Meetings & Information




*****************************
****************************************************
MUST READ:
GET THE FACTS!






Showing posts with label patronage. Show all posts
Showing posts with label patronage. Show all posts

Saturday, April 13, 2013

Crosby: Naive maybe?

Does anyone remember Stan McGee and some of the one-deaf missteps of the Gambling Commission? It might seem that Chairman Steve Crosby should temper his criticism and take a good whiff -- too many Massachusetts residents are smelling an odor that's not so nice.

Exec kept list of patronage hires


By:


 



Gaming boss backs hire

Says patronage list not an issue



The head of the state’s Gaming Commission yesterday defended the hiring of a human resources executive who...




The head of the state’s Gaming Commission yesterday defended the hiring of a human resources executive who previously maintained a patronage sponsor list for jobs at the state treasurer’s office.

“There was never even any intimation that she did anything wrong. She was a record keeper,” said Gaming Commission Chairman Stephen Crosby about Eileen Glovsky, a former deputy treasurer who now oversees the commission’s human resources and information technology. “We have probably the most rigorous and enhanced ethics standards in the world. We don’t ever hire anybody at the recommendation of anybody.”

However, Crosby acknowledged that Gaming Commissioner Enrique Zuniga, also a former treasury employee, provided a positive “reference” for Glovsky.

Glovsky, a former deputy treasurer, came under scrutiny after she testified this week in the state’s trial against ex-Probation Commissioner John J. O’Brien that she managed the treasury’s spreadsheet linking the names of job candidates with their politically connected sponsors and the treasury division where they would be hired.

Crosby told the Herald Glovsky was one of five finalists for the $125,000 human resources position. Gaming Commission officials insisted they did not receive any recommendations for Glovsky, saying Zuniga’s plug was only a “reference.”

Zuniga was a top-ranking treasury employee under former Treasurer Tim Cahill, was appointed to the Gaming Commission last year by current Treasurer Steve Grossman, and was familiar with Glovsky’s “professional skill set” because they worked together when he was executive director of the Massachusetts Water Pollution Abatement Trust, a fund controlled by the treasurer’s office, said Gaming Commission spokeswoman Elaine Driscoll.

Driscoll said Zuniga declined to comment on his reference. Glovsky declined to comment on her Gaming Commission job.

Glovsky is a 1991 graduate of Massachusetts Institute of Technology Sloan School of Management and worked in the treasurer’s office from 2003 through 2012. She and her husband, Charles, have doled out $21,200 in campaign donations to state politicians and groups since 2002. Campaign finance records show, between them, the couple gave $2,250 to Cahill, $2,000 to Gov. Deval Patrick, and $800 to Grossman. Glovsky oversaw human resources under Cahill. Grossman named her deputy treasurer for administrative operations with a $118,683 annual salary.

Charles Glovsky was hired by Boston-based Eaton Vance in 2011 — about three years after Cahill’s office established a fund at the firm to manage state pension money, a fund now worth about $265 million, a spokesman for the Massachusetts Pension Reserves Investment Management told the Herald.

Charles Glovsky is a vice president who works with equity products at the firm. Eaton Vance officials said Charles Glovsky never managed state pension money at the firm.

“His hiring had nothing to do with any account we may have or may have not managed for the commonwealth,” said Fred Marius, chief legal officer at Eaton Vance.

Eileen Glovsky told the Herald yesterday she “never had anything to do with the pensions” at the treasurer’s office.


http://bostonherald.com/news_opinion/local_politics/2013/04/gaming_boss_backs_hire


 

Friday, July 20, 2012

Corruption, Massachusetts Style

Massachusetts has a long, proud history of Crime and Corruption, Ethics violations and patronage that the process of Gambling legislation revealed that even this neophyte recognized.  

Both Senator Petrucelli and Boston Mayor Tom Menino have charities to which an owner of Suffolk Downs contributed. The charities avoid public disclosure and campaign contribution limits, as well as providing a tax-deductible contribution.  What else don't we know? Who else contributed? What else did they receive in return?

Suffolk Downs is a run-down horse racing track that is dying, like the rest of the horse racing industry and they fantasized an elegant Slot Barn to suck discretionary dollars from the local economy. 





Horse racing as pretense to Predatory Gambling!

Charities? Legal? Yes! Does it pass the smell test? Not in your sleep!



In Massachusetts, the arrogance of power and isolation allows elected officials to believe they are immune from scrutiny and have exempted themselves from the Open Meeting Law and the Public Records Law.

You will note that our arrogant Governor Slot Barns Patrick recently refused to provide records even after his phony campaign promises of transparency.

What's he hiding? More lies?

There are honest, hard-working politicians attempting to change this who become discourage or don't continue to run for office out of frustration.

It's time for change! And it's time for voters to support ethical candidates.

Thursday, June 30, 2011



And it comes as no surprise to 97% Massachusetts voters that another bunch of politicians will end up in prison for their arrogance.





Independent Investigator Expects ‘Significant Indictments’ In Probation Hiring Probes

Saturday, June 2, 2012

Stan McGee: The Story That Won't Go Away



Patrick Administration keeps some records private in McGee records response

by: Rob "EaBo Clipper" Eno

Tue May 29, 2012

UPDATE: Story has been updated to more correctly state that it is attorney-client privilege or other reasons under MGL for request refusals.

