Casino cafes aren’t good for local economies

In the Spotlight: Casino cafes aren’t good for local economies

By Dave Zickar
Posted Apr. 17, 2015 at 7:35 PM
Updated Apr 17, 2015 at 7:41 PM

Corporations have quietly been opening hundreds of casino cafes in neighborhoods across the state over the past several months. Just 10 corporations are operating 185 cafes already, and they’ve announced plans to open hundreds more.

The spread of casino cafes is an unintended consequence of the Video Gaming Act that is undermining its intent and integrity. Casino cafes are not taverns or restaurants but gaming businesses. In other states where cafes metastasized, slot income was reportedly more than 90 percent of their annual business.

These cafes are a threat to the small businesses owners of bars and restaurants and those who run VFWs and American Legion Halls. We are concerned because when customers go to a casino cafe, they aren’t visiting our establishments to buy a meal or a beverage; rather, they’re putting their money into corporate slot machines that ship the revenue out of East Peoria.

This gaming entertainment is readily available at the more than 4,000 legitimate bars, restaurants, truck stops and fraternal orders licensed in the state. Casino cafes are the lowest form of hospitality business possible. They offer a minimal menu, operate out of a small storefront and have just enough staff to keep the lights on and the slots spinning, sometimes for 20 hours a day.

While East Peoria makes a nickel of every dollar earned at a cafe, that is offset by the lost economic activity at legitimate neighborhood restaurants and taverns. The economic progress casino cafes claim to generate are an illusion because their gains come at the expense of already established community-based businesses.

For many small business owners, video gaming has been a welcome source of new revenue. Left unchecked, these cafes will undermine the hospitality industry video gaming was supposed to assist. Towns like Springfield, Rockford and Loves Park have been overrun with dozens of cafes that snatched up valuable real estate. Locally, Emma’s Eatery in Peoria has siphoned over $490,000 out of town and has only been operational for a year. Emma’s is part of a corporate chain that currently has 50 locations and a total slot revenue of $83.7 million. Are these the kind of businesses we want in our town?

Local mayors need to be given the power to prevent casino cafes from swarming our communities. State Sen. Darin LaHood of Peoria has already filed a bill in Springfield (SB 1794) to give local government more power to work with business owners to create appropriate liquor license and gaming regulations.

Small businesses need to stand together against the onslaught of corporate casino cafes. We spent decades trying to legalize video gaming for our businesses, and now, just two years later, corporate interests have swept in to open pop-up casino cafes.

Dave Zickar owns the Brass Key Lounge in East Peoria.



 http://www.pjstar.com/article/20150417/OPINION/150419279/2011/OPINION#OPINION/?Start=1&_suid=1429405081898007247385016021002

Matt Brodeur on "Slots: A Bad Bet for Millbury"

Published on Sep 3, 2013

Matt Brodeur discusses the jobs and host agreement for Millbury during his segment of our Millbury public access TV show entitled "Slots: A Bad Bet for Millbury".

Les Bernal on "Slots: A Bad Bet for Millbury"

Published on Sep 3, 2013

Les Bernal of Stop Predatory Gambling discusses the proposed slots parlor in the Town of Millbury in our public access TV Show entitled "Slots: A Bad Bet for Millbury"

Walter Swenson on "Slots: A Bad Bet for Millbury"

Published on Sep 3, 2013

Walter Swenson discusses the traffic study surrounding the proposed slots parlor in Millbury during his segment of the Millbury public access TV show entitled "Slots: A Bad Bet for Millbury"

 

Lesa McWalters on "Slots: A Bad Bet for Millbury"

Published on Sep 3, 2013

No Slots in Millbury President Lesa McWalters discusses the reasons why she formed the no slots campaign group in this segment of our Millbury public access TV show.

Slots parlor is too risky for Worcester

By Edward L. Glaeser | Globe Columnist
May 30, 2013

How much would a slots parlor have to pay you to open in your backyard? Worcester is debating that question, as Chicago-based casino operator Neil Bluhm seeks to operate in the city’s Green Island neighborhood. There is good and bad in gaming, but putting Massachusetts’ only dedicated slots parlor into a vulnerable area of Worcester — a city that hopes to emulate Seattle, but is at risk of being Buffalo — seems as dangerous as drawing to an inside straight.

I’m enough of a libertarian to believe in allowing people to gamble, but we must also acknowledge and plan for the downside of that freedom. When gamblers jeopardize their life savings, or blow through funds that should be spent on their children or elderly parents, then losing at the tables becomes more than a private matter. Heads they win; tails, public programs bear the costs of impoverishment. Call me a paternalist, but we should steer gambling away from poor communities — not concentrate it in places like Green Island, where the median household income is about $25,000.

Yet the very poverty that makes such a neighborhood vulnerable to slots-related risks also makes it more attractive to casino developers. Poorer areas have cheap land, such as Worcester’s Wyman-Gordon industrial site, which has been vacant for years and is full of environmental hazards. Poorer places are more likely to be swayed by the promise of a few casino jobs and a modest payment to their local governments. The presence of a large low-income population within walking distance may even provide the casino with a core customer base.

