From our Friends to the North report another insolvent partner --
The Las Vegas Sun reported Thursday that Moody's Investors Service has downgraded the debt of Cannery Casino Resorts, prospective developer of the Salem racetrack slots barn. Moody's now rates Cannery at Caa1, meaning "subject to very high default risk."
"Moody's said the downgrade reflects the slower than expected ramp up at Cannery's two new casinos: the Meadows near Pittsburgh, which opened in April; and Eastside Cannery on Boulder Highway in Las Vegas, which opened in August 2008," reports the Sun.
'The East Side Cannery and two other Las Vegas casinos are ... performing well below original expectations and will continue to struggle in the foreseeable future," wrote Moody's.
Kevin Landrigan reported on the downgrade in his Sunday Nashua Telegraph column with the ominous headline, "Expanded gambling not always sure thing."
Backers of the Sagamore Crossing casino proposed for Hudson have refused to identify their funding sources. Perhaps they have no funding?
Predatory gambling backers are operating under the now-indefensible assumption that lenders will plow money into New Hampshire's second-string (not near major metro markets) gambling locations and that the already debt-strapped consumer will go deeper into debt to fund more gambling losses.
Or ... are the Salem and Hudson slots casino proposals really intended as flips? Use a bunch of familiar faces to trick the legislature into granting these as monopoly locations, then sell the permits. Will New Hampshire like being in bed with the as-yet unknown buyers?
Report: Fall in gaming revenue slows, too early to call bottom
High unemployment nationwide continues to hinder the gaming industry's recovery from the recession, analysts at Moody's Investors Service say.
While recent statistics suggest the drop in U.S. gaming revenue caused by the recession continues to ease, it's still too early to say gaming revenue has hit bottom, Moody's said in a report Friday.
"On a weighted average basis, the percentage change in gaming revenues decelerated materially across the major U.S. markets in September," Moody's Vice President and Senior Credit Officer Peggy Holloway said in the report. "However, October results so far are less encouraging considering easy comparisons to October 2008."
Moody's said October gaming figures are important because it was the first full month with a comparison to the sharp drop in U.S. consumer spending prompted by the failure of several Wall Street financial institutions in September 2008.
Moody's said it expected more deceleration of negative trends in October, though it's analysis doesn't include Nevada's October numbers since they have not been released yet.
Nevada casinos won $911 million in September, down 8.99 percent from September 2008. For the July-September period, Nevada gaming win was down 10.28 percent.
Moody's noted Las Vegas Strip results in September indicated a significant deceleration of negative trends and that with visitor volume to the city increasing 4.3 percent in September, "The September results may be a harbinger that a bottom is near for the Las Vegas Strip."
Around the country in October, Illinois, Iowa and Michigan showed continued deceleration of negative trends -- though Moody's found the results in Iowa and Illinois were not as robust as suggested by the numbers on a same-store basis.
Louisiana's positive year-to-year increase likely reflected in part the 2008 hurricanes that disrupted casino operations there, Moody's said.
New Jersey reported a second month of single-digit declines after seven consecutive months of double-digit drops, as Indiana and Missouri reported consecutive monthly gains in gaming revenue.
"It appears that state gaming revenues are headed towards a bottom and so stabilization in the gaming industry may be near. However, true stabilization in gaming revenues will require a few more consecutive months of moderating declines. Although U.S. GDP has started to grow, unemployment remains stubbornly high (10.2 percent nationwide) and we believe this will keep pressure on gaming budgets and the nascent recovery in gaming revenues that appears to be emerging," Moody's report said.
"When we believe that gaming revenues will not materially erode during the next 12-18 months, we will be more confident in calling the bottom. The moderation of monthly gaming revenue declines across many states through the remainder of 2009 is needed before we are comfortable saying industry conditions have stabilized," Moody's said.
Even as conditions improve in Las Vegas and around the country, analysts remain concerned that gaming companies exposed to the Las Vegas Strip and the Las Vegas locals market will be challenged by increased supply and the slow economy in Las Vegas.
Las Vegas Strip leader MGM Mirage predicts visitation to Las Vegas next year will grow 7 percent to 38.1 million people, outpacing the projected capacity increase of 5 percent.
But analysts at CreditSights said in a report last week: "We agree that the overall Las Vegas market is likely to improve next year, but we are more cautious on the ability of operators to grow demand faster than capacity."
Even before CityCenter opens next month, MGM Mirage and competitors have had to lower room rates.
This in part was how MGM Mirage maintained its 95 percent occupancy rate on the Las Vegas Strip in the third quarter.
MGM Mirage said that for the third quarter, daily revenue per available room on the Strip fell from $129 in the 2008 quarter to $100 in the 2009 quarter.
And even as visitation to Las Vegas fell 4.7 percent this year through September, the city's room count grew 2.5 percent from a year ago to 141,190.
That number is projected to grow to 149,156 by the end of the year and to 153,149 by the end of 2010.
Recent and planned expansions and openings included in the numbers involve CityCenter, with 4,004 rooms at its Aria hotel-casino alone; along with Planet Hollywood Towers by Westgate, the Cosmopolitan, the Hard Rock and the Golden Nugget.
And in part reflecting the Las Vegas economy with its 13.9 percent unemployment rate, Moody's on Thursday downgraded Cannery Casino Resorts LLC's "corporate family" and "probability of default" debt ratings to Caa1 from B2.
This change moves the Cannery debt from "speculative" and "subject to high default risk" to "of poor standing" and "subject to very high default risk."
Moody's assigned a negative outlook to the debt in "anticipation of continued weak operating performance and near-term loan covenant compliance concerns."
Moody's said the downgrade reflects the slower than expected ramp up at Cannery's two new casinos: the Meadows near Pittsburgh, which opened in April; and Eastside Cannery on Boulder Highway in Las Vegas, which opened in August 2008.
"The East Side Cannery and two other Las Vegas casinos are ... performing well below original expectations and will continue to struggle in the foreseeable future along with the entire Las Vegas locals market," Moody's said.
Cannery Casino Resorts also owns the Cannery hotel-casino in North Las Vegas and runs the casino at the JW Marriott resort in Summerlin.
Moody's said its primary concern with Cannery is that the Las Vegas company will need to seek loan covenant relief, which could significantly boost its interest costs at a time when operating conditions remain challenged.
Tuesday, November 17, 2009
Rhode Island: The Bottom Gets Murkier
The Race to the Murky Bottom! addressed the broken promises of predatory gambling and the addiction of the State of Rhode Island to dwindling gambling revenues to fill state coffers, even to the extent of replacing the current management with insolvent partners.
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(State business regulation chief Michael Marques has confirmed his agency is vetting an application by John J. McLaughlin, a former top executive at Harveys Casino resorts who now heads Centaur Inc., to take on “key role” at Twin River.)
The Provident Journal now reports --
R.I. senator seeks probe into future of Twin River license
PROVIDENCE,R.I. -- State Sen. Frank A. Ciccone is calling for a legislative inquiry into the state's role in choosing managers for the bankrupt Twin River, and potential award of the gambling license - worth hundreds of millions of dollars - to new owners without a competitive and public vetting process.
Ciccone, a Providence Democrat, suggested the commission consider the potential termination, "due to breaches,'' of Twin River's "master contract'' to operate more than 4,750 video-slot machines placed there by the state Lottery.
He said the commission should then look at "the possible options of the state, in the event that the license is revoked, to reissue the license in accordance with a bidding process, or to a better location in the state, or on more desirable terms,'' and in the interim, "the right of the state to approve or disapprove the next owner or manager.''
Ciccone, a top-ranked official in the Laborers International Union affiliate that represents state court employees, tried without success to force the current owners of the Lincoln slot-parlor and greyhound track to drop their plans to suspend dog-racing in August. The governor vetoed the legislation.
Ciccone based his current campaign for the "immediate creation'' of legislative study commission on events since the last changeover in ownership, that led him to question the depth and extent of the state's oversight.
Twin River is currently owned by a subsidiary of BLB Investors, a holding company made up of the principals in Kerzner International, Starwood Capital Group and Waterford Group LLC.
Ciccone listed the following concerns:
"BLB was awarded a long-term contract by the state and lobbied against a full-scale casino in the 2006 casino referendum, only to announce afterward that it was teaming up with a Massachusetts Indian Tribe to build a full-scale casino in Massachusetts that would compete against Rhode Island.
"While BLB was pursuing a casino in Massachusetts, it shut down restaurants and other amenities in Lincoln and filed for bankruptcy in breach of its long-term contract with the state.
"Most recently...Warner Gaming- who I presume the bondholders and Governor Carcieri [had] chosen to manage [the former] Lincoln Park- announced in the Boston Globe in late October that it is planning to build a casino in Milford, Massachusetts because it is, and I quote, an 'ideal location' and will capture traffic which heads to 'Rhode Island gaming facilities today.''
Warner's Massachusetts proposal would create a gambling complex that could house 5,000 slot machines, 250 gambling tables, hotel rooms, restaurants and all the accoutrements of a full-fledged casino resort. The complex, known as the Crossroads Resort Project, would be located along Route 495 in Milford -- about 20 miles north of Twin River.
Soon after William H. Warner withdrew his application to manage Twin River earlier this month, the state's director of business regulation, Michael Marques, said he "indicated he was withdrawing his application because [Twin River's] lenders communicated to him that they were not comfortable with his plans for gaming in another state.''
Ciccone said he is not concerned about the bondholders, BLB or Warner Gaming.
"I am worried about the state of Rhode Island and our ability to control this license," he said. "This license is an asset of the state and should revert to the state. It does not permanently belong to bondholders, BLB or Warner Gaming; it belongs to the state and should only be issued to a company that has the history, brand recognition, management and marketing experience to help Rhode Island compete in this increasingly competitive marketplace."
"It should not be with a company that is less than two years old that recently announced that it plans to build a casino in Massachusetts to compete against Rhode Island," he continued. "Maybe this plan somehow works for the bondholders, but it does not work for, and is not in the best interest of, Rhode Island. And the state of Rhode Island should control the license."
Once a stand-alone state agency with a board of directors made up of lawmakers and gubernatorial appointees, the state Lottery is currently a division within the executive branch of state government, under Governor Carcieri.
There was no immediate comment on Ciccone's proposals from Senate leaders or the Carcieri administration.
Casinos Take Money From States
Froma Harrop: Casinos Take Money From States
Odds are that voter-approved casinos in Ohio will be a drain — not a plug — on the local economy
In Las Vegas, home prices have dropped 55 percent since peaking in August 2006, and the foreclosure rate is seven times the national average. Gigantic new condo towers sit nearly empty (real-estate pros call them “see-through buildings”), and unemployment tops 13 percent. The recession has sent casino revenues plunging 20 percent from two years ago.
“Up until the ‘90s, we never suffered with the downturn of the economy,” said William Thompson, a University of Nevada-Las Vegas professor and an expert on the casino business.
The sad plight of Sin City is a morality tale for other municipalities seeking economic salvation through gambling. And it is against this dark vision that Ohio voters just approved casinos in their state.