In response to requests for public records made by Red Mass Group the Deval Patrick administration cited attorney-client privilege and MGL as reasons for keeping certain records private. The records requested involved records regarding alleged child rapist Carl Stanley McGee and the Patrick administration's handling of his being put on leave and subsequent reinstatement. In addition emails between members of the staff of the Executive Office of Housing and Economic Development and the Massachusetts Gaming Commission were requested, as were all media files from McGee's public computer.

A partial response was given to the public records requests, but there were no records at all regarding the allegations of child rape in any of the responsive documents. The time frame requested included the days in which Andrea Estes was writing her first piece in 2008 on the McGee situation. A time period that internal discussions would have been going on at the Executive Office of Housing and Economic Development regarding the allegations.

Below you will find the full responsive document from the EOHED attorney.

Saturday, May 26, 2012

The Dumbest Location in the Commonwealth



Maybe you weren't paying close attention to the backroom deals, secret promises and typical Massachusetts corruption....or even that the Gambling Industry crafted the legislation. Maybe you even wrongly believed it wouldn't effect you.




Those schemes and promises resulted in the line on the Slot Barn map being moved to reward Bob Kraft, generous campaign donor. Maybe you didn't notice.

Bob Kraft managed to find Steve Wynn, currently being investigated for FCPA violations (bribing foreign officials), and we won't  re-hash how Drexel Lambert a la Michael Milken made Steve Wynn rich and screwed everyone else.



We won't dally about Gregory Bialecki sleeping with Bob Kraft, nor his investment in Gambling stocks that Governor Slot Barns defended.


The clowns wrongly believed Kraft/Wynn was a Slam Dunk. How'd that go for ya?

An owner of Suffolk Downs contributed to ruling Mayor Menino's secret charity that doesn't have public reporting requirements.


An owner of Suffolk Downs contributed to Senator "Amnesia" Petrucelli's secret charity that doesn't have reporting requirement. (And his charity wasn't even legal.)


Senator Petrucelli commissioned a report, then claimed it wasn't really a report, he's very confused with the lies he has told. What is clear is that his lying will cost Massachusetts taxpayers + $500 million to fund this "Something for Nothing Scheme" for his buddies.  


As candidate, he lied about his college graduation - he didn't even finish college!



It's time to retire Mr. Petrucelli to count the money he's been promised and manage his charitable endeavors.

What else don't we know?

This one tops them ALL! The dumbest location in the Commonwealth!



There are two roads that go in and out of Winthrop. Which one of them would you take to avoid Suffolk Downs traffic? — in Winthrop, MA.


One of the phony arguments used to promote Gambling is the $$$ flooding across state lines.
Every day, Massachusetts residents are forced to travel to other states for flights because MassPort and the short-sighted Political Elites refuse to divert flights to Worcester, turning neighborhoods into polluted parking lots.
Enough already!    
This Boston-centric universe can reward $46.5 million for a Boston development, but abandoned tornado-ravaged communities.
Chronicle aired a segment on the abandonment of Western Massachusetts and the community destruction:




These are OUR tax dollars that are being mis-spent by goose-stepping politicians that are betraying us and allowing their already over-inflated egos to be stroked by Lobbyists and Campaign Contributors, ignoring facts and their constituents.  

Time for change!

Sunday, May 13, 2012

Betting on trouble, again

 
 
Betting on trouble, again
www.telegram.com

EDITORIAL FOOTNOTE

When Massachusetts lawmakers approved casino gambling, we warned that trouble lay ahead. Well, the slot machines and gaming tables haven’t even begun to take their toll, and Stephen Crosby, chairman of the Gaming Commission, has again shown that he hasn’t covered his bets on ethics and transparency.

C. Stanley McGee, an assistant secretary in the Patrick administration, this week withdrew from consideration as interim director of the commission after it was learned that he was accused in 2008 of sexually assaulting a minor in Florida.

Mr. McGee stated that the matter had become a distraction and that he could not be effective.

Mr. Crosby agreed, but vigorously defended Mr. McGee, as well as his own agency’s background checks. Mr. Crosby said the charges against Mr. McGee were “wholly unsubstantiated.”

We would’t put it that way. According to reports in the Sarasota Herald-Tribune, Mr. McGee was arrested in December 2007, charged with sexual assault, released on $300,000 bond, and slated for arraignment on a charge of sexual assault on a victim over 12 using physical force. After Florida officials declined to pursue the case, the 15-year-old’s family hired an attorney to sue Mr. McGee. A settlement was reached in 2011.

Back in February, Mr. Crosby raised eyebrows by attending a lavish reception in his honor given by the law firm of Holland & Knight, which a day earlier had won a state contract to negotiate a casino deal. Mr. Crosby should have been more sensitive to the appearance of impropriety then. He should certainly have been so in this case.

This commission has difficult and controversial work ahead. Its members and leadership must have spotless records. Thus far, Mr. Crosby has failed to demonstrate he understands that.