For its part, Worcester should be very wary about embracing a slots parlor. One extensive study of Native American casinos by economists William Evans and Julie Topoleski found that employment rose in communities after casinos opened, but the bulk of jobs went to outsiders. And compared with full-scale casinos, slots parlors are capital intensive, not labor intensive — which is to say, they depend far more on machines than on human workers. An operator that needs workers with skills tailored to specialized machines seems unlikely to hire from the local neighborhood.

Moreover, the work of Evans and others finds considerable downsides to gambling. Bankruptcies and property crimes, such as auto theft, rise after a casino opens. Another study documents that alcohol-related auto fatalities increase in counties where casinos open. Unsurprisingly, several studies find that new casinos increase the prevalence of problem gambling.

The city should recognize that urban success is made by long slow investments.

These problems, which some communities might view as manageable, are more worrisome in Worcester, a former hub of industrial innovation that perpetually teeters on the brink between information-age success and rust belt failure. After losing one-fifth of its population between 1950 and 1980, Worcester has experienced a modest renaissance since then, adding population and economic activity because of immigrants and universities — two pillars of modern urban growth.

Human capital is the bedrock of urban growth, and Worcester’s rich endowment of colleges means that 30 percent of the city’s adults have at least a college degree. Worcester is a gateway city, providing opportunity to the foreign born who are priced out of Boston, and one-fifth of its population today was born outside of the United States.

The future of Worcester depends on attracting the skilled and ambitious, with a pleasant, inexpensive city that is close to Boston’s economic dynamo. How does a slots parlor contribute to that goal?

Rising traffic and crime levels could just as easily make the city less appealing to families and businesses looking for a more affordable, relaxed place.

Massachusetts entered into gambling to raise casino-related revenues that were otherwise going to Foxwoods and Mohegan Sun, just as Singapore built a massive casino complex to steer some money away from Macau. But savvy Singapore imposed an $80 tax on any of its own residents who wanted to enter the casino, because the city-state was so worried about gambling’s social costs. Shouldn’t Worcester be at least as frightened as prosperous Singapore?

Theoretically, a slots parlor operator could make the city an offer it can’t reasonably refuse. If the slots parlor offers, say, $100 million per year, Worcester should take the deal. That’s enough cash to make noticeable improvements to schools and public safety — and balance off the social costs of gambling. But if, as seems likely, the proposed payment is far smaller, Worcester should walk away. The city should recognize that urban success is made by long, slow investments in education and entrepreneurship, not the shiny spin of a slot machine.

Edward L. Glaeser, a Harvard economist, is director of the Rappaport Institute for Greater Boston.

http://www.bostonglobe.com/opinion/2013/05/30/developer-neil-bluhm-proposed-slots-parlor-too-risky-for-worcester/4gOgAMLJx1Qr8WHouLjPLN/story.html?camp=newsletter


[A review of employment indicates Slot Barns employ 1 person for every 3-4 Slot Machines, not considering weekends and 24/7 shifts. Each Slot Machine permanently removes + 1 job from the local economy.]

Florida bans slot-like games

Florida gov signs ban on parlors with slot-like computer games; takes effect immediately

Associated Press
Apr 10, 2013 10:16 PM EDT

TALLAHASSEE, Fla. — Up to 1,000 strip-mall parlors where people can play slot-like computer games became illegal Wednesday in Florida, with the governor signing a ban on the heels of a federal investigation into a charity that authorities say was an illegal gambling front.

The law took effect immediately after Gov. Rick Scott signed it, roughly a month after nearly 60 people were arrested in connection with the racketeering investigation into Allied Veterans of the World. The arrests prompted the resignation of former Lt. Gov. Jennifer Carroll, who did consulting work for the group but has not been accused of wrongdoing.

The Legislature and governor acted with dizzying speed, leaving many questions as to the law’s impact and how the centers known as Internet cafes would react. The ban is also expected to directly affect adult amusement arcades that cater to senior citizens.

Scott, who quietly signed the bill behind closed doors, called the ban the “right thing to do for our state.”

Enforcing the ban will fall to local authorities. But some arcade operators said they weren’t taking any chances.

Johnny Figueria, manager of the Tropicana Bingo & Arcade in Hialeah, said nearly 100 machines were shut down Tuesday as a precaution until he and other arcade managers understood the law.

“This law will affect everyone here,” he said in Spanish. “There are people who come here in the morning to play bingo and then stay later to play the machines until their son comes to pick them up, so they won’t be home alone.”

Four employees were told not to show up for work Wednesday, and bingo manager Kenia Landa said she was worried she may lose her job.

“I feel so sorry, including me, because I don’t know what is going to happen,” she said. “The only support I have is this job.”

During a brief question-and-answer session with reporters, Scott brushed aside questions as to jobs that could be lost by the new ban. Scott, who has made job creation his primary focus, instead said legislators should pass tax-cut measures he is pushing this year.

But Scott could soon have another legal battle on his hands.

Bruce Rogow, a well-known constitutional lawyer in Florida, met behind closed doors with more than 100 arcade operators in Pompano Beach.

“I think that there is probably no choice but to file a lawsuit,” said Rogow.

