State Addicted to Gambling

Or "The Great Race to the Bottom."


You just can't let those revenues go across state lines --
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....the state is facing competition from beyond its borders as Illinois, Michigan, Ohio and Kentucky are weighing their own gambling options or expanding existing operations.
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....the state could lose up to $250 million in casino tax revenue if Michigan, Kentucky and Ohio ramp up their gambling efforts.

Addictive Slots to save racing???

...slot machines and subsidies to the state's horse-racing industry have put them in an unprofitable situation.

"a model that has destined Indiana's horse-track casinos to eventual failure."

We have heard this before --

The state may have passed the saturation point of gambling. There simply is no more easy money to take off the table.

OUR VIEW: Indiana now addicted to gambling revenue
THE STAR PRESS • October 22, 2009

Like an addict hooked on drugs, Indiana might be facing severe withdrawal symptoms in the next few months.



Indiana's drug of choice for the state is revenue generated from gambling ventures such as horse tracks, casinos and lottery tickets.

And like an addict who needs more drugs to maintain the same high, Indiana needs more revenue just to maintain current funding levels. Trouble is, the money is starting to dry up.

State leaders have two alternatives: Learn to live with less revenue, or take steps to continue expanding gambling options for Hoosiers. Neither one is attractive.

Gambling revenue from within the state is falling as Hoosiers weather the recession, and the state is facing competition from beyond its borders as Illinois, Michigan, Ohio and Kentucky are weighing their own gambling options or expanding existing operations.

The Hoosier Lottery's profit from ticket sales in fiscal year 2009 dropped 17.5 percent, the biggest drop of any state in the nation.

To make matters worse, owners of Indiana's two horse-track casinos, Indiana Live Casino in Shelbyville and Hoosier Park in Anderson, told a Gambling Study Committee that paying $250 million for the rights to have slot machines and subsidies to the state's horse-racing industry have put them in an unprofitable situation. According to an article in The Indianapolis Star, Hoosier Park General Manager Jim Brown said the state's licensing fee structures has created "a model that has destined Indiana's horse-track casinos to eventual failure."

The "racino" owners want changes to licensing fees, which can affect their tax rates. Bottom line: They don't want to pay as much as in the past.

Outside Indiana, lawmakers were told the state could lose up to $250 million in casino tax revenue if Michigan, Kentucky and Ohio ramp up their gambling efforts. People who used to come to Indiana to wager can now stay closer to home, and the state loses out.

Gambling was once thought to be a recession-proof way to feed the state's coffers. Not so anymore. Economists believe revenue growth in gambling will not keep pace with the state's budgetary needs.

The state may have passed the saturation point of gambling. There simply is no more easy money to take off the table.

It's a safe bet that Indiana lawmakers in the upcoming session will deal with gambling issues, yet again.

And it's within the realm of possibility that racinos will receive some kind of financial break; existing casinos will have some latitude to move away from riverboats and more inland; and that proposals might be floated to allow bars to install video gaming devices and make legal what is often done in secret. We'll have to wait and see what happens.

In the meantime, anybody want to make a wager that the gambling industry will tell us that they're too big to fail?

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Kudos, I think

In June 2009, Senator Spilka convened a Casino Love Fest filled with the predictable shills and those whose wallets will bulge from predatory gambling, including Clyde Barrow who doesn't think $11,000 for 6 weeks' work is worth discussing, on top of his $144,000 taxpayer salary.
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I have been assured by ardent supporters of Senator Spilka's that she is fair, balanced and has done much good.

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Last week, when the "official announcement" was made of gambling hearings she scheduled, it seemed that only personal, private emails were sent to the "privileged few" like --

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....according to an e-mail received yesterday afternoon by Plainridge Racecourse President Gary T. Piontkowski.

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Kudos to whomever for recognizing that after a week long campaign targeted to motivate supporters, announcement of the hearings seems to have been made public --

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Mass. lawmakers plan hearing on more than a dozen bills on casinos, racetracks, slot parlors
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Associated Press
10/22/09 2:05 PM EDT BOSTON — The public is being given a chance to weigh on more than a dozen gaming bills, including several allowing the state to license resort style casinos in Massachusetts for the first time.
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Other bills set for a public hearing next week would allow slot machines at racetracks, create a network of video lottery terminals and increase the purse accounts on horse and dog races.
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Pressure has been mounting on Beacon Hill for expanded gambling in Massachusetts as the state struggles with plummeting revenues.
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Gov. Deval Patrick, Senate President Therese Murray and House Speaker Robert DeLeo all back the push for casinos.