Thompson thinks that the money will again roll into Las Vegas as the economy improves. But the prospects are not as bright for nonresort cities without a large tourism infrastructure — and never were.
“Half the gamblers have to be from outside the state for it to work” as economic development, Thompson says. The only people who will definitely make money are the casino operators.
Ohio’s decision to put casinos in Cincinnati, Cleveland, Columbus and Toledo is largely a response to the gaming palaces in Michigan to the north, Indiana to the west and Pennsylvania to the east. (Kentucky to the south still doesn’t have casinos.)
What’s going to happen, Thompson predicts, is that about 10 percent of Ohio’s casino revenues will reflect gamblers returning home from the surrounding states. But the presence of casinos near population centers will simply mint new gamblers, and that will be a drain on the economy.
Compulsive gamblers steal, lose jobs, have debts and go on welfare. The economic rule of thumb on problem gamblers is as follows: A casino within 50 miles of a community doubles the rate of compulsive gambling, and those troubled individuals exact a social cost of about $10,000 each.
About 90 percent of Ohio’s population soon will be within 50 miles of a casino. If Ohio follows the expected pattern, the four gaming halls will create 80,000 more compulsive gamblers, siphoning about $800 million a year from the economy.
For gambling to become an economic engine, you have to bring money from elsewhere. In Las Vegas, out-of-state tourists account for nearly 90 percent of the gamblers. The visitors come for the big-time entertainment, shopping and mild winter weather, as well as for the games.
Oddly, casino expansion in other states can help the Nevada economy. The slot machines, for example, are made in Las Vegas and Reno. Ohio casinos will probably buy 20,000 slot machines at $15,000 each. That comes to $300 million being sent to Nevada.
After riverboat casinos opened in Joliet, Ill., local businesses were asked how they were affected. Half said they lost revenues. Only two gained, and one was a travel agency that found itself booking many more trips to Las Vegas for the new gamblers. The other business bought used cars for cash.
Thompson predicts that as Ohio builds its gambling establishments, casinos in neighboring states will prepare themselves for the increased competition. They may improve customer service and up the payout rate on their slot machines. (Outside of Nevada, the slots give back 92 cents to 94 cents on the dollar. Vegas is the most liberal, at 97 cents.)
In all, the odds of casinos in wanna-be “sin cities” filling state budget holes are not great. The desperation in recession-racked regions is understandable, but the reality is this: If large numbers of high rollers aren’t jetting in, casinos tend to take more from local economies than they give.
Odds are that voter-approved casinos in Ohio will be a drain — not a plug — on the local economy
In Las Vegas, home prices have dropped 55 percent since peaking in August 2006, and the foreclosure rate is seven times the national average. Gigantic new condo towers sit nearly empty (real-estate pros call them “see-through buildings”), and unemployment tops 13 percent. The recession has sent casino revenues plunging 20 percent from two years ago.
“Up until the ‘90s, we never suffered with the downturn of the economy,” said William Thompson, a University of Nevada-Las Vegas professor and an expert on the casino business.
The sad plight of Sin City is a morality tale for other municipalities seeking economic salvation through gambling. And it is against this dark vision that Ohio voters just approved casinos in their state.
Thompson thinks that the money will again roll into Las Vegas as the economy improves. But the prospects are not as bright for nonresort cities without a large tourism infrastructure — and never were.
“Half the gamblers have to be from outside the state for it to work” as economic development, Thompson says. The only people who will definitely make money are the casino operators.
Ohio’s decision to put casinos in Cincinnati, Cleveland, Columbus and Toledo is largely a response to the gaming palaces in Michigan to the north, Indiana to the west and Pennsylvania to the east. (Kentucky to the south still doesn’t have casinos.)
What’s going to happen, Thompson predicts, is that about 10 percent of Ohio’s casino revenues will reflect gamblers returning home from the surrounding states. But the presence of casinos near population centers will simply mint new gamblers, and that will be a drain on the economy.
Compulsive gamblers steal, lose jobs, have debts and go on welfare. The economic rule of thumb on problem gamblers is as follows: A casino within 50 miles of a community doubles the rate of compulsive gambling, and those troubled individuals exact a social cost of about $10,000 each.
About 90 percent of Ohio’s population soon will be within 50 miles of a casino. If Ohio follows the expected pattern, the four gaming halls will create 80,000 more compulsive gamblers, siphoning about $800 million a year from the economy.
For gambling to become an economic engine, you have to bring money from elsewhere. In Las Vegas, out-of-state tourists account for nearly 90 percent of the gamblers. The visitors come for the big-time entertainment, shopping and mild winter weather, as well as for the games.
Oddly, casino expansion in other states can help the Nevada economy. The slot machines, for example, are made in Las Vegas and Reno. Ohio casinos will probably buy 20,000 slot machines at $15,000 each. That comes to $300 million being sent to Nevada.
After riverboat casinos opened in Joliet, Ill., local businesses were asked how they were affected. Half said they lost revenues. Only two gained, and one was a travel agency that found itself booking many more trips to Las Vegas for the new gamblers. The other business bought used cars for cash.
Thompson predicts that as Ohio builds its gambling establishments, casinos in neighboring states will prepare themselves for the increased competition. They may improve customer service and up the payout rate on their slot machines. (Outside of Nevada, the slots give back 92 cents to 94 cents on the dollar. Vegas is the most liberal, at 97 cents.)
In all, the odds of casinos in wanna-be “sin cities” filling state budget holes are not great. The desperation in recession-racked regions is understandable, but the reality is this: If large numbers of high rollers aren’t jetting in, casinos tend to take more from local economies than they give.
State Budget cuts eliminate programs for problem gamblers
WXIN-TV Indianapolis reports --
State budget cuts will eliminate planned programs for Indiana's problem gamblers. Family and Social Services Administration officials say new programs for Hoosier retirees face the same fate.
"We believe the programs we have in place are addressing those individuals that really need that help." FSSA spokesperson Marcus Barlow said.
When fiscal year income in the state came in $309 million below budgetary forecasts cuts became inevitable.
FSSA said last week it was planning to cut Medicaid reimbursements to hospitals by 5%, but now those addicted to gambling and Indiana's oldest citizens will have no new options in 2010.
"FSSA is not going to fill 400 vacancies that we have right now. A few of our programs in the division on aging we've said we're not going to add new people to those programs and those are the things we are trying to do to save money," Barlow said.
Revenue from gaming in the state is beating the budgetary forecasts, but that $15 million of unexpected money is not being shared with Indiana's problem gambler programs for the foreseeable future
The state's problem gambling help line gets approximately 1500 calls a year.
In 2008 nearly 300 Hoosiers asked for professional treatment to help conquer their gambling addiction issues.
The Indiana FSSA cuts announced so far only represent a portion of the 10% budget cuts ordered this month by Governor Mitch Daniels.
State budget cuts will eliminate planned programs for Indiana's problem gamblers. Family and Social Services Administration officials say new programs for Hoosier retirees face the same fate.
"We believe the programs we have in place are addressing those individuals that really need that help." FSSA spokesperson Marcus Barlow said.
When fiscal year income in the state came in $309 million below budgetary forecasts cuts became inevitable.
FSSA said last week it was planning to cut Medicaid reimbursements to hospitals by 5%, but now those addicted to gambling and Indiana's oldest citizens will have no new options in 2010.
"FSSA is not going to fill 400 vacancies that we have right now. A few of our programs in the division on aging we've said we're not going to add new people to those programs and those are the things we are trying to do to save money," Barlow said.
Revenue from gaming in the state is beating the budgetary forecasts, but that $15 million of unexpected money is not being shared with Indiana's problem gambler programs for the foreseeable future
The state's problem gambling help line gets approximately 1500 calls a year.
In 2008 nearly 300 Hoosiers asked for professional treatment to help conquer their gambling addiction issues.
The Indiana FSSA cuts announced so far only represent a portion of the 10% budget cuts ordered this month by Governor Mitch Daniels.
Monday, November 16, 2009
Fall in gaming revenue slows, too early to call bottom
Report: Fall in gaming revenue slows, too early to call bottom
High unemployment nationwide continues to hinder the gaming industry's recovery from the recession, analysts at Moody's Investors Service say.
While recent statistics suggest the drop in U.S. gaming revenue caused by the recession continues to ease, it's still too early to say gaming revenue has hit bottom, Moody's said in a report Friday.
"On a weighted average basis, the percentage change in gaming revenues decelerated materially across the major U.S. markets in September," Moody's Vice President and Senior Credit Officer Peggy Holloway said in the report. "However, October results so far are less encouraging considering easy comparisons to October 2008."
Moody's said October gaming figures are important because it was the first full month with a comparison to the sharp drop in U.S. consumer spending prompted by the failure of several Wall Street financial institutions in September 2008.
Moody's said it expected more deceleration of negative trends in October, though it's analysis doesn't include Nevada's October numbers since they have not been released yet.
Nevada casinos won $911 million in September, down 8.99 percent from September 2008. For the July-September period, Nevada gaming win was down 10.28 percent.
Moody's noted Las Vegas Strip results in September indicated a significant deceleration of negative trends and that with visitor volume to the city increasing 4.3 percent in September, "The September results may be a harbinger that a bottom is near for the Las Vegas Strip."
Around the country in October, Illinois, Iowa and Michigan showed continued deceleration of negative trends -- though Moody's found the results in Iowa and Illinois were not as robust as suggested by the numbers on a same-store basis.
Louisiana's positive year-to-year increase likely reflected in part the 2008 hurricanes that disrupted casino operations there, Moody's said.
New Jersey reported a second month of single-digit declines after seven consecutive months of double-digit drops, as Indiana and Missouri reported consecutive monthly gains in gaming revenue.
"It appears that state gaming revenues are headed towards a bottom and so stabilization in the gaming industry may be near. However, true stabilization in gaming revenues will require a few more consecutive months of moderating declines. Although U.S. GDP has started to grow, unemployment remains stubbornly high (10.2 percent nationwide) and we believe this will keep pressure on gaming budgets and the nascent recovery in gaming revenues that appears to be emerging," Moody's report said.
"When we believe that gaming revenues will not materially erode during the next 12-18 months, we will be more confident in calling the bottom. The moderation of monthly gaming revenue declines across many states through the remainder of 2009 is needed before we are comfortable saying industry conditions have stabilized," Moody's said.
Even as conditions improve in Las Vegas and around the country, analysts remain concerned that gaming companies exposed to the Las Vegas Strip and the Las Vegas locals market will be challenged by increased supply and the slow economy in Las Vegas.
Las Vegas Strip leader MGM Mirage predicts visitation to Las Vegas next year will grow 7 percent to 38.1 million people, outpacing the projected capacity increase of 5 percent.
But analysts at CreditSights said in a report last week: "We agree that the overall Las Vegas market is likely to improve next year, but we are more cautious on the ability of operators to grow demand faster than capacity."
Even before CityCenter opens next month, MGM Mirage and competitors have had to lower room rates.
This in part was how MGM Mirage maintained its 95 percent occupancy rate on the Las Vegas Strip in the third quarter.