Scott and legislators acted in the wake of the Allied Veterans of the World charity scandal. The charity —which was affiliated with dozens of storefront parlors — was accused of running a $290 million illegal gambling business that directed most of the proceeds into its owners’ pockets.

The parlors started sprouting around the state within the last six years amid debates over their legality. The game makers argued they were legal sweepstakes because there is a predetermined number of winners, similar to a McDonald’s Monopoly game or Coca-Cola cap contest. Unlike slot machines run at casinos, the operations were not heavily regulated.

Most of the parlors sell customers Internet or phone time, allowing them to check email and surf the Web on computers. Instead, however, many customers play games like “Captain Cash” and “Lucky Shamrocks,” and players are encouraged to spend more to win more, investigators said.

Existing law allows slot machines in casinos run by the Seminole Tribe and at dog and horse tracks in South Florida. The new law makes it clear that machines that simulate slot machines or other casino type games are illegal elsewhere in the state.

The legislation also puts limits on sweepstakes and says arcades cannot award gift cards or cash to winners. It also says arcades are supposed to have coin-operated games that involve an element of skill, not casino-style games of chance.

Gale Fontaine, president of the Florida Arcade Association, called on officials to enforce the law equitably. Her organization said the law would also outlaw machines operated at bowling alleys, airports and skating rinks.

Supporters of the law, however, said lawmakers were clarifying gray areas in the state’s gambling law that had not kept pace with new technology.
___
Associated Press reporter Suzette Laboy contributed to this story from Hialeah, Fla.


http://www.washingtonpost.com/national/florida-gov-signs-ban-on-parlors-with-slot-like-computer-games-takes-effect-immediately/2013/04/10/ba615460-a203-11e2-bd52-614156372695_story.html

Judge dismisses Dotty’s slot parlor lawsuit

Judge dismisses Dotty’s slot parlor lawsuit against Clark County

Justin M. Bowen

Cindy Clark plays a slot machine at Dotty’s near Eastern and Serene in Henderson on Thursday, March 24, 2011.

 

By Steve Green

Friday 21 September 2012

 

A federal judge on Friday threw out the Dotty’s tavern and slot parlor chain lawsuit against Clark County, ruling county commissioners have broad powers to regulate such locals’ gaming establishments.

Dotty’s and its sister company Jackpot Joanies sued the county in May 2011 after the County Commission required them and similar small businesses with gaming to build bars with at least eight embedded slot machines to ensure that gaming was an incidental part of the business model as opposed to being the key revenue driver.

 

Commissioners and state gaming regulators had fielded complaints about Dotty’s business model from Las Vegas locals’ casinos, which asserted Dotty’s was competing unfairly by not making the required investments in bars and kitchens like traditional gaming taverns.

Dotty’s, however, said it was filling a market niche preferred by women who liked its standalone gaming machines being clustered together in a living room-like atmosphere.

In its lawsuit, Dotty’s said its due process rights were violated because it had a property interest in its county gaming licenses and the new rules amounted to a ''back-door revocation'' of those licenses.

U.S. District Judge Kent Dawson rejected that argument in an order filed Friday, saying the county had not acted to restrict, remove or suspend those licenses.

"The county has a legitimate interest in promulgating ordinances that facilitate the proper use of gaming licenses. Regulations aimed at preventing misuse of restricted licenses and closing loopholes in licenses that provide only for 'incidental' gaming are well within the county’s purview," Dawson wrote in his order. "The county also has an interest in requiring that businesses with the privilege of holding a gaming license provide employment, services and amenities to the community. The court will not second guess the county’s determination that taverns operating under limited gaming licenses should comply with certain physical requirements, including having eight bar-top gaming devices, to enhance public welfare."

Dawson in his order said that Dotty’s attorneys, perhaps anticipating his ruling, had sought permission to file a new amended complaint. He gave them three weeks to do so.

A Dotty’s spokesman said the company was reviewing the ruling and had no immediate comment.

In pursuing their lawsuit last year, Dotty's attorneys noted the company had 21 taverns in Clark County alone.

''This was not an ordinance intended for general application or to cure a widespread problem,'' they complained of the new Clark County rules. ''It was targeted and engineered for the singular, overt, and illegal purpose of squelching a successful small business that the county’s well-heeled, big gaming constituents want to pillage of its loyal, slot-playing customers.''

Dotty’s separately in February voluntarily dismissed a similar lawsuit against the Nevada Gaming Commission over its rules regulating its business. The suit was dismissed for undisclosed reasons.

Dotty’s lately, with a new attorney, has been appearing before the Gaming Commission and the state Gaming Control Board and appears to be working to improve its working relationship with state casino regulators.

http://www.vegasinc.com/news/2012/sep/21/judge-dismisses-dottys-slot-parlor-lawsuit-against/

 

 

Kicked to the Curb in Rhode Island

RI eliminates funds for gambling addiction program

By DAVID KLEPPER

Associated Press / August 3, 2012

 

PROVIDENCE, R.I. (AP) — Rhode Island has eliminated funding for a program that offered help to compulsive gamblers, and the psychologist who ran the program says he’s being forced to turn away potential patients even as two slots parlors seek to expand into full casinos.

