Casino to Iowa: We’ll pay you $7 million a year to end dog racing
Iowa would indefinitely receive $7 million a year if lawmakers agree to end live greyhound racing, representatives of the world’s biggest casino chain said today.
“This is a tremendous solution for Iowa,” said Dan Real, assistant general manager at Horseshoe Casino in Council Bluffs.
The offer from Harrah’s Entertainment could be substantially more than an offer made earlier this legislative session in which Council Bluffs and Dubuque Casinos would pay a total of $10 million a year for seven years.
Harrah’s, which owns Horseshoe Casino in Council Bluffs, said today in a press conference that it would be willing to pay its $7 million share annually for as long as the casino holds a gambling license in the state.
They were not speaking for officials from Dubuque Greyhound Park and Casino, now known as Mystique Casino. It was not immediately known if the Dubuque casino would share in the willingness to make and ongoing appropriation to the state.
“That is $7 million a year that can be spent by the state for real issues that affect Iowans like education, jobs and health care as compared to spending this money on a few breeders and owners, many of whom are out of state,” Real said.
Harrah’s Entertainment, which owns 50 casinos worldwide and purchased the Council Bluffs greyhound racetrack-casino in 2001, commissioned a study of the greyhound industry and gave copies to Gov. Chet Culver and key lawmakers in January.
The report shows consumer interest in betting on dogs has drastically dwindled and that it’s expensive for the casinos to subsidize greyhound racing.
The two dog tracks together spend about $12 million a year in profits from slots and other gaming to supplement the prize money, or purses, that dog owners and kennels win, the report states.
The Dubuque and Council Bluffs tracks are currently required by the state to have dog races as part of an agreement lawmakers made in 1994 to save the state’s dog racing industry. In order for the casinos to have slot machines, dog racing must take place.
The Harrah’s report found that about $140 million in revenue from slot machines and table games went to greyhound owners and kennels from 1995 to 2008.
House File 2493 would have granted that casinos the right to end dog racing but the bill failed to meet various legislative hurdles and has been declared dead by Democratic leadership, specifically Senate Majority Leader Michael Gronstal, D-Council Bluffs.
Gronstal, on Friday, told Iowa Public Television’s “Iowa Press” that it’s doubtful that such a bill would pass this year.
Some of the opposition is from lawmakers who believe it’s wrong to accept cash to allow casinos out of their obligations.
“What we’re talking about is paying a for a fee of a re-licensure of a facility,” said Jim Carney, a lobbyist for Harrah’s. “We don’t think it’s correct to characterize it as buying our way out of anything.”
Officials from the greyhound industry have expressed concern that ending the racing would create a huge economic blow to the state and its’ 62 kennels and 146 breeders and owners. Harrah’s, today, said it would also allocate between $4 million and $10 million to help professionals in the dog industry prepare for new careers.
Rep. Doug Struyk, R-Council Bluffs, who has worked on various gambling issues this legislative session, said today’s offer will likely push some lawmakers to reconsider. Lawmakers have had tussles about allocations as little as $1,500 this year. The money is badly needed, he said.
It’s possible that the idea could be attached as an amendment to future budget bills even though Struyk said he isn’t currently planning to introduce such a provision.
“I think, more important than anything, today certainly educated more people about the issue and lets people know that this is an option that’s out there,” Struyk said.
Thursday, March 18, 2010
Monday, March 15, 2010
Beacon Hill Bullying - All For Show
This week, Beacon Hill is expected to vote on "Anti Bullying" legislation. For show.
Meaningless legislation!
Since the bullying tactics of predatory gambling began in Middleboro, some of us have considered the genesis of 'legalized gambling' in this country that can thank the illegal drug trafficking, money laundering, political corruption, the worst sacrifice of democracy and bought and paid for politicians. Toss in a lifetime FBI Director corrupt to the core, and what do you get?
Predatory Gambling.
This isn't sound fiscal policy.
This isn't sensible business planning.
This is bullying plain and simple.
Where do we lament our Democracy with a big D?
Russia outlawed GAMBLING because of the detrimental effects on society.
How stupid are we?
“Normally, the state at least pretends to care about us, we have regulations for prohibiting smoking in public venues, eliminating candy in school vending machines, no bullying or roughhousing at school and no trans fats in restaurant meals.” said Ms. Norbut. “In a state where three out of the last four Speakers of the House have either been convicted or are facing federal corruption charges, Beacon Hill wants to legalize gambling and then let a “commission” decide who wins.”
