MGM reassures nervous Springfield after it unveils plan for $675M casino in Bridgeport, Conn.
In a major escalation of the ongoing casino war in southwestern New England, MGM Resorts announced yesterday ambitious plans for a new $675 million waterfront casino in Bridgeport, Conn., halfway between New York and New Haven and 80 miles south of Springfield, Mass., where MGM is building a $950 million casino in the city’s downtown. The Hartford Courant has the details. It’s just the latest development in the ongoing battle between MGM, Foxwoods and Mohegan Sun, which, it should be noted, has its own proposal for a new casino in East Windsor, Conn., just across the border from Springfield.
In Springfield, Mayor Domenic Sarno said he’s spoken to MGM CEO James Murren and has been assured that the company remains focused on building a "very successful and robust" casino in Springfield, reports Dan Glaun at MassLive. But how successful and robust, with so many current and planned casinos in the region, is the question.
Lotteries, payday lending, and the swindling of America’s poor By Michael Gerson
In that portion of the presidential field that does not view self-government as a stage for self-promotion, prejudice and blithering ignorance, one of the more encouraging trends is an increasing seriousness about the issue of poverty.
Events in Ferguson, Mo., and Baltimore have focused the public mind, just as the consequential publication of Robert Putnam’s “Our Kids” has served to inform and deepen the policy debate. The question is posed: Can the United States go on as it has been with a good portion of its working class almost entirely isolated from the promise of our country?
It is a yes or no question. A “yes” involves the acceptance of a rigid, self-perpetuating class system in a country with democratic and egalitarian pretentions — a system upheld and enforced by heavy-handed policing, routine incarceration and social and educational segregation.
A “no” is just the start of a very difficult task. The mixed legacy ofthe Great Society — helping the elderly get health care, it turns out, is easier than creating opportunity in economically and socially decimated communities — has left the national dialogue on poverty ideologically polarized. And many policy proposals in this field seem puny in comparison to the Everest of need.
But there is one set of related policy ideas that would dramatically help the poor and should not be ideologically divisive. How about a renewed effort to help the poor by refusing to cheat them?
I am referring to a broad and growing collaboration between government and business to systematically defraud and exploit the poor through state lotteries, payday lending and payday gambling.
The lottery is a particularly awful example of political corruption. Here government is raising revenue by selling the Powerball dream of wealth without work. Studies in a number of states have shown that lottery ticket sales are concentrated in poor communities, that poor people spend a larger portion of their income on tickets and that the poor are more likely to view the lottery as an investment. “This could be your ticket out,” promised one typical billboard in a distressed Chicago neighborhood.
Think on this a moment. In a place where government has utterly failed to provide adequate education and public services, government is using advertising to exploit the desperation of poor people in order to raise revenue that funds other people’s public services. This is often called a “regressive” form of taxation. The word does not adequately capture the cruelty and crookedness of selling a lie to vulnerable people in order to bilk them. Offering the chance of one in a 100 million is the equivalent of a lie. Lotteries depend on the deceptive encouragement of mythical thinking and fantasies of escape.
Another form of financial predation against the poor — this one in the private sector — is payday lending. If you live in one of the 36 states that allow the practice, you have probably seen the storefronts in depressed neighborhoods. There are now more of them in the United States than there are McDonald’s franchises. In theory, payday lenders offer small loans of a few hundred dollars without credit checks to cover emergency cash flow needs. In practice, lenders make their money on repeat borrowers who get behind in their payments and roll them over into larger loans often with triple-digit interest rates.
The result is a downward spiral of debt in which borrowers pay back many times their loan amount — often seized directly from their bank accounts. This is what used to be called loan-sharking and usury. It is now a $46 billion industry, with considerable political clout, selling a financial product to the poor that encourages debt servitude.
Business and government in many states have entered a full partnership on payday gambling — moving gaming out of destination resorts and into malls and riverboats, closer to middle- and working-class gamblers. State governments raise money by taxing revenue generated by slot machines that are really sophisticated computers, designed to encourage players to enter the “zone” and play “to extinction.” Compulsive behavior is the intended goal of the software program, and thus the intended goal of state legislators who would rather encourage addiction than ask the broader public for taxes.
The United States is bursting at the seams with populist energy. Here is a cause that should appeal to activists prone to camping in parks or to wearing tricorn hats: Let’s get government out of the business of treating citizens as marks and dupes. And let’s confront everyone — in business and government — who benefits from defrauding the poor.