MGM Mirage said that for the third quarter, daily revenue per available room on the Strip fell from $129 in the 2008 quarter to $100 in the 2009 quarter.
And even as visitation to Las Vegas fell 4.7 percent this year through September, the city's room count grew 2.5 percent from a year ago to 141,190.
That number is projected to grow to 149,156 by the end of the year and to 153,149 by the end of 2010.
Recent and planned expansions and openings included in the numbers involve CityCenter, with 4,004 rooms at its Aria hotel-casino alone; along with Planet Hollywood Towers by Westgate, the Cosmopolitan, the Hard Rock and the Golden Nugget.
And in part reflecting the Las Vegas economy with its 13.9 percent unemployment rate, Moody's on Thursday downgraded Cannery Casino Resorts LLC's "corporate family" and "probability of default" debt ratings to Caa1 from B2.
This change moves the Cannery debt from "speculative" and "subject to high default risk" to "of poor standing" and "subject to very high default risk."
Moody's assigned a negative outlook to the debt in "anticipation of continued weak operating performance and near-term loan covenant compliance concerns."
Moody's said the downgrade reflects the slower than expected ramp up at Cannery's two new casinos: the Meadows near Pittsburgh, which opened in April; and Eastside Cannery on Boulder Highway in Las Vegas, which opened in August 2008.
"The East Side Cannery and two other Las Vegas casinos are ... performing well below original expectations and will continue to struggle in the foreseeable future along with the entire Las Vegas locals market," Moody's said.
Cannery Casino Resorts also owns the Cannery hotel-casino in North Las Vegas and runs the casino at the JW Marriott resort in Summerlin.
Moody's said its primary concern with Cannery is that the Las Vegas company will need to seek loan covenant relief, which could significantly boost its interest costs at a time when operating conditions remain challenged.
High unemployment nationwide continues to hinder the gaming industry's recovery from the recession, analysts at Moody's Investors Service say.
While recent statistics suggest the drop in U.S. gaming revenue caused by the recession continues to ease, it's still too early to say gaming revenue has hit bottom, Moody's said in a report Friday.
"On a weighted average basis, the percentage change in gaming revenues decelerated materially across the major U.S. markets in September," Moody's Vice President and Senior Credit Officer Peggy Holloway said in the report. "However, October results so far are less encouraging considering easy comparisons to October 2008."
Moody's said October gaming figures are important because it was the first full month with a comparison to the sharp drop in U.S. consumer spending prompted by the failure of several Wall Street financial institutions in September 2008.
Moody's said it expected more deceleration of negative trends in October, though it's analysis doesn't include Nevada's October numbers since they have not been released yet.
Nevada casinos won $911 million in September, down 8.99 percent from September 2008. For the July-September period, Nevada gaming win was down 10.28 percent.
Moody's noted Las Vegas Strip results in September indicated a significant deceleration of negative trends and that with visitor volume to the city increasing 4.3 percent in September, "The September results may be a harbinger that a bottom is near for the Las Vegas Strip."
Around the country in October, Illinois, Iowa and Michigan showed continued deceleration of negative trends -- though Moody's found the results in Iowa and Illinois were not as robust as suggested by the numbers on a same-store basis.
Louisiana's positive year-to-year increase likely reflected in part the 2008 hurricanes that disrupted casino operations there, Moody's said.
New Jersey reported a second month of single-digit declines after seven consecutive months of double-digit drops, as Indiana and Missouri reported consecutive monthly gains in gaming revenue.
"It appears that state gaming revenues are headed towards a bottom and so stabilization in the gaming industry may be near. However, true stabilization in gaming revenues will require a few more consecutive months of moderating declines. Although U.S. GDP has started to grow, unemployment remains stubbornly high (10.2 percent nationwide) and we believe this will keep pressure on gaming budgets and the nascent recovery in gaming revenues that appears to be emerging," Moody's report said.
"When we believe that gaming revenues will not materially erode during the next 12-18 months, we will be more confident in calling the bottom. The moderation of monthly gaming revenue declines across many states through the remainder of 2009 is needed before we are comfortable saying industry conditions have stabilized," Moody's said.
Even as conditions improve in Las Vegas and around the country, analysts remain concerned that gaming companies exposed to the Las Vegas Strip and the Las Vegas locals market will be challenged by increased supply and the slow economy in Las Vegas.
Las Vegas Strip leader MGM Mirage predicts visitation to Las Vegas next year will grow 7 percent to 38.1 million people, outpacing the projected capacity increase of 5 percent.
But analysts at CreditSights said in a report last week: "We agree that the overall Las Vegas market is likely to improve next year, but we are more cautious on the ability of operators to grow demand faster than capacity."
Even before CityCenter opens next month, MGM Mirage and competitors have had to lower room rates.
This in part was how MGM Mirage maintained its 95 percent occupancy rate on the Las Vegas Strip in the third quarter.
MGM Mirage said that for the third quarter, daily revenue per available room on the Strip fell from $129 in the 2008 quarter to $100 in the 2009 quarter.
And even as visitation to Las Vegas fell 4.7 percent this year through September, the city's room count grew 2.5 percent from a year ago to 141,190.
That number is projected to grow to 149,156 by the end of the year and to 153,149 by the end of 2010.
Recent and planned expansions and openings included in the numbers involve CityCenter, with 4,004 rooms at its Aria hotel-casino alone; along with Planet Hollywood Towers by Westgate, the Cosmopolitan, the Hard Rock and the Golden Nugget.
And in part reflecting the Las Vegas economy with its 13.9 percent unemployment rate, Moody's on Thursday downgraded Cannery Casino Resorts LLC's "corporate family" and "probability of default" debt ratings to Caa1 from B2.
This change moves the Cannery debt from "speculative" and "subject to high default risk" to "of poor standing" and "subject to very high default risk."
Moody's assigned a negative outlook to the debt in "anticipation of continued weak operating performance and near-term loan covenant compliance concerns."
Moody's said the downgrade reflects the slower than expected ramp up at Cannery's two new casinos: the Meadows near Pittsburgh, which opened in April; and Eastside Cannery on Boulder Highway in Las Vegas, which opened in August 2008.
"The East Side Cannery and two other Las Vegas casinos are ... performing well below original expectations and will continue to struggle in the foreseeable future along with the entire Las Vegas locals market," Moody's said.
Cannery Casino Resorts also owns the Cannery hotel-casino in North Las Vegas and runs the casino at the JW Marriott resort in Summerlin.
Moody's said its primary concern with Cannery is that the Las Vegas company will need to seek loan covenant relief, which could significantly boost its interest costs at a time when operating conditions remain challenged.
Deutsche Bank Drowning in Vegas on Costliest Bank-Owned Casino
From Bloomberg --
Nov. 16 (Bloomberg) -- Deutsche Bank AG’s Cosmopolitan Resort & Casino complex in Las Vegas, already the most expensive debacle in the city for a single lender, is now two years behind schedule, $2 billion over budget and under water -- literally.
Deutsche Bank, the resort’s owner since it foreclosed on developer Ian Bruce Eichner last year, requires 24-hour pumps and containment walls after workers hit an aquifer below the Nevada desert floor. It’s another challenge for a project whose delays and redesigns have sparked lawsuits from condominium buyers and sales agents amid record declines in Las Vegas’s gambling revenue, home prices and hotel-room bookings.
The German bank’s foray into the heart of the U.S. gambling industry, where it’s also a lender to bankrupt Station Casinos Inc. and the unfinished Fontainebleau, looms as an “impending disaster,” casino magnate Stephen Wynn said on a conference call with analysts last month. Wynn, who presides over the Wynn and Encore Las Vegas resorts, built the Bellagio next door to the Cosmopolitan.
Deutsche Bank took over the project after Eichner defaulted on a $760 million loan last year. The Frankfurt-based lender hired Related Cos., the developer of New York’s Time Warner Center, to oversee construction of the development’s two high- rise condominium and hotel towers, resort and casino. Cosmopolitan sits on 8.5 acres between the 76-acre Bellagio, MGM Mirage’s most profitable resort, and CityCenter, the firm’s newest development, packed on 67 acres.
Betting on Rebound
So far, Deutsche Bank has had to write down 500 million euros ($748 million) on Cosmopolitan. The sum could rise if the Las Vegas market fails to revive, said Dirk Becker, an analyst at Kepler Capital Markets in Frankfurt. The bank is offering condominium buyers in one Cosmopolitan tower 74 percent of their deposit to walk away, according to a copy of the proposal provided by a lawyer for some purchasers.
“Deutsche Bank had a difficult choice: selling an unfinished project or building the casino itself,” Becker said. “The bank probably never wanted to become a casino-builder in Las Vegas, but selling the project right after the real estate crash could’ve led to higher losses.”
Next door to Cosmopolitan, MGM Mirage and Dubai World, an investment arm of the emirate of Dubai, are completing the $8.5 billion CityCenter after lenders, led by Bank of America Corp., agreed to finance $1.8 billion. Further north on the Las Vegas Strip, work halted on the Fontainebleau in June with a bankruptcy filing after its lenders, including Deutsche Bank, refused further funding. The 63-story casino resort is about 70 percent complete.
‘Appropriate Strategy’
In the case of Cosmopolitan, “the bank concluded last year that completing the project was an appropriate strategy,” said John Gallagher, a Deutsche Bank spokesman in New York. “We cannot comment on the bank’s long-term plans for the Cosmopolitan. However, the bank has been and remains committed to building a world-class resort and casino that will become an integral, vibrant part of the Las Vegas economy.”
Deutsche Bank executives who have applied for gaming licenses from Nevada casino regulators include Jon Vaccaro, global head of commercial real estate; Jeffrey Baer, head of global logistic services; Donna Milrod, head of regional oversight and strategy; and Eric Schwartz, a managing director in the bank’s commercial real estate group, according to Deutsche Bank and the Nevada Gaming Control Board. They are all based in New York.
The four may become the first Las Vegas Strip casino-owning bankers to obtain the credential. The closest comparison: an affiliate of Goldman Sachs Group Inc.’s Whitehall Street Real Estate Fund underwent licensing as it took control of a portion of the Las Vegas Hilton, according to Thomas Hanna, coordinator of applicant services at the Nevada Gaming Control Board.
Hotel-Room Glut
Gambling revenue on the Las Vegas Strip tumbled more than 12 percent this year through September, more than last year’s record 11 percent drop, according to the Nevada Gaming Commission. Las Vegas home values dropped 55 percent from their August 2006 high, according to the S&P/Case Shiller single family home price index.
When Eichner, developer of the luxury condominium Continuum in Miami, broke ground in October 2005, the Cosmopolitan was slated to cost $1.8 billion and open in mid-2008, according to a press release at the time. Deutsche Bank now plans to open the doors in September 2010.
The current projected total cost of the project, according to analysts: $3.9 billion. That’s part of the reason the Cosmopolitan is the costliest project in Las Vegas for a single lender, according to New York-based research firm Real Capital Analytics Inc.
More Premium Rooms
As the costs of the development mount, high-end hotel rooms are popping up on the Strip, including 6,000 at CityCenter, the hotel, condominium, casino and mall complex opening next door to Cosmopolitan next month.