Casino Capitalism: Given Poor Grades
"They tell me that when it comes to casinos, there are two conversations going on," Peter Woolley, PublicMind's poll director, said Wednesday of the results. "One is among those who, like state governments, want to bring in more gambling. But the other is among people who would be impacted by the introduction of casinos. I was surprised that so many said they have a negative effect."
Casinos given poor grade in new poll results
By Brian Hallenbeck
In national survey, more respondents believe gaming facilities are detriment to local towns
While most Americans have a favorable impression of the nation's best-known gambling meccas, a majority of those with an opinion on the subject think casinos hurt local communities, according to a new national survey.
Findings being released today by PublicMind, Fairleigh Dickinson University's research center, also show that two out of three Americans oppose the legalization of Internet gambling while 53 percent oppose the legalization of sports betting.
Asked what destination they thought of first in regard to casinos and gambling, 54 percent of those surveyed said Las Vegas, followed by Atlantic City (7 percent) and Reno, Nev., and Foxwoods Resort Casino (2 percent each). Mohegan Sun and several other destinations were each named by about 1 percent of the poll participants.
Forty-six percent said casinos have a negative impact on the local community while 38 percent said casinos have a positive local effect. Those who indicated they had visited a casino in the previous 12 months split evenly on the question. Among those who hadn't visited a casino in the last year, 61 percent said casinos have a negative effect.
The poll of 1,001 randomly selected adults was conducted by telephone from Jan. 22 through Feb. 4. It has a margin of error of 3 percentage points.
"They tell me that when it comes to casinos, there are two conversations going on," Peter Woolley, PublicMind's poll director, said Wednesday of the results. "One is among those who, like state governments, want to bring in more gambling. But the other is among people who would be impacted by the introduction of casinos. I was surprised that so many said they have a negative effect."
Policymakers should find such public-opinion data valuable, said Marvin Steinberg, executive director of the Connecticut Council on Problem Gambling. It's the kind of information, he said, that would be useful to Connecticut officials who are now considering having the state lottery introduce keno at bars, restaurants and other locations.
"Do people want that kind of thing? Do we know what they think?" Steinberg said. "I'm concerned that citizen input is not even considered."
Legislatures in Massachusetts and Rhode Island are also considering expanding gambling.
Sixty-five percent of those polled had a favorable opinion of Las Vegas compared to 22 percent who had an unfavorable opinion. In the case of Atlantic City, 46 percent had a favorable opinion versus 23 percent unfavorable.
The Connecticut casinos were considered favorably by 20 percent and unfavorably by 16 percent. Sixty-four percent had no opinion of them.
"I was surprised that Atlantic City did as well as it did," Woolley said. "And I was surprised that Foxwoods and Mohegan Sun didn't come up more often. They advertise a great deal, especially in the Northeast, and they're a direct competitor of Atlantic City. I would have thought they'd be more on the tip of everybody's tongue."
Mitchell Etess, president and chief executive officer of Mohegan Sun, said it was no surprise that a national survey would find Las Vegas and Atlantic City rate highest in the public's awareness of gambling destinations.
"Both Mohegan Sun and Foxwoods are very, very huge destinations but we're primarily a regional destination," he said. "If you go to Missouri, they're not going to know Foxwoods or Mohegan Sun. If you did a survey regionally of the Northeast, particularly New York, Boston, Connecticut, Rhode Island, we'd have very high recognition."
Etess said the results of a regional survey of attitudes also might differ from those of the PublicMind poll.
"Over time and in some places, gaming has overcome a stigma; it's increased in acceptance," he said. "But it's still in transition in many places. People say Atlantic City is struggling, but what would Atlantic City and the surrounding area look like without casinos? What would southeastern Connecticut look like without 20,000 people working at the casinos?"
Woolley said he was somewhat relieved by the poll's finding that Americans overwhelmingly oppose the legalization of Internet gambling.
"That would be like putting a liquor store in everybody's living room," he said.
Fifty-four percent of those surveyed said legalized sports betting is a bad idea because it promotes too much gambling and can corrupt sports, while 39 percent said it should be allowed and taxed.
Currently, sports betting is only allowed in the four states that permitted it when Congress passed the Professional and Amateur Sports Protection Act of 1992 - Delaware, Montana, Nevada and Oregon. New Jersey interests have filed suit in federal court seeking to overturn the ban.
Maybe it's a good thing for the predators that most folks don't gamble and most folks have given little consideration to the consequences of predatory gambling.
