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Sunday, January 8, 2012

Reject Cuomo's call to expand casino gambling

Our view: Reject Cuomo's call to expand casino gambling
By - STAFF REPORT
Observer-Dispatch


Gov. Andrew Cuomo’s call to expand gambling in New York state needs to be rejected. It’s a regressive policy that encourages an addiction that can destroy lives.

Nevertheless, Cuomo said in his State of the State address Wednesday that he’ll push for a constitutional amendment to legalize non-Indian casinos. He said he’d support locating a casino at a place like Aqueduct Racetrack in Queens, where he wants to build the nation’s largest convention center. He also suggested casino operations in places like Albany and Buffalo.

State Sen. Joseph Griffo, R-Rome, said recently that he, too, favors allowing more forms of gambling at tracks such as Vernon Downs, and is sponsoring a bill to do just that.

Increasing opportunities for people to gamble will only perpetuate the destructive behavior. Locally, we’ve seen many cases where gambling addiction has caused otherwise decent people to commit crimes to feed their habit. And those are only the ones we hear about.

Still supporters — including Cuomo — see gambling as an economic engine with benefits that would outweigh increased crime and addiction associated with it.

But many of the state’s economists don’t agree. An opinion survey released last week by a New York City think tank found that many economists from the state’s leading colleges and universities agree that casino gambling is a bad bet for New York.

“Legalized casino gambling encourages people to pin their hopes on games of chance that are stacked against them,” said Cornell University economist Prof. Robert Frank. “Those who are determined to gamble will find some way to do so, but why lend government’s imprimatur to predators’ efforts to exploit people who can least afford to bear the inevitable losses?”

Contrary to Cuomo’s contention that the benefits would outweigh the negatives, the survey found that a majority of those responding agreed that casinos are economically regressive. Further, “it is sociologically destructive to the community,” said Mary O’Keefe, a Union College economist.

Research suggests that gambling:

-- Has no long-term positive impact on statewide economic growth;

-- Depends disproportionately on lower-income people for profits and thus imposes on behalf of government a highly regressive and unfair tax;

-- Has employees, but the majority of jobs in casinos are low-wage and low-skill positions.

-- Located within a short driving distance of residents’ households leads to higher incidences of problem and pathological gambling in nearby communities;

-- Causes a “leakage” of dollars from other taxable sectors, such as restaurants, bars and hospitality venues, and thus may reduce revenues from sales and excise taxes;

-- Is an unstable source of revenue because it is highly sensitive to business cycles;

-- Casino revenues are more expensive to administer than other kinds of taxes, in part due to high fixed costs, regulatory requirements and infrastructure maintenance.

In his Wednesday address, Cuomo talked about the jobs casinos could create and revenue they could generate. What he didn’t mention is the lives gambling has destroyed.

That’s something that needs to be considered before we put our money on this idea.

New casino bill worse deal

As the insanity of Government Sponsored Addiction grips Florida as excuse to conceal fiscal mismanagement, generous campaign contributions, political corruption, lobbyist access, this comment that says it all was posted after the article below:


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New casino bill worse deal
By The Palm Beach Post

First reports to the contrary, the revised "destination resort" casino bill from state Sen. Ellyn Bogdanoff, R-Fort Lauderdale, wouldn't ban Internet cafes. So there goes what we potentially liked most about her new effort, one of the most controversial issues the Legislature will consider as it convenes this week. In fact, the Senate Regulated Industries Committee gets its first look at the new draft Monday.

Sen. Bogdanoff said Thursday in an interview that she doubts the state can ban the 1,000 or so Internet cafés, which have sprung up in strip malls to offer "sweepstakes" games that mimic slot machines. Instead, she said, the revised bill would make them pay taxes - "They pay nothing now" - and ban new ones.

That's something, but not enough to make the whole casino package palatable. The overall effect still would be a major expansion of gambling in Florida.

Sen. Bogdanoff and Rep. Erik Fresen, R-Miami, envisioned a bill that would allow up to three Las Vegas-style casinos in South Florida and create a "gaming commission" to regulate all forms of gambling. That has morphed into a proposal that would allow any pari-mutuel, such as the Palm Beach Kennel Club, to add slot machines and become full-fledged casinos under one condition: "The voters need to have the last say," Sen. Bogdanoff said.

Pari-mutuels and the "racinos" of Miami-Dade and Broward counties, which got slots after an earlier voter-approved gambling expansion, now pay 35 percent in taxes. Sen. Bogdanoff wants to lower that at least to 18 percent once the first "destination resort" casino opens. Casinos would pay 10 percent.

It's impossible to know how many big casinos might come to Florida. It's impossible to know how many parimutuels and racinos would expand to what extent. So it is impossible for state economists to project with confidence what the revised gambling law would bring in. At first blush, it looks as if betting establishments will get to keep a lot more of their winnings. That would be a loss on top of the $250 million a year the state would lose because the Seminole compact is based on exclusivity that would vanish. Some early reports also said Rep. Bogdanoff wanted to make big casinos pay 18 percent too. But she said casino companies told her they wouldn't come to Florida for that.

To clear the way for "destination resort" casinos, backers have to buy off the racinos/pari-mutuels with the promise of additional games and/or a tax cut. But tying legislative approval for big casinos to expansion at racinos and pari-mutuels undermines Sen. Bogdanoff's stated intent to curb gambling in Florida.

We agree with Sen. Bogdanoff that gambling in Florida is poorly planned and regulated, but neither her original bill nor the revision helps much. Claiming that the bill would control gambling is a tactic to get the resort-casino measure through a House dominated by social conservatives. The original bill targeted South Florida, to mollify theme park-affiliated Central Florida legislators who don't want to tarnish the state's Disney/family-friendly "brand."

That brand is worth protecting. So is the biotech brand Florida is growing, from Scripps and Max Planck in Palm Beach County to Torrey Pines in St. Lucie County to the Burnham Institute in Orlando. Gambling carries high social costs, including crime and addiction, cannibalizes existing tourism businesses and - the clincher - repeatedly has failed to pay off on previous promises of magic money for schools.

Throw out everything except new regulations for Internet cafés. After flirting with "destination resort" casinos and a "gaming commission," that might seem a big comedown. In fact, it would be a big improvement over legislation that would guarantee an explosion of gambling in Florida.

- Jac Wilder VerSteeg,

for The Palm Beach Post Editorial Board

To me, no kind of gaming is good

Contributors' views: Weighing in on casino gambling
Papers' contributors share thoughts on bill's impact on Brevard
Opinion
Mike Haridopolos

The Legislature, which convenes this week, soon will consider a bill that would more carefully regulate gaming in Florida, establish a Nevada-style commission to investigate applicants, and license casinos with slot machines and “limited gaming” tables in communities where voters approve.

State Senate President Mike Haridopolos, R-Merritt Island, told FLORIDA TODAY’s editorial board last week he would send a casino bill to the floor for an up-or-down vote.

Port Canaveral has identified a possible casino site on the Banana River south of State Road 528. Gaming could generate $1 billion or more in state revenue.

State Sen. Ellyn Bogdanoff, R-Fort Lauderdale, said she sponsored the bill because “To me, no kind of gaming is good, but we as policymakers have to decide, do we want gaming with five-star hotels or Internet cafes in strip malls?”

We asked our local bloggers and community columnists: Would Brevard County be better or worse economically if local voters approved casino gambling?

“Brevard County would not be better off if casino gambling was approved. The economic impact is far less than predicted, as South Florida casinos promised $500 million per year, but actually only netted about $125 million. New jobs will not be created as casinos just gobble up existing jobs while local restaurants lose business. Add in the organized crime factor and this proposal is just not a safe bet.”

Seeta Begui
Satellite Beach


“There is already plenty of gambling in Brevard on the boats and at the dog track in Melbourne, so anyone who wants to gamble can easily do so without more casinos. Gambling is a zero-sum game; it doesn't generate any useful product. Casinos would drain the savings Brevardians need for health care, food, housing, education and retirement.”

Dan Woodard
Merritt Island


“Although building a casino resort would provide short-term construction jobs and long-term service-industry jobs, I feel that the problems gambling would bring to Brevard County outweigh any benefits those jobs would bring to citizens of Brevard. We enjoy a standard of living and an atmosphere here in Brevard that would be degraded by legalized casino gambling. Brevard County can survive economically without selling its soul to Las Vegas-style gambling casinos.”


Fernando Rendon
Melbourne

“Our Florida Legislature holds the record for being the most corrupt, leads the nation in the number of federally convicted public officials and failed to pass a single ethics reform law. While I do not believe government should be legislating the morality of gambling, I have little confidence, under the leadership of Senate President Haridopolos, casinos in Brevard or Florida will benefit anyone except the casinos and those who supposedly represent us.”
Vicki Impoco
Satellite Beach


CT: Promoting Government Sponsored Addiction

Online Gambling Broke UConn Poker Addict — Now We Want To Make It Legal?
'I Hope The Legislators Are Prepared For The World They Are Opening Up'

Joe Turbessi couldn't put his laptop down, let alone stop the poker-playing.

So he'd go for hours at a time, hand after hand, wandering around his apartment, emptying his bank account while missing classes, friends, food and sleep as he gambled his way through the University of Connecticut.