Saturday, May 12, 2012

Winslow leaving unanswered questions




Thursday, May 10, 2012

Existing in an Ivory Tower

Watching those who have isolated themselves, receive 6 figure taxpayer funded incomes along with taxpayer funded pensions and seek to suck the last discretionary dollar from the poor on the pretense that cleaning toilets for minimum wage is a future, the unfolding saga of Stan McGee defines the bone-headed decisions.

Guaranteed any agreement negotiated with the Mashpee Wampanoags will not serve the Commonwealth well.

The veneer of pretense slips to clearly reveal the pretense.




In addition to being the Governor's "point man" on developing the casino legislation, including the carve out for Indian gaming preference in SE Mass, he has been the lead person negotiating the compact with the Mashpee Wampanoag on behalf of the Governor - as noted in the paper just the other day that when he moved over to the Commission he was removed from that role... George Brennan is the only one I know who caught that tid-bit.

http://www.capecodonline.com/apps/pbcs.dll/article?AID=/20120508/NEWS/205080334/0/rss04

"Jason Lefferts, a spokesman for the state Executive Office of Housing and Economic Development, said Friday that McGee is being removed from negotiations with the Mashpee Wampanoag on a tribe-state compact, even though McGee expressed an interest in staying in that role. Lefferts said he was not sure when that decision was made by the Patrick administration."

Now that McGee is back in his job, it's not clear if he goes back to the negotiating tables with the tribe or not - regardless, he was the architect of the compact (likely already close to completion) and as such it should be thrown out if he continues to decline to disclose what happened, state on the record that he didn't molest that child (he's never actually denied it) and prove that neither he nor anyone else in the Governor's office used their political influence to get the Florida charges against him dropped when the arresting officers, state sex crime investigators and victim's family all wanted the prosecution to go forward.

http://wampaleaks.blogspot.com/2012/05/inconvenient-distractions-for.html

Thursday, May 10, 2012


Inconvenient “distractions” for the Massachusetts Gaming Commission

UPDATE: McGee resigns from gaming post



BOSTON – Stan McGee’s controversial tenure as the interim executive director of the Massachusetts Gaming Commission is over after three days on the job.

McGee resigned Wednesday night amid growing controversy over his appointment that included protests from child advocates and legislators. McGee was accused, but never charged, in 2007 in an alleged sexual assault on a 15-year-old boy at a Florida resort. In 2011, he reached a confidential settlement with the boy’s family.

“After much personal thought and given the growing distractions, I have decided that I cannot be effective in the job I was offered,” McGee said in a prepared statement released by the commission’s spokeswoman. “In order to allow the commission to get on with the important public business of job creation and economic development it was created to perform, I respectfully decline the offer that was extended to me to serve as acting executive director.”

Commission Chairman Stephen Crosby accepted McGee’s resignation, though he again praised the casino expertise he would have brought to the table. “In the interest of maintaining public confidence in the achievement of our mission, however, I concur with (McGee) that his serving in this role would impede the commission’s ability to accomplish its mission,” Crosby said in his prepared statement.

McGee’s announcement came after another day of public outcry over his appointment and a perception that the commission failed to do its due diligence.

McGee, a former Rhodes Scholar and a graduate of Harvard Law School, was the administration’s expert on Indian gaming laws in the state Executive Office of Housing and Economic Development. He helped craft Patrick’s casino legislation in 2007.

Crosby referred to McGee repeatedly over the past week as a “superstar.”

McGee did not respond to an email seeking further comment.

Just hours before the resignation, the governor’s office confirmed it never did an independent review of the sexual assault allegations against McGee. That contradicts comments made by Crosby on multiple occasions following McGee’s appointment by a unanimous vote of the commission May 1.
“This office does not conduct independent criminal investigations and did not conduct an investigation of this case,” Kimberly Haberlin, a spokeswoman for Gov. Deval Patrick, said in an email. “Law enforcement officials investigated the claims and decided not to press charges. As (McGee) was never charged with a crime, he was allowed to return from his leave of absence after that decision.”

As recently as Monday, in a letter to a state representative who raised questions about McGee’s hiring, Crosby wrote that the commission was satisfied that McGee was presumed innocent, in part, because of a review done by Patrick’s office. That letter came one day after The Boston Globe quoted unnamed sources saying no such review by Patrick’s office ever occurred.

Reached Wednesday night, Karen Schwartzman, a spokeswoman for Crosby and the commission, had no immediate comment on the conflicting information.

Criticism of Crosby, specifically, and the commission, in general, had increased in recent days after Crosby acknowledged in published reports that his vetting process included reading press accounts of the case, but not interviews with prosecutors or anyone else involved in the case other than McGee.
Wednesday was a day of fast-paced developments that stemmed from the controversy.

At mid-day, state Rep. Daniel Winslow, R-Norfolk, announced that he had hired a private investigator to do an independent probe into McGee and his hiring. About an hour later, led by the Republican caucus, the full House approved an amendment calling for more thorough background checks of gaming commission employees.

“The commission’s failure to conduct due diligence in these circumstances is unacceptable and inexcusable,” Winslow said.