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Democracy prevails! Finally.

This is embarrassing

When leaders of the Mashpee Wampanoags met with Middleboro's CRAC (Casino Resort Advisory Committee), the leadership indicated that their Mega Monster would be downsized to a bingo hall.

Would someone please tell the Tribe about the SCOTUS Hawaii decision?

LIT? Think not!

Would someone please tell CRAC there are no investors?

Middleboro's CRAC should be re-named to something more appropriate. Jack Healey's Rabbit Hole comes to mind.

Tribe scales back Middleboro casino plans

By George Brennan
STAFF WRITER
October 20, 2009
Tribe leaders have dramatically scaled back plans for a proposed Indian casino in Middleboro.

At a meeting in Middleboro last night, tribe leaders told the Resort Advisory Committee that the casino will be about one-third the size of the $1 billion casino first proposed by the Mashpee Wampanoag and its investors.


The economy has forced the tribe to downsize its plans, tribal council Vice Chairman Aaron Tobey said today. That means starting out with a gambling hall in the first phase and adding a scaled back casino, about 300 rooms, in the second phase, he said.

Original plans had a resort that would rival the Indian mega casinos that rival Foxwoods or Mohegan Sun in Connecticut.

“Things change,” he said. “All indications are that a $1 billion-plus casino isn't possible. That's just common sense given the state of the economy.”

The tribe has an agreement with Middleboro to pay $7 million per year for hosting the casino and additional revenue from a hotel tax. It's a controversial deal that ripped apart the community with casino opponents saying the town isn't getting enough for hosting a casino.

Other hurdles remain in place for the tribe. They still need a way to put the 539 acres into federal trust and they reached an impasse with their investors that remains unresolved.

Clyde Barrow: Duh?

Poor Clyde! Being torn between professional integrity and enjoying having your ego stroked with all that media attention, watching all that money being tossed to those overpaid lobbyists, what's a body to do?

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And maybe others, like Senator Pacheco, will believe your denials and use of taxpayer funded resources to shill for a predatory industry in justifying your false claims.

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Time to slither off, Clyde!

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From Clyde's own work --

Clyde W. Barrow, Ph.D. is the director of the Center for Policy
Analysis at the University of Massachusetts Dartmouth in
North Dartmouth, Mass. He may be reached via e-mail at cbarrow@
umassd.edu. Matthew Hirschy, M.P.P., is a research assistant
at the Center for Policy Analysis. He may be reached
via e-mail at u_mhirschy@umassd.edu.
The authors do not have any institutional or commercial affiliations,
including consultantships, honoraria, stock ownership,
equity interests, arrangements regarding patents, or other
vested interests that might pose a conflict of interest.



From United to Stop Slots in Mass ---

Page 4

8 See Clyde Barrow, “Maximum Bet: A Preliminary Blueprint for Casino Gaming & Economic Development in Massachusetts,” Center for Policy Analysis, University of Massachusetts-Dartmouth, August, 2007, http://www.umassd.edu/cfpa/docs/maximum_bet.pdf; Sean Murphy, “Massachusetts Casino Backers Playing Numbers Game.” Boston Globe, June 11, 2007; Holly Angelo, “Expert Outlines Casino ‘Blueprint,’” Chicopee Republican, August 27, 2007. Professor Barrow was previously a leading proponent of building a casino in West Warwick, Rhode Island. However, in last November’s election Rhode Island voters defeated the constitutional amendment that would have been necessary to allow the casino by a margin of 63% to 37%, despite an $11 million campaign that had been waged by casino advocates.

It may be worth noting that Barrow’s center accepted a $20,000 contribution last fall from the Rhode Island Building Trades Council, a union group that backed the unsuccessful casino referendum, for a study that would demonstrate the casino’s tax benefits; at about the same time, the group accepted a donation of $25,000 from Harrah's, which would have managed the casino. However, Professor Barrow insisted that he had maintained editorial independence in conducting the study, and said he had been unaware of the Harrah’s contribution – though his findings were prominently featured in Harrah’s campaign on behalf of the casino (Murphy, “Casino Backers”; Katherine Gregg, “Latest Casino Debate Centers on Tax Relief,” Providence Journal, July 7, 2006).

It may be worth noting that I attended Senator Spilka's Casino Love Fest in June 2009 at which, when asked very specifically about receiving $$ from the gambling industry, Clyde vaguely remembered something having to do with the Rhode Island Business Trades Council, but omitted Harrah's.