The only thing that ran through my mind was the next poker hand,'' Turbessi explained to students in a health class at Housatonic Valley Regional High School in Canaan one day this week, warning them about the danger of gambling and addiction. Turbessi, a 2002 Housatonic graduate, has been making his case against poker for the past few years, writing a book and speaking to college and high school students about his misfortune.

"Poker had my attention and I didn't have time to do anything else," Turbessi told the small health class. "It was so easy. I couldn't miss a hand. If I didn't have the computer on, I could miss my lucky break.''

For reasons explained only by greed or stupidity, dozens of states are lining up to make money off sad cases of people like Turbessi, who up to now have been patronizing off-shore online gambling websites. The rush began after the Justice Department ruled last month that the federal Wire Act of 1961 does not ban non-sports gambling over the Internet, reversing years of federal opposition.

Now, as Connecticut begins debating legalizing online gambling — and Gov. Dannel P. Malloy has signaled he's more than ready to consider it — Turbessi's message has taken on new urgency.

Highly addictive and solitary, Internet gambling is suddenly the new money spigot for governments that can't stop spending. Malloy and other Democratic leaders, who frequently tell us about the importance of funding all-day kindergarten and new programs for poor children, appear eager to stick it to the unfortunate to raise more government revenue.

The astonishing justification is that everyone else is going to be doing it, so we had better get on the bandwagon.

How's that for a perverted message to our young people? How about saying no to something that state government should not be foisting upon its citizens anyway?

"What everyone needs to be aware of here is that this is a government program based on pushing people deeper and deeper into personal debt and creating addiction in order to feed off of it,'' said Les Bernal, executive director of Stop Predatory Gambling, a Washington, D.C.-based advocacy group that opposes government-sponsored gambling.

"This is the equivalent of opening up a casino or lottery retailer in every home, office or dorm room in Connecticut, 24 hours a day, seven days a week."

For Connecticut, it's "an economic issue,'' said Roy Occhiogrosso, a top Malloy aide. "We have to be mindful of what other states are doing. We are competing for jobs. What [the governor] is trying to do is find a middle ground.''

We are far from middle ground here. Already our culture is overwhelmed with gambling, from slots to table games to poker to the false promises peddled by the government-run state lottery.

Adding more gambling because government needs more money to spend — or because we are surrounded by sucker gambling in other states — seems like a flimsy argument for something that will bring more pain, suffering and financial ruin to Connecticut residents. This is not what good government is about, whether it's Democrat or Republican.

"It's more dangerous than any other form of gambling outside of slot machines," said Sam Skolnik, author of the newly published book "High Stakes: The Rising Cost of America's Gambling Addiction." "The types of gamblers who are drawn to Internet gambling are younger gamblers who are more prone to gambling addiction."

Turbessi was a high school quarterback who wanted to be an actuary. He tells audiences that he wanted to find quick success without working hard. Researchers say that thrill-seeking, college-age males are the perfect mark for the predatory online gambling industry. A UConn study of a few years ago found that online players are more likely to develop gambling problems.

The lucky break Turbessi chased around the clock never arrived. At UConn, he pursued poker from online to the Indian casinos, where he perfected his addiction and continued unabated until late 2009 when he quit cold turkey and wrote a self-published book about his experience, "Into the Muck."

The muck is gone, but the stain remains. Turbessi hopes students — and maybe politicians — pay attention to his experience.

"It overwhelmed me. It broke me down,'' he said. "I hope the legislators are prepared for the world they are opening up."

Addiction to bingo led to jail

Addiction to bingo led to jail

A BINGO addict who stole thousands of pounds from an elderly neighbour to fund her habit has been jailed for 12 months.


Barbara Taylor helped look after the disabled woman and did her shopping but eventually the temptation to use her bank cards to obtain cash proved too much.

She visited a bingo hall in Leigh and sometimes used the cards to withdraw cash from an ATM in the premises.

Her dishonesty only came to light when her 77-year-old victim, Elizabeth Bailey, discovered that her bank accounts had been “run dry” and her direct debits unpaid.

Liverpool Crown Court heard that at the same time 58-year-old Taylor was working as a volunteer at the Willow project, which helps women with drink problems.

Jailing her, Judge Bryn Holloway said that Taylor, who has no previous convictions, had given valuable and considerable assistance to her victim, who had deteriorating mobility and health problems.

He said: “Such was the nature of your friendship she entrusted you with the details of her bank cards so you could do shopping for her. It is clear initially you did so honestly but the time came when you turned from using the account as she intended to a way she never expected.”

As well as withdrawing a total of £11,670 cash to spend on bingo and gaming machines she also used the cards to buy camping equipment and tanning cream, worth £136.

Judge Holloway said it was clear she had not spent the money on an extravagant lifestyle but withdrew money from a cash machine at the bingo hall. He said only a custodial sentence was appropriate.

Taylor, of Hornby Grove, Leigh, pleaded guilty to three theft offences between June 23, 2009 and February 25 2011, and two fraud offences. Another fraud offence, which she denied, was ordered to lie on the file.

Steven Swift, defending, said she had been genuinely caring for her friend and neighbour but fell into temptation created by her gambling addiction.

He said: “She is in poor health and imprisonment will be very hard for her.”

Online Gambling Addict Jailed

Gambling Addict Jailed After £73,000 Theft
Written by Mark Bennett

An accounts manager and divorced mother has been given a 13 months jail sentence after stealing £69,000 to fund her online gambling addiction. Michelle Oliver blew £62,000 of the funds on gambling in just 8 months the Wolverhampton Crown Court was told.

Oliver took the money from her employer CVT Vehicle Services in Moor Street, Brierley Hill, where she worked as an £18,000 a year accounts manager. Most of the money she took was credited to her Sky BET account, where she spent the money on casino gambling, prosecutor, Rydian James, claimed.

The 44 year old gambling addict also spent £4,000 at the William Hill online betting site. The thefts were only discovered in May last year after customs officers told her employees that they owed four months of PAYE tax relating to their employees to the value of £16,000.

Oliver was dismissed as it was her job to have paid the bills and subsequent inquiries showed that the company was £14,000 behind on its VAT bill and suppliers bills had also not been paid. A full examination of the business accounts showed that Oliver had taken a total of £68,903 from CVT Vehicle Services from September 2010 and May 2011.

Her previous employer was notified of the situation and carried out its own investigation which showed that she had stolen £5,000 from them in July 2010 just prior to switching employers.

Oliver opened her Sky BET account in November 2010 and the court heard how she showed a loss of £62,378 in July 2011 despite having paid in £64,000. She admitted stealing £73,000 from her two former employees and was jailed for 13 months. Oliver has 3 children, the youngest of which is 19 years old.


Taylor to continue fight on illegal gambling

Taylor to continue fight on illegal gambling
Written by Sebastian Kitchen

Before he ran for the state Senate, Bryan Taylor was a key figure in then-Gov. Bob Ri­ley's fight against what they believed was illegal gambling in the state.

Taylor, a Prattville Republi­can who was elected just over a year ago, continued that fight in the Senate in 2011 and has already introduced legislation to be considered when lawmak­ers convene in February.


Although gambling machines at the state's major casinos have been shut down, Taylor wants to make sure that they stay that way and that the ma­chines stop appearing at both large and small businesses. He believes the best way to do that is to make the law tougher and further reaching.
The freshman senator has filed a proposal he originally introduced in March 2011 that died in the session that ended in June. He is hoping that by filing it in advance before this year's session, and with sup­port from Attorney General Luther Strange, that the Senate will pass it.


"I think the people of Alaba­ma are tired of hearing about electronic bingo and the cor­ruption that has been brought to this state by illegal gambling enterprises," Taylor said.

Misdemeanor to felony

Currently, possession of a gambling device such as a slot machine is a Class A misde­meanor in Alabama, according to Taylor. He said they are not changing that aspect of the law.


"This bill would provide that possession of a gambling de­vice in furtherance of a busi­ness enterprise would be a Class C felony," according to the summary of the bill.

Taylor said they changed the bill during the last session to ensure "we were targeting those who were trying to make a business out of this and generate a profit."

Ultimately, he said they want to reach investors, direc­tors, machine makers or "any­one gaining a profit" at any point in the process.

The senator said slot ma­chine companies in Las Vegas and Texas looking to exploit opportunities in Alabama would then know there would be severe penalties.

Currently, possession of the machines is a class A misde­meanor, punishable by a fine of up to $6,000 and up to a year in prison.

(Page 2 of 3)
Taylor's proposal would make possessing, selling, trans­porting or manufacturing slot machines or other gambling devices that are illegal in Ala­bama a Class C felony, punish­able by a fine of up to $15,000 and one to 10 years in prison.


Taylor pre-filed the legisla­tion last June, soon after the last regular session ended. The next regular session begins Feb. 7.

Taylor was policy director and a legal adviser to Riley, who formed a task force to eradicate what he believed was illegal gambling in the state. Through raids or the threat of raids, the task force shut down the casinos in the state -- ex­cept for those operated by the Poarch Band of Creek Indians, which fall under federal juris­diction.

Bill faces opposition

Some Democratic senators, including Bobby Singleton of Greensboro in west Alabama, where Greenetrack is located, adamantly opposed Taylor's proposal in the 2011 session and said it was an "extension of Gov. Riley to try to continue to shut down what is legal."