CityCenter will add 29 percent more so-called premium rooms on the Strip to the more than 20,000 available before Cosmopolitan opens, said Dennis Farrell, a casino debt analyst at Wells Fargo Securities LLC in Charlotte, North Carolina. Citywide, Las Vegas already has about 140,000 hotel rooms, according to the Las Vegas Convention and Visitors Authority.
“The Cosmo is going to be a dormitory for people who want to go to CityCenter and Bellagio on either side,” said Farrell. “You’ll have great views of both neighboring properties from the rooms, but I don’t know what other amenities they’ll be able to offer their customers that will be profitable enough returns on investment.”
‘Cosmo Beach Club’
Cosmopolitan’s original design included a 75,000-square- foot casino, a 1,800-seat theater and a five-acre “Cosmo Beach Club” overlooking the Strip, according to the press release. Deutsche Bank declined to discuss subsequent modifications.
Now the project is swimming in water from an underground aquifer that once irrigated the golf course at the now- demolished Dunes. These days, the water helps refill a fountain at the Bellagio that “dances” to ballads every half-hour -- and twice as often after dark.
The aquifer forms as runoff seeps into the ground and pools atop a layer of caliche, a cement-like rock, according to Bronson Mack, a spokesman at Las Vegas Valley Water District. Resorts often excavate through the caliche to build footings and parking garages, creating an ongoing need to pump water, Mack said.
“The relatively high water table on this site required the installation of a pump system and containment walls,’’ said Gallagher, the Deutsche Bank spokesman. “This is not uncommon for any Las Vegas project that includes underground parking or other underground facilities. The temporary certificate of occupancy for the entire parking garage, including the pumping system itself, was granted in February 2009, and we have encountered no problems whatsoever.”
‘Just Bad Luck’
Built around the Jockey Club resort, Cosmopolitan had no choice but to dig deep and build its parking garage below ground, regardless of the water, said Dan Fasulo, managing director for Real Capital Analytics. The Cosmopolitan’s subterranean parking structure was designed to hold 3,800 automobiles, according to the 2005 press release.
“Any construction project of this size runs into problems,” Fasulo said. “But to bump into an aquifer is just bad luck.”
Nov. 16 (Bloomberg) -- Deutsche Bank AG’s Cosmopolitan Resort & Casino complex in Las Vegas, already the most expensive debacle in the city for a single lender, is now two years behind schedule, $2 billion over budget and under water -- literally.
Deutsche Bank, the resort’s owner since it foreclosed on developer Ian Bruce Eichner last year, requires 24-hour pumps and containment walls after workers hit an aquifer below the Nevada desert floor. It’s another challenge for a project whose delays and redesigns have sparked lawsuits from condominium buyers and sales agents amid record declines in Las Vegas’s gambling revenue, home prices and hotel-room bookings.
The German bank’s foray into the heart of the U.S. gambling industry, where it’s also a lender to bankrupt Station Casinos Inc. and the unfinished Fontainebleau, looms as an “impending disaster,” casino magnate Stephen Wynn said on a conference call with analysts last month. Wynn, who presides over the Wynn and Encore Las Vegas resorts, built the Bellagio next door to the Cosmopolitan.
Deutsche Bank took over the project after Eichner defaulted on a $760 million loan last year. The Frankfurt-based lender hired Related Cos., the developer of New York’s Time Warner Center, to oversee construction of the development’s two high- rise condominium and hotel towers, resort and casino. Cosmopolitan sits on 8.5 acres between the 76-acre Bellagio, MGM Mirage’s most profitable resort, and CityCenter, the firm’s newest development, packed on 67 acres.
Betting on Rebound
So far, Deutsche Bank has had to write down 500 million euros ($748 million) on Cosmopolitan. The sum could rise if the Las Vegas market fails to revive, said Dirk Becker, an analyst at Kepler Capital Markets in Frankfurt. The bank is offering condominium buyers in one Cosmopolitan tower 74 percent of their deposit to walk away, according to a copy of the proposal provided by a lawyer for some purchasers.
“Deutsche Bank had a difficult choice: selling an unfinished project or building the casino itself,” Becker said. “The bank probably never wanted to become a casino-builder in Las Vegas, but selling the project right after the real estate crash could’ve led to higher losses.”
Next door to Cosmopolitan, MGM Mirage and Dubai World, an investment arm of the emirate of Dubai, are completing the $8.5 billion CityCenter after lenders, led by Bank of America Corp., agreed to finance $1.8 billion. Further north on the Las Vegas Strip, work halted on the Fontainebleau in June with a bankruptcy filing after its lenders, including Deutsche Bank, refused further funding. The 63-story casino resort is about 70 percent complete.
‘Appropriate Strategy’
In the case of Cosmopolitan, “the bank concluded last year that completing the project was an appropriate strategy,” said John Gallagher, a Deutsche Bank spokesman in New York. “We cannot comment on the bank’s long-term plans for the Cosmopolitan. However, the bank has been and remains committed to building a world-class resort and casino that will become an integral, vibrant part of the Las Vegas economy.”
Deutsche Bank executives who have applied for gaming licenses from Nevada casino regulators include Jon Vaccaro, global head of commercial real estate; Jeffrey Baer, head of global logistic services; Donna Milrod, head of regional oversight and strategy; and Eric Schwartz, a managing director in the bank’s commercial real estate group, according to Deutsche Bank and the Nevada Gaming Control Board. They are all based in New York.
The four may become the first Las Vegas Strip casino-owning bankers to obtain the credential. The closest comparison: an affiliate of Goldman Sachs Group Inc.’s Whitehall Street Real Estate Fund underwent licensing as it took control of a portion of the Las Vegas Hilton, according to Thomas Hanna, coordinator of applicant services at the Nevada Gaming Control Board.
Hotel-Room Glut
Gambling revenue on the Las Vegas Strip tumbled more than 12 percent this year through September, more than last year’s record 11 percent drop, according to the Nevada Gaming Commission. Las Vegas home values dropped 55 percent from their August 2006 high, according to the S&P/Case Shiller single family home price index.
When Eichner, developer of the luxury condominium Continuum in Miami, broke ground in October 2005, the Cosmopolitan was slated to cost $1.8 billion and open in mid-2008, according to a press release at the time. Deutsche Bank now plans to open the doors in September 2010.
The current projected total cost of the project, according to analysts: $3.9 billion. That’s part of the reason the Cosmopolitan is the costliest project in Las Vegas for a single lender, according to New York-based research firm Real Capital Analytics Inc.
More Premium Rooms
As the costs of the development mount, high-end hotel rooms are popping up on the Strip, including 6,000 at CityCenter, the hotel, condominium, casino and mall complex opening next door to Cosmopolitan next month.
CityCenter will add 29 percent more so-called premium rooms on the Strip to the more than 20,000 available before Cosmopolitan opens, said Dennis Farrell, a casino debt analyst at Wells Fargo Securities LLC in Charlotte, North Carolina. Citywide, Las Vegas already has about 140,000 hotel rooms, according to the Las Vegas Convention and Visitors Authority.
“The Cosmo is going to be a dormitory for people who want to go to CityCenter and Bellagio on either side,” said Farrell. “You’ll have great views of both neighboring properties from the rooms, but I don’t know what other amenities they’ll be able to offer their customers that will be profitable enough returns on investment.”
‘Cosmo Beach Club’
Cosmopolitan’s original design included a 75,000-square- foot casino, a 1,800-seat theater and a five-acre “Cosmo Beach Club” overlooking the Strip, according to the press release. Deutsche Bank declined to discuss subsequent modifications.
Now the project is swimming in water from an underground aquifer that once irrigated the golf course at the now- demolished Dunes. These days, the water helps refill a fountain at the Bellagio that “dances” to ballads every half-hour -- and twice as often after dark.
The aquifer forms as runoff seeps into the ground and pools atop a layer of caliche, a cement-like rock, according to Bronson Mack, a spokesman at Las Vegas Valley Water District. Resorts often excavate through the caliche to build footings and parking garages, creating an ongoing need to pump water, Mack said.
“The relatively high water table on this site required the installation of a pump system and containment walls,’’ said Gallagher, the Deutsche Bank spokesman. “This is not uncommon for any Las Vegas project that includes underground parking or other underground facilities. The temporary certificate of occupancy for the entire parking garage, including the pumping system itself, was granted in February 2009, and we have encountered no problems whatsoever.”
‘Just Bad Luck’
Built around the Jockey Club resort, Cosmopolitan had no choice but to dig deep and build its parking garage below ground, regardless of the water, said Dan Fasulo, managing director for Real Capital Analytics. The Cosmopolitan’s subterranean parking structure was designed to hold 3,800 automobiles, according to the 2005 press release.
“Any construction project of this size runs into problems,” Fasulo said. “But to bump into an aquifer is just bad luck.”
Eastern CT towns top list of problem gamblers
Eastern CT towns top list of problem gamblers
By Will Sokolic
NORWICH, Conn.—Norwich and New London lead the list of the top cities in the state that have a higher percentage of problem gamblers who called the state Helpline than would be expected based on their population, according to a Helpline report released by the Connecticut Council on Problem Gambling.
Norwich and New London each had 4.8 times the number expected for their populations, a figure the report attributes to their proximity to two large casinos. East Hartford residents call 2.8 times more than expected, and Hartford residents called 1.6 times more than expected.
The report is based on calls received in 2008. The results focused on the 696 calls from Connecticut gamblers or gamblers' significant others. Of those, almost two-thirds of the calls came from the gamblers themselves.
At this point, the council has yet to compare data from year to year to discern any trends. But a number of findings stood out, Dr. Marvin Steinberg, executive director of the council, said.
Casino slots lead the way for game choice, followed by the lottery and blackjack.
"The myth used to be the lottery was not area of concern," Steinberg said. "Now people realize there is a problem. It's unfortunate the lottery has gotten a free ride because it's connected with the state government."
Among problem gamblers, 1.3 times as many males called the Helpline as females, while approximately two times as many female spouses or significant others called than males. There were also calls complaining about spouses and other significant others, but not seeking help in any way.
"It doesn't make sense. They have serious problems of their own stemming from the gambling issues. We've taken special pains to collect data from spouses and others," Steinberg said.
The report indicates many gamblers have not entered the treatment pipeline yet, saying 90 percent have never had an association with treatment of any kind or Gamblers Anonymous.
Other highlights include:
-- The majority of problem gamblers, both male and female, identified themselves as Caucasian. Blacks have a 1.4 times higher rate of problem gambling than would be expected based on black population in the state, while Latinos have a 1.6 times lower rate.
-- Service and management/professionals are the most prevalent occupations for male and female gamblers. But the prevalence of women in these occupations is more than one third higher than that of males. But the ratio of unemployed callers was almost three times that of the the general population.
-- Steinberg hopes the report will lead to improvements in the identification and treatment of problem gambling, especially through an increased publicity push in workplaces, banks, credit unions and through public service announcements.