Reached Wednesday night by phone, Winslow said he still has concerns about McGee working in state government and said he is hopeful the Patrick administration will review the case before he is reinstated. McGee is expected to rejoin the state Executive Office of Housing and Economic Development, which had loaned him to the gaming commission, according to Statehouse source familiar with the case.

At a Statehouse press conference Wednesday, Winslow said he planned to use campaign funds and donations to pay a retired state police detective $5,000 to do an independent investigation that he would share with the commission and Patrick.

Winslow, who provided copies of the civil complaint, referred to the detailed, graphic nature of the allegations, contained in the lawsuit, as “heartbreaking.” The Times has decided not to publish the sex acts alleged.

Winslow hired Robert Long, an investigator noted for his surveillance work against James “Whitey” Bulger, to travel to Florida and delve into the allegations – due diligence he said the gaming commission should have done.

A handful of state representatives stood with Winslow in a show of support.

Earlier in the week, Winslow had tried to convince the commission to hold off on McGee’s appointment until it could conduct an independent investigation. Crosby refused and, in a letter to Winslow, wrote that the commission has no investigators and McGee is presumed innocent.

Those comments prompted child sex abuse advocates to criticize Crosby and the commission and to call on McGee to unseal the confidential agreement he reached to settle a lawsuit brought by the boy’s family.

Though some described the hiring of Long as “political grandstanding,” Winslow, former legal counsel to Gov. Mitt Romney and a former district court judge, disputed that there is any partisanship at play.

“Voters sent me here to be a voice and a conscience and that’s what I have brought every day I have been a representative,” said Winslow, a first-term representative who voted in favor of the legislation authorizing three casinos and a slot parlor in the Bay State. “When something is not right, even if I don’t have the power to change it, I do have the power to say something.”

About an hour after Winslow’s press conference, the full House approved an amendment to a spending bill calling for more thorough background checks that avoid the appearance of impropriety. “The original gaming law outlined a reasonable and appropriate vetting procedure, but apparently that wasn’t enough. It is unfortunate that the House of Representatives now has to legislate common sense,” House Minority Leader Bradley Jones said in a prepared statement.

The amendment passed by a voice vote and is the clearest indication yet that confidence in the five-member commission is diminished. “I agree this standard is reasonable and necessary, given the demonstrated lack of due diligence with the commission’s first hiring of a key player,” State Rep. Randy Hunt, R-Sandwich, wrote in an email after the vote.

House Republicans also called into question hiring a Patrick administration insider even for a temporary job with the gaming commission. Hunt called it a “conflict of interest” that is unacceptable for an independent authority.

Because the commission is the most powerful agency in Massachusetts, it needs to be above reproach, Winslow said. “It’s important that it be independent, that it be free from the sway of politics and because of that it’s that much more important that there be complete confidence in the integrity of the people appointed to the senior management positions.”




State rep hires private investigator to review allegations against director of gaming commission

Mass Gambling Commission: Off to a bad start



Off to a bad start

Thursday, May 10, 2012

The gaming industry has a history of being intertwined with organized crime and criminal activity and Massachusetts has a long tradition of allowing politics to trump sound law enforcement — the hiring of Carl Stanley McGee is just another example (“Child advocate groups blast hiring of McGee,” May 9). If the vetting process failed with McGee, how will the commission respond to complicated background investigations of prospective gaming licensees? The Gaming Commission is either unwilling or incapable of exercising its oversight authority and is paving the way for a hard and corrupt road down the path to casino gambling.

— Robert L. Cerra, Auburndale
The writer is a retired Massachusetts state trooper.

http://bostonherald.com/news/opinion/letters/view/20220510thursday_letters

Wednesday, May 9, 2012

Mass. Gambling Commission: Lesson on how NOT to handle PR



Group: Disclose Casino Director's Sex Abuse Deal

POSTED: May 8, 2012

http://www.thebostonchannel.com/video/31030367/detail.html#.T6pm49kUINk.google

Read more: http://www.thebostonchannel.com/video/31030367/detail.html#ixzz1uNMOJqSG
A child advocacy group is calling on the newly appointed interim executive director of the Massachusetts Gaming Commission to waive a confidentiality agreement he entered into alleging child sexual abuse.

Read more: http://www.thebostonchannel.com/video/31030367/detail.html#ixzz1uNMF8JSf

Group: Disclose Casino Director's Sex Abuse Deal
he entered into alleging child sexual abuse. Massachusetts Citizens for Children said the commission has a duty to ask Carl Stanley McGee to disclose terms of the settlement. "No comment," McGee...
May 08, 2012 7:17pm





  • Hiring Of Mass. Gambling Commissioner Questioned

    director despite a prior accusation of sexual assault that was eventually dismissed and allegations of conflict of interest. The Massachusetts Gambling Commission named Carl Stanley McGee to the position...
    May 03, 2012 9:04am

  • Sexual battery case against Patrick aide dropped - Boston News ...

    Mar 20, 2008 ... Carl Stanley McGee, assistant secretary for policy and planning, was arrested Dec. 28 at the Gasparilla Inn & Club in Boca Grande, Fla., after ... more

    Patrick aide charged with sexually assaulting boy in Florida - Boston ...