Singleton's anger over the proposal led to a tirade on the Senate floor. Other supporters of the gambling establishments in the state argue the machines allow customers to play legal electronic bingo allowed in some areas through local con­stitutional amendments.

Taylor pointed out that char­itable bingo is legal in some counties in the state, but "for-profit slot machines are not."

The Senate, because it was a contentious bill that Democrats made clear they were going to filibuster, did not vote on the bill when it came up in the waning time of the legislative session.

Taylor: Just changes penalty

Taylor said when he first in­troduced his bill that it does not change the definition of a slot machine. He added that people still have their right to due pro­cess in court to challenge whether their machine is a slot.

"The Legislature, many years ago, defined slot ma­chines and said they're illegal in the state of Alabama," Tay­lor said at the time.

If people are certain that they have legal machines, "they should have no problem with this bill," Taylor said.

(Page 3 of 3)
Taylor said he recently spoke to Strange about the up­coming session. He said Strange told him the bill was high on his agenda.

Taylor said they agreed there needs to be a larger de­terrent to those interested in opening gambling enterprises in the state.

With the small penalty, the senator said "There is no risk to anyone who wants to try to get in this business." He said they "write off misdemeanor penalties as a cost of doing business."

"We're in agreement that the best way to crack down on the corruption being generated by the illicit gambling industry is to put real teeth in the law," Taylor said.

Some opponents of gambling in the state have pointed to a federal corruption case as an example of its shady influence. One former casino owner, Ron­nie Gilley, and two of his lobby­ists have already pleaded guilty to corruption in the in­vestigation.

The first corruption trial ended in August with two of the defendants being found not guilty on all of the charges against them. The jury did not find any of the nine defendants guilty of the more than 120 counts against them.

A federal judge has set Jan. 30 for a second trial because the jury could not reach a unanimous decision on some charges against each of the other seven defendants includ­ing VictoryLand owner Milton McGregor, a lobbyist for the casino owner, and three cur­rent or former state senators.

Federal authorities accuse them of trying to bribe state lawmakers with cash and cam­paign support in exchange for supporting gambling legisla­tion.

Debt still burdens Mohegan gaming

Debt still burdens Mohegan gaming
Proposal for a Cowlitz casino is as secure as ever
By Stephanie Rice
Columbian Staff Reporter

The Mohegan Tribal Gaming Authority, the Connecticut-based group that is working with the Cowlitz Indian Tribe to build a casino near La Center, has not been able to restructure its debt yet remains committed to the Cowlitz project.

Those were among the highlights in an annual financial report by the authority, the gambling arm of the Mohegan Tribe that operates the Mohegan Sun in southeastern Connecticut and Mohegan Sun at Pocono Downs in Pennsylvania.

The authority has more than $1.6 billion in debt. About half of it comes due in March.

CEO Mitchell Etess told The Day, a newspaper in southeastern Connecticut, that the authority has been “working extremely hard to get (the refinancing) done. It’s an extremely complicated process.”

During a conference call, Etess said they have spent approximately $40 million on the Cowlitz project and remain committed.

Cowlitz Chairman William Iyall said Friday that he shares the same concerns the authority does about the debt, but said it’s not unusual considering the economy.

“All of the world is going through major financial upheaval,” Iyall said. “I’m hopeful that they will refinance in an expeditious manner.”

The plans for the Cowlitz site, which would be west of the Interstate 5 interchange in La Center, call for a two-story casino with 3,000 slot machines, 135 gaming

tables, 20 poker tables and a 250-room hotel, plus an RV park, 10 restaurants and retail shops.

But that $510-million complex was proposed before the economy tanked, and the project, if the tribe survives legal challenges, could be built in phases.

Moody’s, a debt-rating agency, said Thursday it still considers the authority to be at substantial risk of default despite improved fourth-quarter earnings.

Meanwhile, Clark County’s case against the federal government for approving the Cowlitz’s application to take the land into trust remains pending in U.S. District Court in Washington, D.C.

U.S. District Judge Richard W. Roberts has set an initial scheduling conference for Feb. 10.

During the conference, attorneys will agree on a timeline for how the case will proceed.

Iyall said Friday that it’s important to get the case on a schedule, and said he’s been reassured by high-ranking officials that the case will have national significance.

The challenge took on special significance after the Obama administration chose to make the Cowlitz land trust case a test of a 2009 ruling by the U.S. Supreme Court.

In that ruling, known as Carcieri, the high court said the government can put land into trust only for tribes that were under federal jurisdiction in 1934.

In saying the Cowlitz could establish a reservation on 152 acres west of the Interstate 5 interchange, Assistant Secretary for Indian Affairs Larry Echo Hawk addressed Carcieri at some length in his December 2010 decision.

“For purposes of our decision here, I need not reach the question of the precise meaning of ‘recognized Indian tribe,’ as used in the (Indian Reorganization Act), nor need I ascertain whether the Cowlitz Tribe was recognized by the federal government in the formal sense in 1934, in order to determine whether land may be acquired in trust for the Cowlitz Tribe,” Echo Hawk wrote in his ruling.

The Cowlitz were federally recognized in 2000; that recognition was challenged and reaffirmed in 2002.

“The Cowlitz Tribe’s federal acknowledgment in 2002, therefore, satisfies the IRA’s requirement that the tribe be ‘recognized,’” Echo Hawk wrote.

Clark County argues that Echo Hawk ignored the Carcieri decision.

Joining Clark County in the challenge of Echo Hawk’s decision: the city of Vancouver; nearby property owners Al Alexanderson, and Greg and Susan Gilbert; Dragonslayer Inc. and Michels Development, operators of the four La Center cardrooms; and Citizens Against Reservation Shopping, a group that includes Scott Campbell, publisher of The Columbian.

The plaintiffs also argue, and the defendants deny, that the current plans have inadequate mitigation for stormwater, traffic, light and noise.

The defendants are the U.S. Department of the Interior, the Bureau of Indian Affairs and the National Indian Gaming Commission.

The tribe filed as an intervenor.

The significance of the Cowlitz land trust decision was noted by the Fitch Ratings agency in a Dec. 22 news release. The agency predicted “little room for a rapid increase in Native American gaming investment in 2012, even as federal regulatory changes make it easier for tribes to gain approval for off-reservation expansion.” The agency mentioned the “administrative fix” to Carcieri and how it benefited the Cowlitz Tribe.

The agency said there’s potential for projects to move forward, including the Cowlitz project, but that “regulatory and legal roadblocks” make it difficult to predict.

....they don’t even see it as wrong

The article below was reminiscent of Massachusetts, steeped in conflicts of interest, nepotism and cronyism, they no longer see in their arrogance ---

“It was a conflict of interest then, and it’s still a conflict,” Mr. McCarter said. “It’s the way things have been done for so long, they don’t even see it as wrong.”



Chicago News Cooperative The Lobbying Loophole
Public Officials Found Helping Clients of Family
By JOHN SULLIVAN, FREDRIC N. TULSKY and KRISTEN McQUEARY

Denny Jacobs, a former state senator, had a special ally last year when the state’s largest electric utility company hired him to lobby for a controversial smart-grid energy bill that many say makes it easier for utilities to raise rates.

His son, State Senator Mike Jacobs, chairman of the Senate Energy Committee, sponsored the bill and actively promoted the campaign of the Commonwealth Edison Company, one of his father’s clients, to win its passage.

The downstate utility Ameren Corporation also backed it. “I’m with ComEd and I’m with Ameren on this bill,” Senator Jacobs, a Democrat from East Moline, said in a floor speech. He even took to the floor to invite his colleagues to a reception hosted by ComEd. He denies that his father influenced him.

The smart grid legislation is one of several bills pushed by Senator Jacobs that benefited clients of his lobbyist father, a review of legislation by Medill Watchdog, a journalism program at Northwestern University, found. And Mike Jacobs is hardly the only Illinois public official supporting measures backed by close relatives.

Medill Watchdog examined statements of economic interests of public officials, lobbying registrations filed with the City of Chicago, Cook County and the state, and records of state bills and local ordinances. The investigation found 14 elected officials from Cook County alone who, while not lobbyists themselves, are related to or in business with lobbyists.

The review found more than a dozen instances in which an official took action that benefited the lobbying client of a family member or business partner.

Reformers say Illinois has a historic tolerance for corruption. “There are people who believe that’s just the way it’s done,” said Kyle McCarter, a Republican state senator from Lebanon. “Cultures don’t change overnight.”

At the state level, Illinois law leaves it to legislators to decide whether to recuse themselves from matters that present potential conflicts of interest. At the local level, public officials must disqualify themselves if they have an “interest,” but the law defines interest only as owning part of a company.

Some states are stricter. After a series of political scandals, Rhode Island adopted a constitutional amendment in 1986 demanding ethical conduct of public officials. The law there restricts officials from taking part in matters if they have direct or indirect financial interest. It restricts action in matters that benefit family members, including stepchildren or grandfathers-in-law, as well as restricting votes in cases that benefit business partners.

“Illinois law is really behind on this,” said Paula Franzese, a Seton Hall law professor and former chairwoman of New Jersey’s ethics commission.

Actual or potential conflicts are widespread, public records show.