Since 2001, psychologists at Rhode Island Hospital have provided therapy to 1,600 problem gamblers who are uninsured or who lack the ability to pay for treatment. The state originally dedicated $150,000 a year to the program but the amount dropped to $67,000 in the most recent fiscal year that ended June 30.

This year, the General Assembly eliminated funding altogether. Instead, lawmakers voted to make Newport Grand and Twin River slot parlors contribute at least $100,000 to gambling addiction treatment, but only if voters pass referendums this fall that would authorize table games like poker and blackjack at the two facilities.

Bob Breen, the psychologist who directed the program at Rhode Island Hospital, said it’s ‘‘beyond comprehension’’ that the state eliminated funding for his program to await the uncertain outcome of the referendums. He said he’s already had to turn away potential patients because of the program’s elimination.

‘‘What happens to people who have severe gambling problems between now and then? Or the referendums don’t pass? They get kicked to the curb,’’ Breen said.

The Rhode Island Lottery is working on a plan to continue funding for gambling addiction treatment before the November referendums, or in case the ballot questions fail, according to Larry Berman, a spokesman for House Speaker Gordon Fox. The lottery also operates a gambling addiction helpline.

Breen said he has not been contacted by the state about continuing the program, and said he only learned the funding had been eliminated last week. He said the amount the state had been spending was already far too low.

Aubin was unavailable on Friday, according to a lottery spokeswoman, who said she had no information on the funding that had gone to Rhode Island Hospital.

The state made $355 million last year from its lottery and its share of slot parlor revenues.

Rhode Island already spent far less than most states on problem gambling services, according to a 2010 survey of state programs by the Association of Problem Gambling Service Administrators. The survey found that in 2010 Rhode Island spent less than 10 cents per capita on problem gambling treatment programs, compared to a national average of 34 cents.


http://www.boston.com/news/local/connecticut/2012/08/03/eliminates-funds-for-gambling-addiction-program/bx1uXpNQrXWIJunisvvcGL/story.html

Blindly Accepting Overstated Projections

...wildly optimistic or decidedly misleading   ????

Or was it CORRUPT? 

There are NO Consequences for irrational proclamations.

Shouldn't there be?  They do it all over.

Suffolk Downs pretends to bring a gazillion low wage jobs to East Boston. They won't. What's the penalty?

Plainridge pretends Streets Pave With Gold. When it doesn't happen and local businesses close, what's the penalty?

The union membership has blindly lined up behind these Predators without considering the experiences of others.

The Genting/Mashpee Wampanoag Taunton Disaster promises likewise. What's the penalty?

We've been snookered by stupid politicians too dumb to conduct their due diligence, too willing to follow, who allow their over-inflated egos to be stroked by Gambling Lobbyists.

 

Who will tell the Emperor he is naked?


More gambling isn’t the answer for Maryland’s economy

By Heather R. Mizeur, Published: July 27The Washington Post

All that glitters is not gold.

Maryland’s political leaders are betting the farm on adding table games to our existing slots parlors and constructing a mega-casino in Prince George’s County. In doing so, they are asking Marylanders to double down on a flawed economic strategy that has already proved to be worth far less than advertised. Why the rush to make Maryland the next Atlantic City? Powerful gaming interests want you to believe that this is our only hope for new jobs in this difficult economy. We know better.

In 2007, Maryland voters were told that slot machines would generate an additional $660 million for education and would strengthen our economic outlook. We now know this was either wildly optimistic or decidedly misleading. We have seen less than 15 percent of our promised return. And that figure does not count the more than $120 million in taxpayer funds used to purchase the machines or the social expense of dealing with new crime and addiction and increased poverty.

Casino interests have promised up to 4,000 jobs with this expansion — an attractive number if these would be new jobs. But given that casinos typically attract 80 percent of their customers from within a 50-mile radius, a form of economic redistribution is more likely. Most of the jobs would slowly but surely be taken from existing local retail, dining and hospitality businesses.

A gaming expansion is a short-term fix that distracts us from the work of creating sustainable jobs and growing a diverse economy. Maryland’s ability to bring prosperity to all of our communities is limited only by our creativity, willingness to work harder and smarter, and ability to stay focused on the bigger picture.

Here are some ideas to start:

l Jobs of the future. Maryland’s potential rests on the expansion of its knowledge-based economy. We have already begun to build expertise in areas such as biotech and nanotechnology, cybersecurity, space exploration and clean energy, and we are at the head of the pack nationally in research and development investment. But we significantly lag our peers in turning these innovative ideas into marketable products. We have to improve on that with a long-term commitment to commercialization and loosening government regulations that are barriers to economic growth.