    Feb 7, 2008 ... Carl Stanley McGee, the assistant secretary for policy and planning, was arrested Dec. 28 after the alleged assault at the Gasparilla Inn and ... more

    Florida arraignment postponed for Patrick aide - Boston News ...

    Mar 10, 2008 ... Carl Stanley McGee, the assistant secretary for policy and planning, was to be arraigned Monday on a charge of sexual battery on the boy ... more


    Read more: http://www1.whdh.com/search?q=stan+mcgee#ixzz1uNLQXFh9

    Tuesday, May 8, 2012

    Big mistake by Massachusetts Gambling Commission defies logic



    Defying critics, gambling panel seats McGee

    Crosby defends ‘presumption of innocence’ of hire

    Sunday, January 29, 2012

    Crosby mulls basic gambling questions

    Crosby mulls basic gambling questions
    Gaming chair sits for wide-ranging interview
    Kyle Cheney

    BOSTON (State House News Service) - When it convenes this spring, the Massachusetts Gaming Commission will face an immediate conundrum with multimillion-dollar implications: how closely should gambling regulators partner with and advance the interests of the industry they’re charged with nurturing and policing?

    Stephen Crosby, chairman of the new commission, is grappling with that question as he prepares to build a casino industry from scratch over the next two years. In a wide-ranging interview, Crosby wondered whether it is in the public’s interest to encourage gambling, whether casino regulators should work with licensed developers to ensure they maximize their economic impact, and if the commission should conduct its own review of the negative economic consequences of expanded gambling.

    “What is the public good here? We know we want to avoid the bad. We know we don’t want criminals in the system. We know we don’t want undue political influence. We know we don’t want crony hiring. We don’t want skimming at the casinos, and all that kind of stuff. We know we’d like to have as much economic impact as possible,” he said. “But do we want to promote the gaming industry? Is that part of our job? Is that a public good? And if so, how do you do it?”

    Crosby’s questions underscore the challenge of building an industry with the promise of generating billions of dollars of economic activity in a state with a deep dichotomy of views on gambling; Massachusetts boasts the most successful per capita lottery in the country, but a vocal, persistent anti-gambling constituency appears to have no intention of laying down for casino moguls. How aggressively the Gaming Commission partners with the gambling industry also carries great implications for the strength of the Lottery, another paradox with which gaming commissioners must contend.

    In legislation that sanctioned up to three casinos and a slot parlor in Massachusetts – signed by Gov. Deval Patrick in November – the Gaming Commission is imbued with sweeping powers to build and regulate the gambling industry, including the authority to design the criteria applicants must meet to win a casino license and to enforce gambling laws.

    Crosby is the commission’s only member so far, appointed as its chairman by Gov. Deval Patrick in December. Four other commissioners are due to be named by March 21, one appointed by Treasurer Steven Grossman, another by Attorney General Martha Coakley and two consensus picks by Patrick, Coakley and Grossman. Crosby said he’s offered his help to Grossman and Coakley in making commission picks, should they seek it.

    “I said both to the attorney general and the treasurer that I was very interested in this but I knew I had no formal role, but if they were interested in my participation, I’d be more than happy to do it because obviously this matters to me as much as anybody else on earth,” he said. “Steve Grossman reached out and said, by all means … make suggestions if you have any.”

    “That’s what it’s all about with these four people, is personal integrity – demonstrated personal integrity,” he said, “the ability to deal with the kinds of pressures, the kinds of temptations and the kinds of challenges we’re going to deal with, and wisdom and the ability – the demonstrated ability – to exercise that wisdom and sound judgment.”

    During the interview, Crosby made clear his own reservations about expanded gambling, but stopped short of saying an anti-gambling advocate belongs on the Gaming Commission.

    “I don’t know that it would be a good idea to have somebody who’s explicitly opposed. We don’t want to refight the battle about whether to do this or not. I don’t think we should interpret the law as inviting us to oppose casinos,” he said. “Personally, if I felt like I couldn’t permit casinos to come, I would resign. I don’t think that’s the right way to go here. That would probably be too far on the continuum.”

    But Crosby said he’d be willing to attend a forum convened by anti-gambling groups, some of whom criticized Crosby for participating in a conference with potential developers and gambling industry stakeholders last week. That conference was organized by NAIOP, an association representing commercial real estate developers.

    “Sure, I’d be open to that,” he said. “The NAIOP experience shows that I have to be very, very careful not only on the reality of a conflict but in even the remotest appearance of a conflict.”

    In a nod to gambling critics, Crosby said he’s heard their appeals for a more detailed examination of the ills of expanded gambling, and he said he is reviewing existing data to see whether it is conclusive.

    “I’ve heard criticism that they aren’t objective or they’re not comprehensive. I’ve started to read some of them, but I just don’t have my own opinion. But we absolutely do need good, baseline data,” he said. “What kind of economic impact is realistic to expect? What kinds of revenues are realistic to expect? What are the negative consequences? What does it tend to do to compulsive gambling? How does it aggravate compulsive gambling? What does it tend to do in terms of associated criminal activities? If the Legislature and the governor have not done really thorough and objective analysis of that, then I would think the commission would want to do that.”

