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Showing posts with label gambling revenue. Show all posts
Showing posts with label gambling revenue. Show all posts

Wednesday, March 25, 2015

Fighting over $$$ with Penn National, Hollywood Gaming




Austintown officials lobby for $500,000 racino payment

Posted: Mar 24, 2015 11:25 PM EDTUpdated: Mar 24, 2015 11:37 PM EDT

COLUMBUS, Ohio - Leaders from Austintown and five other Ohio communities traveled to Columbus on Tuesday to lobby for money they believe is owed to them by the companies that operate racinos in their localities.

State Senator Joe Schiavoni says that when plans for Hollywood Gaming at Mahoning Valley Race Course were still in the talking stages, it was decided that the governor's office, the racino operators and the racing commission would work out a plan to make payments to cover the additional costs of police and fire protection needed by the communities.

The agreement was never worked out.

Earlier this year Governor Kasich vetoed legislation that would have given each of those communities $500,000. Kasich says the bill would have put the state in the position of making those payments instead of the gaming companies.

Schiavoni arranged Tuesday's meeting between township officials and a representative of the governor.

He says local officials are being flexible trying to attain a resolution.

“They're willing to negotiate the amount and the time frame. They just want some of the money they were promised both in writing and verbally in one way or another since the inception of the racinos,” said Schiavoni.

Penn National has pointed out in the past that it has already spent $150 million to relocate racetracks in Ohio.




http://www.wfmj.com/story/28607094/austintown-officials-lobby-for-500000-racino-payment



 

Saturday, January 24, 2015

Nevada's Poor Public School Performance



Statistics from Nevada are employed frequesntly to exemplify the impacts of a CASINO ECONOMY.

This defines NEVADA:

The states with the worst schools, 2015

By Thomas C. Frohlich and Alexander Kent January 20, 2015
 
 
 


 
 

2. Nevada
Overall grade: D
State score: 65.0
Per-pupil spending: $8,141 (5th lowest)
High school graduation rate: 60.0% (the lowest)
Eighth-graders proficient in math or reading: 28.3% (10th lowest)
 
 
Less than 34% of children in Nevada had at least one parent with a post-secondary degree, the lowest rate nationwide. Since parents play perhaps the most important role in a child’s chance for success, poor educational attainment rates among adults in Nevada were likely a factor in children’s relatively poor achievements in school. Similarly, early education can set the stage for a child’s entire academic career. Young children in Nevada were among the least likely nationwide to attend preschool or kindergarten. With the lowest high school graduation rate in the country, at 60% in 2012, young adults in Nevada were also far less likely to pursue further education than their peers in most states. While 55.1% of American young adults were enrolled in or had completed a post-secondary degree program, just 40.5% in Nevada were — nearly the lowest rate.






http://247wallst.com/special-report/2015/01/09/americas-best-and-worst-school-systems/4/
 

Saturday, November 29, 2014

Tycoon hosts son’s big fat Tangshan wedding



As part of the Chinese Anti-Corruption actions, Gambling Revenues have declined.

Lavish Chinese wedding leaves social media stunned amid anti-corruption crackdown

PUBLISHED : Friday, 28 November, 2014, 3:10pm
 
 
Andrea Chen
 
wedding-rr.jpg


Pictures posted online by spectators showed the newlyweds – Liu’s son Liu He and his bride, the daughter of a village chief – driving to the wedding banquet in their bright red Ferrari followed by a fleet of luxury motorcycles.

Online reports said they were joined by 30 Rolls-Royce Phantoms, which some microbloggers suggested were worth more than 200 million yuan.

Videos posted by guests showed Li Xiang, a well-known mainland talkshow presenter, hosting the wedding banquet.

At least seven other celebrities, including the Hong Kong singer and actor Dicky Cheung Wai-kin, were guests at the wedding, according to online comments posted by guests.

The tycoon reportedly spent more than 1 million yuan just on the 101-table banquet, staff at the hotel hosting the feast told the Huashang Daily newspaper.

Hong Kong singer and actor Dicky Cheung reportedly attended the banquet. Photo: Weibo“The most expensive banquet on our menu is about 3,000 yuan per table, one staff member said. “But the dishes at the wedding were customised: it was 9,999 yuan per table.”

Liu made his first fortune trading in coal before switching to real estate businesses, the newspaper said, quoting local sources.
“There are so many legends surrounding him … such as he owns casinos in both Hong Kong and Macau and makes money by lending money to mainland gamblers,” one source told the newspaper

Secondary school classmates of the groom, Liu He, told the newspaper that he had driven to school in a Porsche Cayenne, and previously dated the daughters of other tycoons in the city.
Liu He’s wife is the daughter of Bai Yanchun, an official in the village of Ligezhuang.

Bai reportedly owns a 2,220 sq metre mansion and at least two luxury cars, villagers from Ligezhuang, in the suburbs of Tangshan, told the newspaper.

Last year, a deputy village chief from the suburbs of Beijing was sacked after spending 1.6 million yuan on his son’s wedding.
Since President Xi Jinping came to power in late 2012, he has overseen a series of campaigns to help crack down on
government spending and gift-giving and stamp out widespread corruption, official extravagance, prostitution, pornography, gambling, terrorism and corruption.

Chinese authorities have issued directives ordering all officials to notify their bureaus in advance of future weddings and funerals.


http://www.scmp.com/news/china/article/1650723/lavish-wedding-30-rolls-royce-phantoms-and-ferrari-leaves-chinas-social

Monday, October 13, 2014

The Sheer Sums of Money Lost at Casinos Every Day Will Shock You






The Sheer Sums of Money Lost at Casinos Every Day Will Shock You


Have you ever walked by a blackjack table in Las Vegas and marveled at how much money people can bet on a single hand of cards? The first time I saw someone betting $150 per hand I was 21 years old, and I was shocked at how easy it was for a gambler to see that kind of money come and go.