These jobs will also require a skilled workforce. By 2018, an estimated 66 percent of jobs in the state will require postsecondary education. As “Obamacare” takes full effect, we will need as many as 100,000 additional health professionals to serve the newly insured. We must join with employers to take a full inventory of our state’s economic opportunities and aggressively encourage partnerships among business, state and local governments and our robust university and community college system to better align student studies with job opportunities. We can make Maryland a leading state in matching our skills and talent with our economic needs.

l Small-business tax cuts. Small-business owners drive the engines of job creation. Freed-up capital in the hands of a small-business entrepreneur is often directly reinvested in the local economy through new hiring, supply purchases and marketing. We can provide tax relief to small businesses by closing the combined-reporting loophole that has allowed some giant corporations to avoid their Maryland tax obligations. Shockingly, between 2008 and 2010, at least 68 Fortune 500 companies across the nation — including Comcast, Verizon and Pepco in our area — paid no state income taxes in at least one of those years. Our economy works best when everyone plays by the same rules. We can boost the bottom line for small businesses while ending shell games for corporate titans.

l Rebuilding roads and rail. Rebuilding highways and bridges, investing in Maryland’s globally competitive Port of Baltimore and expanding public-transit options can create construction, maintenance and operations jobs and fuel economic activity. Maryland must give a boost to our dwindling state transportation trust fund. And no revenue option should be off the table to make this happen.

l Transformative school construction. Building new schools creates more jobs than almost any other activity in which government engages. Maryland has a backlog of roughly $5.5 billion worth of school construction projects. I have proposed a new kind of public-private partnership, tested in North Carolina and elsewhere, that uses creative financing options to fund sweeping transformations of our school systems. A partnership with private pension funds, which invest billions of dollars annually, can provide the seed money to get this program up and running. If organized labor gets involved, we could guarantee that these new jobs come with good union wages and benefits.

Seizing on these long-term opportunities would be like investing in Google as a start-up, while an expansion of gaming is akin to playing the penny slots and praying for a decent jackpot. That leaves us with a choice. We can hunt for fool’s gold or we can make real investments that will pay dividends for decades. Let’s play to win.

The writer, a Democrat, represents Montgomery County in the Maryland House of Delegates.


http://www.washingtonpost.com/opinions/more-gambling-isnt-the-answer-for-marylands-economy/2012/07/27/gJQAY5xhEX_story.html

Plainville wrong place for slot machine parlor

Plainville wrong place for slot machine parlor

To the editor: I attended the Plainville Board of Selectmen meeting Monday. Among the many agenda items, two stood out. One was a report from Julie and Jeff Kinney regarding the status of the old Falk building. The second was a proposal for a slot machine license at Plainridge by Plainridge president Gary Piontikowski. I was struck by the contrast between these two presentations. Julie and Jeff Kinney are doing something to improve the town of Plainville. They are interested in either restoring a landmark building or, if that is not possible, creating a similar building to improve the downtown area of Plainville. They clearly are not doing this for financial gain. Instead their focus is on enhancing the character of Plainville. They are proceeding in a manner that is in the best interest of Plainville.

Gary Piontkowski, on the other hand, is motivated by his company's best interest. As he stated several times at the meeting, Plainridge is a business and they are doing what they can to survive. The only possible benefit to the town of Plainville is monetary.

I believe that the negative impact of slot machines in Plainville would far outweigh any financial gain. The neighborhood which is in the closest proximity would suffer the most, but the entire town would be affected. Does anyone really want a slot machine parlor as a neighbor? Gary Piontkowski mentioned that he has a horse farm in Belchertown. Would he favor a slot machine parlor next to his horse farm?

Plainville now enjoys a reputation of being a rural community, a good place to raise a family. Wouldn't this reputation be dramatically changed if Plainville became home to a slot machine parlor? Is this the type of community we want to be a part of? Gary Piontikowski's proposal is not in the best interest of Plainville

Libby Jensen, Plainville

Rhode Island's Race to the Bottom

Lincoln, Rhode Island lost control of its community in bankruptcy court. Now the Rhode Island legislature would expand Government Sponsored Addiction in support of their addiction to revenues and expand Gambling further. And so it goes!

From: The Race to the Murky Bottom!

PROVIDENCE — With the state hungry for new revenue in a grim economy, Lottery Director Gerald Aubin has — with Governor Carcieri’s blessings — approved 24-hour gambling seven days a week at the Twin River greyhound track and slot parlor.

Town voters registered their overwhelming objection to all-night gambling at the sprawling Lincoln gambling hall during a nonbinding 2007 referendum.

RI Senate panel endorses Newport casino referendum


PROVIDENCE, R.I. (AP) A proposal to ask voters for permission to open a casino at the Newport Grand slot parlor has passed another legislative test.

A state Senate committee endorsed a referendum that would ask voters to authorize table games at Newport Grand. A vote by the full Senate is expected next week.

If approved, the question would go before voters this November.

The House has already authorized the referendum and Senate passage is expected.

Newport Grand wants to offer table games such as poker and blackjack to compete with casinos now authorized in Massachusetts.

The state Constitution requires casino proposals to be approved by voters statewide and in the host community.

Lawmakers have already scheduled a referendum this fall on authorizing a casino at the Twin River slot parlor in Lincoln.

Massachusetts: Hypocrisy is Thy Middle Name

Fall River City Councilor Leo Pelletier indicted on illegal gambling charges
Pelletier: "I didn't do anything wrong"
Herald News Staff Reports


BOSTON — Fall River City Councilor Leo Pelletier, the owner of two Internet cafés, and his corporation were indicted Thursday on charges of operating an illegal slot parlor.