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Clyde was personally paid for the work below, but seems to have misrepresented his credentials or maybe he misused a taxpayer funded institution --

Job Creation Promises Now Key To Maine Casino Hopes

13 Oct, 2008 / GamblingCompliance Ltd. / Scott Van Voorhis

A lackluster campaign to bring a resort casino to Maine’s ski country has received a jolt of new energy, with a Nevada developer taking the reins. In a bid to win over voters before a statewide referendum next month, The Olympia Group issued a report this week predicting the new gambling venue would create hundreds of new jobs and bring in tens of millions in new taxes.

The report, conducted by the University of Massachusetts Dartmouth, estimates the new casino, which would take shape not far from the well-known ski resorts of Sugarloaf and Sunday River, would generate $164 m in total revenue. The casino would shell out nearly $70 m in taxes for cash-starved state coffers, while also generating more than full-time jobs, the report found. The state tax rate on the casino would top 47 percent, relatively high for a gambling resort.



We reviewed the tape of the "Commonwealth Report"
in which Senator Pacheco interviewed Clyde Barrow.

Clyde stated --

"...not on a retainer, not a consultant to any casino company and never have been."

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This bears further investigation and public discussion.

Casino Shill Barrow Exposed -- Again! #2

As a polite request to consider the credentials of Clyde Barrow's false claims, I sent the following to Senator Pacheco --

Honorable Senator Pacheco:

We had a brief conversation at the Middleboro COA at which
I suggested that you consider unbiased sources for your
information regarding predatory gambling that is being
considered on Beacon Hill.

To me, those sources might include economists who have
no connection to the industry, such as Professor Goodman.

It might include Grinols or Kindt, who have written extensively
and studied the industry in meticulous detail.

I realize the voices of serious studies are frequently drowned
out by those, like perennial casino cheerleader, Clyde Barrow,
but you might want to consider the posts of Ryan Adams:
Will Beacon Hill Make an Informed Decision on Casinos?
or
http://www.ryanstake.net/2009/09/will-beacon-hill-make-informed-decision.html


During Senator Spilka's mostly one sided "informational hearing,"
Cyde Barrow seemed to develop amnesia and failed to mention
industry funding he has received.

I linked to a Ball State University Study:
Racinos Create Low Paying Jobs

The study ended in 2004, so failed to consider the impacts of
the economic downturn.

Maybe we could recapture tax free sales flooding over the New
Hampshire border by establishing a tax free zone in northern
Massachusetts.

Friends of ours travel to New Hampshire for major purchases,
liquor and to purchase cartons of cigarettes in large quantities.

If Lawrence and Lowell were promoted as tax free zones, what
would the impact of job creation be? Or even Taunton or Worcester?

Just my thoughts.

Respectfully,

Jessie Powell
Middleboro, MA

To which the Senator responded --


Professor Barrows has NOT received any funding from the Gaming industry

Casino Shill Barrow Exposed -- Again!

Critics hit ‘objective’ researcher for pro-gambling tilt
Prof makes casino pitch

By Jay Fitzgerald

A University of Massachusetts professor, who has billed himself as an objective voice in the long-running debate over casino gambling in the Bay State, is now a paid consultant for a gaming proponent in New Hampshire.

Clyde Barrow, whose research has been criticized for being biased in favor of gambling, will testify today for a developer who wants to open a resort casino just across the border in the Granite State.

Gambling opponents say Barrow’s work for a gaming interest confirms their belief that his research has a pro-gambling tilt.

“It’s about time the people of Massachusetts know where the (gambling) proponents are getting their numbers” on jobs and tax revenue,” said Kathleen Conley Norbut, a critic of casino gambling and a member of the Western Massachusetts Casino Task Force.

Barrow’s work has been cited by Gov. Deval Patrick and other Bay State gambling proponents as proof of the benefits Massachusetts would reap from resort casinos.

Barrow, director of the Center for Policy Analysis at UMass-Dartmouth, acknowledged yesterday he’s getting paid an unspecified amount of money for producing a “market feasibility” study for the Greenmeadow Golf Course, which is pushing for a resort casino in Hudson, N.H.

“It’s really not much,” Barrow said of the amount he’s getting paid.

Though his UMass-Dartmouth center touts its financial independence on its Web site, Barrow said he’s doing the paid Granite State casino-development work “on my own.”