But hundreds of dollars per hand is small change for big gamblers and the gaming companies that run major casinos. They have clients betting thousands, even tens of thousands, per hand on blackjack, craps, baccarat, and any other game in the casino. And you might not ever see the biggest hands being played because they're in private rooms off the main gaming floor.

Below are some numbers showing how much is bet at the average table and slot machine each and every day at several high-profile casinos.


Table games are big business

It might not seem so among the dings of slot machines in Las Vegas, but the biggest revenue generator at casinos today is table games -- particularly in Macau.

Below is a table that shows just how much was lost on average at Las Vegas Sands (NYSE: LVS ) and Wynn Resorts (NASDAQ: WYNN ) table games and slot machines every single day last quarter. The figures in Las Vegas are impressive, but Macau is simply astounding.

Table GamesSlot Machines
The Venetian/Palazzo Las Vegas$3,737$185
Wynn Las Vegas$8,130$276
The Venetian Macau$16,926$358
Wynn Macau$26,146$1,163
Source: Company earnings reports.

For perspective on the $26,146 per day lost at the average table at Wynn Macau last quarter:
  • $1,089 is lost at an average Wynn Macau table game every hour of the day, or $18.16 every minute.
  • Wynn Macau generates an average of $9.5 million in revenue at each gaming table over the course of a year.
  • If we assume a house advantage of 2%, to generate $26,146 in revenue daily, $1.3 million would have to be bet at each table every single day. At that rate, $477.2 million is bet at each table every year. (These estimates are likely low.)
 
 
Slot machines aren't nearly as popular in Macau, where baccarat is the game of choice, but you can see they still generate a tremendous amount of revenue.

The house always wins

There's a reason why casinos keep getting bigger in Las Vegas and Macau, and why gaming companies do everything they can to expand into new gaming markets, such as Singapore and Japan.

There's big money at stake, especially in Asia.

Keep these figures in mind next time you're at a casino. That table at which you might play a few hands of blackjack could be pulling in thousands of dollars in revenue for the casino each and every day.





http://www.fool.com/investing/general/2014/10/12/the-sheer-sums-of-money-lost-at-casinos-every-day.aspx


 

Thursday, May 8, 2014

Will CT keep sharing casino revenues with towns after the election?




Will CT keep sharing casino revenues with towns after the election?

The bill ends a requirement that cities and towns share in the proceeds from video slots from the two casinos in southeastern Connecticut.

For years, state law has said $135 million of the revenue from Foxwoods Resorts Casino and
Mohegan Sun should be shared with cities and towns. And for more than a decade, governors and legislatures have – year after year – suspended-but-not repealed that requirement, and then given communities about $62 million.

In fact, the new state budget that takes effect July 1 again gives municipalities $62 million out of $279 million in projected video slot receipts.

So why are Gov. Dannel P. Malloy and the legislature now removing the $135 million requirement permanently from state statutes?

Because once the legal requirement to share $135 million is gone, nonpartisan fiscal analysts can no longer count it when calculating the deficit they are tracking in the first state budget after this fall’s state elections.

The 2015-16 fiscal year, according to analysts, has a built-in shortfall of $1.33 billion, or 8 percent. Without the required video slot sharing, that gap falls to about $1.2 billion, or 7 percent.


http://ctmirror.org/will-ct-keep-sharing-casino-revenues-with-towns-after-the-election/

Monday, April 21, 2014

'Common knowledge' about slot machines often wrong



'Common knowledge' about slot machines often wrong


By Mark Gruetze

Published: Sunday, April 20, 2014, 9:00 p.m.Updated 14 hours ago


Here's a quick true-or-false quiz:
 
• The American Psychiatric Association recently declared that posting selfies is a mental disorder.
 
• Obamacare requires every participant to implant a microchip holding medical information and a link to the user's bank account.
 
• Oracle CEO Larry Ellison tops this year's Forbes list of “most punchable” CEOs, followed by BP's Bob Dudley, Amazon's Jeff Bezos and Rupert Murdoch of News Corp.
 
All are myths, the work of imaginative writers trying to be funny or make a point.
The danger is that they sound plausible enough that some people might take them as fact.
That sounds like a lot of the “common knowledge” about slot machines. Many gamblers, refusing to concede that machines are indeed machines, assign them superhuman powers to explain personal losing streaks and others' winning spins. Here are a few common slot myths:
Running hot or cold
It's a frequent question by players on the way to the casino floor: Are the machines hot today? Slots don't have cycles. With each spin, you have the same chance of hitting a jackpot, regardless of what the machine paid on the last spin or the last thousand spins. Each machine contains a random-number generator that constantly spews out combinations that determine the outcome of a spin. The instant you hit the spin button, the RNG locks in a combination that tells the machine whether to pay out. How the symbols line up and whether you advance to a bonus round are just entertainment for you.
That was my jackpot!
Some players wait for a big bettor to leave a machine after losing, figuring it's “due” to hit. Nope. While each machine is programmed to pay out a specific percentage of what's wagered, that's calculated for the lifetime of the slot, meaning millions of spins over years of use. What happens in an hour or two doesn't matter. Even if the newcomer hits a jackpot on the first spin after taking over the seat, the player who left can't legitimately claim “that should have been my jackpot.” The winning combination was set at the millisecond the second player pushed the button; even if the original gambler had stayed, it is highly unlikely he would have hit the button at the same instant.
The secret code
Some people swear casinos place loose machines on the aisles, while tight ones go near the restrooms. A gambling buddy used to insist that a meter sometimes visible underneath the reels revealed the machine's hit frequency. In general, players have no way of learning a machine's payout rate. The list of possible combinations and payouts is on a top-secret PARS (Paytable And Reels Strip) sheet, accessible to casino officials and regulators.
The Omniscient Machine
Some people say using a player's club card reduces the number of payoffs. Others swear the machine automatically pays less for free play than for cash. Those who refuse to use their player's cards throw good money after bad; not only are they playing against a high house advantage, they're refusing valuable comps. The points earn free play, free food, free drawings; in essence, you get back a portion of what you bet. Why give that up? The machine can't tell the difference between free-play credit and cash credits. Again, each spin is independent; you have the same chance of winning each time.
I never win
Never say never. You do win here and there, but most people put the winnings back into the machine. The occasional profitable visit gets overshadowed by a string of losses. Recognize that slots are a horrible bet; although big jackpots hit often enough to keep players hopeful, overall the house wins about 10 percent of all wagers. If slots are your gambling choice, play slowly to make your money last longer. You're better off learning games with a lower house edge, such as video poker or blackjack.