Three other individuals have also been indicted on gaming charges in connection with operations out of “Leo’s Place” Internet cafés in Fall River and Fairhaven, according to Attorney General Martha Coakley.

“These cyber cafés are really cyber scams with no posted odds, minimum odds, or guarantee of payouts for consumers,” Coakley said. “We allege that the defendants attempted to skirt the laws by operating nothing more than an illegal, unregulated slot parlor with no protections for consumers.” [And state regulated Slot Barns will be something different?]

Pelletier, 66, was indicted by a Special Statewide Grand Jury on charges of organizing or promoting gambling services, operating an illegal lottery, allowing lotteries in a building, and the sale and advertising of lottery tickets. Pelletier allegedly operated two “Leo’s Place” Internet cafés through his corporation New England Internet Cafés, LLC (NEIC). The corporation faces these same charges.

"We're going to have to deal with it," Pelletier said. "I have lawyers. They feel they (the attorney general's office) are absolutely wrong. Whether ot nor it's 12 days before an election, it doesn't matter to me. I didn't do anything wrong." [Curious timing! How long ago was this in the papers?]

Indictments were also returned against Ron Sevigny, 66, of Fall River; Linda Pelletier, 57, of Spring Hill, Florida; and Donald Greenidge, 52, of Shoreham, New York. All three are charged with one count each of organizing or promoting gambling services, and operating an illegal lottery. Linda Pelletier was also charged with the sale and advertising of lottery tickets.

Under Massachusetts law, it is illegal to run or promote a gambling operation. The current gambling law in this case points to the existence of an illegal “lottery.” The definition of a lottery includes a payment to play, a prize, and some element of chance.

In February, the Attorney General’s Office began an investigation into “Leo’s Place” locations in Fairhaven and Fall River. Evidence gathered during the course of the investigation demonstrates that patrons of these Internet cafés were paying nearly exclusively for the right to gamble. Authorities allege that patrons were not, as suggested by the operators, simply paying for Internet time and playing a free sweepstakes. Investigators also allege that, “no purchase required” opportunities were of no legal significance and gambling was the only clear purpose for these cafés. Both locations ceased operations in the wake of the AG’s investigation.

All four defendants are expected to be arraigned in Bristol County Superior Court at a future date. These charges are allegations, and the defendants are presumed innocent until proven guilty.

Thursday’s actions by the Attorney General’s Office are a direct result of complaints regarding alleged unlawful gambling operations that have recently opened for business across the Commonwealth. While these businesses purport to sell goods or services, such as Internet access or phone cards, the Attorney General’s investigation found that those sales were a pretext for unlawful and unregulated lotteries, online slot parlors, sweepstakes, and similar gambling. The AG’s office issued permanent civil regulations in June under the Massachusetts Consumer Protection Act that bans the operation of so called “Internet Cafés” and other establishments across the Commonwealth. Those that violate the law may be subject to injunctions, civil penalties and other relief under the Consumer Protection Act.

In July, House Speaker Robert DeLeo and AG Coakley filed legislation that further enhances the criminal penalties for illegal gambling at “cyber cafés” throughout Massachusetts. The proposed legislation establishes a new crime for conducting or promoting an unauthorized sweepstakes that is executed through the use of the entertaining display of an electronic machine. The new crime would carry a penalty of up to $250,000 per offending machine and/or imprisonment of up to 15 years in the state prison.

The Attorney General’s investigations into various Internet cafés throughout the Commonwealth remains active and ongoing.

Governor Patrick, Don’t Roll Out the Slot Parlors Just Yet

The Ball State University Study referenced in the article below, is found here in additional detail:

Racinos Create Low Paying Jobs


Governor Patrick, Don’t Roll Out the Slot Parlors Just Yet
BY Jason Schwartz

At this point, it’s pretty safe to add the State House’s debate over whether or not to legalize casinos to the list of things in Boston that feel like they will never, ever end — up there with winter, Mayor Menino’s time in office, and the Big Dig (What, you thought it was done? Better check the lights). With Governor Deval Patrick, Speaker of the House Robert DeLeo, and Senate President Terry Murray all in favor of expanded gambling, though, many feel that action may finally be coming. The only hangup has been that while DeLeo has insisted that we allow race tracks to install slot machines — his district includes both Wonderland Greyhound Park and Suffolk Downs horse track — Patrick has been dead set against it.

Yesterday, the governor indicated he was open to compromise. During a radio appearance on WTKK, he said, “If it helps get a deal, I will accept one slot parlor that is competitively bid anywhere in the commonwealth. I’ve been clear about that with the leadership, and I think that is the framework for an agreement on those principles.”

That’s a position he held briefly last summer, and it’s too bad that he’s returned to it. Slot parlors are bad news — not just socially, but for the economy as well. Two years ago, I wrote a column in the magazine about that very fact, and it remains just as true today as it was then. The key point:

According to a new study of West Virginia racinos published by Ball State University, counties that installed slots at racetracks benefited from a one-time employment boost of 1.1 percent. Over the course of 26 years, however, the average salary in those same counties fell by up to almost 3 percent. In other words, racinos create low-paying jobs that depress other salaries in the area.