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Information from: Norwich Bulletin, http://www.norwichbulletin.com
By Will Sokolic
NORWICH, Conn.—Norwich and New London lead the list of the top cities in the state that have a higher percentage of problem gamblers who called the state Helpline than would be expected based on their population, according to a Helpline report released by the Connecticut Council on Problem Gambling.
Norwich and New London each had 4.8 times the number expected for their populations, a figure the report attributes to their proximity to two large casinos. East Hartford residents call 2.8 times more than expected, and Hartford residents called 1.6 times more than expected.
The report is based on calls received in 2008. The results focused on the 696 calls from Connecticut gamblers or gamblers' significant others. Of those, almost two-thirds of the calls came from the gamblers themselves.
At this point, the council has yet to compare data from year to year to discern any trends. But a number of findings stood out, Dr. Marvin Steinberg, executive director of the council, said.
Casino slots lead the way for game choice, followed by the lottery and blackjack.
"The myth used to be the lottery was not area of concern," Steinberg said. "Now people realize there is a problem. It's unfortunate the lottery has gotten a free ride because it's connected with the state government."
Among problem gamblers, 1.3 times as many males called the Helpline as females, while approximately two times as many female spouses or significant others called than males. There were also calls complaining about spouses and other significant others, but not seeking help in any way.
"It doesn't make sense. They have serious problems of their own stemming from the gambling issues. We've taken special pains to collect data from spouses and others," Steinberg said.
The report indicates many gamblers have not entered the treatment pipeline yet, saying 90 percent have never had an association with treatment of any kind or Gamblers Anonymous.
Other highlights include:
-- The majority of problem gamblers, both male and female, identified themselves as Caucasian. Blacks have a 1.4 times higher rate of problem gambling than would be expected based on black population in the state, while Latinos have a 1.6 times lower rate.
-- Service and management/professionals are the most prevalent occupations for male and female gamblers. But the prevalence of women in these occupations is more than one third higher than that of males. But the ratio of unemployed callers was almost three times that of the the general population.
-- Steinberg hopes the report will lead to improvements in the identification and treatment of problem gambling, especially through an increased publicity push in workplaces, banks, credit unions and through public service announcements.
------
Information from: Norwich Bulletin, http://www.norwichbulletin.com
State releases data on problem gamblers
From the Charleston Gazette --
State releases data on problem gamblers
Newly released data say that slot machines are the biggest source of trouble for problem gamblers in West Virginia.
CHARLESTON, W.Va. -- Newly released data say that slot machines are the biggest source of trouble for problem gamblers in West Virginia.
The Problem Gamblers Help Network of West Virginia has logged calls from more than 8,000 people to its 800-GAMBLER hotline since 2000.
Of those callers, more than 5,100 reported gambling at local video lottery establishments like bars and slot parlors, while more than 1,200 reported playing the slots at West Virginia's four racetracks.
More than half the callers reported spending all their income on gambling.
Network director Steve Burton says about 9 percent of callers to the hot line report suicidal feelings.
Callers to the hot line are connected with gambling counselors and provided other services.
State releases data on problem gamblers
Newly released data say that slot machines are the biggest source of trouble for problem gamblers in West Virginia.
CHARLESTON, W.Va. -- Newly released data say that slot machines are the biggest source of trouble for problem gamblers in West Virginia.
The Problem Gamblers Help Network of West Virginia has logged calls from more than 8,000 people to its 800-GAMBLER hotline since 2000.
Of those callers, more than 5,100 reported gambling at local video lottery establishments like bars and slot parlors, while more than 1,200 reported playing the slots at West Virginia's four racetracks.
More than half the callers reported spending all their income on gambling.
Network director Steve Burton says about 9 percent of callers to the hot line report suicidal feelings.
Callers to the hot line are connected with gambling counselors and provided other services.
Friday, November 13, 2009
Beacon Hill: Democracy dies at gambling interests' request
On Monday, Kathi-Anne Reinstein, a Revere Democrat who organized the SECRET CLOSED DOOR briefing, told the News Service the session was closed TO THE PUBLIC so state reps would "feel comfortable to ask any questions without having any type of criticism'' and surely at the request of gambling interests who can make undisputed wild promises that are unsubstantiated and never be held accountable.
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On Tuesday, the House proved that predatory gambling lobbyists haven't wasted their money when a voice vote approved a bill that NEVER had a PUBLIC hearing or maybe Monday's meeting was considered a "hearing" that just excluded the public.
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Why shouldn't constituents be informed about the votes of the Representatives?
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This is how it begins.
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This is according to the Predatory Gambling Playbook - prevent public discussion, at all costs!
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Six Degrees of Suffolk Downs describes the June 2009 Casino Love Fest filled with lobbyists and promoters that excluded public comments.
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RAYNHAM —
A bill that would allow simulcasting to continue at Massachusetts racetracks after a ban on live greyhound racing goes into effect
passed the House on a voice vote Tuesday.
If passed by the Senate and signed into law, the bill could throw a lifeline to Raynham-Taunton Greyhound Park by essentially converting it into a betting parlor in the short term. The bill would permit simulcasting — which allows track patrons to place wagers on races held at other tracks and watch the contests on closed-circuit television — to continue at each of the four racetracks in
Massachusetts until July 31, even on days when there are no live races held locally.
A ban on dog racing in Massachusetts will go into effect Jan. 1 after it was approved by voters in last year’s state election.
“It’s an important step in preventing lights out at the track and the loss of jobs and revenue,” state Rep. David Flynn said following the vote. “It’s a major step toward eventually getting slots at Raynham.”
Flynn, D-Bridgewater, and state Rep. James Fagan, D-Taunton, co-sponsored the legislation. Both have said the bill could serve as a stop gap measure to keep Raynham-Taunton Greyhound Park open until some sort of expanded gambling legislation is passed.
In the Senate, state Sen. Marc Pacheco, D-Taunton, sponsored a similar bill, but his also sought to delay the ban on dog racing.
Track owner George Carney has long expressed an interest in converting his Raynham facility into a slot machines parlor, and area lawmakers have pushed on Beacon Hill for the legalization of slot machines.
Among supporters of expanded gaming, there are differences of opinion on whether it would be best to support slot machines or full-scale resort casinos. There is also a sizable contingent that is opposed to any form of expanded gambling. Flynn doesn’t expect the Legislature to hold any hearings on expanded gaming until January at the earliest. A vote, he predicted, could come by February.
“This helps all four tracks,” Flynn said. “Without it, all simulcasting would end at the close of live greyhound racing.”
Flynn expects the simulcasting extension to pass the Senate without much objection. The vote could take place as soon as Tuesday, he said.
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The best Democracy gambling interests can buy!
Thursday, November 12, 2009
What kind of democracy....?
Lodge: Inside the secret garden on Beacon Hill
It's common knowledge on Beacon Hill that the Legislature isn't covered by the state Open Meeting Law.
Local boards, committees, commissions and councils, yes. But not legislative committees, caucuses or confabs.
State House News Service pointed out another instance this week when House members closed the doors to discuss, in this case, the prospect of gambling casinos, with industry experts, including Kathy Scanlan, executive director of the Massachusetts Council on Compulsive Gambling.
The News Service focused on the fact the Council on Compulsive Gambling, a non-profit agency that gets its funding from the state and from income from the state's four racetracks, could be forced to close after a substantial cut in funding from both sources.
"We're definitely threatened and we're trying to figure out how to recoup some funding,'' Scanlan told the News Service.
So, at a time when lawmakers are rallying the troops to support casino gambling in Massachusetts, the state is cutting back on funds for the non-profit group that treats problem gamblers.
It's true that the State House press corps in Massachusetts has been reduced to a handful of scribes because of the tough economy and battering newspapers are taking in the fight for advertising and circulation revenue. But the point of open meetings isn't to please the press; it's to make sure the public, the taxpayers and the press can know what government bodies are doing with their money, their time and their laws.
State House News Service reported that "several lawmakers who took part in the ... briefing said they had been unaware it was closed to the public.''
Rep. Richard Ross, R-Wrentham, a supporter of slot machines at the horse and dog tracks, said the briefing should have been public: "I think that open and frank dialogue between all the parties that have an interest in expanded gaming makes it a better chance that the institution as a whole would make an informed decision,'' he said.
But Kathi-Anne Reinstein, a Revere Democrat who organized the briefing, told the News Service the session was closed so state reps would "feel comfortable to ask any questions without having any type of criticism.''
And what kind of democracy is that, in which the elected officials are uncomfortable asking questions because they fear criticism? It's a flawed one.
It's common knowledge on Beacon Hill that the Legislature isn't covered by the state Open Meeting Law.
Local boards, committees, commissions and councils, yes. But not legislative committees, caucuses or confabs.
State House News Service pointed out another instance this week when House members closed the doors to discuss, in this case, the prospect of gambling casinos, with industry experts, including Kathy Scanlan, executive director of the Massachusetts Council on Compulsive Gambling.
The News Service focused on the fact the Council on Compulsive Gambling, a non-profit agency that gets its funding from the state and from income from the state's four racetracks, could be forced to close after a substantial cut in funding from both sources.
"We're definitely threatened and we're trying to figure out how to recoup some funding,'' Scanlan told the News Service.
So, at a time when lawmakers are rallying the troops to support casino gambling in Massachusetts, the state is cutting back on funds for the non-profit group that treats problem gamblers.
It's true that the State House press corps in Massachusetts has been reduced to a handful of scribes because of the tough economy and battering newspapers are taking in the fight for advertising and circulation revenue. But the point of open meetings isn't to please the press; it's to make sure the public, the taxpayers and the press can know what government bodies are doing with their money, their time and their laws.
State House News Service reported that "several lawmakers who took part in the ... briefing said they had been unaware it was closed to the public.''
Rep. Richard Ross, R-Wrentham, a supporter of slot machines at the horse and dog tracks, said the briefing should have been public: "I think that open and frank dialogue between all the parties that have an interest in expanded gaming makes it a better chance that the institution as a whole would make an informed decision,'' he said.
But Kathi-Anne Reinstein, a Revere Democrat who organized the briefing, told the News Service the session was closed so state reps would "feel comfortable to ask any questions without having any type of criticism.''
And what kind of democracy is that, in which the elected officials are uncomfortable asking questions because they fear criticism? It's a flawed one.
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Darn good question!
Tuesday, November 10, 2009
Beacon Hill: Secrecy and Closed Door Sessions Prevail
Secret closed door meetings again? When will gambling supporters allow public input and transparency?
Gambling addiction treatment agency could fold
Boston, Mass. - As state policymakers ramp up the push for casinos and slot machines here, the non-profit agency that treats problem gamblers is facing extinction after a 62-percent cut in funding.
The Mass. Council on Compulsive Gambling could be forced to close this year, after Gov. Deval Patrick halved its state aid as part of his midyear budget-balancing efforts and the agency lost another $130,000 due to a drop-off in income from the state’s four racetracks, a top official said.
“We’re definitely threatened and we’re trying to figure out how to recoup some funding,” said the Council’s executive director, Kathy Scanlan. The Council has contacted the Patrick administration and was waiting to hear back about setting a meeting, she said.