Some gambling critics have long insisted Barrow has had at least indirect ties to the gambling industry in recent years. But Barrow said yesterday the Greenmeadow work is the first time since 1999 that he’s performed paid work for a gaming interest.

He claims the New Hampshire contract doesn’t discredit his past gaming research, which has been used by Gov. Deval Patrick and other casino proponents to justify opening new resort casinos in Massachusetts.

Barrow’s studies have touted the gains in jobs and tax revenue if resort casinos are approved in Massachusetts - and his study for the proposed “Sagamore Crossing” project in New Hampshire predicts roughly the same benefits.

A spokeswoman for Patrick, who cited some of Barrow’s findings in legislative testimony he delivered last year in favor of new resort casinos, said Barrow’s past research wasn’t the only material Patrick used to support expansion of gambling in Massachusetts.

“The administration based its support for destination resort casinos on their economic development and job creation potential,” said spokeswoman Kofi Jones. “Numerous sources, studies, and analysis were used in reaching our estimates’ conclusions.”

Casino backers just want your money

From Ohio --

Casino backers just want your money; vote no on Issue 3


Casino backers want your money

The casino ads on TV don’t tell the whole story. The casino proponents aren’t really interested in creating more jobs; they just want more of Ohio’s money. They don’t really care that money is leaving Ohio; they just want to move it from your pocket to theirs.

The real truth is that casinos create losers, increase poverty, and destroy families and communities. Someone has to lose for others to win. Statistically, poor families pay a greater share of the costs involved with gambling. Communities where casinos have located have seen divorces, gambling addiction, homelessness, crime, and child protection cases increase while watching local businesses close.

It is the gambling industry that will benefit the most. They want more states and more casinos so that it will be easier to take more of America’s money. Let’s use our money to create real jobs that will add to real productivity and not ones that just create more problems at the taxpayers’ expense. Vote no on Issue 3.

— Edward A. Bell

Middleboro CRAC Meeting with "Tribe"

Middleboro's CRAC (Casino Resort Advisory Committee), the one that's supposed to do whatever to plan for the doomed Mashpee Wampanoag Slot Parlor, will have as their guests this evening the Mashpee Wampanoag Tribal Leadership.

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Since the leadership fantasizes that a "Carcieri Fix" will solve all problems, the meeting might be worth a few chuckles.

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Note to some: The Hawaii SCOTUS decision ended LIT, the Tribe no longer have a federal bureaucracy foolish enough to invest the $400 million or thereabouts for infrastructure improvement and the Tribe is of no value to commercial investors to avoid state taxes and regulations. Ooops!

Watch Out Milford: This is How it starts

Predatory Gambling is so wildly profitable for the greedy owners that they can afford the best full-time lobbyists who provide glitter filled propaganda that is readily regurgitated by short-staffed newspapers.

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Why work, compose and do any research, when you can just print what's handed to you?

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And by all means, make sure "No questions are asked!"

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Selectman Chair from Milford, Brian W. Murray is NOT allowing public comments at tonight's meeting.

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It is undetermined is Brian W. Murray is related to Massachusetts Senate President "Ca Ching" Murray or Middleboro's Very Own Arrogant Gavel Queen, Marsha Brunelle, who thought nothing of gaveling opposition to silence in front of the media.

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Genealogy aside, the failure to allow questions, input or study should set off alarm bells.

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You might want to review some of the reports that are available to inform yourselves. You just might want to consider some of those pesky little details, like say public safety costs, public school impacts, and, oh yes! Where will those low wage, low skilled workers working dead end jobs live?

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When public input is prohibited, what are they hiding?

Centaur Lamenting Their "Bad Deal"

Centaur and others agreed to a $250 million licensing fee and other stipulated investments, but now cries foul?

Hoosier Park challenges bankruptcy claim


ANDERSON — Hoosier Park Racing & Casino is in no imminent danger of bankruptcy, say officials with its parent company, Centaur.

Without parity in Indiana gaming, however, its financial future is uncertain.

“If we fail at every turn... is it a possibility out of 20 possibilities?” said Centaur Chairman Roderick Ratcliff. “It is a possibility.”

Ratcliff said under no circumstances would Hoosier Park close its doors. His comments came after State Sen. Luke Kenley, R-Nobleville, in a televised report, essentially predicted bankruptcy for Hoosier Park due to trouble repaying two large bonds.