    Opponents of expanded gambling have demanded that the state conduct a cost-benefit analysis of three casinos, arguing that introducing gambling facilities in Massachusetts would drive up addiction, organized crime and drunk driving, shutter small businesses, and simply shift consumer spending in other parts of the economy to casinos. Beacon Hill leaders opted against such an analysis last year, saying numerous studies already exist that measure the economic and other impacts of casinos.

    Crosby said the commission, when formed, will be immediately tasked with deciding whether to work as a “partner” of the gambling industry, offering guidance and advice to maximize their success, or whether to act strictly as a regulator and take a “hands-off” approach to industry decisions.

    “The question is, What role is there for the commission to become a proactive ally of the industry in Massachusetts?” he wondered. “Do we want to try to think proactively, what can we do to advance our industry’s objectives versus a competitor … Do we want to become their partners, sort of? Do we want to work with them or not?”

    In particular, Crosby said, the potential advent of internet gambling or sports betting, as well as the potential reaction to Bay State casinos by border states like New Hampshire or Connecticut, could put pressure on Massachusetts casinos, and working with casinos to address these potential challenges could fall under the commission’s purview.

    Other critics of expanded gambling have argued that it would divert money from the Massachusetts Lottery, which generated $4.5 billion of sales per year and sends hundreds of millions of dollars in profits to cities and towns as local aid. Crosby noted that the gambling law’s requirement that casinos minimize harm to the Lottery would require the Gaming Commission to tap into “new markets.”

    “But how big are the new markets?” he wondered.

    Crosby indicted that however the commission proceeds, Bay State residents are unlikely to see gambling facilities for years.

    “We have to build an institution from the scratch. We don’t have office space yet. We don’t have any bylaws. We certainly don’t have any specifications for proposals. We don’t have an executive director. We don’t have anything,” Crosby said. “I would imagine that it’s going to be the better part of this year before we’re even able to really appropriately solicit proposals. So it would be a year or two before even a license 2” – the designation for a slot parlor license – “goes out.”

    Crosby said that as soon as the commission reaches three members, enough to constitute a quorum, it may begin signing leases and conducting basic, organizational business.

    “You can’t sign a lease, do anything formal until you have a quorum … we’re looking at places where other public agencies have vacated space. We don’t even know how many employees we’re going to have,” he said. “We’ll probably get some interim space that’ll hold 10, 15, 20, 30 people while we’re getting organized and figure out how much space we really need. Do we need space for 200, 100, 300? None of us really knows yet.”

    Crosby acknowledged that the new gambling law counted on awarding the slot facility license more quickly than the casinos licenses.

    “Because it’s much less capital intensive, much less construction to be done, much less community impacts probably, it certainly could happen more quickly,” he said. “But as I’ve said many times, we’re not going to rush this. And I think a big slots parlor is going to require as much scrutiny and care on our part as a casino. So it probably will happen more quickly, but I’m not going to feel rushed by that.”

    Crosby also agreed that a brewing patronage scandal within the state Probation Department will challenge the Gaming Commission to look “clean.”

    “It just creates an environment where nobody trusts anybody and it’s all the more important why I, and we, have to be just as assiduous as we can to make it look like we are really paying attention to transparency and equity and merit-based hiring and everything else,” he said, adding, “Knock on wood – the least we’re going to do is not hire under some corrupt system … the challenge is to look as clean as you are. And in this skeptical environment, that’s hard to do.”

    Crosby said he expects the commission to adopt anti-patronage reforms proposed by a task force that investigated the Probation Department scandal in 2010.


    Tuesday, January 24, 2012

    Stephen Crosby mulls interests of casino developers, critics

    In sit-down, gaming chair mulls interests of casino developers, critics
    By Kyle Cheney / State House News Service

    When it convenes this spring, the Massachusetts Gaming Commission will face an immediate conundrum with multimillion-dollar implications: how closely should gambling regulators partner with and advance the interests of the industry they’re charged with nurturing and policing?

    Stephen Crosby, chairman of the new commission, is grappling with that question as he prepares to build a casino industry from scratch over the next two years. In a wide-ranging interview, Crosby wondered whether it is in the public’s interest to encourage gambling, whether casino regulators should work with licensed developers to ensure they maximize their economic impact, and if the commission should conduct its own review of the negative economic consequences of expanded gambling.

    “What is the public good here? We know we want to avoid the bad. We know we don’t want criminals in the system. We know we don’t want undue political influence. We know we don’t want crony hiring. We don’t want skimming at the casinos, and all that kind of stuff. We know we’d like to have as much economic impact as possible,” he said. “But do we want to promote the gaming industry? Is that part of our job? Is that a public good? And if so, how do you do it?”

    Crosby’s questions underscore the challenge of building an industry with the promise of generating billions of dollars of economic activity in a state with a deep dichotomy of views on gambling; Massachusetts boasts the most successful per capita lottery in the country, but a vocal, persistent anti-gambling constituency appears to have no intention of laying down for casino moguls. How aggressively the Gaming Commission partners with the gambling industry also carries great implications for the strength of the Lottery, another paradox with which gaming commissioners must contend.

