorld story about Cisco signing a 10-year deal with Harrah’s).

As a former 5-year resident of Las Vegas, I'm amazed at the size of Watanabe's gambling losses, especially since they occurred during a single year.

According to the Journal, Watanabe lost as much as $5 million during a single 24-hour gambling binge. He was allowed to play three blackjack hands simultaneously with a $50,000 limit for each hand. At one point, Harrah's raised his credit to $17 million.

Interestingly, Watanabe says in court documents that he was barred from the Las Vegas Wynn Casino because of compulsive drinking and gambling. Was that because of the fact that Steve Wynn's own father was financially ruined by compulsive gambling? Or as a long-time Vegas entrepreneur who owes his success to Parry Thomas, does Wynn understand the "art of gaming" better than his corporate counterparts at Harrah's?

Perhaps Cisco technology could be deployed to battle compulsive gambling:

Cisco Powered Casino Floor






What's your take, how do you think Cisco technology could be deployed to battle compulsive gambling?

Brad Reese


http://www.networkworld.com/community/node/48837

Wednesday, October 17, 2012

Answering the cry for help




Asian Americans and Problem Gambling Part III

Saturday, March 3, 2012

How Casinos Target Gambling Addicts

Card Sharks: How Casinos Target Gambling Addicts
As cash-strapped states increasingly turn to gambling for revenue, some casinos are resorting to devious methods to keep vulnerable gambling addicts coming back.
By David Greenstein

Ever wonder why states love gambling? Because legalized casino gambling, which reaped a $50 billion whirlwind in 2010, seems like a painless way to raise money for government coffers without increasing taxes. Lawmakers in Florida, New York, and Chicago are all considering the pros and cons of legalized gambling. At the same time, casino spokespeople in Las Vegas report upticks in revenue, and two of Connecticut’s Indian tribes, which already control the wildly successful Foxwoods and Mohegan Sun casinos, are making moves to run the state’s seemingly inevitable online gaming enterprise.

While members of Gamblers Anonymous would rightly rally against such developments, I take a more measured view—mostly because I have an interest in casino gambling. I get no rush from games of chance like roulette or craps, but I have mathematical inclinations and a disciplined desire to win, which is how I ended up in the world of high-stakes card counting. Through a series of happy accidents, I wound up being taught to count cards and got myself invited to audition for a blackjack team not unlike the one depicted in the Kevin Spacey movie, 21. Along the way, I received a firsthand look at how high-stakes gamblers operate and what casino managers do to keep them happy, coming back, and trying to win money at games in which the odds are hopelessly stacked against them.

Casinos most commonly come after gamblers by giving them free stuff. But to get the free stuff, you need to show your ID and get a player’s card, which you present to the dealer every time you sit down to play. The card gets entered into a computer and allows the casino to track your play. This impacts decisions on the items that you’re worthy of receiving. It’s based on how much you bet, how often you play, and how much you lose. It also allows the casino to figure out what sorts of goodies will keep you coming back. And for problem gamblers, coming back can be disastrous. Of all the addictions—including drugs, alcohol, sex—gambling addicts have the highest suicide rate (by at least one estimate, as many as one in five gambling addicts try to kill themselves at least once.)

Casinos are so good at what they do they exacerbate a gambler's addiction. Think of an alcoholic who’s six months sober—except that Johnnie Walker knows his habits, and just when the physical craving passes, a case of Blue Label lands on his doorstep.

At the low-end you might get a windbreaker or a free lunch at the buffet. At the high end, it’s travel aboard a private jet and week-long stays in butler-equipped villas that are literally fit for sultans. I fell somewhere in the middle. I got gratis rooms, lots of tasty meals, gifts, and free entry into poker and blackjack tournaments. On a few occasions, I received $500 chips to play with. Other times, there were bottles of Chateau d'Yquem, computer games, and even cookware. Ultimately, I’d get backed off and told that I could no longer play blackjack in the casino “because your action is a little strong for us, Mr. Greenstein.”

The rebuffs were public and should have made other players at the table wonder what they were doing wrong, and why the casinos welcomed their action. But that never seemed to cross anybody’s mind.

Somewhere along the line—probably while I was enjoying a long weekend in a comped suite, eking money from the casinos and dining like a prince—I realized what a nightmare this has got to be for somebody who actually has a gambling problem. My only problem was getting booted out of the casinos for playing at an advantage. For nearly everybody else, though, winning appeared to be practically impossible. I’ve seen people drop six-figure sums in shockingly short periods of time and walk away from the table emotionless, as if they felt they had the financial beating coming. Bizarre plays for thousands of dollars, wild bouts of drinking, women who were clearly there for good times and cash—it was all standard stuff for a number of gamblers at the high-stakes tables.