Read more: http://triblive.com/aande/gambling/5959439-74/million-machine-percent#ixzz2zX7nKGwX
Follow us: @triblive on Twitter | triblive on Facebook


About Mark Gruetze
PictureMark Gruetze 412-320-7838
Administrative Editor
Pittsburgh Tribune-Review

Mark Gruetze has been a recreational gambler for more than 30 years, focusing on blackjack, video poker and poker. He is administrative editor of the Tribune-Review.

Keith Hodan | Tribune-Review
Slot machines are the most popular form of casino gambling.



Details
Money trail
Statewide casino win for March: $284.1 million, down from $296.7 million in March 2013, the state's best month on record. Last month's total includes $67.93 million from table games and $216.21 million from slot machines.
Statewide slot payout rate since July 1: 89.9 percent; for every $100 bet, machines return an average of $89.90
High and low payout rates: 90.74 percent at Lady Luck Nemacolin; 89.19 percent at Penn National near Harrisburg
Rivers: 89.69 percent slot payout; March table-game revenue, announced last week, was $6.14 million, down from $6.74 million last year
 
Meadows: 89.94 percent; March table-game revenue $3.01 million, down from $3.32 million


Presque Isle: 89.49 percent; March table-game revenue $1.15 million, down from $1.3 million
Lady Luck Nemacolin: 90.74 percent payout; March table game revenue $496,884; not open last year
Source: Pennsylvania Gaming Control Board
Casino sues over $9.6 million baccarat win
Borgata Casino in Atlantic City claims pro poker player Phil Ivey cheated when he won $9.6 million playing baccarat on four occasions in 2012.
The lawsuit says Ivey knew of defective cards made by Gemaco Inc. in Missouri and gained an advantage over the casino when the casino used them in the game. Ivey, companion Cheng Yin Sun and Gemaco are defendants.
 
The casino says Sun asked the dealer to turn “good” cards one way and “bad” cards another as they were dealt. Because of a slight difference in the pattern on the back of the cards, Ivey could predict the value of the first card of each hand in subsequent deals, the suit says. The house normally has a 1.06 percent edge in baccarat, but the suit says the knowledge gave Ivey a 6.765 percent edge over the casino.


Read more: http://triblive.com/aande/gambling/5959439-74/million-machine-percent#ixzz2zX8ZndLp
Follow us: @triblive on Twitter | triblive on Facebook


Tuesday, January 14, 2014

Stinky Penn National Deal



PENN NAT'L! STENCH!!! Sioux City nonprofit gambling group temporarily halts grants to local charities
 

Sioux City nonprofit gambling group temporarily halts grants to local charities

January 14, 2014 - 9:55 am
 
SIOUX CITY, Iowa — The nonprofit organization that holds the gambling license for the Argosy Sioux City riverboat casino has voted to stop sending grants to local charities and governmental bodies for now.
 
The Sioux City Journal reports (http://bit.ly/1d3kMl4 ) that lawsuits over which gambling operator has the right to run a casino in Sioux City has prompted the Missouri River Historical Development board to temporarily stop approving grants.
 
The board is the nonprofit holder of the gambling license for the casino operated by Penn National Gaming Co.
 
Iowa law requires casino operators to contract with and share a portion of their revenues with licensed nonprofit organizations such as the development board.
 
However, Penn National has withheld more than $900,000 from the board since May after Penn National filed a breach-of-contract lawsuit against the nonprofit.


Information from: Sioux City Journal, http://www.siouxcityjournal.com
 
 

Tuesday, October 15, 2013

Detroit Casino Revenue or Sucking Detroit Dry




Massachusetts ‘Gaming’ Future

So far this year, the losses in the three casinos of the bankrupt city of Detroit is over, ‘One BILLION DOLLARS.’ Now how much of that money lost do you think came from the citizens of Detroit?

Chicago Tribune - October 10, 2013 - Syncora appeals bankruptcy judge's order on Detroit casino revenue...


DETROIT, - Syncora Guarantee, which insured payments by Detroit on some of its interest-rate swaps, on Thursday appealed a bankruptcy court order that allowed Detroit continued access to casino revenue that the city says it needs to avoid running out of cash.

Read more:
http://www.chicagotribune.com/sns-rt-usa-detroitsyncora-20131010,0,3004460,full.story
See More








Syncora appeals bankruptcy judge's order on Detroit casino revenue


Reuters
October 10, 2013
DETROIT, Oct 10 (Reuters) - Syncora Guarantee, which insured payments by Detroit on some of its interest-rate swaps, on Thursday appealed a bankruptcy court order that allowed Detroit continued access to casino revenue that the city says it needs to avoid running out of cash.

Syncora had tried to block Detroit from accessing an estimated $11 million in monthly tax revenue from the city's three casinos, claiming it had a lien on the money, which had been used as collateral since 2009 to secure the city's interest-rate swap agreements. Detroit's emergency manager, Kevyn Orr, and one of his top consultants said in sworn depositions that the casino revenue is key to city's survival.

Syncora on Thursday filed an appeal in U.S. district court in Detroit of an Aug. 28 ruling by Bankruptcy Judge Steven Rhodes granting the city access to the casino funds.