Centaur borrowed heavily in order to pay a $250 million licensing fee to Indiana and to fund the construction of its 92,000-square-foot casino. The televised report on Wednesday suggested that Hoosier Park has two large bonds due within 90 days, which Ratcliff characterized as “incorrect,” saying its first loans are due in 2012.

He framed Hoosier Park’s financial troubles in the larger context of excessive taxation.

“The model set up for the racinos today does not work,” Ratcliff said. “Even without the $250 million license, we would be unable to compete.” Jim Brown, general manager of gaming at Hoosier Park, said the Anderson racino and Indiana Live Casino in Shelbyville are taxed at a rate of 47 percent, while Indiana’s riverboat casinos are taxed at 35 percent. They have lobbied legislators to level the playing field and the matter is under consideration by the Gaming Study Committee. Kenley chairs the committee, which will meet again on Oct. 19.

Ratcliff said a study undertaken by the Kelley School of Business at Indiana University found that a $125 million licensing fee would be appropriate for a casino based at Hoosier Park. Given the crushing debt it incurred to pay twice that amount, Ratcliff said paying $250 million was a mistake.

“Do I regret it? Absolutely,” Ratcliff said. “I regret agreeing to $250 million.”

Indiana Gaming Commissioner Ernie Yelton previously told The Herald Bulletin that without financial relief, the bankruptcy of Hoosier Park Racing & Casino is “imminent.” Joe Gorajec, executive director of the Indiana Horse Racing Commission, said he is not familiar with Hoosier Park’s financial status and has received no paperwork to suggest a bankruptcy.

“We’ve received nothing from Hoosier Park,” Gorajec said. “I’m not aware of any scenario whereby the track would discontinue operations.”

Ratcliff and Brown said Hoosier Park’s business is actually very healthy. Relieved of the burden of debt and excessive taxation he said he believes the facility can thrive.

“We’re very optimistic that the capital structure is going to get re-worked,” Ratcliff said.

Rivers Casino Not Making Enough Money

'That's Of Concern In A Lot Of Ways,' Pittsburgh Mayor Says

PITTSBURGH -- With revenues far below expectations, the new Rivers Casino on Pittsburgh's North Shore is upping the ante with more giveaways to attract customers inside to play slot machines.

Team 4's Paul Van Osdol reported that the most recent financial report shows the casino made less money per slot machine than any other casino in Pennsylvania.

What's the reason? "That is what we're actually trying to figure out," Rivers Casino spokesman George Matta said.

In August, the casino celebrated its grand opening and owners projected a first-year take of $400 million. But statistics show that the casino has made just $34 million in its first two months, which projects to $203 million for the year -- only half of the estimated haul.

For the week ending Oct. 4, Philadelphia Park Casino earned $350 per slot machine, Presque Isle earned $233 per slot machine, the Meadows in Washington County earned $194 per slot machine and the Rivers made $161 per slot machine.

"Over the course of the first two months, I think revenues are lower than we expected them to be. That is of concern in a lot of ways," Mayor Luke Ravenstahl said.


Pittsburgh and Allegheny County are relying on casino money -- a projected $49 million for the city and $49 million for the county over five years -- for many projects.

Also, $7.5 million per year in casino money is expected to help fund construction of the Penguins' new arena, the Consol Energy Center. Another $6 million is needed for community development projects on the North Side and in the Hill District.

Maybe football fans will venture across the street from adjacent Heinz Field and spend their money at the Rivers.

"When the Steelers or (Pitt) Panthers score a touchdown, it's $5 free play throughout the house," Matta said.

A car is being given away every week as another promotion to attract more casino business.
"They took for granted people were just going to come because it was there. Maybe that's not the case. Maybe they need to do more marketing like the other casinos do," Ravenstahl said.
Casino officials are also hoping for table games to draw more customers, but legislation to legalize table games is still being debated in Harrisburg.

Earlier this month, Standard & Poor's downgraded the credit rating for casino affiliate Holdings Gaming Borrower from B to B-minus, citing concerns about what it calls the Rivers' "weak operating performance" and its ability to meet debt service payments if there's no change in fortunes.

Mohegan Sun: Low Wage Jobs

The video is worth watching to hear Mohegan Sun exec gloss over the low wage jobs that are created.

Casino capitalism only benefits the casino operators


The crisis on Wall Street- AIG, Lehman Brothers, Bernie Madoff and so on - are all part of what’s been called “casino capitalism” – using predatory practices and financial gimmicks to promote an illusion of free money, all at the expense of unsuspecting Americans.