Both Senate President Therese Murray and House Speaker Robert DeLeo have voiced recent support for expanded gambling, while Gov. Deval Patrick, after pushing hard for casinos last year, has ratcheted down his enthusiasm.
Pro-gambling House members huddled Monday in a closed-door briefing on gambling with industry experts, including Scanlan, to field questions from other legislators and aides.
Emerging from the briefing for a press conference, some lawmakers said they wanted to ensure a dedicated revenue stream in whatever legislation may pass to treat gambling addictions, and said they were confident the odds of expanded gambling had increased.
“I think we’re moving in the right direction,” said Rep. Brian Wallace, a South Boston Democrat and longtime gambling backer.
“We certainly feel good about the progress we’ve made in the last couple months,” Wallace said.
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What progress? Are you referring to the transparency of your actions?
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The House is expected to vote Tuesday on legislation extending off-track betting rights at the state’s two dog tracks, essentially creating off-track betting parlors there by January, when the facilities will be hit with a voter-approved ban on dog racing.
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When were public hearings held on off-track betting? OTB parlors? Paleeze! Who are we enriching?
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This is a major shift in public policy that deserves careful consideration and not secret meetings.
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It is my firm belief that when the public is excluded, they're hiding something.
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The Council said it logged 1,305 calls to its helpline in fiscal 2008, resulting in 1,080 referrals to the Department of Public Health, self-help groups, and other services. That year, 95 percent of its funding flowed through the Department of Public Health.
Scanlan said the Council’s landlord had agreed to cut its rent in half, to roughly $35,000. She said the agency was considering other sources of funding as it formulated a “survival strategy.” Patrick announced a $500,000 cut to the agency’s $1 million line item last month.
Appearing with the pro-casino lawmakers Monday, Scanlan said the state would likely see increased social problems related to gambling if casinos were introduced.
Patrick last week said the state could expect “real human costs.”
“I don't want anybody in the Legislature to be thinking about expanded gaming as a quote fix unquote for the fiscal challenges facing the commonwealth. It's not. It's not," Patrick said during an appearance 96.9FM-WTKK.
"It's another job-creating opportunity, which has to be done right and because there are real human costs,” he continued. “That has to be faced. There are real human costs. We have to be very, very clear and careful about the regulatory framework that that business comes into."
Asked Monday about any plans to come to the Council’s aid, Patrick said, “There are lots and lots of worthy programs and agencies that are squeezed because of the fiscal crisis we are in. We’re going to do the very best we can with them, as we do with other agencies.”
Rep. Daniel Bosley, who helped lead the House opposition that ultimately killed Patrick’s casino plan on a 100-55 procedural vote last year, said he thought Patrick might be reconsidering his support.
“I think the governor has taken a second look at this, and I think he realizes that even in the best case scenario it would have to be perfectly drawn to realize any new revenue at all,” the North Adams Democrat said Tuesday.
Even within the pro-gambling caucus, there are fault lines along the details of any expansion.
House Dean David Flynn turned on labor officials joining him at Monday’s press conference and conveyed his disappointment unions have not come out more forcefully behind his effort to sanction slot machines at the state racetracks.
Organized labor for the most part has kept its powder dry for the larger fight over resort-style casinos, after long years of stumping for the racetracks only to be disappointed when deals fell apart.
Flynn kept up his criticism after the formal portion of the presser, corralling Mass. Building Trades Council president Francis Callahan and repeatedly telling him he was “very disappointed” unions had not been more active in working for slot machines at the tracks.
“I want you to endorse my proposal tomorrow,” Flynn told Callahan, who responded that Raynham-Taunton Greyhound Park, for which Flynn is an ardent Beacon Hill advocate, should allow more workers to unionize.
Why would the union support or endorse slot parlors that don't create jobs? Maybe the unions have more sense than Rep. Flynn.
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During the press conference, Flynn told reporters, “I think that the message from the governor has been rather lukewarm, but I don’t think it’s a danger signal. I really think, from the position we’re in, and the financial plight of the coffers of the Commonwealth. I would think that the governor would sign whatever is placed on his desk.”
Several lawmakers who took part in the earlier briefing said they had been unaware it was closed to the public. Rep. Richard Ross (R-Wrentham), who has pushed for track slot machines, said the briefing should have been public.
“I think that open and frank dialogue between all the parties that have an interest in expanded gaming makes it a better chance that the institution as a whole would make an informed decision,” Ross said after the briefing.
Kathi-Anne Reinstein, the Revere Democrat who organized the briefing, said the session was closed so members and aides would “feel comfortable to ask any questions without having any type of criticism.”
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Does this beg the question "Why hold public office if you're afraid of criticism?"
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What are they hiding?
Monday, November 9, 2009
Gambling Addict Killed His Children, Jumped to his Death
Debt-ridden man Ng Chee Kiang jumped to his death after killing his two children
Tragedy struck a Singapore family of four at Ang Mo Kio when a 39-year old man jumped from 12 storeys down to his death after setting fire to his flat which killed his two children.
Mr Ng Chee Kiang used to earn a decent salary as a manager of a chain of Sushi restaurants, but his gambling habit got him debt-riddened and his family was harassed by loansharks.
Unable to withstand her husband’s addiction to gambling, Madam Wang Li Zhu quarreled frequently with him and even threatened to file for divorce.
The Singapore Civil Defence Force (SCDF)received a call at around 9.50pm about the fire.
Upon their arrival, SCDF firefighters saw smoke coming out of the flat. They had to force their way into the flat to put out the fire.
They found a 5-year-old boy and a 3-year-old girl inside one of the bedrooms. The boy, Savier Ng Wei Yi, and the girl, Cheryl Ng Shi Hui, had no pulse and were not breathing. They were found to have strangle marks on their necks.
SCDF officers immediately performed CPR, but they were unable to revive the two children. They were pronounced dead shortly after.
While SCDF officers were fighting the fire in the flat, Mr Ng was reported to have jumped from the 12th floor of the same block which was witnessed by more than 100 people in the neighborhood.
Madam Wang fainted upon hearing the news. “Why is he so cruel to bring my children away?”, she wailed.
The sad case of Mr Ng illustrates the social problems brought about by gambling. Singapore’s two casinos will be opened early next year.
The National Council On Problem Gambling (NCPD) was set up in Singapore after casino gambling was legalized in 2005. At that time, the government acknowledged the potential social costs of gambling and agreed to take steps to address the issue.
NCPD has kick-started an anti-gambling campaign called “Know the Line” at groups believed vulnerable to getting hooked on gambling.It is a part of the group’s ongoing efforts to raise public awareness of the problem and to provide help for people addicted to gambling.
The NCPD was given the jobs of advising Singapore’s Ministry of Community Development, Youth and Sports on gambling issues, distributing funds to gambling treatment programs and deciding who would be excluded from casinos.
A government survey in 2008 found that 54% of Singapore residents over the age of 18 had participated in some form of gambling in the previous 12 months.
The survey indicated that 0.7% to 1.6% of respondents could be classified as “pathological gamblers.”
The government defended the construction of the casinos in Singapore on the grounds that the gaming industry will create jobs for Singapore and generate revenue for the country.
Despite much resistance from Singaporeans, especially religious groups, the government bull-doze its way through without much of a consultation with the people.
In contrast, a similar proposal to build casinos on the Taiwanese island of Penghu was shelved after its residents voted against it in a referendum.
It is not known if current measures are adequate to prevent future tragedies like this from happening.
Tragedy struck a Singapore family of four at Ang Mo Kio when a 39-year old man jumped from 12 storeys down to his death after setting fire to his flat which killed his two children.
Mr Ng Chee Kiang used to earn a decent salary as a manager of a chain of Sushi restaurants, but his gambling habit got him debt-riddened and his family was harassed by loansharks.
Unable to withstand her husband’s addiction to gambling, Madam Wang Li Zhu quarreled frequently with him and even threatened to file for divorce.
The Singapore Civil Defence Force (SCDF)received a call at around 9.50pm about the fire.
Upon their arrival, SCDF firefighters saw smoke coming out of the flat. They had to force their way into the flat to put out the fire.
They found a 5-year-old boy and a 3-year-old girl inside one of the bedrooms. The boy, Savier Ng Wei Yi, and the girl, Cheryl Ng Shi Hui, had no pulse and were not breathing. They were found to have strangle marks on their necks.
SCDF officers immediately performed CPR, but they were unable to revive the two children. They were pronounced dead shortly after.
While SCDF officers were fighting the fire in the flat, Mr Ng was reported to have jumped from the 12th floor of the same block which was witnessed by more than 100 people in the neighborhood.
Madam Wang fainted upon hearing the news. “Why is he so cruel to bring my children away?”, she wailed.
The sad case of Mr Ng illustrates the social problems brought about by gambling. Singapore’s two casinos will be opened early next year.
The National Council On Problem Gambling (NCPD) was set up in Singapore after casino gambling was legalized in 2005. At that time, the government acknowledged the potential social costs of gambling and agreed to take steps to address the issue.
NCPD has kick-started an anti-gambling campaign called “Know the Line” at groups believed vulnerable to getting hooked on gambling.It is a part of the group’s ongoing efforts to raise public awareness of the problem and to provide help for people addicted to gambling.
The NCPD was given the jobs of advising Singapore’s Ministry of Community Development, Youth and Sports on gambling issues, distributing funds to gambling treatment programs and deciding who would be excluded from casinos.
A government survey in 2008 found that 54% of Singapore residents over the age of 18 had participated in some form of gambling in the previous 12 months.
The survey indicated that 0.7% to 1.6% of respondents could be classified as “pathological gamblers.”
The government defended the construction of the casinos in Singapore on the grounds that the gaming industry will create jobs for Singapore and generate revenue for the country.
Despite much resistance from Singaporeans, especially religious groups, the government bull-doze its way through without much of a consultation with the people.
In contrast, a similar proposal to build casinos on the Taiwanese island of Penghu was shelved after its residents voted against it in a referendum.
It is not known if current measures are adequate to prevent future tragedies like this from happening.
Gambling Addicts' Profile
Fitting The Profile
The Problem Gambler's Help Network of West Virginia releases surprising findings as to who is most in need of help for a gambling addiction.
"A married, middle-aged woman, working fulltime in the health care , social work or gaming industry. This is a common profile of a problem gambler in West Virginia. She may be dealing with stressors like "empty nest syndrome" or death of a loved one. She gambles at neighborhood slot machines. Her gambling debts range between $5,000 to $25,000 and her money problems cause her to (1) borrow money from other people, (2) neglect her bills, and (3) spend all her income at the slots."
The profile is developed from looking at data over the past nine years in West Virginia.
"We hear from ladies who say, 'When I'm out there, I don't have to deal with the stress that's going on at home, I don't have to deal with the stress going on at work,'" said Steve Burton of the Problem Gamblers Help Network of West Virginia.
"We forget that our females today are taking care of an employee, they're taking care of home matters, they're taking care of children. What gambling is offering them is an escape from all of those stressors."
Burton is quick to caution, however, that the women identified in the profile are by no means the only ones suffering from gambling addictions. He says a man in his 20s is just as likely to get hooked and disintegrate into a cycle of self destruction."