Detroit filed the largest municipal bankruptcy in U.S. history in July, and it is struggling to overcome more than $18 billion in debt and other obligations.

Syncora is also one of several bond insurers and other creditors that are objecting to a deal Detroit struck with Merrill Lynch Capital Services and UBS AG to end interest-rate swap agreements.

Detroit wants to end the agreements at a discount and free up the contested casino revenue, which was used as collateral for the swaps. The city hopes to use the funds to arrange so-called debtor-in-possession financing that would allow Detroit to settle with the swap counterparties and make investments in the city.

Rhodes was scheduled to hold hearings on the proposed agreement last month but postponed them indefinitely at Detroit's request to give the city more time to negotiate with its bond insurers and other creditors. The hearings have not yet been rescheduled.


http://www.chicagotribune.com/sns-rt-usa-detroitsyncora-20131010,0,3004460,full.story

Wednesday, September 18, 2013

Social impact of gaming in America

DOUBLE DOWN

Philadelphia Inquirer - September 18, 2013 - Social impact of gaming in America

The spread of casino gambling, embraced by politicians as a surefire way to boost tax revenues, is contributing to poorly understood changes in health, economic, politics in the United States, according to a report released Monday by the Institute for American Values. ...


The 55-page report, “Why Casinos Matter: Thirty-one Evidence-based Propositions from the Health and Social Sciences,” relies heavily on research from Great Britain, Canada, and Australia, where governments have commissioned rigorous research on the impacts of gambling on society. But in the United States, the biggest source of money for gambling research is the gambling industry itself, the report said. That industry-sponsored research has focused primarily on gambling addiction as a mental illness that afflicts a limited number of people, with relatively little attention to industry practices that foster addiction, the study said.

The Institute for American Values is a New York nonprofit devoted to researching and educating the public about family well-being and civil society. This week’s report, endorsed by 33 scholars and others with an interest in casinos’ socio-economic impact, also describes the evolution of the casino industry since the early 1990s, when it was still concentrated in Las Vegas and Atlantic City. “Casino gambling as a once or twice year vacation has given away to casino gambling as a once or twice a month or twice a week more a week pattern of life,” the report said.

Mark Boyd, president and chief executive of Goodwill Industries of Southern New Jersey and Philadelphia, is in the group that signed on to the study. He said government’s deep involvement in casino gambling made his skin crawl. “There’s something wrong with our society if we have to depend on gambling to keep the revenue coming,” Boyd said.

Read more at
http://www.philly.com/philly/blogs/double-down/Social-impact-of-gaming-in-America.html#MLpxBWTEsUurrLE6.99
See More

Saturday, June 8, 2013

Osceola revenue lawsuit settled for $3.1 MILLION



Osceola casino agrees to $3.1 million lawsuit settlement with community group

A community non-profit group that jointly holds Osceola’s gambling license said Friday it has reached a $3.1 million settlement to drop state and federal lawsuits against the owners of Lakeside Casino.

Clarke County Development Corp. of Osceola, had claimed in litigation that local residents were being shortchanged millions of dollars of their share of gambling profits.

The litigation was filed against HGI-Lakeside LLC, the operator of Lakeside Casino, and its parent company, Affinity Gaming LLC of Las Vegas. The Iowa Racing and Gaming Commission, which regulates the state’s casino industry, was also a defendant.

“We are pleased to have this settlement in place, and it is a major step forward for the citizens of Clarke County, our communities and our continued economic development and community-betterment initiatives,” said Bill Trickey, the non-profit group’s executive director.

The suits have been pending in U.S. District Court in Des Moines and Clarke County District Court in Osceola.

Under the settlement, the Lakeside Casino will pay the non-profit organization $600,000 which can be used for community betterment projects at the group’s discretion. In addition, the casino will pay $2.5 million to Clarke County Development Corp., which will distribute the money to the Clarke County Reservoir Commission to be used exclusively for water purposes. These payments must be made on or before July 1.

Nick Mauro of Des Moines, a lawyer for HGI-Lakeside and Affinity Gaming, said in a statement Friday that all parties involved in the lawsuit are in the process of finalizing details of the settlement for consideration by the Iowa Racing and Gaming Commission.

“Affinity Gaming and HGI-Lakeside have worked hard over the past several years to develop a positive and mutually beneficial relationship with our local partners in Clarke County. This agreement, when finalized, represents a product of those efforts,” Mauro said.

Brian Ohorilko, administrator of the Iowa Racing and Gaming Commission, said the settlement will not cost Iowa taxpayers any money. The agreement is expected to be approved by state regulators next month.

Clarke County Development Corp. had said in court documents it had been receiving 1.5 percent of the casino’s adjusted gross receipts under a management agreement negotiated in 1997. But the non-profit group contended it should be receiving at least a 3 percent payment from Lakeside Casino, citing a state law requiring a 3 percent minimum for casino operating agreements entered into since May 6, 2004.

Clarke County Development claimed the ownership of the Osceola casino changed hands when Affinity Gaming took over from the previous operator, Herbst Gaming, which filed for bankruptcy in 2009.

Under extraordinary rights given to debtors in federal bankruptcy court, Herbst was allowed to transfer its management agreement to Affinity Gaming without Clarke County Development’s consent, but the development corporation contends the transfer was subject to approval by state regulators.

The casino’s payments to the non-profit group, which totaled $746,000 in 2011, are distributed for community projects, such as buying computers for schools and acquiring gear for volunteer fire departments.