We've allowed gambling to become part of everyday life. It's been a massive mistake
Vyom Sharma
If you were unaware that we are in the middle of Responsible Gambling Awareness Week, do take a moment to absorb the irony.
Arguably this is great timing. After all, what better moment to begin the battle against gambling addiction than the most gambling-heavy period of the calendar year?
Illustration Andrew Dyson
And yet, amid the spring racing season, is there any other time of year when the message is more prone to be flushed away by the torrent of advertising that commands people to do the precise opposite – to gamble, and gamble hard?
Clearly the command is effective. Australia is the gambling capital of the world. This isn't one of those dubious awards like "State's Cleanest City" or "Horsham's Best Pie", it's actually backed up by numbers – at well over $1000 per adult annually, Australians lose more money on gambling per capita than any nation. That's right, it's us on top – not Americans with easy access to Vegas, or the Chinese with the haven of Macau. The nation of two-up and $2 scratchies comes up trumps.
In other nations, gaming machines are kept only in hotels, casinos and gaming centres. Here they are found in pubs and bistros, and often deliberately placed in our poorest areas. Photo: Peter Braig
There is nothing, in and of itself, wrong with this. We have a right to spend our money as we wish. And indeed, 80 per cent of us, the highest proportion of any country in the world, wish to wager it. This isn't necessarily a problem.
Or rather, it's never been a problem for me, until I've had to sign some death certificates.
I've written a few such certificates, with the cause of death recorded as pneumonia, cirrhosis or suicide. But a lot of times I wonder if I should write about what caused these terminal maladies in the first place. Yes, the liver failure was due to alcohol, and the alcohol abuse started with the depression. But what caused the depression?
Sometimes the cause is a gambling addiction. I say sometimes, rather than quote hard figures, because it's difficult to statistically quantify indirect causes of death. Often the circumstances leading to the deaths appear as messy as a collapsed house of cards; it can be hard to know which card toppled first.
But at the very least we know this: according to the Productivity Commission's inquiry report on gambling, there are up to 60 suicides a year due to gambling addiction. Let's be honest, 60 dead people isn't much – not enough to care about. This isn't my personal opinion, it's the grey calculus of public outrage.
When tragedies seem self-inflicted, 60 deaths just becomes a number. Deaths matter more if there is a clear victim and perpetrator. Good versus evil is a plot we can all get behind.
Consider every time we in Australia hear about a mass shooting in the United States. Recall for a moment all the pearl clutching, hash-tagging and prayers it inspires here, all the way across the Pacific. But what horrifies us particularly is how damn often these shootings seem to occur.
Yet let's review the numbers. In 2015, there were 475 deaths from mass shootings in America, a country of 340 million. Proportionally, there are nearly twice as many deaths each year in Australia due to gambling addiction-related suicide. That's not even accounting for the non-suicide gambling-related deaths.
The despair we feel for mass shootings on the other side of the globe is genuine. But in a way our understanding of these all too frequent horrors has transcended the victim versus villain paradigm. We have begun to see these events as tragic specifically because we feel they are preventable. They feel preventable because of a sensibility towards guns that we in this nation have cultivated over time and have now imbibed – that they should be controlled. We wince and shake our heads at the abject absurdity of the American gun lobby's refusal to curtail an activity, however recreational, in the interest of saving lives.
Now consider the view of Tim Costello, who is among other things spokesman of the Alliance for Gambling Reform: that the gaming lobby in Australia is akin to the National Rifle Association.
If that crude comparison invokes a reflexive protest within you, fair enough. Pokie machines are not exactly guns. But I would wager that that protest is also, in some way, an emotional defence of an activity we regard as culturally normal.
This is at the heart of our refusal to admit, let alone engage with, one of our nation's biggest issues. We don't believe we are obsessed with gambling because we have done something far more dangerous with it … we have normalised it. We have normalised it far beyond what is normal for any other country on the planet. In other nations, gaming machines are kept only in hotels, casinos and gaming centres. Here they are found in pubs and bistros, and often deliberately placed in our poorest areas.
The past few years have seen an unprecedented rise in media advertising for sports gambling. Betting odds are displayed during games and on ad-breaks between goals for children to see.
Is it responsible to expose children to this while we cannot ensure they are being involved in a mature discussion on the broader issues of gambling?
This week everything ought to be questioned. We have a gambling problem; the numbers don't lie. But we refuse to believe them. Ironically, our misjudgment of numbers is what the gambling industry relies on.
Vyom Sharma is a Melbourne GP.
For help or information call Gambler's Help on 1800 858 858 or Lifeline on 131 114.