    In legislation that sanctioned up to three casinos and a slot parlor in Massachusetts – signed by Gov. Deval Patrick in November – the Gaming Commission is imbued with sweeping powers to build and regulate the gambling industry, including the authority to design the criteria applicants must meet to win a casino license and to enforce gambling laws.

    Crosby is the commission’s only member so far, appointed as its chairman by Gov. Deval Patrick in December. Four other commissioners are due to be named by March 21, one appointed by Treasurer Steven Grossman, another by Attorney General Martha Coakley and two consensus picks by Patrick, Coakley and Grossman. Crosby said he’s offered his help to Grossman and Coakley in making commission picks, should they seek it.

    “I said both to the attorney general and the treasurer that I was very interested in this but I knew I had no formal role, but if they were interested in my participation, I’d be more than happy to do it because obviously this matters to me as much as anybody else on earth,” he said. “Steve Grossman reached out and said, by all means ... make suggestions if you have any.”

    “That’s what it’s all about with these four people, is personal integrity – demonstrated personal integrity,” he said, “the ability to deal with the kinds of pressures, the kinds of temptations and the kinds of challenges we’re going to deal with, and wisdom and the ability – the demonstrated ability – to exercise that wisdom and sound judgment.”

    During the interview, Crosby made clear his own reservations about expanded gambling, but stopped short of saying an anti-gambling advocate belongs on the Gaming Commission.

    “I don’t know that it would be a good idea to have somebody who’s explicitly opposed. We don’t want to refight the battle about whether to do this or not. I don’t think we should interpret the law as inviting us to oppose casinos,” he said. “Personally, if I felt like I couldn’t permit casinos to come, I would resign. I don’t think that’s the right way to go here. That would probably be too far on the continuum.”

    But Crosby said he’d be willing to attend a forum convened by anti-gambling groups, some of whom criticized Crosby for participating in a conference with potential developers and gambling industry stakeholders last week. That conference was organized by NAIOP, an association representing commercial real estate developers.

    “Sure, I’d be open to that,” he said. “The NAIOP experience shows that I have to be very, very careful not only on the reality of a conflict but in even the remotest appearance of a conflict.”

    In a nod to gambling critics, Crosby said he’s heard their appeals for a more detailed examination of the ills of expanded gambling, and he said he is reviewing existing data to see whether it is conclusive.

    “I’ve heard criticism that they aren’t objective or they’re not comprehensive. I’ve started to read some of them, but I just don’t have my own opinion. But we absolutely do need good, baseline data,” he said. “What kind of economic impact is realistic to expect? What kinds of revenues are realistic to expect? What are the negative consequences? What does it tend to do to compulsive gambling? How does it aggravate compulsive gambling? What does it tend to do in terms of associated criminal activities? If the Legislature and the governor have not done really thorough and objective analysis of that, then I would think the commission would want to do that.”

    Opponents of expanded gambling have demanded that the state conduct a cost-benefit analysis of three casinos, arguing that introducing gambling facilities in Massachusetts would drive up addiction, organized crime and drunk driving, shutter small businesses, and simply shift consumer spending in other parts of the economy to casinos. Beacon Hill leaders opted against such an analysis last year, saying numerous studies already exist that measure the economic and other impacts of casinos.

    Crosby said the commission, when formed, will be immediately tasked with deciding whether to work as a “partner” of the gambling industry, offering guidance and advice to maximize their success, or whether to act strictly as a regulator and take a “hands-off” approach to industry decisions.

    “The question is, What role is there for the commission to become a proactive ally of the industry in Massachusetts?” he wondered. “Do we want to try to think proactively, what can we do to advance our industry’s objectives versus a competitor ... Do we want to become their partners, sort of? Do we want to work with them or not?”

    In particular, Crosby said, the potential advent of internet gambling or sports betting, as well as the potential reaction to Bay State casinos by border states like New Hampshire or Connecticut, could put pressure on Massachusetts casinos, and working with casinos to address these potential challenges could fall under the commission’s purview.

    Other critics of expanded gambling have argued that it would divert money from the Massachusetts Lottery, which generated $4.5 billion of sales per year and sends hundreds of millions of dollars in profits to cities and towns as local aid. Crosby noted that the gambling law’s requirement that casinos minimize harm to the Lottery would require the Gaming Commission to tap into “new markets.”

    “But how big are the new markets?” he wondered.

    Crosby indicted that however the commission proceeds, Bay State residents are unlikely to see gambling facilities for years.

    “We have to build an institution from the scratch. We don’t have office space yet. We don’t have any bylaws. We certainly don’t have any specifications for proposals. We don’t have an executive director. We don’t have anything,” Crosby said. “I would imagine that it’s going to be the better part of this year before we’re even able to really appropriately solicit proposals. So it would be a year or two before even a license 2” – the designation for a slot parlor license – “goes out.”

    Crosby said that as soon as the commission reaches three members, enough to constitute a quorum, it may begin signing leases and conducting basic, organizational business.

    “You can’t sign a lease, do anything formal until you have a quorum ... we’re looking at places where other public agencies have vacated space. We don’t even know how many employees we’re going to have,” he said. “We’ll probably get some interim space that’ll hold 10, 15, 20, 30 people while we’re getting organized and figure out how much space we really need. Do we need space for 200, 100, 300? None of us really knows yet.”