Under the settlement terms, if Lakeside Casino is sold over the next five years the casino’s payment to Clarke County Development Corp. will increase to at least 3 percent, or whatever is the state’s minimum payment, Trickey said.

http://blogs.desmoinesregister.com/dmr/index.php/2013/06/07/osceola-casino-agrees-to-3-1-million-lawsuit-settlement-with-community-group/article

Thursday, June 6, 2013

Niagara's Addiction to Gambling Revenues

Just as in Massachusetts, in desperation, Niagara Falls' leaders failed to consider the community destruction caused by Predatory Gambling ----




June 4, 2013

State audit raises concerns over Niagara Falls' budget practices

Niagara Gazette — An audit released Tuesday by the New York State Comptroller's Office raises serious concerns about the city's finances, including a "pattern of structural deficits" due to a lack of incoming casino revenue and budgetary decisions made by city officials in recent years.

The audit suggests matters were "worsened significantly" as a result of the continued inclusion of unrealized casino revenues in annual budgets and a reliance on what auditors described as revenue "one-shots" drawn from fund balance and surplus capital project funds.

“Niagara Falls has nearly exhausted its resources to avoid a fiscal crisis," state Comptroller Thomas DiNapoli said in a statement accompanying the audit. "City officials cannot continue to walk a financial tightrope for much longer."

The audit describes the lack of incoming casino revenue since 2008 as one of the reasons recurring revenues have not been sufficient to fund recurring expenditures. The situation, according to auditors, resulted in a general fund annual budget gap averaging $12.4 million during the audit period from Jan. 1, 2009 through Jan. 9. The audit indicates that city officials balanced budgets using fund balance and an estimate for casino revenue averaging $5.3 million annually.

"While the dispute over gaming revenue is significant, the city’s budget challenges also stem from a number of socio-economic factors including population loss and a high unemployment rate," DiNapoli said. "The mayor and the city council are actively trying to manage their considerable hurdles, but getting on firmer financial footing will require a resolution of casino gaming issues and likely even greater assistance from the state."

The audit suggests Dyster's administration should have removed casino revenues from annual budgets during the casino cash dispute to better protect the city's overall financial position. Auditors also said the city should have developed more formalized multi-year plans for eliminating accumulated deficits.

"The city has funded these structural deficits by relying on "one-shots" such as fund balance and surplus moneys remaining in the capital project fund," the audit reads. "This approach has negatively affected the general fund's financial condition. The controller indicated that the general fund ended the 2012 fiscal year with an unassigned fund balance deficit of approximately $5.2 million.

Therefore, over this four-year period, fund balance decreased by about $21.6 million."
Auditors concluded that while it "might have been prudent" for the city to account for incoming casino revenues when the gaming revenue squabble started in 2009, as the dispute "dragged on without resolution," it should have removed those revenues from its financial plans. Instead, as of Dec. 31, 2012, the audit notes that the city incurred, in the aggregate, $23.4 million in expenditures intended to have been funded with casino money, that it has not received.

Dyster declined comment when reached by telephone Tuesday morning prior to the audit's formal release, saying he could not discuss what was at the time considered a "draft" report.
In a letter of response attached to the final audit, Dyster's administration indicated that it budgeted casino revenues to "support" the state's long-held position on the dispute itself.

"This situation is virtually unprecedented in the history of New York state, and almost beyond the control of the city of Niagara Falls," Dyster wrote. "The city has been forced to choose among largely bad options with little guidance as to what constitutes best practice under often unique circumstances. Given the state's degree of involvement and responsibility in this matter, we find it somewhat ironic that an agency of the state of New York would now find itself in a position to critique our attempts to deal with a crisis in which the state itself has been a central actor."

In their report, auditors noted that although the city's fund balance had been depleted, it continued to budget for what they described as "one-shot revenues," including in the 2013 budget which relied upon $2 million in unavailable appropriated fund balance, $2.9 million in transfers from the capital projects fund, $850,000 in debt service fund transfers and $1 million in property sale revenues. As a result, auditors concluded that the city's 2013 adopted general fund budget has a structural deficit of $12 million.

"Therefore, if the city does not receive any or an insufficient amount of casino revenue in 2013, it will have a revenue shortfall of approximately $7.2 million, representing the budgeted casino revenues and the unavailable appropriated fund balance," the audit reads. "Moreover, even with a resolution of the casino revenue impasse that would positively impact the city, the council and mayor will still need to take action to address the structural budget deficits affecting the city."
In its letter of response, the Dyster administration takes exception to auditors' reference to "one-shot" revenues.

"The report goes on to take issue with the city funding certain structural deficits by relaying on 'one-shots,'" Dyster wrote. "The city's strategy should not be characterized in this way. Large fund balance surpluses remaining on capital projects, as well as from the general fund, have been used time and again (year after year) in order to close deficits. Had the city not used those surpluses, they would have sat on the books and accomplished no purpose."

DiNapoli's office also suggested the city should have been more diligent in closing out completed capital projects and ensuring that all unexpended funds are transfered to the debt service fund and used only for "payments on all related debt." While the report notes that a "substantial amount" of unassigned fund balance in the capital projects fund was accounted for by Controller Maria Brown's office, it estimates that additional funds - ranging from $1 million to $1.4 million - may remain in other projects that could be returned to the general fund.

Reached by telephone on Tuesday, Brown said her office is not in a position to closely monitor all capital projects, including such things as road repair or construction jobs. She suggested the work was more in keeping with the duties of the city engineer, a position that has been in flux at various points under the Dyster administration.

"I repeatedly asked for a list of closed projects from engineering to no avail," she said. "I send reports on a continuous basis to the mayor and the city administrator informing them on the status and funds for projects and encouraging them to find out when, and if, projects closed," she said.
Brown said the city has maintained multi-year plans for various accounts in recent years and that, although not required to, the city was asked by state auditors to maintain those plans in a different form recommended by the state.

Brown noted that auditors took a look at "thousands and thousands" of transactions as part of a six-month review and did not identify anything improper.

"Everything was in order," she said. "Everything required of my office was in place."
The draft audit predicts "significant cash flow shortfalls" for the city in 2013 and a need for the city to issue short-term debt to address cash flow problems late in 2013. It also notes that the city's credit rating has been downgraded several times in recent months and may be reduced further in the future, possibly preventing the city from being able to issue debt or to do so at a reasonable cost.