Joseph Berrios, chairman of the Cook County Democratic Party, was also chairman of the county Board of Review when he was elected county assessor in 2010. All the while, he was a registered lobbyist and partner of the lobbying firm B-P Consulting. Since 2004, Mr. Berrios and his partner, Sam Panayotovich, have lobbied for the Illinois Coin Machine Operators, the group that makes and distributes video poker machines.

Mr. Berrios was a lobbyist in 2009 pushing a bill legalizing video poker when his daughter, State Representative Maria Antonia Berrios, a Democrat from Chicago, voted to approve it. Ms. Berrios also supported bills to allow racetracks to install slot machines, another measure the coin operators favored.

Ms. Berrios said there was no conflict, because her father had not lobbied her directly. Her spokesman, Manuel Galvan, said, “The truth is she would have voted for it regardless, and her father really did not lobby her except for the first year she was in office,” in 2003.


On the night he won election as county assessor, Mr. Berrios repeated a campaign promise that he would give up his lobbying business. He no longer registers as a lobbyist, but state incorporation records still list him as an officer of B-P Consulting, and Mr. Panayotovich continues to lobby for the coin machine operators.

A spokeswoman for Mr. Berrios said he is in the process of selling his share of the business to Mr. Panayotovich.

Last year, state Representative Angelo Saviano, Republican of Elmwood Park, co-sponsored a bill in the House to help Mesirow Financial, a global investment firm, withhold some shareholder information when bidding on state contracts. Nicholas Saviano, Mr. Saviano’s brother, is the senior managing director of business development and a registered lobbyist for Mesirow.

“There is no connection,” Mr. Saviano said. “My brother is just an insurance salesman there. He didn’t even know about the bill.” Mr. Saviano said an outside lobbyist hired by Mesirow, William Filan, approached him to support the bill.

Few relationships are as striking as the one between Senator Jacobs and his father, the ex-senator. Lawmakers and lobbyists said the elder Mr. Jacobs often is found in his son’s Senate office, sometimes with his feet propped up on a desk.

“He is a lobbyist. I am a senator,” Senator Jacobs said. “He doesn’t lobby me. There is no financial benefit,” he said, and he discloses the relationship on ethics statements. Denny Jacobs did not return phone calls seeking comment.

In 2007, Denny Jacobs received $9,000 from the Illinois Recovery Association, which represents auto-repossession businesses, to lobby for a bill that would regulate the industry more tightly, according to Rick Constantine, who led the association’s lobbying effort at the time. Senator Jacobs introduced the bill, which died in committee.

Denny Jacobs registered last year as a lobbyist for the Rock Island Boatworks, which owns the casino in that city. Senator Jacobs had sponsored a bill narrowly tailored to give the casino a tax break.

At the time Denny Jacobs was lobbying for the smart-grid bill last year, Senator Jacobs took to the floor of the Senate and invited colleagues to a reception of “appetizers” and “liquid libations” hosted by ComEd. State records show that the company spent $3,818 on the reception and an additional $5,690 taking lawmakers to dinner that night.

During hearings before the Senate Energy Committee he oversees, Senator Jacobs allowed less than 15 minutes of testimony before adjourning, sending the measure to the Senate floor.

The move denied Scott Musser, the associate state director of the AARP, the opportunity to express his opposition. “It was very suspect, especially on such a huge and controversial issue,” Mr. Musser said.

Senator Jacobs said later, “I knew I had the votes, so I moved it.” When the measure came up for debate on the Senate floor, Mr. McCarter, the Republican senator, criticized Senator Jacobs for being the chief sponsor of a bill for which his father lobbied. Senator Jacobs walked across the aisle and thumped Senator McCarter on the chest.

Senator McCarter later complained to Capitol police that Senator Jacobs punched him; Senator Jacobs said he merely poked him. He apologized, and a local prosecutor declined to pursue the matter.

Senator McCarter, a first-term legislator, said he felt disillusioned by the whole experience.

“It was a conflict of interest then, and it’s still a conflict,” Mr. McCarter said. “It’s the way things have been done for so long, they don’t even see it as wrong.”

Senator Jacobs said that supporting a bill that benefited his father’s client did not involve a conflict because the legislation was “good for Illinois.” Many of his colleagues agreed, passing the law over the governor’s veto.

This article is based on reporting by faculty and students of the Medill School of Journalism at Northwestern University. Fredric N. Tulsky and John Sullivan are faculty members who direct the school’s Medill Watchdog program, an initiative designed to hold public officials accountable through in-depth reporting.

Saturday, January 7, 2012

Alabama: Criminalizing slot machines

Alabama's Dialing for Dollars Vote Buying Scandal serves as a warning about the corruption inherent with Gambling dollars. Criminalizing possession is a positive development.


In Sunday's Montgomery Advertiser

Prattville Senator Bryan Taylor wants to make sure that charges involving slot machines will no longer simply be a slap on the hand for the person possessing them.


He is not only filing proposed legislation to change the penalty from a misdemeanor to a felony but wants the penalty to apply to all who may be using the machines to make a profit in violation of Alabama law.


His change would make possessing, selling, transporting or manufacturing slot machines or other gambling devices that are illegal in Alabama a Class C felony, punishable by a fine of up to $15,000 and one to 10 years in prison.


The phrasing of the law would allow Alabama law enforcement to go after not only those in possession of the machines, but the companies that are manufacturing them and leasing them to Alabama businesses.


The Montgomery Advertiser's Sebastian Kitchen has the complete story in Sunday's Montgomery Advertiser.

Online Gambling Addict Jailed for Thefts

Wall Heath woman jailed for gambling addiction thefts

A WALL Heath woman has been jailed for stealing nearly £74,000 from her employers to fund an online gambling addiction.

Wolverhampton Crown Court was told Michelle Oliver admitted to police she frittered away all the money and an investigation later revealed she had no assets.

Defence barrister Andrew Wallace told the court the 44-year-old divorced mother-of-three lost all the money betting had certainly not lived an extravagant lifestyle.

Mr Wallace said: "She does not own her home, it is rented, she has no jewellery and she does not even have a car.

"The money was all wasted on her gambling addiction, she does not seek to justify her actions. She accepts the money was just frittered away."

He said the thefts had quickly been traced and there had been no attempt to lay a false trail or implicate others in her criminality.

Oliver, a woman of previous good character, had been employed as accounts manager at CVT Vehicle Services in Moor Street, Brierley Hill, where she stole a total of £68,903.

She was rumbled when HMRC officers paid a visit to inquire about an unpaid £16,000 bill for PAYE and it was then discovered she had siphoned off the money over an 18 month period.

Rhydian James, prosecuting, said Terence Oakley, CVT's owner, had considered taking out a loan for £50,000 to ensure they kept trading after being "betrayed" by Oliver.

She had previously been employed by PWC Access in Stirchley, Birmingham, as an office manager and she stole £5,085 from the firm in just four weeks.

The hearing was also told when Oliver won she used her winnings for further gambling and she admtted being "staggered" when told just how much money she had lost.

Recorder Denis Desmond told Oliver, who wiped away a tear as she sat in the dock, she had clearly been in a high position of trust with the two firms and the bulk of the money she stole had been used for gambling.

Oliver, of New Street, admitted two theft charges involving a total of £73,988, she was jailed for 13 months.

Gambling Addict jailed for six years after gambling debts sparked robbery and bomb hoax

Former Sunderland goalkeeper jailed for six years after gambling debts sparked robbery and bomb hoax

A FORMER Sunderland AFC player is today behind bars after a street robbery and staging a bomb hoax on a bookies.


Daniel Staples played alongside Jordan Henderson and Jack Colback during his time at the Black Cats’ Academy.

But while his ex-teammates are shining in the Premier League, the 21-year-old goalkeeper can only look forward to starring for his prison side.

At Durham Crown Court yesterday, Staples was jailed for more than six years after the court heard the gambling addiction he developed at the age of 15 spiralled out of control.

He demanded £10,000 and placed a fake bomb in a betting shop, which brought Annfield Plain to a standstill on July 5.

Shops, a GP surgery, schools and the main routes through the village were affected as police drafted in Army bomb disposal experts.

They were alerted by bookmaker Coral, after a customer found betting slips bearing the demand and instructions for staff to leave the cash at a drop-off point, warning a package in the gents would go off if police were called.

Although the device looked genuine, analysis after a controlled explosion found it would not have detonated.

Richard Bennett, prosecuting, said Staples was taken to a police station by his uncle, who called his nephew to ask if he was involved when he heard about the bomb scare.

Staples admitted blackmail, and placing the imitation explosive device with intent to induce another to believe it would ignite or explode. The incident happened while he was on bail for a robbery in Newcastle, when he punched a man in the street after a night at the Circus Casino, on February 6.

Staples and two mates believed the victim had taken his gambling chips.

He pleaded guilty on the basis that one of the others snatched the wallet.

The court heard about the demise of Staples’ career.

He signed for Newcastle United at the age of 11, but was dismissed in 2002 for drink- driving,

Andrew Finlay, mitigating, said the stopper played for Wrexham after being released from the North East Premier League clubs, then took up with lower league sides after returning to the region because he was homesick.

“His career began to decline and it seems things began to break down in October 2010.

“He rubbed shoulders with these people who have done extremely well and achieved at the top of the football profession, as he did at Newcastle and Sunderland.

“To have tasted it himself and then to have lost it is more than most people will have strained under.”