    Crosby acknowledged that the new gambling law counted on awarding the slot facility license more quickly than the casinos licenses.

    “Because it’s much less capital intensive, much less construction to be done, much less community impacts probably, it certainly could happen more quickly,” he said. “But as I’ve said many times, we’re not going to rush this. And I think a big slots parlor is going to require as much scrutiny and care on our part as a casino. So it probably will happen more quickly, but I’m not going to feel rushed by that.”

    Crosby also agreed that a brewing patronage scandal within the state Probation Department will challenge the Gaming Commission to look “clean.”

    “It just creates an environment where nobody trusts anybody and it’s all the more important why I, and we, have to be just as assiduous as we can to make it look like we are really paying attention to transparency and equity and merit-based hiring and everything else,” he said, adding, “Knock on wood – the least we’re going to do is not hire under some corrupt system ... the challenge is to look as clean as you are. And in this skeptical environment, that’s hard to do.”

    Crosby said he expects the commission to adopt anti-patronage reforms proposed by a task force that investigated the Probation Department scandal in 2010.

    Sunday, January 22, 2012

    Gaming Commission won’t rush on casinos

    Gaming Commission won’t rush on casinos
    By Mark Arsenault

    Massachusetts gambling regulators will not open the sweepstakes for the state’s three casino licenses for at least another nine to 18 months, according to Stephen P. Crosby, chairman of the potent state Gaming Commission, a new board that will pick the winners and losers among casino proposals across the state.

    Not until that time, he said at a gambling forum yesterday, would the commission be prepared to issue the request for proposals that would launch the competition.

    Of all the temptations the members of the Gaming Commission must resist, the first is the temptation to rush, Crosby said at the event, sponsored by the commercial real estate trade association NAIOP Massachusetts. The forum, at the Westin Boston Waterfront, drew several hundred people.
    [And excluded the public.]

    Taking it slow is a theme Crosby has struck since Governor Deval Patrick, a Democrat, chose him last month as the first appointee to the five-member Gaming Commission. The other members will be named in the coming weeks.

    Crosby is dean of the McCormack Graduate School of Policy and Global Studies at the University of Massachusetts Boston, and a veteran of the Republican administrations of Governors Paul Cellucci and Jane Swift.

    Stepping slowly into the world of Las Vegas-style casino gambling should help the state avoid the corruption and missteps that can undermine public confidence in the process of awarding lucrative development rights, said Crosby. The legislation that legalized casino gambling in Massachusetts, which Patrick signed in November, authorizes up to three resort-style casinos, to be spread among three geographic regions, and one slot parlor, which could be built in any region.

    Some had criticized Crosby for agreeing to appear at a forum cohosted by a casino lobbyist. One of the forum’s sponsors was ML Strategies, the lobbying firm that is representing casino mogul Steve Wynn in his effort to build a casino in Foxborough. But Crosby said that he had consulted the State Ethics Commission before deciding to speak at the forum, and that it presented an opportunity for him to include casino interests in a broader public discussion about how the industry can benefit the state.

    During yesterday’s speech, Crosby laid out two central goals for the gambling commission.

    First, do no harm.

    “If we can avoid terrible negatives, then I will feel good,’’ said Crosby, who added dryly, “It’s a modest aspiration.’’

    Not every state has managed to reach that modest goal. Pressure on public officials in Pennsylvania to move quickly to approve casinos contributed to widespread problems there, Crosby said. A grand jury in Pennsylvania found evidence of rampant patronage, political horse-trading, and alleged mob ties in the casino industry.

    At a minimum, Crosby said, residents of Massachusetts need to be comfortable that development rights will be awarded fairly and honestly.

    His second goal is a bit loftier: to use the casino development process “to leverage the common good.’’

    He estimates that casino companies are prepared to invest as much as $4 billion in total to develop their projects in Massachusetts. He wants to investigate whether the investments can be designed to also enhance existing tourism sites, revitalize downtrodden areas, improve transportation, and provide other public benefits.

    Casino development “is going to happen,’’ said Crosby, “so let’s be sure we do it in a way that minimizes the public harm, but see if there’s a way to do it that maximizes the public good.’’

    In laying out the Commission’s charge under the law, Crosby said the deciding voice of local communities on casino projects will be sacrosanct. No casino proposal will be eligible for a license unless voters in the host community - or, in big cities, the voting ward in which the project would be located - endorse the proposal at the ballot box.

    “We are irrelevant until the town or the ward has spoken,’’ said Crosby.

    Development proposals will be judged against one another on a host of criteria, some of them subjective, such as the quality of the design of the building, and how well the project fits with its surroundings, he said.

    “There is nothing that says he or she with the deepest pocket wins,’’ said Crosby, who took several questions and then left the forum before the other speakers.

    One of those speakers, Troy Stremming, senior vice president for Ameristar Casinos, which intends to compete for casino development rights in Springfield, endorsed Crosby’s suggestion that the commission take its time.

    “To get this done right, you need to move slowly,’’ Stremming said.