The Nelson A. Rockefeller Institute of Government recently released a report on state revenue generated from gambling, which everyone should read. The use of gambling as a source of state revenue has proliferated over the past three decades. Only Hawaii and Utah don’t use any form of gambling to pay for public services.
The proliferation of gambling is shameful. Before I explain why, you should know that I don’t care whether you gamble — what you do with your money is your business. I don’t care if you smoke, drink, get high, or bet the ponies. But despite my libertarian views on the subject, I don’t think gambling is a sound way to pay for government services.
Policy leaders in the states obviously disagree. The Rockefeller report notes that gambling accounts for only 2.5 percent of total own-source revenue. But that amounts to $27.7 billion, which is about half of what states collect from corporate income taxes and more than what they collect from cigarette, severance, or estate taxes. In 2015, 44 states had lotteries, 19 had commercial casinos, 14 had casinos, and seven had authorized casinos on Native American land. Why?
Gambling has spread for a number of reasons. First, we have lived in a decidedly antitax political climate for a long time. It’s simply hard to raise tax revenue at any level of government. In a vacuum, I don’t find that disturbing. But people still want public services, and those services must be paid for. Gambling is attractive because, well, it’s not taxes. Politicians have convinced themselves that gambling is free money, and nothing aids the political process like the perception of free money. Even those thousands of legislators who have promised never to raise taxes, even if their God appeared and said it was OK, approve of gambling.
Those who favor government spending, public service unions, and contractors all welcome gambling revenue. Who can argue with the plea that we need more money for schools and we won’t have to raise taxes to get it? Those who sell gambling — very powerful business interests — do an excellent job of making their case. Indeed, the gambling lobby in the states has few rivals in terms of influence.
In fact, it has persuaded many in the media to use the term “gaming” to describe the industry. Checkers is a game. Buying a Powerball ticket is gambling.
Then there’s a diffusion effect. New Jersey adopts gambling, followed by Delaware, followed by Pennsylvania. Politicians in Maryland repeatedly pointed out that their citizens were taking buses to West Virginia and Delaware to gamble.
They would prefer that the blue-haired ladies spend their dead husbands’ pensions in Maryland. Unfortunately, there’s something to that argument.
Yet, despite its political allure, reliance on gambling is bad government and fiscal policy. The first problem is that gambling is regressive — poor people gamble more than rich people. Sure, there are rich folks playing baccarat in Monaco à la James Bond, but rich folks don’t gamble with the fervor or desperation of everyone else.
They aren’t waiting for their number to come in. I don’t care if you live in the city, suburbs, or country — go to a convenience store on a Friday night and see who’s buying lottery tickets. They aren’t hedge fund managers.
Second, gambling is addictive. Sure, millions of people can casually play blackjack or buy a Mega Millions ticket and not get hooked — indeed, most people can — but conservatively estimating, there are 3 million pathological gamblers in the United States. These people will commit serious crimes to continue gambling. There are over 10 million chronic gamblers — people who just can’t stop, risking their jobs and families for the addiction.
Third, there is a moral dilemma. I don’t usually judge tax policy on moral or religious grounds, but lots of folks do. The Deep South, the proverbial Bible Belt, was the last section of the country to embrace gambling. Utah still resists, largely on moral and cultural grounds. African-American churches opposed (heroically, in my opinion) the expansion of gambling in Maryland. But forget religion for a moment. There is something untoward about public encouragement of gambling.
The message is that you don’t have to work hard to succeed; all you have to be is a little lucky.
Finally, from a government perspective, gambling is a scam. The government becomes the house, and the house always wins. People joke that lotteries are a tax on people who can’t do math. But it really is not a joke. People who gamble will lose their money, and the government, society, you are taking it.
I know the thrill of gambling. I’ve had more money riding on an NFL game than I had in my bank account. I’ve doubled down on a nine, hit an ace, and won 200 bucks at a casino. I used to skip school and go to the dog track. But aren’t public services important enough to pay for with real broad-based taxes on income, sales, and property? Do we really want to fund schools and healthcare with a regressive, addictive, morally questionable source of revenue?
Below is an email from an organization that has done more to educate government officials and the public about the Predatory Nature of GAMBLING and its negative impact on lives, families, communities. Please feel free to access the information available and support their great work.
As Chairman of SPG's National Board (the most politically diverse organization in the US,) I'm proud of Les but not only because of this recognition. I'm proud of him like I am of everyone of you who participates in our mission, leading us closer to the time when our collective effort will be seen as one of the most important movements of the 21st century.