The Network has more than 100 counselors in all parts of the state. When somebody calls the help line , 1-800-GAMBLER, they can pair them with a counselor in any part of the state almost immediately.
The biggest problem, aside from readily available and legalized gaming, is that it's not a widely recognized problem.
"Think back to your high school days," said Burton. "We all had classes with regard to alcohol and drugs. How many of us had a class with problem gambling? It's generally not something your average lay person would know about."
The Problem Gambler's Help Network of West Virginia releases surprising findings as to who is most in need of help for a gambling addiction.
"A married, middle-aged woman, working fulltime in the health care , social work or gaming industry. This is a common profile of a problem gambler in West Virginia. She may be dealing with stressors like "empty nest syndrome" or death of a loved one. She gambles at neighborhood slot machines. Her gambling debts range between $5,000 to $25,000 and her money problems cause her to (1) borrow money from other people, (2) neglect her bills, and (3) spend all her income at the slots."
The profile is developed from looking at data over the past nine years in West Virginia.
"We hear from ladies who say, 'When I'm out there, I don't have to deal with the stress that's going on at home, I don't have to deal with the stress going on at work,'" said Steve Burton of the Problem Gamblers Help Network of West Virginia.
"We forget that our females today are taking care of an employee, they're taking care of home matters, they're taking care of children. What gambling is offering them is an escape from all of those stressors."
Burton is quick to caution, however, that the women identified in the profile are by no means the only ones suffering from gambling addictions. He says a man in his 20s is just as likely to get hooked and disintegrate into a cycle of self destruction."
The Network has more than 100 counselors in all parts of the state. When somebody calls the help line , 1-800-GAMBLER, they can pair them with a counselor in any part of the state almost immediately.
The biggest problem, aside from readily available and legalized gaming, is that it's not a widely recognized problem.
"Think back to your high school days," said Burton. "We all had classes with regard to alcohol and drugs. How many of us had a class with problem gambling? It's generally not something your average lay person would know about."
Bailouts for Indiana Slots
Slots were permitted to save race tracks in Indiana, creating what are called 'racinos.'
.The "Arms Race" to the bottom continues with bailouts being sought --
INDIANAPOLIS – Gov. Mitch Daniels on Friday discounted the idea of tax restructuring or bailouts for Indiana’s casino industry while remaining open to the idea of new land-based casinos in the state within the existing license structure.
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He was reacting to news that Ohio voted for four land-based casinos this week, and the detriment it could have on state coffers.
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“One – I’m not very worried. And two – I’m against any expansion,” Daniels said.
He said casino gambling revenue makes up 5 percent of the state budget, and while the state would feel a reduction in that amount, “there are worse things than being a little less dependent on gaming.”
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A legislative committee has been studying various gambling issues this summer.
During those meetings, casinos around the state have asked for aid from the state including changing the tax structure, adding table games and moving one of two Gary casinos to Fort Wayne or another northeast Indiana location.
.
But Daniels said he doesn’t support modifying the tax structure to benefit the casinos.
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“If they are asking for tax relief, if they’re asking for cash, if they’re asking for money they voluntarily put up for those licenses to be given back, no,” he said.
“If we start bailing out industries in this state, we’re not going to start with a very profitable one like that.”
.
Riverboats were cruising down the river, providing gambling for limited periods of time. Now, they're tied up and forced to employ crews. Any pretense of "riverboat" gambling is gone.
.Daniels was more open to freeing the casinos from “riverboat” regulations such as having an engine and a captain even though they don’t move.
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And he would look at land-based gambling in new areas so long as it was within the existing 13 licenses.
“I wouldn’t rule that out,” he said.
House Speaker Pat Bauer, D-South Bend, said he isn’t sure what the solution is for the casino industry but said he wouldn’t rule anything in or out before the legislative committee gives recommendations.
Sunday, November 8, 2009
Daniels says no but gambling issues persist
From Indiana -- the ongoing saga of the Arms Race and Centaur --
When Gov. Mitch Daniels weighed in last week on a debate about how or whether to help Indiana casinos deal with competition coming from newly approved casinos in Ohio, he did so definitely.
No tax breaks for the gambling industry. No way. No how.
“If they’re asking for tax relief, if they’re asking for cash – no,” Daniels said. “If we’re going to start bailing out industries in this state, we’re not going to start with a very profitable one like that.”
It was an interesting declaration from a governor whose administration has for the most part looked kindly on the industry.
Daniels signed into law a property tax deal that authorized the state’s two horse track casinos.
The Indiana Gaming Commission has given casinos more latitude in their construction standards, so the most recent projects have been bigger and fancier than ever before.
But the Republican governor seems to have soured a bit on the industry.
Those horse track casinos — particularly Hoosier Park in Anderson — have been vocal in their criticism of the $250 million licensing fee that Daniels pushed for.
And the racinos were seeking tax breaks even before the latest out-of-state threat came from Ohio.
It seems Daniels hasn’t liked the attitude.
In fact, just last week, he instructed Ernie Yelton, the gaming commission’s executive director, to send reporters that cover gambling a newspaper story describing another state’s efforts to impose $200 million licensing fees.
“A deal is a deal,” the governor appears to be saying to the racinos. “And the deal was fair.”
But the two racinos and the state’s other 11 casinos — most of them located on water — do seem to have the ear of some legislators.
Already, a committee has been studying what — if anything — the state should do to adjust for competition. Tax breaks to encourage more player promotions and new capital investment were among the ideas considered.
That group has not yet made any recommendations, but there is sure to be legislation promoting some of those ideas when the General Assembly convenes in January.
And while Daniels is putting the kibosh on any tax breaks, he said he might be open to other things that could help the gambling industry — like eliminating the requirements that riverboat casinos have the ability to cruise and keep crews on staff.
He said he might even be open to letting them rebuild on land or letting the two boats in Gary relocate.
But such changes would help only some of the state casinos and lawmakers have found that it’s tough to pass gambling legislation unless there’s a little something for all the venues.
That’s probably why gambling will almost inevitably be a controversial issue come January — just like it is in almost every legislative session.
When Gov. Mitch Daniels weighed in last week on a debate about how or whether to help Indiana casinos deal with competition coming from newly approved casinos in Ohio, he did so definitely.
No tax breaks for the gambling industry. No way. No how.
“If they’re asking for tax relief, if they’re asking for cash – no,” Daniels said. “If we’re going to start bailing out industries in this state, we’re not going to start with a very profitable one like that.”
It was an interesting declaration from a governor whose administration has for the most part looked kindly on the industry.
Daniels signed into law a property tax deal that authorized the state’s two horse track casinos.
The Indiana Gaming Commission has given casinos more latitude in their construction standards, so the most recent projects have been bigger and fancier than ever before.
But the Republican governor seems to have soured a bit on the industry.
Those horse track casinos — particularly Hoosier Park in Anderson — have been vocal in their criticism of the $250 million licensing fee that Daniels pushed for.
And the racinos were seeking tax breaks even before the latest out-of-state threat came from Ohio.
It seems Daniels hasn’t liked the attitude.
In fact, just last week, he instructed Ernie Yelton, the gaming commission’s executive director, to send reporters that cover gambling a newspaper story describing another state’s efforts to impose $200 million licensing fees.
“A deal is a deal,” the governor appears to be saying to the racinos. “And the deal was fair.”
But the two racinos and the state’s other 11 casinos — most of them located on water — do seem to have the ear of some legislators.
Already, a committee has been studying what — if anything — the state should do to adjust for competition. Tax breaks to encourage more player promotions and new capital investment were among the ideas considered.
That group has not yet made any recommendations, but there is sure to be legislation promoting some of those ideas when the General Assembly convenes in January.
And while Daniels is putting the kibosh on any tax breaks, he said he might be open to other things that could help the gambling industry — like eliminating the requirements that riverboat casinos have the ability to cruise and keep crews on staff.
He said he might even be open to letting them rebuild on land or letting the two boats in Gary relocate.
But such changes would help only some of the state casinos and lawmakers have found that it’s tough to pass gambling legislation unless there’s a little something for all the venues.
That’s probably why gambling will almost inevitably be a controversial issue come January — just like it is in almost every legislative session.
Spin and spin, you'll never win
From HERALD ON SUNDAY --
A business woman who lost $100,000 in six months through online casinos has warned other gamblers: "You will never, ever win."
At the peak of her addiction, 40-year-old Sarah (not her real name) lost $2000 a day - as much as she could spend on her and her partner's credit cards.
"I would get up when the clock had gone past midnight so the cash advances were available again," she said.
"If I won money I wanted to go back to win more, if I lost money I wanted to go back to make the money back again."
Problem gambling services say the number of people seeking help for online gambling addiction is on the rise.
The development prompted Problem Gambling Foundation research director Dr Philip Townshend to warn New Zealand was in the "early stages of an exponential increase in pathological internet gambling".
Sarah said her habit spiralled out of control when she started gambling online in secret.
After selling a successful business which turned over more than $2 million a year, she had plenty of cash to spend.
"But I do wonder if that addiction had got to me earlier, would I have started to be deceptive in the business and take money?"
The Problem Gambling Foundation has helped 72 people with internet gambling addiction in the past three months, roughly one in five clients.
He said the first wave of online gamblers are generally young professionals aged under 35, who are computer-savvy and have well-paying jobs.
"The second wave is baby boomers, and I think we're seeing a bit of the second wave now," Townshend said.
Most were successfully hiding their addiction.
"Gambling as an addiction thrives on lies, and there's nothing that can be so well hidden as internet gambling."
One client, who lost $60,000 in a year, used a wireless connection to gamble on his laptop in the toilet.
Townshend said there was no protection from rigged games. Some poker sites used "poker bots", where gamblers were unaware they were playing against a computer, and had no chance of winning.
Major Lynette Hutson, from the Salvation Army addiction services, said online gambling was "very dangerous".
"People can use their credit cards and be completely ruined in days."
Unlike casinos and gaming machines, which are electronically monitored, there was no data on how much money New Zealanders were losing online. Only the TAB and Lotteries Commission are licensed to operate internet gambling in New Zealand.
Advertising any other web-based gambling is illegal, but it's not against the law for New Zealanders to play online.
"We have people coming forward for help, but one of the bigger worries is that we're just not able to quantify it yet," said Hutson.
A business woman who lost $100,000 in six months through online casinos has warned other gamblers: "You will never, ever win."
At the peak of her addiction, 40-year-old Sarah (not her real name) lost $2000 a day - as much as she could spend on her and her partner's credit cards.
"I would get up when the clock had gone past midnight so the cash advances were available again," she said.
"If I won money I wanted to go back to win more, if I lost money I wanted to go back to make the money back again."
Problem gambling services say the number of people seeking help for online gambling addiction is on the rise.
The development prompted Problem Gambling Foundation research director Dr Philip Townshend to warn New Zealand was in the "early stages of an exponential increase in pathological internet gambling".
Sarah said her habit spiralled out of control when she started gambling online in secret.
After selling a successful business which turned over more than $2 million a year, she had plenty of cash to spend.