Judge Esmond Faulks sentenced Staples, of Harelaw Gardens, Catchgate, to 16 months for the robbery.

He was also given a five-year term for blackmail and four years for the explosive device, to run concurrently.

Suspected Mastermind of Mexico Casino Massacre Arrested

Suspected Mastermind of Mexico Casino Massacre Arrested

Baltazar Saucedo Estrada, whom authorities also suspect in the killings of two police chiefs and other crimes, was paraded before the media Friday morning by the Nuevo Leon state Attorney General’s Office

MONTERREY, Mexico – Mexican police arrested an alleged Los Zetas drug cartel leader who is suspected of planning last year’s arson attack on a casino in this northern industrial city that left 52 dead, officials said Friday.

Baltazar Saucedo Estrada, 48, whom authorities also suspect in the killings of two police chiefs and other crimes, was paraded before the media Friday morning by the Nuevo Leon state Attorney General’s Office.

Jorge Domene, spokesman for the Nuevo Leon security council, said Saucedo Estrada, alias “El Comandante Mataperros,” was detained by police at 1:40 p.m. Thursday while traveling in his vehicle in Monterrey’s San Luis neighborhood.

He was arrested along with two other people identified as Aurelio Lares Cisneros, 38, and Ricardo Ramirez Hernandez. Authorities also seized weapons, drugs and a vehicle from the suspects.

During interrogations, Saucedo Estrada confessed to ordering the Aug. 25 arson attack on the Casino Royale in Monterrey, as well as to participating in the February 2011 killing of an intelligence official with the Nuevo Leon state police force, Homero Salcido Treviño.

The suspect also acknowledged ordering the murder of German Perez Quiroz, the police chief of the Nuevo Leon city of Santa Catarina, part of the Monterrey metropolitan area. Perez Quiroz was gunned down in his office on June 27 of last year.

According to authorities, Saucedo Estrada also confessed to ordering the kidnapping and murder of several police officers in municipalities in the Monterrey metro area.

Mexico’s Attorney General’s Office had offered a reward of up to 5 million pesos (some $360,000) for information leading to the arrest of Saucedo Estrada, the suspected head of the Monterrey “plaza” (drug corridor) for Los Zetas.

A score of people have been arrested in the casino massacre, but authorities are still trying to track down another 17 suspects, including another alleged mastermind identified as Francisco Medina Mejia, alias “El Quemado,” and the top leader of Los Zetas, Heriberto Lazcano Lazcano.

Suspects previously detained in the massacre told authorities that Los Zetas gunmen torched the casino because the gaming establishment’s owner refused to pay protection money.

The gunmen told the people inside the casino to get out before setting fire to the building, but the emergency exits were closed. The majority of the 52 victims died from smoke inhalation, with only seven burning to death.

The massacre targeting employees and customers of the gaming establishment was one of the deadliest attacks on civilians by Mexican organized crime gangs.

Founded by deserters from an elite special forces unit, Los Zetas began as the armed wing of the Gulf drug cartel, but ended that relationship in March 2010 to go into business for themselves.

Regarded as Mexico’s most ruthless cartel, Los Zetas is accused of carrying out the August 2010 massacre of 72 undocumented immigrants near the U.S. border and is suspected in several similar cases.

The group has drawn the ire of older, established cartels through its extensive involvement in extortion, kidnapping for ransom and robbery, crimes that the other drug mobs generally eschew out of a desire to avoid antagonizing the general public. EFE

Peninsula Gaming Escaped Prosecution

Attorneys attack prosecutor payments
Having casino company pay isn’t right, they claim in Daniel case filings
By BILL SHEA, Messenger staff writer , Messenger News

Peninsula Gaming, the company picked to run a proposed Fort Dodge casino, and its top two executives appeared to be in legal trouble as 2010 drew to a close.

Special Prosecutor Lawrence Scalise filed criminal charges in October of that year against the Dubuque company; Brent Stevens, its chief executive officer; and Jonathan Swain, its chief operating officer; in connection with a contribution to the re-election campaign of former Gov. Chet Culver by Steve Daniel, a Fort Dodge man leading the effort to bring a casino to his town. Daniel, Webster County Entertainment and Davenport attorney Curtis Beason were also charged in the case.

The legal fortunes of Peninsula Gaming, Stevens and Swain have since improved. All charges against them have been dismissed, and the company is now paying for the ongoing prosecution of Daniel, Webster County Entertainment and Beason.

That arrangement is now the target of a fresh offensive by defense attorneys seeking to get the special prosecutors disqualified and the charges against the remaining defendants thrown out.

Daniel's attorney, Monty Fisher, of Fort Dodge, and Beason's attorneys, Leon Spies, of Iowa City, and Mark Weinhardt and William Ortman, of Des Moines, have filed motions in Polk County District Court claiming the payment arrangement violates ethics rules.

''Allowing the well heeled defendant, PGP (Peninsula Gaming), to escape prosecution by agreeing to pay for the prosecution of others violates not only the plain language of the ethical rules as argued by defendant Beason, but also clearly violates the spirit of the rules and the entire administration of a fair and impartial justice system,'' Fisher wrote in a motion filed Thursday.

The payment arrangement is outlined in a May 12, 2011, letter to Scalise from Guy Cook, the Des Moines attorney representing Peninsula Gaming. In the letter, Cook writes that the charges will be dismissed and adds ''finally, Peninsula Gaming will pay the costs of the prosecution of the charges previously brought through conclusion of this matter.''

On May 13, 2011, the prosecutors dropped the charges against Peninsula, Stevens and Swain.

Scalise's law firm, Coppola, McConville, Coppola, Hockenberg & Scalise, of West Des Moines, has been paid more than $100,000 so far for his work as a special prosecutor.

''The state of Iowa is not going to end up having one penny paid out to us that has not been reimbursed, so the taxpayers aren't footing the bill,'' Scalise said during a Nov. 17, 2011, hearing.

The charges against all the defendants in the case were filed on Oct. 11, 2010, following a probe by the Iowa Division of Criminal Investigation.

Daniel and Webster County Entertainment are scheduled to go on trial in Des Moines beginning Jan. 23 on charges of making a campaign contribution in the name of another and willful failure to disclose a campaign contribution. Beason, who is charged with failure to disclose a campaign contribution and obstruction, is also scheduled to go on trial that day.

The trial may be delayed, depending on what Polk County Associate District Court Judge William Price does with the six motions filed by the defense attorneys. Each of those motions addresses a different aspect of the legality of the payment arrangement between Peninsula Gaming and the special prosecutors.

A call seeking comment from Scalise wasn't returned Friday. A staffer in his office said he was meeting with Attorney General Tom Miller about a different issue.

Scalise and fellow Special Prosecutor Richard McConville claim that Daniel funneled campaign cash to Culver on behalf of Peninsula Gaming when he made his donation in November 2009.

During a pre-trial hearing in November 2011, Scalise said that Beason was the ''director, architect and orchestrator of the entire program to disguise the true source of the dollars.''

Attorneys disagree on how much money was donated. Scalise and McConville have said the amount was $25,000. Fisher has said the total was $11,000 paid in increments of $4,500, $4,500 and $2,000.

The prosecutors say the donation was made shortly after Peninsula Gaming paid Webster County Entertainment, a group led by Daniel, a $25,000 consulting fee. According to Scalise, within days of the $25,000 being deposited in the Webster County Entertainment account, checks were written to Daniel, Jim Kesterson and Merrill Leffler Jr. Kesterson and Leffler are Fort Dodge men who were partners with Daniel in Webster County Entertainment.

Scalise said the three men promptly wrote checks to Culver's re-election campaign.

Kesterson and Leffler were never charged with any crimes.

The effort to create the Diamond Jo Fort Dodge casino ended in May 2010 when the Iowa Racing and Gaming Commission declined to issue the needed license.

Friday, January 6, 2012

Playing cards close to the vest the wrong move for Foxboro

GOUVEIA: Playing cards close to the vest the wrong move for Foxboro

Whenever large private businesses are engaged in detailed planning with local municipalities, there are going to be problems. And in Foxboro, those problems are beginning to get a lot more complicated and quite a bit more worrisome.

In business, keeping your future plans close to the vest is generally considered a smart move. You don't want to give your competition any kind of edge. You want to perform due diligence and check out all the possible problems before extending yourself too far on any project. Do this, and you are generally considered a good businessperson.

But in municipal government, secrecy is the double-edged sword that has ended many a political career. You are expected to maintain transparency in town government, even when doing so may be disruptive and generally create more problems than it solves. This is one of the reasons you simply cannot run a town like a business. Keep things quiet in local government and they don't call you a good town official - they call you sneaky and question your motives.

Which is why Foxboro Selectmen Chairman Larry Harrington and Town Manager Kevin Paicos suddenly find themselves in an entirely different spotlight from the already intense one focused on them as a result of the initial casino debate. To quote that great TV character Ricky Ricardo when talking to his wife Lucy: "You got some 'splainin' to do!"

It was revealed this week that Harrington and Paicos had a previously undisclosed private meeting in Robert Kraft's office on Aug. 8 where the subject of a possible casino development on Kraft land near the stadium came up. On Aug. 28 Paicos presented to the planning board a proposal that would change zoning laws to allow casinos, explaining he had received communications from would-be developers inquiring on the subject.