"The biggest thing is the lack of casino funds and I don't want people to lose sight of that," Brown said. "It all boils down to the lack of casino funds that put us in the situation we are in."

FALLS AUDIT DiNapoli's office recommended that the city take the following corrective actions in the release; • Establish policies and procedures for access controls to restrict financial software permissions to only those functions that are necessary for employees' job duties • Designate someone independent of the city controller's office as the city's financial system administrator • Ensure that logs for the financial system are maintained and periodically reviewed • Establish policies and procedures for data backup and storage, and comprehensive guidelines for disaster recovery

http://niagara-gazette.com/local/x1465637714/Audit-takes-Falls-to-task-State-audit-raises-concerns-over-Niagara-Falls-budget-practices

 

Thursday, May 30, 2013

Ohio: Failing to Live Up to Expectations

Just like Ohio, Massachusetts has overstated revenue projections.





May 29, 2013

Toledo casino marking one year as state's revenue continues to lag estimates



Web coordinator- Business First
Thursday marks one year since Hollywood Casino Toledo opened, and tax revenues from gambling operations across the state have failed to live up to expectations in that span, the Toledo Blade reports.

The city of Toledo received $2.9 million in tax revenue from the state's casinos last year, falling short of the $3.4 million expectation. So far this year, it has brought in $1.4 million and estimates call for $4.95 million by year's end, according to the Blade.

Monthly revenue at Penn National Gaming Inc.'s (NASDAQ:PENN) Toledo casino has spanned from a $20.4 million pull in June 2012, its first full month, to a low of $13.6 million in November.
Hollywood Casino Toledo launched its outdoor summer concert series Friday.


Morning Call is compiled from news reports originated by other media organizations and Columbus Business First staff.

http://www.bizjournals.com/columbus/morning_call/2013/05/toledo-casino-marks-one-year-revenues.html

Sunday, April 7, 2013

Niagara: The Cost of Hosting Seneca



April 3, 2013

Casino revenue crunch will impact lot maintenance, other city services


Niagara Gazette — Residents can expect to see more grass on city lots growing free and wild this summer.

That's according to Department of Public Works Director David Kinney who told city officials this week that his department did not have room in its budget to hire Niagara Grass Cutting, the landscaping firm it has had under contract for several years and the same one responsible for mowing lots owned by the city itself.

"I want everybody to understand that we don't have the wherewithal or the equipment to do that type of work," Kinney said in an update for city lawmakers on Monday. "So those properties, as of right now, will not (be mowed). And as we add more and more properties, in rem (auction), demolitions, we're in that same situation."

The city now owns approximately 600 vacant lots.

Kinney's department had trouble keeping up on grass mowing last year with less money available to hire temporary workers. This year, he said he will have even less money available to put boots on the streets, take care of parks as well as maintain city lots and other public spaces.

The casino cash being withheld because of the dispute between New York state and the Seneca Nation of Indians over the exclusivity clause in the 2002 gaming compact was not counted as anticipated revenues in this year's budget as it had been in previous years. So, although the city council was able to hold the line on taxes and avoid layoffs during the budget amendment process, cuts to various departments like the DPW were made.

Kinney said to clean and mow a lot he would have to pull four or five workers off of other city work - mowing in parks and forestry work - as well as dedicate equipment used for other tasks.

"I can't designate the machine nor can I designate the personnel to take care of the 600 lots that the contractor used to do," Kinney said.

In addition, the casino cash crunch has left Kinney's department with less money for other general maintenance services than it has had in previous years. This year, Kinney said he's expecting DPW to struggle to keep pace with the following:

• Potholes. The city will not have the money to rent the Pothole Killer machine, which costs about $70,000 to use for two months. As a result, Kinney said, the DPW will have to revert to the old method of a truck, laborers, shovels and stampers to patch the holes.

• Downtown clean up. Kinney has four laborers dedicated to keeping the downtown area looking nice. In previous years, he was able to hire a second crew to work nights and offer overtime for workers willing to take weekend shifts to make sure that tourists walked through a clean and trim looking cityscape. Without the funding, he said his department will no longer has access to the extra help, or the hours.

• Street replacement. Kinney will not have the personnel to use the zipper machine - a large milling machine used to take out sections of road - to replace particularly pock-marked sections of city streets.

During Monday's council meeting, Councilman Charles Walker said Kinney needs to come up with a plan to deal with the shortfalls the best way possible moving forward.

"We can't go through a whole summer not cutting these lots," Walker said.

Kinney said he has been exploring different options, but without the money to contract with private companies or more money budgeted for overtime or temporary workers he does not see a realistic solution.

"I'm looking at different avenues right now, but I have nothing solid," Kinney said.
Mayor Paul Dyster said taking care of the growing list of city owned lots is a "major stress on the system."

"That's just an immense task," Dyster said.

But, he said, it's important that the city holds itself to the same maintenance standards that it expects from its property owners even in years when revenues are lean.

"We want to make sure that we are taking care of our properties," he said.

http://niagara-gazette.com/local/x1862029754/GROWING-CONCERNS

Sunday, February 3, 2013

Priming the Next Generation of Addicts

There are striking similarities between the Tobacco Industry and the Gambling Industry, beyond the phony research emanating from both despite Frank Fahrenkopf's [AGA] best efforts.

Just as the Tobacco Industry is targeting kids, the Gambling Industry is doing so. Why else cartoons characters on Slot Machines? Priming the next generation of Addicts.

One thing is certain - in spite of legislative promises, Beacon Hill will misspend those gambling revenues, just as they have Tobacco dollars.



UP IN SMOKE: Money to help stop nicotine addiction is going elsewhere
 
 
Millions of dollars originally intended for smoking cessation programs in Massachusetts have been diverted to offset budget deficits, leaving the state struggling to pay for quit-smoking hotlines, treatment programs and anti-tobacco advertising, the New England Center for Investigative Reporting has found.
 