You, Les and I are champions of the best kind of cause: a cause not yet won.
“Nothing is more dangerous than sincere ignorance or conscientious stupidity.”
-- Martin Luther King Jr.
Dear Governor Patrick,
There comes a time in every leader’s tenure when he or she will come to a crossroads; a point at which they must make a fateful decision that will intractably impact those in their care. You stand at such a nexus now. The decision you make in the next few days will be felt by generations to come in Massachusetts, long after you have moved on. Governor, I am willing to bet that you have not heard the information that I have provided here. You will be stunned at what you are about to learn. You have promised that we would “get it right” here, in Massachusetts, because we have the ability to look at the mistakes of those who have traveled this road before us. History will either report that you did it right or that you failed the people miserably. I disagree with you on many topics but I believe you to be an earnest and honest man of integrity and I hope that you apply those traits to this issue. As you are considering the fine print of the casino legislation that has arrived at your desk, I wanted to provide you with some insight on the business practices of the casino industry. I am confident that you are not aware of these practices, as they are the “dirty little secret” of the industry. I work in the field of Business Intelligence. I design databases that companies use to collect information about their customers and prospective customers. The data collected are used to decide how to promote their products or services to their patrons. In other industries, this is a relatively benign practice as it simply allows companies to match up customers with products and promotions. The hope is that those targeted consumers will spend their money more frequently at their establishments as opposed to their competitors. Financial institutions also take advantage of this information in order to decide what banking, lending and investing products to offer to their own customers and prospects. This is why we receive unsolicited credit card offers in the mail. As financial institutions, the casinos will have access to all of an individual's financial information. They leverage this specialized status and "loyalty programs" to gain specific knowledge about how much cash and credit a patron has access to, when they use their credit cards in the casinos. The industry calls this Total Cash Availability. Additionally, they will also be able to find out how much equity a patron has in their home, car and other assets; this is called Global Cash Availability. These can and will be taken as equity in exchange for credit. Casinos will also extend what amount to payday loans at high interest rates. These will be offered to patrons who are under the influence of alcohol, alcohol, that the casinos will be able to offer free of charge. The casino industry uses all of this information along with real-time game-play data to make targeted offers to specific people. They are also able to alter the payout rate and the “near-misses” seen by each person to increase their rate of play and the amount per play. Governor Patrick, you have acknowledged that there will be more addicted gamblers created by the advent of casino gambling in Massachusetts. I'm sure we would disagree on the total number but you should understand that this legislation allows the casinos to offer loans directly to those who have been drinking. Our state is still trying to recover from the sub-prime mortgage lending scandal. Does it really make sense to introduce an industry that will prey on people by offering them loans while they’re intoxicated? Casino industry experts will tell you that they only need to provide loans to “high rollers”. This is disingenuous. The legislation does not provide any income threshold or guidance. All patrons are fair game. Below are three links, which show how the casino industry collects and uses the financial and game-play data to identify patrons who can be tapped for more revenue. 1) The video linked below shows that casinos have access to all of your financial information as well as transactions outside of the casinos as soon as you use your credit or atm card in one of their machines.
2) This link is a promotional page which brags about this software’s ability to identify “the most profitable customers and those which can be ‘tapped’ for additional revenue and profit.” This software identifies these gamblers while they are playing and helps identify them for promotions. This software targets people to ply with free liquor. It is not a random offering.
3) The following is a link to a patent for a “METHOD AND SYSTEM FOR DYNAMICALLY AWARDING BONUS POINTS.” It also describes in detail how machines can be dynamically reconfigured to generate more revenue while they are being played by increasing the rate of play and reducing payouts.
1.The casinos identify their patrons and prospects according to their potential value to the casino.
2.The casinos monitor the play of those patrons and determine when to offer them free alcohol to maximize their spend on the games.
3.The casinos then dynamically alter the speed at which the machines play and the rate at which they pay out to increase the profit they are making on a specific player.
4.When the player has exhausted his or her resources on hand, the casinos extend them credit.
Dear Governor Patrick, this is only the tip of the iceberg. This industry uses this data to manipulate payouts at slot machines to coincide with show times. It also uses this data to identify patrons who may be slowing down their play and who may increase their play if they were provided with a free drink or two. Governor, I know that you would not have supported this legislation if you were aware of these practices. This is simply bad public policy. If you sign this bill, you will have unleashed these predatory practices on the unsuspecting people of the Commonwealth. The very people whom you have sworn to protect. Kind Regards, John Ribeiro Winthrop, MA
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