There are plenty of other reasons that slot parlors would be bad for Massachusetts, some of which I cover in that column. Hopefully, the governor will reconsider.

DeLeo Finally Honest: We Need to Protect Gambling Investors

Whoever thought we would finally see the day that House Speaker "Racino" DeLeo would finally be honest?

Cracking down on 'cybercafes' isn't about 'consumer protection' at all.

It's all about the Gambling Vultures circling the Commonwealth hoping to suck up the discretionary local income.

Note to DeLeo: You sold yourself cheap. They spent $60 million in Pennsylvania and $50 million in Ohio [on the 5th attempt]. Don't you think you're worth more?


DeLeo said he is concerned that cybercafes may threaten his attempts to attract full-scale casinos and slot parlors to the state’s race tracks, two of which are in his district. The Legislature plans to debate casino legislation in September.


“If we’re asking people to invest millions of dollars [on casinos],’’ DeLeo said, “and you’ve got 10 or 20 of these rogue gambling places out there, they’re going to say, ‘Why are we going to invest that much money if they’re going to be taking money away from us?’ ’’


From:
State cracking down on cybercafe gambling
Businesses are legal, owners say

Eurozone's citizens split amid battle to stop debt crisis spreading

"As the shutters come down on thousands of small family-owned high street stores up and down Italy, they are being replaced by slot-machine parlours, with hard-working Bergamo now boasting 7,000 slot machines, up 40% on last year. The new gambling licences are a cash machine for the government, but gambling addiction is soaring as Italians seek to turn their last few euros into a fortune. In the region of Lazio around Rome, 70,000 Italians are believed to be in hock to loan sharks."



From"
Eurozone's citizens split amid battle to stop debt crisis spreading
As the eurozone political crisis continues, our writers survey the opinions of single currency voters

Ill. Gaming Board urges Quinn not to sign casino bill

Unlike Massachusetts, it seems that leaders in Illinois actually read the gambling legislation:


"As a matter of fact the more you read the bill, the more you realize how bad it is," he said.

Ill. Gaming Board urges Quinn not to sign casino bill
Charles Thomas

July 7, 2011 (CHICAGO) (WLS) -- Governor Pat Quinn has been asking for opinions on the new gambling expansion bill. The measure would make Illinois the biggest gambling center in the Midwest.


The measure would make Chicago the biggest gambling center in the Midwest. The governor is trying to decide if he will sign the bill. On Thursday, the Illinois Gaming Board said absolutely not.

Thursday may have been the make-or-break day for the recently-passed bill to expand gambling in Illinois. Gaming board members told Governor Pat Quinn Thursday afternoon that the bill would expose Illinois' casino industry to criminals.

Having chaired the Illinois Gaming Board for the six years, retired judge Aaron Jaffe is considered the state's leading expert on legalized gambling. He stands by his proclamation three weeks ago that the gambling expansion bill, passed by the general assembly in May, is garbage.

"As a matter of fact the more you read the bill, the more you realize how bad it is," he said.

Jaffe and members of his board met with the governor Thursday afternoon to urge Quinn not to sign the expansion bill. It would add four new casinos including one in the city of Chicago as well as slot machines at racetracks and at airports, effectively tripling the number of gaming positions in the state. Jaffe is concerned that law to keep criminals away cannot be enforced under the proposed bill.

"I do not believe it can be enforced properly as written at this time," said Jaffe.

Quinn -- who throughout his political career has been wary of gambling as a revenue source -- has called Jaffe's opinion "critical" to whether he decides to sign or veto the bill.

"Any time you talk about gambling, the first thing you should talk about is integrity and making sure the regulation is second to none," said Quinn.

Jaffe is concerned that unlike casino workers, under the pending bill employees at racetracks with slot machines would not have to be fingerprinted during their criminal background checks.

"So if they can't be taken at the racetrack, how are we going to vet people?" said Jaffe.

He says the expansion bill will allow thousands of new casino employees to get their licenses on a provisional basis before they are fully vetted.

"Anything can happen in a casino. Anything from petty crimes to money laundering or anything else. You're afraid then that some unsavory types could actually get their licenses before they could be pulled? Oh absolutely, absolutely," said Jaffe.

Before his meeting with Jaffe, the governor heard from gambling expansion supporters from downstate Danville where the pending bill would locate one of the four new Illinois casinos.

"I do think it's important to hear from everybody. I'm open minded to listening to people. I think that's a good way to get a good outcome," said Quinn.

The Senate president, John Cullerton, has not sent the bill to the governor's office yet so Quinn could have until the fall to hear both sides on the issue.

Quinn said he was unsure why the bill had not reached his desk yet. The conventional wisdom is that Senate President John Cullerton is afraid Quinn would veto the bill immediately.

If the bill goes back to the legislature for alterations, there is a chance that House Speaker Michael Madigan, who recused himself during the vote on this bill but is firmly opposed to gambling expansion, might kill it.

Twin River: Scare Tactics Backfire

Adding slot machines at "Twin River" was supposed to save the dying greyhound racing industry in Rhode Island, much like the false promises elsewhere.