The cutback in smoking cessation programs comes at a time when more than 9,000 Massachusetts residents die annually from smoking-related diseases and yearly health care costs associated with treating tobacco-related illnesses in the state have risen to $3.9 billion, according to the Centers for Disease Control and Prevention. Nationally, those numbers are even more staggering, with smoking-related deaths topping 400,000 and annual health care expenditures reaching beyond $96 billion.
 
 
"Roughly 99 percent of all the tobacco dollars that come into the state are used for something else," said Stephen Shestakofsky, recently retired executive director of Tobacco Free Massachusetts, an anti-tobacco advocacy group, referring to the nearly $254 million in tobacco-related legal awards given to Massachusetts in 2012. More than $561 million in tobacco taxes was also collected, bringing the state's total tobacco tally to just over $815 million, the CDC reports.
 
Of that $815 million in tobacco money, only about $4.2 million will be spent in 2013 on smoking cessation and prevention programs in Massachusetts, state health officials said.
 
Since there is no requirement to spend either revenue from the state's tobacco taxes or the millions awarded annually as part of a 1998 Tobacco Master Settlement Agreement between 46 states and four of the nation's largest tobacco companies, the remaining money will go into the state's general fund to pay for other cash-strapped programs, often unrelated to smoking.
 
Most of the other states involved in that tobacco settlement also use that annual windfall to pay for programs unrelated to smoking, anti-tobacco groups said.
 
With Massachusetts spending just $4.2 million — or 4.6 percent of the $90 million the federal CDC says is needed to fully fund cessation and prevention efforts in Massachusetts — the state's anti-tobacco program is woefully cash shy.
 
"Major components of the program have gone unfunded," said Dr. Lois Keithly, director of the Massachusetts Department of Public Health's Tobacco Cessation and Prevention Program, who has seen her budget slashed by $50 million from a peak of $54.3 million in 2000.
 
The cutbacks killed a major anti-smoking media campaign in 2001 that featured state residents talking about the effect smoking had on their lives, despite the campaign's much-touted success. In conjunction with the Massachusetts Tobacco Control Program, the media campaign was credited with reducing per capita cigarette consumption by more than 47 percent since 1997 and curtailing smoking by high school students by 27 percent, according to the Campaign for Tobacco-Free Kids.
 
Also lost was $940,000 to pay for contracts with 19 community health centers and three hospitals for a program that helped low-income individuals and mothers to quit smoking. Spot checks by state and local health officials at stores to ensure that cigarettes were not being sold to minors also have been reduced.

 

FEWER SUPPORT SYSTEMS

In releasing his proposed state budget last week, Gov. Deval Patrick called for a $1 per pack increase in the state's cigarette tax that is projected to raise $118.5 million annually. An additional $18.54 million in revenue would come from raising taxes on other related products, such as snuff and chewing tobacco. All of that money would end up in the state's general fund.
 
So far, none has been earmarked for the state's tobacco cessation and prevention program, Department of Public Health spokesman Omar Cabrera said.
 
Since 2009, when funding for smoking cessation programs in Massachusetts stood at $13.6 million, more than $9 million has been slashed from the state's anti-tobacco budget, leaving smokers with even fewer counseling options and support systems.
 
"It's become a very different kind of program," Keithly said of the state's current anti-tobacco efforts that now focus primarily on providing technical assistance and training to other health-focused organizations to bring the stop smoking message to the public.
 
The state provides brochures and materials. Enforcing anti-tobacco legislation, such as the statewide smoke-free workplace law, has also become part of the agenda, along with maintaining a statewide telephone counseling service for smokers.

 

'NOT MAKING THE INVESTMENT'

Although smoking rates have declined by almost 50 percent in the United States in the last 50 years, 19.3 percent of adults over the age of 18 — or 45.3 million people — still smoke, according to the CDC. Among low-income individuals, certain ethnic groups and male smokers under the age of 18, the percentage of smoking is even higher.
 
"Clearly, we're not making the investment we should be making if we want to tackle the (smoking) problem," noted Shestakofsky, adding that cuts to the Bay State's tobacco funding have cost the state a loss in programs that target veterans, the poor and other groups where smoking is particularly high.
 
Although not specifically designated for tobacco cessation, the Tobacco Master Settlement Agreement was initially intended to pay for tobacco prevention and mitigation programs, even though the agreement didn't exactly specify how settlement money was to be used.
 
No one interviewed knew for certain why that was the case, but anti-tobacco advocates and state officials said they believe it was because state legislators wanted to control how the money would be spent.
 
Soon after that first 1998 windfall tobacco settlement, legislators began spending that money freely.
 
By the new decade, as municipal budgets became tighter, legislators throughout New England and the nation began placing the annual multimillion dollar windfall into the general fund and using the money to bridge financial gaps in other budgets.
 
"The reality is we've had a series of fiscal crises and since nobody wants to be raising taxes, they take that money from somewhere else," said state Rep. Jonathan Hecht, D-Watertown, who has been working to craft legislation that would close loopholes on smokeless tobacco products, among the fastest growing segments of overall tobacco sales.

 

SMOKELESS PRODUCTS TARGET KIDS

With the tobacco industry now spending a chunk of marketing dollars to promote smokeless tobacco products, a new battlefront in the war against tobacco is forming.
 
One thing that is apparent is how the tobacco industry is targeting kids, said Hecht, noting that flavored cigars, chewing tobacco and other smokeless products with low price points and colorful packaging are being subtly marketed to children under the age of 18 as an alternative to cigarettes.
 
With little funding to offset the tobacco industry's influence, Hecht worries that the next generation of tobacco addicts may not be far off.
 
"We've let down our guard at a time when they're targeting that new generation," he said.
 