He did not, however, reveal publicly that he and the chairman had met personally with Bob Kraft and learned there was interest there. Chairman Harrington also made no public statement to that effect, nor did he tell all his fellow board members. Anti-casino person Paul Mortenson, left, hands out no casino stickers prior to the Foxboro selectmen’s meeting at Foxboro High School last month.The change wound up within a report by Kraft Group attorney John Twohig, and Kraft Group spokesman Jeff Cournoyer said he understood the town manager had made the request.

When the private meeting was discovered, Paicos confirmed it and said he was not "endorsing the proposal" but was merely there to "explain a concept." The veteran town manager, who has served in Foxboro now for over a year, said he may have been "purposely manipulated and taken advantage of, because I did not have the knowledge or context" that Foxboro voters had specifically removed gaming from its zoning books about eight years prior. He says officials "left me holding the bag."

Poor Mr. Paicos - nobody told him something it would have taken him five minutes to discover had he bothered to bring it up to the board members he serves or the planning officials to whom he was "explaining." No matter how hard he tries to pass the blame off here, he is responsible for his own actions - or lack of same.

It would appear Chairman Harrington also failed to live up to his responsibilities. Having served as the chairman of a local board of selectmen, I can tell you one of the primary duties is to keep all your members informed. Sometimes legal situations restrict you in that regard. However, that does not appear to be the case here.

If the selectmen chairman and the town manager meet with the owner of the local NFL franchise and the topic of changing zoning laws to allow for construction of a billion-dollar resort casino in town comes up - the rest of the board should be informed. It's that simple. There just is no logical or sensible reason for that lack of notification - unless of course, you just don't want them to know.

The casino issue is still one that should be decided by a vote of all Foxboro citizens. That has not changed. But the actions - or inaction - of both Harrington and Paicos has done much to further the cause of those who say local government simply can't be trusted to conduct a fair and objective process.

Even Lucy would have a hard time 'splainin' this one.

Bill Gouveia is a local columnist and a longtime area town official.

Plainville with blinders

Those of us who have watched the unfolding issues surrounding Slot Barn legislation in Massachusetts, have heard some pretty dumb things said. We've watched as the media, either bought and paid for with future promises of ad revenue or too lazy to research the issue, simply regurgitate pablum.

Failing to appoint a study committee to consider the costs or provide factual consideration of a NEW Industry coming to town, well....shouldn't Plainville insist on BETTER?

FREE Alcohol will increase DUIs. It's not debatable because widely available statistics prove it. That means more DRUNKS. How simple is that? That means more motor vehicle accidents. That means more public safety personnel. What will that cost you? And the lost property values?

Gambling Addiction increases within a 50 mile radius, crime along with it.

Its cost?


Another issue is whether the police and fire departments would have to be expanded.


When will the Plainville Board of Selectmen assess those costs? After they sign an agreement? Maybe it doesn't make economic sense. Who is asking?


A LOOK AHEAD: Slots the hot topic in Plainville, too
BY JIM HAND SUN CHRONICLE STAFF

PLAINVILLE - Town officials don't hesitate when asked what will be the big issue in Plainville during the new year.

Without a pause to think, they reply: "Slot machines."

But, unlike their neighbors just up the road in Foxboro, Plainville officials, and apparently Plainville residents, seem a lot less apprehensive about the prospects of expanded gambling coming to their town.

Foxboro residents have formed groups to oppose a casino proposal there and selectmen have voted 3-2 against the plan by Las Vegas casino magnate Steve Wynn to lease land across from Gillette Stadium owned by New England Patriots owner Robert Kraft for a resort casino.

In Plainville, selectmen say they are open minded on a proposal by Plainridge Racecourse to bring 1,250 slot machines to the Route 1 facility. Making the track a so-called racino, or slot-machine parlor, will bring badly needed jobs and revenue to the town, they said.

Of course, there is always a but when change is proposed.

The but in Plainville is that officials want assurance that if Plainridge wins a Class 2 gambling license from the state that the racino will be properly developed with protections for the town.

Selectman Chairman Rob Rose said the board is considering hiring a consultant to help them sort through the process and advise them on how to negotiate with Plainridge.

He said the process is new to everyone and there are a lot of unanswered questions in the new state legislation allowing for more gambling.

For instance, the legislation leaves it up to a yet-to-be-appointed state gaming commission to determine what constitutes neighboring communities and what benefits or protections they should get from gambling. Rose said as far as he can determine, it also isn't spelled out in the casino bill how much, if any, gambling revenue would go to a host community.

He said he is also unclear what comes first: A town referendum on gambling, a negotiated agreement between Plainridge and selectmen, or a gambling license from the state.

"We're not sure exactly where all the pieces go," he said.

The process is going to be so involved that he speculates it will be summer before a deal is struck.

What is clear is that the slot-machine issue is going to dominate talk in the town this year.

"That will definitely be the big issue. It's going to be the hot topic," he said.

Rose and other town officials said they believe the town tends to look favorably on the slot machine idea.

Selectman Robert Fennessy said he has not heard of any opposition yet, but there also isn't a formal proposal yet.

He said he wants to study all the details before taking a definitive position, but he leans toward approval.

Rose said he believes the town wants the revenue and jobs the slot machines - and a planned $125 million expansion of Plainridge - would bring.

The racetrack's location is somewhat isolated from the rest of the town, situated off Route 1 near Route 152 and Interstate 495, so it shouldn't cause a problem for neighborhoods.

"I think it would fit seamlessly. It's in a corner of the town. It's almost not in Plainville," he said.

One area of concern, he said, is traffic mitigation. He said Plainridge would have to come up with a plan to handle the additional traffic, especially at the intersection of routes 1 and 152.

Another issue is whether the police and fire departments would have to be expanded.





But, overall, he said, Plainville seems open to the idea of expanding the gambling on horse races that currently goes on at the track to slot machines.

"I think there is general acceptance," he said.

From an abutter of the Plainridge Race Track Bailout:

It seems the Plainville selectmen are champing at the bit for expanded gambling at Plainridge ("Slots the hot topic in Plainville, too" January 2, 2012). I can assure you, not everyone in Plainville supports the idea of allowing the most regressive tax on the working poor and the elderly — the crack-cocaine of gambling — into our town.

In the article, Chairman Rose said, "I think it would fit seamlessly. It's in a corner of the town. It's almost not in Plainville."

How insulting! I can assure Mr. Rose that my neighborhood is very much “in Plainville.” We live and pay taxes here. Our neighborhood already "hosts" the landfill, big box stores, a sewer pumping station, extremely busy intersections, and a tiny rural road with a dilapidated bridge that is now used as a shortcut to avoid Route One, especially during games and concerts at Gillette Stadium. We still face the threat of an asphalt plant, and our neighborhood was passed over for sewer, even though the drinking water in Lake Mirimichi is surrounded by cesspools and septic systems on postage-stamp lots that can't support septic. The town's "adult entertainment" district and the racecourse abut our neighborhood. In other words, we have become Plainville's dumping ground.

My opposition to slots at Plainridge goes beyond any NIMBY concerns, however. I am opposed to expanded gambling anywhere in the Commonwealth, and I have asked for the opportunity to speak with the selectmen at their meeting on January 9th. I will ask what research has been done by the board (beyond pie-in-the-sky economic projections), and I will share information that speaks against expanded gambling in general, and slots in particular.

Join me in disabusing the board of the notion that "Plainville seems open to the idea of ... slot machines." Their number is 695-3010; email

Mohegan Sun Implosion

Mohegan Refinancing Puts Casino Operations at Risk
By ICTMN Staff

The operator of the Mohegan Sun casinos has not been able to reach an agreement to refinance its $811 million debt, increasing the chances it will have to cease operations, reported Bloomberg News.

Mohegan Tribal Gaming Authority (MTGA) currently runs the Mohegan Sun casinos in Connecticut and Pennsylvania, and is bidding for a casino license in Palmer, Massachusetts. On November 22, Gov. Deval Patrick signed legislation, permitting casino gambling in Massachusetts. The Mohegan’s proposed gaming resort in Palmer features a 600-room hotel and spa, and a casino with slots, table games and poker.

But the proposed resort’s amenities may prove irrelevant if the MTGA cannot refinance its fiscal 2012 maturities. MTGA recently announced that the state of its refinancing efforts “raise substantial doubt about our ability to continue as a going concern.”

The Authority also said it received a default waiver from its bank lenders on December 28. Mohegan is “pleased with the progress made in recent weeks toward finalizing our refinancing plan,” Chief Executive Officer Mitchell Etess said in a statement December 29.

Bloomberg states that Mohegan is being advised by Blackstone Group LP and Credit Suisse Group AG in an effort to refinance much of $1.61 billion in debt owed as of September 30, including $535 million outstanding under a bank credit facility maturing March 9, and $250 million of senior subordinated notes due April 1. PricewaterhouseCoopers LLP is the auditor.

Krafts discuss idea in private at stadium

Casino topic of Aug. 8 meeting
Krafts discuss idea with Harrington, Paicos in private at stadium
By Frank Mortimer

In a private meeting in early August with Patriots owner Robert Kraft and associates, selectmen chairman Larry Harrington learned of Kraft Group's interest in hosting a resort casino project on Route 1.