Predatory gambling is casino capitalism in its crudest form. Watch the brief video below of Mohegan Sun at Pocono Downs (PA) CEO Robert Soper testifying before a PA Legislative Committee that his blackjack dealers in Connecticut, not including tips which come out of the customer's pocket, are paid somewhere between "$6 and $7 an hour" and, if table games are approved in Pennsylvania, his dealers would probably be paid even "lower."

Slot Revenue Declines

BUSINESS IN BRIEF: Revenues for casino slot machines drop again in Connecticut
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The Patriot Ledger
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QUINCY —
Revenues for casino slot machines drop again
The operators of the Mohegan Sun and Foxwoods casinos in Connecticut continue to report declining slot machine revenues.

Foxwoods reported slot revenue of $54.8 million in September, a 10.2 percent decline in total slot handle from the same month a year ago. But the president of the authority that runs the casino said the results represented the casino’s strongest take, in terms of market share, since May.

Meanwhile, Foxwoods’ big rival also reported declines. The Mohegan Sun gaming authority said slot revenues at the Mohegan Sun casino and at Pocono Downs in Pennsylvania declined by 6 to 10 percent in the quarter that ended on Sept. 31, to a range of $250 million to $260 million for the quarter. Table game revenue took a bigger hit, though, with a projected drop of 23 percent to 26 percent.

The casino industry had largely been considered recession-proof until this recession, when cash-strapped consumers curtailed their casino trips and casino operators suffered under the weight of mountains of debt from recent expansions.

State's lottery is dishonest business

State's lottery is dishonest business

Billed as a harmless way to pump up education revenue without raising taxes, the empathetically named North Carolina Education Lottery was created to compete with surrounding state lotteries, where Tar Heels often dropped thousands of dollars.

Smelling another money-raising avenue, the N.C. Legislature voted the lottery into existence over the objections of many religious leaders, as well as those who feared it would become an indirect tax on the poor.

The lottery was justified by lofty promises that lottery proceeds would directly benefit the state’s educational system, but those promises conveniently soon were forgotten as lawmakers plundered the funds with about the same constraint as investment cheat Bernard Madoff exhibited when helping himself to his own clients’ money.

Although tough times often do call for tough measures — and it certainly can be argued these are tough times — where the lottery was concerned, the state chose to assume the role of a reverse Robin Hood, robbing both the poor and the schools in order to fund other projects.

Meanwhile, back in Onslow and Carteret counties, as well as across the Tar Heel State, residents increasingly struggle with unemployment, rising living costs and the burden of higher taxes. Some have also discovered a new and potentially devastating addiction that many would never have even known they had without government intervention: Gambling.

Gambling is one of the least understood of all addictions, but one of the most destructive. Those who suffer from it often lose everything to its pull, leaving their families with little or nothing. Very often gambling addicts go through their assets before anyone else is even aware of the problem, leaving debt and misery in their wakes.

While there is certainly an element of free will in the purchase of a lottery ticket and many gamble without losing their shirts, government should not actively push gambling or the sale of alcohol, for that matter. If the state needs the money these activities provide, then it should tax them instead. With North Carolina actively exploring the expansion of its lottery ticket sales, the state can now lay claim to the dubious distinction of finding new ways to prey upon its poorest citizens.

If lottery officials have their way, the lottery will grow yet again, with multi-million dollar jackpot drawings four days a week instead of two. The move will add another high stakes pay-out to the lottery; however, the state’s goal isn’t to multiply the chances of a Tar Heel winner but to make more money from desperate people buying lottery tickets they can’t afford.

If North Carolina expands the lottery again, the state should change the name. Education is certainly not its true focus. Instead it should be called the “North Carolina Whatever We Want to Do with It Lottery.” It doesn’t have much pizzazz, but unlike the whole lottery business itself, at least it’s honest.

Gambling Addict Jailed Over $16 Million Scheme

Gambler jailed over $16 million investment scam
DANIEL HURST
October 17, 2009 - 11:04AM
A "compulsive" gambler whose high-risk, unregistered investment scheme left mum and dad investors $16 million out of pocket has been jailed for 13 years.

The Brisbane District Court yesterday heard the promoter of the money-losing scheme, Brett Tony Best of Middle Park, had also faked loan applications to borrow $4.3 million as he fed his gambling addiction.

Westpac, National Australia Bank and Bank West were among the eight lenders defrauded when the trucking industry enthusiast sought finance to buy 45 non-existent prime movers and semi-trailers, the court was told.