"But I do wonder if that addiction had got to me earlier, would I have started to be deceptive in the business and take money?"
The Problem Gambling Foundation has helped 72 people with internet gambling addiction in the past three months, roughly one in five clients.
He said the first wave of online gamblers are generally young professionals aged under 35, who are computer-savvy and have well-paying jobs.
"The second wave is baby boomers, and I think we're seeing a bit of the second wave now," Townshend said.
Most were successfully hiding their addiction.
"Gambling as an addiction thrives on lies, and there's nothing that can be so well hidden as internet gambling."
One client, who lost $60,000 in a year, used a wireless connection to gamble on his laptop in the toilet.
Townshend said there was no protection from rigged games. Some poker sites used "poker bots", where gamblers were unaware they were playing against a computer, and had no chance of winning.
Major Lynette Hutson, from the Salvation Army addiction services, said online gambling was "very dangerous".
"People can use their credit cards and be completely ruined in days."
Unlike casinos and gaming machines, which are electronically monitored, there was no data on how much money New Zealanders were losing online. Only the TAB and Lotteries Commission are licensed to operate internet gambling in New Zealand.
Advertising any other web-based gambling is illegal, but it's not against the law for New Zealanders to play online.
"We have people coming forward for help, but one of the bigger worries is that we're just not able to quantify it yet," said Hutson.
League of Women Voters of Massachusetts
BOSTON-The League of Women Voters of Massachusetts has joined forces with the anti-casino coalition United to Stop Slots in Massachusetts.
The non-profit coalition, comprised of citizens, taxpayers, activists and statewide organizations across the political spectrum, works to educate and inform citizens and Legislators of the negative economic and social effects of casino gambling.
The League of Women Voters of Massachusetts has opposed allowing casino gambling in the state since 1982, and actively lobbied against casino legislation last year.
Louise Haldeman, the casino gambling specialist for the League's Program and Action Committee, is the League's representative to the United to Stop Slots board of directors.
"While casinos would bring in some revenue and some jobs, costs associated with those jobs, the impact on local communities and businesses, and the impact on families will far outweigh the benefit," said Haldeman.
The League of Women Voters opposes the legalization of casino gambling, believing the demands for social and municipal services, police protection and the establishment of a state regulating body outweigh any benefits from increased employment, tourism and tax revenue.
"The League's fiscal positions reinforce that an economic crisis cannot be cured by legalizing casino gambling nor can sustainable revenue be created with the introduction of this industry into the Commonwealth," said Zaxaro Bennett, president of the state League.
Since 1983 the League has presented testimony to oppose the legalization of casino gambling and has worked with organizations that share this goal. LWVMA will continue to work to defeat any bills that would provide for the legalization of casino gambling in Massachusetts.
The non-profit coalition, comprised of citizens, taxpayers, activists and statewide organizations across the political spectrum, works to educate and inform citizens and Legislators of the negative economic and social effects of casino gambling.
The League of Women Voters of Massachusetts has opposed allowing casino gambling in the state since 1982, and actively lobbied against casino legislation last year.
Louise Haldeman, the casino gambling specialist for the League's Program and Action Committee, is the League's representative to the United to Stop Slots board of directors.
"While casinos would bring in some revenue and some jobs, costs associated with those jobs, the impact on local communities and businesses, and the impact on families will far outweigh the benefit," said Haldeman.
The League of Women Voters opposes the legalization of casino gambling, believing the demands for social and municipal services, police protection and the establishment of a state regulating body outweigh any benefits from increased employment, tourism and tax revenue.
"The League's fiscal positions reinforce that an economic crisis cannot be cured by legalizing casino gambling nor can sustainable revenue be created with the introduction of this industry into the Commonwealth," said Zaxaro Bennett, president of the state League.
Since 1983 the League has presented testimony to oppose the legalization of casino gambling and has worked with organizations that share this goal. LWVMA will continue to work to defeat any bills that would provide for the legalization of casino gambling in Massachusetts.
Friday, November 6, 2009
Revenue Flooding Across State Lines! Wow!
As the Gambling Arms Race becomes progressively more silly, the logic below deserves a prize - at this point. Keep watching! The arguments are bound to get even more silly --
Below is an excerpt from a news article about a NJ report (one of the two documents attached) that declares NJ residents, despite the presence of eleven casinos in the state already, are supposedly leaving the state to gamble.
Slots at racetrack proponents in NJ are using the study they paid for as the rationale for why NJ tracks should be allowed to have slots. When the Jon Stewart Show ultimately becomes interested in the predatory gambling issue, they’re going to use this one:
“We knew there was a lot of speculation on whether New Jersey gamblers were bypassing Atlantic City’s casinos in favor of gaming opportunities in adjacent states,” Malinowski explained.
“Over the last couple of weeks we counted license plates at a trio of Pennsylvania facilities, Harrah’s Chester, Philadelphia Park and Sands Bethlehem, and Empire City Gaming at Yonkers in nearby Westchester County, NY to collect that data.”
The surveys revealed that 59.4 percent of the vehicles at Sands Bethlehem were from New Jersey, 31 percent at Philadelphia Park, 14 percent at Harrah’s Chester and 10 percent at Yonkers.
“The Rutgers study validates what we have been saying all along – New Jersey is losing out to nearby states and the loss to the New Jersey economy is significant,” said Tom Luchento, president of the Standardbred Breeders & Owners Association of New Jersey.
“We need slots at our racetracks to bring those bettors and their bankrolls back to our state.
“The casinos in Atlantic City will never lure those players back in any significant numbers,”
Luchento continued. “The public appears to be letting their feet – or cars – do the talking. They want something closer to home and save an hour or more of traveling time.”
Les Bernal
Executive Director
StopPredatoryGambling.org
100 Maryland Avenue NE, Room 311
Washington, DC 20002
Thursday, November 5, 2009
Analyze This
The Sun Chronicle offered the following --
Last week on Beacon Hill, the Joint Committee on Economic Development and Emerging Technologies held hearings on gambling in Massachusetts. I wonder, has the Town of Plainville ever conducted an impartial cost benefit analysis to hosting a slot parlor, racino, or casino? I know the commonwealth has not. What are they waiting for?
With slot parlors, racinos and casinos going bankrupt around the country, expanded gambling is not a sensible solution. California is in dire straits. Nevada's unemployment figures are in the double digits. Foxwoods and Mohegan Sun have re-structured their debts. Twin River is in bankruptcy.
Job creation and revenue figures are flawed - dare I say, fictitious? What makes anyone think this is a good bet for Plainville?
We need jobs that provide a local economic multiplier and not low-wage, unskilled casino jobs with inadequate benefits that suck discretionary revenue from the local economy. We need jobs with a future, not jobs that will too often lead citizens to a dead end.
In addition to being the most regressive of all forms of legalized revenue raising, gambling has its most adverse impacts on those in the lower income brackets and on small businesses which lose out in competition with much more highly leveraged gambling establishments.
Revenue from gambling is itself a kind of swindle. Again and again, economic analysis has indicated the social costs of casino gambling are more than five times the economic benefit these enterprises generate. Studies indicate every $1 in revenue generated by predatory gambling will cost taxpayers $3. Although there are many people who gamble casually, economists estimate that between one-third and one-half of casino revenues come from less than 5 percent of the population, people who are problem or pathological gamblers.
The state lottery system is already exploiting the poor and near-poor. Adding private gambling opportunities would not only further "tax" the weak, it would allow wealthy investors to bleed off yet more of their limited resources. With current bankruptcy laws, the prevailing economic climate, and the desperation many feel, this could spell major disaster for the people least able to afford it.
Before the Legislature can go any further with the expanded gambling question, they must do a comprehensive cost benefit analysis that will provide sorely needed factual information, not promises of gold at the end of the rainbow. I urge our legislators to do the only fiscally responsible thing and put the cost benefit analysis in the works immediately.
MARY-ANN GREANIER lives in Plainville.
Last week on Beacon Hill, the Joint Committee on Economic Development and Emerging Technologies held hearings on gambling in Massachusetts. I wonder, has the Town of Plainville ever conducted an impartial cost benefit analysis to hosting a slot parlor, racino, or casino? I know the commonwealth has not. What are they waiting for?
With slot parlors, racinos and casinos going bankrupt around the country, expanded gambling is not a sensible solution. California is in dire straits. Nevada's unemployment figures are in the double digits. Foxwoods and Mohegan Sun have re-structured their debts. Twin River is in bankruptcy.
Job creation and revenue figures are flawed - dare I say, fictitious? What makes anyone think this is a good bet for Plainville?
We need jobs that provide a local economic multiplier and not low-wage, unskilled casino jobs with inadequate benefits that suck discretionary revenue from the local economy. We need jobs with a future, not jobs that will too often lead citizens to a dead end.
In addition to being the most regressive of all forms of legalized revenue raising, gambling has its most adverse impacts on those in the lower income brackets and on small businesses which lose out in competition with much more highly leveraged gambling establishments.
Revenue from gambling is itself a kind of swindle. Again and again, economic analysis has indicated the social costs of casino gambling are more than five times the economic benefit these enterprises generate. Studies indicate every $1 in revenue generated by predatory gambling will cost taxpayers $3. Although there are many people who gamble casually, economists estimate that between one-third and one-half of casino revenues come from less than 5 percent of the population, people who are problem or pathological gamblers.
The state lottery system is already exploiting the poor and near-poor. Adding private gambling opportunities would not only further "tax" the weak, it would allow wealthy investors to bleed off yet more of their limited resources. With current bankruptcy laws, the prevailing economic climate, and the desperation many feel, this could spell major disaster for the people least able to afford it.
Before the Legislature can go any further with the expanded gambling question, they must do a comprehensive cost benefit analysis that will provide sorely needed factual information, not promises of gold at the end of the rainbow. I urge our legislators to do the only fiscally responsible thing and put the cost benefit analysis in the works immediately.
MARY-ANN GREANIER lives in Plainville.
The Race to the Murky Bottom!
Promises of local control, limited hours and the friendly "good neighbor" evaporate once the false promises of gambling revenues fail to appear.
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Evidence of the Race to the Murky Bottom are displayed in 24/7 slots coming to Twin River
.
PROVIDENCE — With the state hungry for new revenue in a grim economy, Lottery Director Gerald Aubin has — with Governor Carcieri’s blessings — approved 24-hour gambling seven days a week at the Twin River greyhound track and slot parlor.
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Town voters registered their overwhelming objection to all-night gambling at the sprawling Lincoln gambling hall during a nonbinding 2007 referendum.
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This little after thought, below, at the end of the article should give pause.
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Centaur is salivating at the prospect of imposing low wage, low skilled jobs on Massachusetts and Steve Norton hasn't missed an opportunity, taking numerous breaks from counting his millions in Alton, Ill.
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Why would Rhode Island negotiate with an insolvent business partner?
.
Maybe because this is what happens with predatory gambling?
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(State business regulation chief Michael Marques has confirmed his agency is vetting an application by John J. McLaughlin, a former top executive at Harveys Casino resorts who now heads Centaur Inc., to take on “key role” at Twin River.)
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