Judging by how most people play blackjack, I recognized that they have no shot at winning money in the long term. But they keep getting lured back by comps, by a love of action, by the belief that it will be different next time—like an alcoholic who returns to the bottle expecting an alternate result. Gambling for most of them is a costly accompaniment for blowing off steam, meeting girls, and getting treated like big shots. For somebody with an addiction to gambling, who actually is trying to stop before he burns through his life’s savings, it’s way worse. And the casinos are so good at what they do that—willingly or not—they exacerbate the problem.

Think of an alcoholic who’s managed to stay off of liquor for six months, but Johnnie Walker somehow knows his habits, and just when he’s stayed away long enough for the physical craving to pass, the liquor company messengers over a case of Blue Label. That parallels the challenge that once faced Joe B., who placed his first horse bet at age 16, in 1974, and stopped gambling, with the help of Gambler’s Anonymous, in 2004. “You always get free stuff in the mail,” he says. “There were tickets for concerts, free rooms, free meals. Even after I got into the program, I would continually get all kinds of invitations and inducements to visit the casino. I’d tell them that I didn’t need to see the stuff and I wouldn’t get anything for a while. But then, suddenly, six months later, there’d be an offer to match my bet for up to $150 or to give me $50 in tokens for free slot play.”

Joe, who says that he’s lost six-figures to the casinos and remembers many a time when he’d gamble with his rent money or bet until he was broke, views the gambit without a whole lot of animosity. He figures that the casinos’ marketing people were just doing their jobs. But Joe acknowledges that those particular offers were enticing. “I would feel tempted to go down there,” he continues. “I figured that I should go there and make one bet and then go home. A friend heard that and said, ‘God forbid if you hit a jackpot for $5,000.’ The friend was right. A normal person would have put that money in the bank. But for me it was never enough. I would have kept right on gambling.”

For a jonesing gambler, the casinos make it hard to quit. Hosts (the guys who serve as the point-people between gamblers and casinos) will send limos to pick you up and come across as the friendliest folks you’d ever want to meet, always smiling, happy to see you, endlessly accommodating your desires. Some casinos, most notably the Wynn Las Vegas and MGM Resorts properties, have made efforts to identify problem gamblers, ban them from continuing to play, and stop them from completely destroying their lives (after, of course, the casinos win enormous sums). But others don't, and in many cases the situation spins wildly out of control.

The most extreme example in recent years of a gambling implosion, was that of a novelty goods magnate by the name of Terrance Watanabe, who dropped nearly $127 million in 2007. Most of his losses happened at Caesars Palace and the Rio, both in Las Vegas. According to the Wall Street Journal, the casinos’ parent company, which was known as Harrah’s Entertainment at the time, made nearly six-percent of its Las Vegas-based revenue from Watanabe in 2007. That year he lost around $112 million to the casinos in cash and close to $15 million in so-called markers.

Markers are ingenious devices that casinos use to make it easy for their best customers to gamble for large sums of money. Rather than having to travel with thousands of dollars in your pocket, you arrive at the casino, sign a marker, and receive a specified sum of chips. For a non-compulsive gambler, this is a convenience. For someone with a gambling addiction, however, it can be the beginning of a very rough ride.

According to a Vegas-based attorney who asked not to be named, “Markers are the equivalent of checks. But people think of them as loans. In reality, though, when you sign for a marker, you are vouching for the fact that you have funds in a banking institute to back it up.” Typically, players have 30 days to pay off their markers. After that, the casino can deposit the marker like a check and hope to receive its money. And if the money is not there? “It is as if the gambler has passed a bad check and, in Las Vegas, a division of the DA’s office attempts to collect the money.” An extra 10-percent is tacked on to what the gambler owes and the DA’s office keeps that additional fee.

Watanabe got in deep with his markers. When he would not pay, charges were filed against him. But Watanabe fired back at the casino, maintaining that one of his casino hosts plied him with liquor and painkillers (his host denies this, insisting that it was a single Lortab, taken from his own personal prescription, after Watanabe slipped in his room and hurt his back) and allowed him to keep playing even though he was so inebriated that he actually fell asleep at the table. It was turning into the kind of case in which nobody looks good. In fact, it came out, Wynn Las Vegas banned Watanabe for his drunkenness and because he appeared to have a gambling addiction. Avoiding a public relations nightmare, Harrah’s agreed to remove its civil charges and the DA’s office dropped its criminal charges, though Watanabe still had to pay a $500,000 administrative fee to the DA’s office (considerably less than the nearly $1.5 million that he would have owed had the court found him guilty). The case between Watanabe and Harrah’s went to arbitration with confidentiality for all parties.

Regardless of the wind-up, Watanabe, a man who apparently had an illness when it came to gambling, had lost so much money that the $15 million he owed seems weirdly inconsequential. As Bill Thompson, a UNLV professor who focuses on gambling, told the Las Vegas Review Journal, “No one has ever lost this much money in a casino before. It’s just a fantastic amount. He’s just the biggest whale of all time."