The 40-year-old married father of three yesterday pleaded guilty to eight fresh fraud charges over the truck loans, following earlier guilty pleas on eight federal charges for running and dishonestly profiting from an unregistered managed investment scheme.

Commonwealth prosecutor David Kent told the court the company he headed, Arafura Equities Pty Ltd, promised investors 5 per cent profit per month, or 60 per cent annually, to be derived from futures market trading.

Some 200 clients, most of whom lived in South-East Queensland, entrusted their money to the company between 2003 and 2005 until the business was handed over to liquidators, Mr Kent said.

Investors dispensed with more $17.8 million in that time but were still owed $16.4 million when the company was wound up with just $3 million in assets, a report by the receivers found.

Best knew the company was insolvent in May 2005 but continued to take on clients until just before liquidators were appointed in October that year, the court was told.

He also "ignored" the law about registering the investment scheme.

Mr Kent described the crimes as "serious, systematic and deliberate", adding they appeared to have been committed "for no other motive than personal gain".

He said as investors started to demand the cash they were owed, a fellow promoter of the scheme, Patricia Jenkins, who was jailed earlier this year, started handing over money from new clients to the older ones.

"She was doing a bit of a Robin Hood job herself," Mr Kent said.

Best's charges included dishonestly gaining a financial advantage for himself worth $30,000 and six charges of dishonestly gaining a financial advantage for Arafura Equities worth $330,000, amounts that reflected cash taken when the company was already insolvent.

The court also heard yesterday details of his earlier fraudulent activities involving the use of fake or modified truck vehicle numbers to justify banks loans which he "frittered away" betting on horse racing.

But the semi-trailers and prime movers he supposedly purchased either did not exist, had already been written off or were unregistered, state prosecutor Dennis Kinsella said.
Best, the son of a truck driver, paid off about $300,000 of the debts, but millions had been funnelled into his own accounts, he said.

Defence lawyer Eoin Mac Giolla Ri said the common thread than ran between the two activities were his client's "compulsive gambling", pointing to one month in 2001 in which more than $100,000 was gambled.

But Best genuinely believed he would make money for investors on the futures markets, he said.

"Mr Best suffers from a chronic gambling addiction, a very powerful gambling addiction which drove the offending ... because he needed money to gamble."

Judge Katie McGinness told Best his investment scheme had taken a heavy toll on "mothers and fathers, brothers and sisters" and other community-minded people.

"You have managed to ruin their lives," she said.

"Some of them have suffered a breakdown in their relationships with their family and friends."
She imposed a 13-year jail term, but he will be eligible for release after four years and four months as a bonus for his guilty pleas.

He has already served 158 days in custody

Senator Cha Ching Murray

The following was sent by a regular reader --

Honorable Senator Murray

Casinos are not inevitable, and IMO those who think or say they are clearly poor leaders. The last time I looked we still live in a democratic society, where the people have a voice, so hopefully you will here my voice.

I work but do not live in the districts you represent, and ALL of those I work with do not think casinos are inevitable, but seriously wonder why "you" think and tout they are? They just question you telling people what you might want, without listening to what they would like. Some are ready to fight this bill, as they hear rumor the Kingston Mall is a possible casino location.

Many, including myself, feel casinos and legalizing gambling in Massachusetts is fraught with more problems than benefits, and that our state leadership is weak. Or they're merely delaying the vote to receive election funding. Sometimes hearing the truth is hard to believe. But I think you might want to listen a little closer.

Casinos and expanding gambling is not the magic pill, and I suggest those who feel they are, like you, do a little research before placing their seat in jeopardy.

I plan to go the extra mile, and help educate the public on the risks you, Deleo, and Patrick plan to expose MA to.

Do you really want to bet your career in politics on this issue?

Regards,

Resident of Middleboro, MA
Where we were also told a Tribal casino was inevitable, by a man now in jail.

Personal Bankruptcies

The Standard Times reports --

The number of Bay State residents filing for Chapter 7 bankruptcy protection shot up 35 percent in the first nine months of the year, compared to the same period in 2008.


On a more hopeful note, Warren noted Chapter 7 filings had decreased in the third quarter of this year from the second quarter by 8.7 percent.

If the economic news continues to improve, some people weighing bankruptcy may reconsider, he said.

"Nobody wants to file for bankruptcy," he said. "It's a terrible thing to go through."