Harrington, who has increasingly fought for public consideration of a Wynn Resorts casino project proposed on Kraft-owned land, never disclosed that meeting to the public -- and now fellow board members say Harrington did not inform them of the secret meeting, which took place on Aug. 8 in Robert Kraft's office at Gillette Stadium.

During that meeting, Kraft told Harrington and town manager Kevin Paicos that Kraft Group had been approached by several parties about doing a resort casino and sought to ascertain the town's level of interest, both Harrington and Paicos confimed this week.

The need for a two-thirds vote to change Foxboro's zoning, necessary if a casino were to be allowed, was also discussed at that meeting, the town officials said in separate interviews.

Paicos confirmed the meeting this past Tuesday, when questioned by The Foxboro Reporter about his schedule for 2011, which the newspaper had obtained via a public records request.

Notified of Paicos's disclosures, Harrington on Wednesday acknowledged that Robert and Jonathan Kraft had sought their cooperation in person weeks before Paicos emerged as the sole sponsor of an effort to change town zoning to allow a casino.

"The Krafts indicated they wanted to test the town's interest in a resort casino," Harrington said. "The Krafts talked in general terms about a billion-dollar investment in real estate for a hotel, conference center, retail and gaming establishment, noting the gaming part would be a small part."

Harrington said the parties noted that current zoning in Foxboro does not allow for such a facility, and that a two-thirds vote of Town Meeting would be required to change zoning.

"We also talked about other requirements that were in the draft legislation that would ensure the host community fully supported the project, such as a ballot vote," Harrington said. "It is a community issue."

Paicos this week said the drive to allow a casino in Foxboro has been perceived as a Paicos issue.

On Aug. 25, Paicos presented the re-zoning idea at a meeting of the planning board, saying he'd received calls or emails from would-be casino builders inquiring about the town's current zoning.

In that meeting, Kraft Group attorney John Twohig presented a series of zoning proposals. Sandwiched in Twohig's zoning report was language to change the definition of "entertainment facilities" in the Route 1 economic development area to include casinos.

The board was told that Twohig had drawn up the casino language at Paicos' request, a perception the Kraft Group encouraged.

"My understanding is that it's not something we initiated, but that the town manager requested," Kraft spokesman Jeff Cournoyer said at the time.

"The appearance was that Twohig had written it for me and that I was endorsing this zoning proposal -- nothing could be further from the truth," Paicos said this week. "I wasn't endorsing any zoning proposal. I was there to explain a concept."

The planning board that night declined to sponsor the article for consideration at the fall town meeting. Selectmen, on Sept. 6, also voted 5 to 0 not to put the gaming zoning before voters.

One week later, however, on Sept. 13, selectman Lynda Walsh said she felt the board had "jumped the gun" in ditching the casino matter. Harrington likewise said he now felt that the issue of casino gambling was too important to be left up to selectmen and should be placed before voters.

As documented on Foxboro Cable Access TV videotape of that Sept. 13 meeting, Harrington spoke for about five minutes about his involvement in getting the casino matter on the previous week's agenda. But he said it was Paicos who wanted to put the casino zoning on the board's agenda for the previous week: "So I agreed with Kevin that it made sense for us to discuss it."

Harrington said nothing about the meeting he had participated in with the Krafts a month or more earlier.

Paicos, who has been town manager for 15 months, this Tuesday said either the officials he was dealing with were "confused," which resulted in his seeming to be the prime mover of the effort to pass casino gambling, or that he was "purposely manipulated and taken advantage of, because I did not have the knowledge or context."

Though reminded during the meeting with the Krafts and Harrington that a zoning change would be necessary to allow casino gambling in Foxboro, no one told him that the town specifically removed gaming from its zoning books about eight years ago.

"Once I made the proposal and it was not popular, they left me holding the bag," Paicos said.

Other members in dark

Selectman Mark Sullivan said he never knew of Harrington and Paicos's meeting with the Krafts until informed by a reporter Wednesday. Sullivan said he has no problem with the idea of the chairman and the town manager having such a meeting but "I would like to have been informed about the whole situation before now."

Lynda Walsh likewise said she did not remember being told by Paicos or Harrington about that meeting, and could not comment. "I've been trying to remember any phone conversations with Kevin or Larry, but I'm not coming up with anything," Walsh said.

Walsh said she did, however, receive a call of thanks from Robert Kraft after a Dec. 13 meeting in the high school auditorium, in which she voted in favor of allowing a Wynn Resorts casino concept to be presented to the public in January. At that meeting, Walsh was booed by some among the more than 500 present.

Selectman Jim DeVellis could not be reached for comment.

Harringtion said he, too, is taking his lumps.

"Some opponents of the casino have tried to change the debate by making me an issue, even going as far as to suggest unethical behavior," Harrington said Wednesday. "Nothing is further from the truth."

Harrington, a vice president with Raytheon, a firm that is a partner with the Kraft Group in the football museum at Gillette Stadium, said he opposed the Kraft stance on the meals tax even though Kraft suggested it would cost them $100,000, and "I have other examples where I opposed the Krafts on items that were in the best interest of Foxboro."

Harrington he said he's been faulted in the press for "supporting a public debate on the casino issue and letting the 11,000 voters make the decision. I have but one vote at Town Meeting and in a ballot question. What is so wrong with letting such an important issue be debated and decided upon by the 11,000 voters? Could anything be more fair than letting the entire community decide such an important issue such as this?"

Selectman Lorraine Brue said she learned from Paicos last Thursday of the Aug. 8 meeting with the Krafts, and how the subsequent zoning proposal to the Planning Board was brought forward without Brue's knowledge.

Brue notes that an Aug. 28 email from Harrington to a quorum of the board, excluding her, describes contacts by developers and the rationale for the zoning change, an effort Harrington in that email attributes to Paicos.

"The public and I were misled," Brue said. "This is not the way government should work. If casinos were such a good idea as presented in the beginning of August, why did Larry discuss it privately until the Wynn's arrival in town in December? There has been no transparency."

Kraft Group vice president Dan Murphy said Wednesday that throughout the spring and summer, Kraft Group leaders had meetings with various officials on a water and sewer issue, and that the casino topic surfaced during such a discussion.

"I invited Kevin and Larry to a meeting in August to discuss water and sewer and a general update on the status of the office park development," Murphy said. "The discussion turned to other development options because water is a lynchpin of that. The town manager asked the Krafts directly if they had been approached by gaming interests because he had been. They confirmed that they had, but were lukewarm to the idea unless there was an opportunity that was truly special and high end. We discussed the current legislation at the state level and inquired about potential zoning requirements locally."



Florida Chamber of Commerce Opposes Gambling Expansion

Has anyone noticed that states with expanded Gambling have higher unemployment rates and larger state deficits?

Do you think there's a connection?


Casino Jobs
by Whitney Ray

The debate is underway over how many jobs would be created if lawmakers vote to expand gaming when they meet next week for the 2012 legislative session.

Construction workers, limousine drivers and restaurant owners were in Tallahassee today saying expanded gaming would create jobs. But As Whitney Ray tells us, opponents of the bill say the casinos are a jobs killer in the long run.

Inside an unemployment office in Tallahassee supporters of a bill to bring three resort casinos to South Florida told reporters gaming would create jobs. Builders say the bill could create as many as 75-thousand construction jobs and help unemployed workers get off the state’s dime.
The Florida Chamber of Commerce isn’t buying it. They agree adding resort casinos would create new jobs, but at the expense of established businesses.
[A process called "Cannibalization" ]

“When you put a casino into an area like South Florida it actually takes money away from the existing businesses that are already there,” said Mark Wilson, President of the Florida Chamber of Commerce.

There are also concerns from the Chamber, religious groups and Disney that expanding gaming would hurt Florida’s family friendly image.

The situation just keeps getting more complicated. Now New York is looking expanded gaming to create jobs in the Empire State, which means if lawmakers here approve gaming, there would be competition for Florida.
[Known as "The Race to the Bottom"]

The original bill lacked enough support to make it through the Senate. A new draft will greet lawmakers when they come back to Tallahassee next week for the 2012 Legislative Session. The Senate President has promised a vote in his chamber before the end of session. The bill will be a harder sell in the House.

Norfolk joins Opposition!

Neighboring towns object to proposed Foxborough casino
By Christine Legere Globe Correspondent

NORTH ATTLEBOROUGH - Rumblings of opposition to a Las Vegas-style casino in Foxborough are becoming louder in neighboring communities, as officials worry about the strain the operation would place on local schools, housing, roads, and public safety departments.

Selectmen in Wrentham and Norfolk are sending letters this week to their Foxborough counterparts, protesting any plan for a local casino, town officials said yesterday. Town leaders in Walpole had previously penned their own letters of opposition.

The Wrentham selectmen voted unanimously Tuesday to oppose any plan for a casino in Foxborough.

Their letter states that opposition is “due to severe adverse impacts that such a development would have on the people, infrastructure, and services of the town.’’ Copies of the letter are being sent to state Senator Richard Ross and state Representative Daniel Winslow.

The vote by Norfolk’s selectmen was also unanimous. In its letter to Foxborough town officials, the board points out that part of the town abuts the target site for the casino, located across from Gillette Stadium.

The negative impacts would go beyond traffic, noise, and lighting, the selectmen wrote.