In bankruptcy court, local control was lost - hours of operation extended, greyhound racing abolished, debts absolved and much else.

Much like Massachusetts, the Rhode Island legislature willingly accepts rhetoric from the Gambling Industry, no questions asked.

But not U.S. Bankruptcy Court Judge Arthur N. Votolato!


The judge noted that, in contrast to the “good news” Twin River executives repeatedly shared in court with him, they described the slot parlor’s situation to legislators in recent weeks as “desperate.”

“Twin River’s owners contend the ability to offer traditional casino fare, such as blackjack, is the slot parlor’s only hope of remaining competitive if Massachusetts enters the casino and slot business,” the judge quotes from one media report.

Gettysburg: Even when they're not wanted, they never give up!

There's a Massachusetts/Holyoke connection:


Casino applicant appeals
Appeal filed in Pa. Surpreme Court

BY SCOT ANDREW PITZER
Times Staff Writer Gettysburg Times

Gettysburg casino investors announced Monday that they are appealing a decision to award a gaming license to a competing project.

The appeal is filed with the Pennsylvania Supreme Court, and disputes the recently-awarded Category Three resort casino license, to the Nemacolin Resort in Fayette County.

Mason Dixon Resort & Casino spokesman David La Torre wrote in a press release that state gambling regulators “misapplied the Gaming Act and state law, deprived Mason Dixon of its due process rights, and disregarded or failed to consider the evidence presented” when they chose the Nemacolin Resort for the license, over the Eisenhower Inn in Cumberland Township.

The Pennsylvania Gaming Control Board selected the Nemacolin Resort in Fayette County for the license in mid-April, over three competitors, including the Mason Dixon Resort Group, led by Gettysburg businessman David LeVan and Florida lawyer Joseph Lashinger. The vote was 6-1, with one board member supporting a competing project in the Poconos.

Investors in Mechanicsburg, Penn Harris Gaming, and the Bushkill Group in the Poconos also applied for the license, which permits up to 600 slot machines and 50 table games at “well-established” hotel resorts.

Based on previous gaming appeals, it could take a year before the Pennsylvania Supreme Court rules on the litigation. As a result, developers will not be able to break ground on the $75 million Nemacolin Resort until the legal battle is resolved.

Monday was the final day to file an appeal on the April 14 decision, and subsequent written adjudication, explaining the decision. Representatives from Penn Harris Gaming and the Bushkill Group have said that they are not filing an appeal.

Gaming Control Board spokesman Richard McGarvey explained that all of the standalone Category Two casino projects have been appealed in the past, as well as the other resort casino Category Three license, that was awarded to Valley Forge. No horsetrack casinos (Category One licenses) have been appealed.

The Gaming Control Board wrote that it selected the 2,000-acre Nemacolin Resort because it was the “best fit” for the license, and that it had the best potential to generate and maximize new revenues for the state.

LeVan and Lashinger proposed converting the 300-room Eisenhower Inn and adjoining All-Star Sports Complex along Emmitsburg Road south of Gettysburg into a $75 million resort casino. The Category Three resort casino license permits up to 600 slot machines and 50 table games, and patrons must be guests of the resort, or obtain a membership.

Opposition was cited for a reason for denying the Cumberland Township casino. No Casino Gettysburg spokeswoman Susan Star Paddock said Monday that she was saddened to see Gettysburg casino investors “chasing their losses.” She called the appeal a “colossal waste of time and money for the investors, the state, the taxpayers and our entire community.”

Casino supporters in Adams County have touted economic benefits and new jobs, and remain hopeful that a license will be awarded here.

Two weeks ago, Mason Dixon Resort filed a “motion of reconsideration” with the Gaming Control Board, asking gambling regulators to revisit the licensing process. But the request was denied one day later, leading to Monday’s appeal.

Wynn breaks ties with indicted gambling site

Wynn breaks ties with indicted gambling site
Federal prosecutors alleged last week that the founders of PokerStars and two other big gambling sites are breaking various laws, prompting a distancing by Wynn Resorts.

By Daniel Massey

Wynn Resorts has severed ties with PokerStars.com, less than a month after a ballyhooed partnership between the two gambling giants was formed to lobby for the legalization of Internet gaming.

The move follows the unsealing of an indictment last week by federal prosecutors in New York, which alleged the founders of PokerStars and two other firms took part in a criminal scheme to trick or bribe banks to assure the flow of billions in illegal gambling profits.

In a statement, Wynn Resorts said the decision to end the short-lived partnership with PokerStars “was reached as a result of the indictment unsealed by the U.S. Attorney for the Southern District of New York.”

In announcing the alliance last month, Wynn Chief Executive Steve Wynn had said it was time for the jobs and tax dollars produced by Internet gambling to “come home” to the U.S. The two companies had plans to launch pokerstarswynn.com if their lobbying effort succeeded.

Wynn Resorts had made waves in New York City in 2009 when it sought a lucrative contract to build a slots parlor at Aqueduct Racetrack. But the firm withdrew from that competition over frustration with the process, and the contract eventually went Genting New York, part of a Malaysian-owned casino conglomerate.