If most folks understood the negative impacts of gambling, who would support the impacts? Look at Las Vegas' failed promises: Failed schools, high dropout rates, low college graduation rates, low reading scores, high suicide rates, high crime, poverty, all the negatives. Casinos too cheap to support good government and too short sighted to support diversification of the economy.
Ahhhh....you just can't support sustainable job creation based on CASINO CAPITALISM and phony promises.
If casinos paved the streets with gold, what happened to Las Vegas?
We simply can't afford it.Casinos given poor grade in new poll results
By Brian Hallenbeck
In national survey, more respondents believe gaming facilities are detriment to local towns
While most Americans have a favorable impression of the nation's best-known gambling meccas, a majority of those with an opinion on the subject think casinos hurt local communities, according to a new national survey.
Findings being released today by PublicMind, Fairleigh Dickinson University's research center, also show that two out of three Americans oppose the legalization of Internet gambling while 53 percent oppose the legalization of sports betting.
Asked what destination they thought of first in regard to casinos and gambling, 54 percent of those surveyed said Las Vegas, followed by Atlantic City (7 percent) and Reno, Nev., and Foxwoods Resort Casino (2 percent each). Mohegan Sun and several other destinations were each named by about 1 percent of the poll participants.
Forty-six percent said casinos have a negative impact on the local community while 38 percent said casinos have a positive local effect. Those who indicated they had visited a casino in the previous 12 months split evenly on the question. Among those who hadn't visited a casino in the last year, 61 percent said casinos have a negative effect.
The poll of 1,001 randomly selected adults was conducted by telephone from Jan. 22 through Feb. 4. It has a margin of error of 3 percentage points.
"They tell me that when it comes to casinos, there are two conversations going on," Peter Woolley, PublicMind's poll director, said Wednesday of the results. "One is among those who, like state governments, want to bring in more gambling. But the other is among people who would be impacted by the introduction of casinos. I was surprised that so many said they have a negative effect."
Policymakers should find such public-opinion data valuable, said Marvin Steinberg, executive director of the Connecticut Council on Problem Gambling. It's the kind of information, he said, that would be useful to Connecticut officials who are now considering having the state lottery introduce keno at bars, restaurants and other locations.
"Do people want that kind of thing? Do we know what they think?" Steinberg said. "I'm concerned that citizen input is not even considered."
Legislatures in Massachusetts and Rhode Island are also considering expanding gambling.
Sixty-five percent of those polled had a favorable opinion of Las Vegas compared to 22 percent who had an unfavorable opinion. In the case of Atlantic City, 46 percent had a favorable opinion versus 23 percent unfavorable.
The Connecticut casinos were considered favorably by 20 percent and unfavorably by 16 percent. Sixty-four percent had no opinion of them.
"I was surprised that Atlantic City did as well as it did," Woolley said. "And I was surprised that Foxwoods and Mohegan Sun didn't come up more often. They advertise a great deal, especially in the Northeast, and they're a direct competitor of Atlantic City. I would have thought they'd be more on the tip of everybody's tongue."
Mitchell Etess, president and chief executive officer of Mohegan Sun, said it was no surprise that a national survey would find Las Vegas and Atlantic City rate highest in the public's awareness of gambling destinations.
"Both Mohegan Sun and Foxwoods are very, very huge destinations but we're primarily a regional destination," he said. "If you go to Missouri, they're not going to know Foxwoods or Mohegan Sun. If you did a survey regionally of the Northeast, particularly New York, Boston, Connecticut, Rhode Island, we'd have very high recognition."
Etess said the results of a regional survey of attitudes also might differ from those of the PublicMind poll.
"Over time and in some places, gaming has overcome a stigma; it's increased in acceptance," he said. "But it's still in transition in many places. People say Atlantic City is struggling, but what would Atlantic City and the surrounding area look like without casinos? What would southeastern Connecticut look like without 20,000 people working at the casinos?"
Woolley said he was somewhat relieved by the poll's finding that Americans overwhelmingly oppose the legalization of Internet gambling.
"That would be like putting a liquor store in everybody's living room," he said.
Fifty-four percent of those surveyed said legalized sports betting is a bad idea because it promotes too much gambling and can corrupt sports, while 39 percent said it should be allowed and taxed.
Currently, sports betting is only allowed in the four states that permitted it when Congress passed the Professional and Amateur Sports Protection Act of 1992 - Delaware, Montana, Nevada and Oregon. New Jersey interests have filed suit in federal court seeking to overturn the ban.
Wednesday, March 10, 2010
Steve Norton, North East Resorts and Indiana: Another Bailout?