It is hard to tell if that statement was made in a tone of wonder, pity, or matter-of-factness.

Not long ago, a high rolling friend in the Midwest brought me out of retirement. He wanted to back me for low-stakes card counting and put me into a blackjack tournament (which requires game-playing skills other than card counting). I agreed, and, for three days, I enjoyed being back in the saddle. I got a little unlucky and busted out of the tournament but I did manage to win us a few bucks at the cash tables.

Overall, it was a good and pleasurable experience. But at the tournament, a little older and a little more jaded than my younger card-counting self, I enjoyed eavesdropping on the conversations of bonafide high rollers. Most of these guys were well to do men. They had successful businesses and did not come across as desperate gamblers in any way—until you heard snatches of their conversations. They were not talking sports or cars or where to get the best steak in the casino. Instead, they were bonding over tales of juggling outstanding markers and sharing information on which casino operators around the country were most lenient in terms of their policies.

The guy who won the tournament’s six-figure first prize seemed to be particularly embroiled in casino debt. If I couldn’t win it, I felt glad that he did. Of course, though, whether that money went toward getting himself straight or financed another bender of high-stakes risk is anybody’s guess.

Want to bet where it wound up?




Sunday, November 22, 2009

Terry Watanabe

Of TERRY WATANABE ---


LAS VEGAS, NV – A multimillionaire gambler is suing a casino over plying him with alcohol and drugs to keep him playing!

Terry Watanabe is the former owner of the Oriental Trading Company, an import/export business he sold in 2000. Since then he has touted himself as a professional philanthropist.

However, Watanabe’s penchant for gambling got the best of him, as he says he lost more than $100 million at Harrah’s, a Las Vegas casino!

But Watanabe is claiming the company coerced him into compulsive gambling. By 2006, Harrah offered to move him into their Caesars Palace, as well as 15 percent cash back on monthly table losses of $500,000 or greater, and $12,500 transportation reimbursement and a $3 million line of credit! He also claims that the casino promised to wait 60 days before cashing any markers he lost.

By the end of 2007, as his losses became unmanageable, Harrah’s not only increased his credit limit, but provided him with an unending supply of alcohol and pain killers.

Watanabe says he began gambling for multiple days in a row, “with little interruption of sleep…Harrah’s executives and employees knew or should have known…that Watanabe was rapidly running out of money.” He was often so inebriated and sleep deprived “that at times he became unconscious at his private gaming tables or slot machines.”

Watanabe is filing his lawsuit because Harrah’s is trying to claim $14.75 million he wrote in bad checks. It is unclear how much Watanabe is suing for, with charges including fraud, breach of contract, conspiracy and negligence, but considering Watanabe claims he bet more than $825 million in 2007 alone, it is likely to be significant.


Telegraph reports ---


Las Vegas gambler sues Caesars Palace claiming casino plied him with drugs

A Las Vegas gambler who lost $112 million (£67 million) in a year, is suing the owner of Caesars Palace, claiming casino staff "milked" him by plying him with alcohol and prescription drugs.


Terry Watanabe, 52, says he lived and gambled "non-stop" at Caesars Palace for six months in 2007, spending a fortune on roulette and slot machines.

After an epic losing streak, he ran up gambling debts of around $15 million (£9 million) and was subsequently charged with theft, to which he has pleaded not guilty.

Mr Watanabe is countering the criminal charges with a civil suit in which he accuses Harrah's, the owners of Caesars Palace, of fraud, breach of contract, conspiracy and negligence.

He claims company executives manipulated him with a "secret intention" of siphoning off his wealth.

Harrah's, the world's largest gambling company by revenue, is adamant there was no wrong-doing.

A spokesman said: "We have a long-standing history of responsible and ethical practices.

"We're licensed in more jurisdictions than any other gaming company. We stand by our record."

Mr Watanabe is a Nebraska-based philanthropist and the former owner of Oriental Trading Co, a huge direct marketing company for novelties and party items.

He has also filed a complaint with the Nevada Gaming Control Board and says he staked a total of more than $825 million (£495 million) in 2007 at Caesars Palace and the Rio casino, also owned by Harrah's The complaint says: "Mr Watanabe was an obvious gambling addict and Caesars and Harrah's senior management made a conscious decision to exploit his well-known addiction."

Mr Watanabe alleges that casino employees provided him with prescription painkillers that, combined with an endless flow of alcohol, "rendered him utterly intoxicated and unfit to gamble."

His Los Angeles-based lawyer, Pierce O'Donnell, said the criminal prosecution against Mr Watanabe was "meritless."

He said: "Terry Watanabe is innocent of any crime and Harrah's owes him money."

Mr Watanabe was regarded as one of Las Vegas's "whales," a nickname for epic gamblers.

His lawyers claim his gambling at Caesars Palace and Rio accounted for around 20 per cent of revenue at both casinos in 2006 and 2007. He is currently on $1.5 million (£900,000) bail.