But Brian May, spokesman for Philip Morris USA, one of the nation's oldest cigarette manufacturers, said the states — not the cigarette companies — are failing the nation's youth by improperly spending money meant to educate them about smoking and smokeless tobacco products.
 
Since the tobacco settlement agreement was signed in 1998, May said, Philip Morris alone has paid out more than $59 billion to the 46 states that were part of the settlement.
 
The states have enough funds to spend $65 million every day on programs for underage tobacco use but only spend about $8 million daily, he noted.
 
"There's more tobacco-generated revenue available to the states than ever before to prevent underage tobacco use. In fact, the CDC says states aren't spending enough on youth and prevention programs and we think they should," May said.
 
That's something the tobacco industry and anti-tobacco advocates can agree on.
"We've accomplished a lot," noted Shestakofsky, "but there's still a long way to go."
 
The New England Center for Investigative Reporting (necir-bu.org) is a nonprofit investigative reporting newsroom based at Boston University.
 
 
 

Sunday, January 27, 2013

Watch closely!

Massachusetts will do the same thing - every other state has regardless of promises.

LePage's plan to cover budget gap with casino revenue questioned

An official says it's a 'really bad precedent' to shift money meant to benefit education to another use.

By Noel Gallagher ngallagher@pressherald.com@mainetoday.com
Staff Writer
AUGUSTA – The LePage administration is setting "a really bad precedent" by taking $14.1 million in casino revenues intended to benefit schools and using it to close the state's budget gap, a state Education Committee member said Thursday.


click image to enlarge
Gov. Paul LePage
Gabe Souza / Staff Photographer

State Rep. Bruce MacDonald, D-Boothbay

"These were carefully crafted and difficult compromises, with a social good coming out of what some of us would call a social ill," state Rep. Bruce MacDonald, D-Boothbay, told Education Commissioner Steve Bowen at a work session on the governor's curtailment order and proposed budget. "I think we're setting a really bad precedent."

Under the 2010 voter-approved casino law, Oxford casino must give the state 46 percent of net slot revenue and 16 percent of table game net revenue, which the state would then divvy up among various state agencies, primarily education.

David Heidrich Jr., a spokesman for the governor's budget team, said the $14.1 million includes about $3 million for hospitals.

The first casino payment to the state is due in June, Bowen said.

He said the intent was to build a year of reserve funds, so the state would distribute casino revenue already in hand instead of attempting to write a budget with only an estimate of what the casino revenue might be.

"Our thinking was to take the 2012-13 money and spend it in the next year, always staying a little bit ahead," Bowen said. "In principle, we wouldn't have wanted to have a budget calamity."

LePage has a $6.2 billion, two-year budget proposal and a supplemental budget designed to bring the state's current budget into balance. The $14 million in casino revenue is part of a $112 million supplemental budget that relies primarily on one-time budget fixes.

But using the casino revenue now to close the budget gap means the state will have to estimate how much casino revenue to count on in the future, Bowen said. They are projecting a similar amount for 2014, he said.

"So we're gambling a bit, for lack of a better term," he said.

When MacDonald asked if it was legal to take those funds away from education, Bowen said it was, because of the budget crisis and certain language in the law.

"So we're changing the law?" MacDonald asked Bowen.

"We are," Bowen answered, adding that it was a "one-time change."

Lois Kilby-Chesley, president of the Maine Education Association, called the move a "shell game."

"The Education Committee is doing its job questioning reassignment of casino money," she said.

"Educators have had enough. We are sick and tired of having our students cheated. We encourage all

Mainers to contact legislators and tell them we want schools to receive adequate funding."
Sen. Christopher Johnson, D-Lincoln, said he also was worried about setting a precedent of taking money earmarked for education and redistributing it elsewhere.

"They should not make those circumventions," he said after the meeting.

"It could be done at any point if they take a cavalier attitude toward laws," MacDonald added.

One problem, MacDonald and Johnson agreed, is that it's not clear where the money to make up the budget gap would come from if the casino money was restored. It could just be added to the cuts already facing Maine's schools, MacDonald said.

LePage's curtailment order already cuts nearly $13 million from state aid to local schools.


http://www.pressherald.com/news/covering-budget-gap-with-casino-revenue-questioned_2013-01-25.html

Where are casino revenues going?


Where are casino revenues going?
Published : Friday, 25 Jan 2013





BOSTON (WWLP) - The Massachusetts Gaming Commission is nearly $4.5 million dollars richer now that eleven casino developers have put down applications fees to compete for a casino license.

But the Commonwealth won’t be seeing any of that money. All of it will go toward vetting casino developers in a costly background check process.

“In order to give the security that we’ve got the best people and only the best people, we have to take the time to look into all of these individuals and all of these entities and it turns out to be a lot of money,” said Gaming Chairman Stephen Crosby.

In their weekly meeting, The Commission laid out some of the costs – 100 hours of work by project managers and coordinators paid at about $400 dollars an hour. Accountants paid at $400 dollars an hour. Some background investigations may go over the $400,000 dollar application fee paid by developers, in which case the developers are required to pay the balance.

“And any difference we assess the applicants in advance of incurring the cost,” said Gaming Commissioner Enrique Zuniga.

Massachusetts will not benefit from any gaming revenue until the first casino and slots licenses are issued at $85 and $25 million dollars respectively. Governor Deval Patrick is anticipating the first casino license to be issued next February and is including $83 million dollars of that revenue in the 2014 state budget. Funds will go toward economic development projects, tourism, cities and towns and community colleges.

“We’re using just shy of $30 million dollars projected for the new community college fund that would be funded with one-time licensing revenue in the gaming fund,” said Exec. Office of Admin and Finance budget director Michael Esmond.

In addition, the Gaming Commission is running on $15 million dollars of borrowed money from the state’s rainy day fund, which they will pay back after they issue the first gaming license.

http://www.wwlp.com/dpp/news/politics/state_politics/wwlp-where-are-casino-revenues-going-cl