“It is also the added driving-under-the-influence incidents and related crime that have impacted other casino areas. . . . This has been validated in a number of studies.’’

The letter goes on to offer Foxborough assistance in any battle it wages against a local casino.

Town managers and administrators from Foxborough, Wrentham, Norfolk, Mansfield, and Walpole sat down yesterday in North Attleborough to informally discuss the possibility of a regional meeting of their top elected community officials to address the proposed casino. No date for such a session was set.

“We are all concerned about traffic, but housing was one of the key issues we discussed,’’ William Ross, Mansfield town manager, said about the session. He said several communities have not yet met the state’s 10 percent requirement for affordable housing stock.

Town officials say they worry that a casino would create the potential for an explosion of low-to-moderate housing needs.

“They’re saying they would hire 3,000 to 4,000 people,’’ Ross said of job figures touted by casino proponents. “That could be 9,000 to 10,000 people, because you’re talking spouses and kids. It could add 3,000 to 4,000 children to our schools, and that’s a major concern.’’

Steve Wynn, a Las Vegas businessman, has proposed a $1 billion hotel resort for land off Route 1 owned by New England Patriots owner Robert Kraft. Wynn says a casino would add jobs and at least $10 million a year in local taxes.

Kevin Paicos, town manager of Foxborough, said aspects of the state’s new casino law that provide for help to mitigate the impact on communities adjacent to a casino were discussed at yesterday’s meeting.

“I think the consensus in the room is a proposal will likely come forward, and they are trying to decide the best way for their communities to respond,’’ Paicos said.

Paicos said a regional campaign for mitigation would probably not include Foxborough, even though a majority of selectmen in that town recently voted not to support a casino proposal.

He said Foxborough may have interests similar to adjoining communities, but it will get a great deal of cash for mitigation, as the casino’s host.

Paicos predicted neighboring towns will not receive nearly as much.

“No matter how a mitigation agreement reads, it’s highly unlikely they will get all the resources they need,’’ he said. “The mitigation money would be significantly below what the impacts would be.’’

Ross agreed. “The legislation said there will be mitigation subject to appropriation,’’ he said. “That means the money from the casinos could go anywhere.’’

Following their recent vote, Foxborough selectmen sent a letter to Governor Deval Patrick and Stephen Crosby, chairman of the Massachusetts Gaming Commission, opposing a local casino. Paicos said selectmen have yet to discuss letters of protest now coming in from other communities, but they could decide to forward those to state officials, as well.

“I am hopeful that boards in all the towns will ultimately write to Foxborough selectmen to oppose the casino,’’ Paicos said.

A casino shouldn’t be forced on a town

A casino shouldn’t be forced on a town
By Joe Fitzgerald

Down in Foxboro, which used to be a sleepy hamlet, there’s a growing army of neighborhood preservationists that’s easy to like, easy to admire and easy to root for, making them a nuisance to casino gambling advocates who view the town as a plum ripe for picking.

Pretty soon, PR campaigns will be launched and those who resist the arrival of carpetbagging entrepreneurs will find themselves derided as simple-minded obstructionists too limited in sophistication to see the bigger picture.

It’s called killing the messenger, and it’s a message that ought to be shouted from the rooftops: Everything isn’t for sale, and the almighty dollar is no substitute for a wholesome quality of life.

Oh, the wiseguys will laugh at that. Let them. Media pundits will find it naive. Let them. The high rollers will dismiss it as parochial sentimentality. Let them.

Foxboro isn’t home to them, so why should they care?

Back when Boston College’s neighbors, weary of having their tranquility dashed and property trashed, rallied against plans to expand the stadium, football coach Tom Coughlin, now coaching the New York Giants, vilified them for not being “visionary enough” to go with the flow.

Coughlin lived in leafy Walpole at the time.

Former Worcester County DA John Conte once felt he should host a statewide conference on regulating sexually oriented businesses, attended by police officials from throughout the commonwealth who warned that such enterprises brought “negative effects” such as rape, prostitution and the molestation of children.

Yet town after town had to fight the hired legal guns of the adult entertainment industry to protect themselves from these bloodless mercenaries. Not surprisingly, the proprietors did not live in those communities they hoped to contaminate, nor did their lawyers.

When outsiders are convinced they know what’s best for you, and have the resources to impose their will on you, it’s a recipe for heartache and disaster. Just look at what forced busing did to this town; more than 35 years later, its damage remains evident everywhere.

Right now, the great danger Foxboro faces is in becoming a house divided against itself, neighbor pitted against neighbor.

Somewhere, somehow, there’s a consensus to be reached, but it needs to be fashioned by those who call Foxboro home.

Their old hamlet is changing fast. With football games, concerts and a dazzling mall, Route 1 in Foxboro is becoming as sluggish as Route 1 in Saugus.

So if residents feel enough’s enough, who can blame them?

Casino dollars? They’re not what home sweet home is all about.

It’s as simple as that.

Abramoff: The Corruption of Gambling

Jack Abramoff discusses influence peddling with Kentucky lawmakers
John Cheves
The Lexington Herald-Leader

FRANKFORT — Disgraced Washington lobbyist Jack Abramoff explained political corruption Wednesday to rapt members of the Kentucky General Assembly.

Abramoff, a Republican insider who made tens of millions of dollars influencing Congress before going to prison in 2006, was the featured speaker for an ethics class that is required of Kentucky lawmakers every winter.

The Legislative Ethics Commission paid Abramoff $5,000 for his 90-minute talk, but the money won't rest in his pocket. He owes $44 million in court-ordered restitution to Indian tribes and other clients whom he cheated, a debt that he said he'll struggle to pay over his lifetime.

Among the hard-earned knowledge that Abramoff shared with lawmakers: Politicians who act unethically seldom think they're doing anything wrong. But any gift to a politician by someone who wants a favor from government — whether that gift is as small as a campaign donation or as big as a golf trip to Scotland — spells trouble, he said.

Lobbying depends on access, and politicians grant access to people who do nice things for them, he said.

Abramoff organized political fund-raisers and directed millions of dollars in campaign donations. He showered members of Congress, their families and their staffs with meals, vacations, sports tickets and jobs. At least 100 members of Congress were happy to file bills at his request, he said.

"I certainly didn't think I was Satan," Abramoff said. "I thought I was a good guy. I was working for my clients, and we were winning most of our fights."

"I didn't realize that I was doing some really bad stuff until someone hit me on the head with a two-by-four," he said.

Following newspaper reports of his activities and a U.S. Justice Department investigation, Abramoff pleaded guilty to fraud, tax evasion and conspiracy. He took down several Republican congressmen and congressional aides along the way, including House Majority Leader Tom DeLay, R-Texas.

Having served more than three years in prison, Abramoff is on a tour promoting his book, Capitol Punishment: The Hard Truth About Washington Corruption From America's Most Notorious Lobbyist.

Government is "ordinary, decent people slowly accommodating themselves to a system that is rife with moral predicaments," he told the lawmakers Wednesday.

The safest path bypasses temptation entirely, he said. No lawmaker should be allowed to take anything — including campaign money — from lobbyists or their clients, or anyone seeking government awards, he said.

Kentucky's legislative ethics law bans campaign donations to lawmakers from Frankfort lobbyists but not from their clients, creating a clear path for money to flow from people hoping for influence, he said.

Abramoff also recommends term limits for lawmakers and their aides, to curb a culture of "arrogance," and a lifetime ban on their joining the ranks of lobbyists. It's remarkable how many longtime members of Congress use their positions for inside advantage and become millionaires on public salaries of less than $200,000 a year, he said.

"People ought to come, serve the public and go home," he said.

During the question-and-answer session, Abramoff warned lawmakers about the risks inherent in politicians getting involved in casino gambling, a subject that Kentucky's legislature is poised to debate again this winter. Some of Abramoff's crimes were related to his Indian casino clients.

Without condemning or condoning gambling itself, he said, it brings in huge sums of money, which creates temptations for politicians who award casino licenses to a lucky few and divvy up the winnings.

"Gambling is entirely political," Abramoff said. "Understand the power of the money in that industry."

After the class ended, state Rep. Carl Rollins, D-Midway, said it was fascinating to hear about corruption from a master of the craft. Many of Abramoff's recommendations are good ideas, such as an end to the revolving door between public service and lobbying, Rollins said.

"We've had some legislative staff members and legislators who have gone on to become lobbyists here in Frankfort," Rollins said. "You can see where there would be room for abuse."

Read more here: http://www.kansascity.com/2012/01/05/3353542/jack-abramoff-discusses-influence.html#storylink=cpy

The House Always Wins

New England Journal Of Med.

Psychological and financial incentives

Casinos are some of the most profitable businesses in the world which do not produce a product. Although casinos are highly regulated by government agencies to reduce scams and cheating, the public is seldom aware of the odds of winning any particular game.

Casinos have mastered the art of temptation. A barrage of psychological and economic incentives are designed to part you from your money. Once you have have made a bet and lost some money, you have a greater motivation to continue betting in order to recover your losses. Unless you are extremely disciplined and stop betting, trying to recover a gambling loss can start a vicious cycle in which you keep losing against the casino.

In the end, the casino always wins because the odds are stacked in its favor.

from recent NEW ENGLAND JOURNAL OF MEDICINE