Personal bankruptcy is a devastating process for families
and it would seem that our leaders would be anxious to
prevent it and reduce the numbers.

Studies indicate expanded gambling increases the number
of bankruptcies. So, why would we support it?

Taken from --
We Can Always Build More Casinos, Right?
A 2005 study by the Federal Reserve found a statistically
significant relationship between proximity to casinos in
Mississippi and bankruptcy rates in the region, which
includes impoverished states like Alabama and
Tennessee.

The evidence is in! We just have to listen to it.

To the Voters of Salem

Wow!

You folks sure elected a woman with a great sense of humor to request my attendance and support for Predatory Gambling at the October 29th Gambling Hearing!

.

The invitation provided a letter to sign that contains some bizarre logic --

.

Declining Lottery revenues, town budget deficits, important state projects that need funding, crumbling infrastructure, and rising unemployment rates.

.


.

Casinos, racinos and slot parlors around the country have filed for bankruptcy. Lottery revenues are declining because disposable income is declining and because unemployment is increasing, and OMG! Money will fall like manna from heaven to fill that pot o' gold!

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Straight from The Playbook, NEVER EVER call it a Slot Parlor!

.

Please take note: Last year, they called it a Destination Resort Casino -- this is their new marketing phraseology that they paid a lot of money to conjure up (as a result of those lengthy polls) --

.
Massachusetts needs resort-style entertainment complexes to remain competitive with our neighboring states and provide another revenue source for our cities and towns.
.

Isn't that choice? They thought you'd like it!
.

No one will notice that several of those states they want to compete with have higher taxes and higher unemployment rates.

To Steve Grossman

Dear Steve:

Allow me to weigh in as "just your average voter."

When Middleboro was confronted with a Mega Slot Parlor in its
midst, questions and opposition were silenced, impacts never
considered and it was "inevitable" we were told.

Increased crime, public safety and school costs were NEVER
factored into the whopping $7 million offered, while supporters
raved "Wow!"

Some of us just knew intuitively it was wrong - not solely from
a moral perspective.

From examining other states that have allowed themselves to be
blinded by the Fool's Gold of Gambling, it becomes clear that,
since Predatory Gambling fails to cover its costs, continued
expansion is needed to cover revenue shortfalls in the false belief
that more gambling will somehow pay for the current mess.

Grandiose promises of job creation, economic development and
revenues are promised that never come to fruition because
they were flawed from the beginning, but no one questioned.

To meet those false promises, it is then argued that taxes are
too high, hours not long enough, additional slots must be
added, restrictions must be lifted.

Indiana is confronting tax bailouts.

Twin River is proposing in bankruptcy court 24 hours gaming
even though Lincoln, RI voters opposed it. Local control will
be disregarded. Greyhound racing will be eliminated even
though preservation of racing was the purpose of creating
a slot parlor.

Casinos around the country are filing bankruptcy or in the
case of the CT casinos, "restructuring their debt." And
this is the partner we propose getting in bed with?
Tribes have defaulted on their loan payments.
What type of fiscal review is being considered?

The Bay State will move from being a regulator to being a
stakeholder and promoter in the success of slots venues
because you too have become addicted to gambling and
fail to recognize the folly that it simply doesn't pay its
way and the costs are too high.

That anyone in a position of authority allows the conversation
to be monopolized with false promises is disappointing.

I would hope our legislative leaders would have the wisdom
to follow New Hampshire's lead and insist on an impartial
cost benefit analysis.

We simply can't afford the costs of predatory gambling.

Respectfully,

Jessie Powell
Middleboro, MA
No longer home to the Mashpee
Wampanoag Mega Monster thanks to
Hawaii

Gambling Ban

County votes 18-4 to ban video poker (emphasis mine)--

The Lake County Board slammed the door on video poker in unincorporated areas.

In an 18-4 vote Tuesday, the board passed an ordinance opting out of Illinois' new gambling initiative, which was intended to help fund the state's capital bill through video gaming machines in taverns and other facilities.


...they were unwilling to advance a state revenue plan they felt came with steep social costs, including gambling addiction, bankruptcy and increased crime.

At least one person got it right about the continued expansion of predatory gambling --

Glenn Stewart, pastor of Agape Christian Fellowship and a leader of the Greater Waukegan Ministerial Association, said that allowing video poker in taverns would eventually lead to gaming in other establishments such as fast-food restaurants.

"Right now, it might just be in these certain places, but eventually it will be everywhere because the state will never have enough," he said.