Casino shills....Big Sigh! Have been writing articles, op-eds and comments to defend or minimize the impacts and actual costs of predatory gambling. They have mostly monopolized the conversation, pretending Massachusetts will be different.
Such has been the case of an author posting as Steve Norton of Alton, Illinois.
Mr. Norton also currently serves as a Director of Centaur, Inc., a privately held company which owns a casino in Central City, Colorado and owns Hossier Park, an Indiana race track, located in Anderson, Indiana.
Mr. Norton is also a Director of Colorado Casino Resorts, Inc. in Cripple Creek, Colorado and
North East Resorts, Inc., a privately held company
pursuing gaming in the state of Massachusetts.
In January, in response to a comment posted by a poster indentifying himself as "Steve Norton," the following was posted --
It should be noted that Centaur has filed for bankruptcy in one state and is attempting to obtain tax relief from another.
In response, the "Steve Norton" poster wrote:
You mention Centaur, which is not in Bankruptcy, but has been unable to pay interest due. But you fail to mention the extraordinary up front fee to Indiana of $250 million for 2,000 slots and a tax that averages nearly 50%.
Part of the reply:
Part of the reply:
If you made a poor business decision, should a state bail you out?
.... I have no problem with anyone being opposed to gaming, whether on moral, religious or even economic reasons.
Wow! Casino shills sure like the 'moral and religious' accusation.
They know how to manipulate and it would seem, their studies indicate that MORAL and RELIGIOUS wins favor to support their predatory cause, distracts from the facts.
Then there's the bankruptcy filing of Hoosier Park, which is becoming a common practice. Casino Capitalism got taxpayer bailouts and casinos get bailouts, as well.
How good is that? The wealthy just get wealthier while soaking the rest of us.
Hoosier Park exec reassures employees
City expects no disruption in tax payments
By Aleasha Sandley, Herald Bulletin Staff Writer
ANDERSON, Ind. — A Hoosier Park Racing & Casino executive met with company department heads Monday to update them on the racino’s status as parent company Centaur prepares to go through bankruptcy proceedings while Anderson city officials rested easy on the assurance the city still would receive its Hoosier Park tax money.
“We let (employees) know nothing’s going to change,” racino General Manager of Gaming Jim Brown said. “We’re just trying to give everybody as much information as possible. All of our team members here know this is nothing but a blip because they know that there’s nothing to worry about.”
Anderson Deputy Mayor Greg Graham said he wasn’t worried either about the racino’s Chapter 11 bankruptcy, filed Saturday night in U.S. Bankruptcy Court in Wilmington, Del.
“Hoosier Park’s going to be just fine,” Graham said. “I think it’s more a sign of the times. Obviously that very large (state) licensing fee had something to do with this, and the greatest recession since the Great Depression hasn’t helped either.”
Hoosier Park had to pay a $250 million licensing fee to the state before it was able to start operations in 2008. Graham said Hoosier Park’s marketing area, which includes Anderson and much of central and northern Indiana and western Ohio, is more than capable of supporting the racino, Graham said, if it can overcome its tax and licensing fee burdens.
In paperwork filed by Centaur, the company’s assets and liabilities both are between $500 million and $1 billion, and it has between 10,001 and 25,000 creditors. The company’s largest creditor is Pennsylvania Real Estate Investment Trust for a contract worth more than $28.7 million. Centaur owns casinos in Indiana, Pennsylvania and Colorado.
Anderson city utilities is Centaur’s eighth largest creditor, according to the petition, for a total of $70,377.
Graham said the racino had been a “good corporate citizen” and had not had trouble with its utility payments.
Other creditors included Anderson’s Ed Martin auto dealer, the Indiana Horse Racing Commission and the state auditor.
Centaur spokeswoman Susan Kilkenny said all goods and services purchased after the bankruptcy filing would be paid, and the company planned to pay pre-petition claims “to the extent of the law.”
“Tax payments to local city and state governments will not be disrupted,” she said.
Although the state and the Indiana Gaming Commission are not parties to Indianapolis-based Centaur’s bankruptcy proceedings, IGC Executive Director Ernie Yelton said that agency would continue to ensure Hoosier Park’s operations fulfilled the commission’s regulations and that the racino continued to pay its taxes.
“Neither of those will be any problem whatsoever,” Yelton said. “The casino will remain in operation. People will not be fearful of their jobs.”
Yelton said Hoosier Park’s bankruptcy, one of four such situations for Indiana casinos in recent years, was indicative of difficult economic times but not of Indiana’s ability to support gaming.
“Regretfully, we’re getting a little bit too familiar with the process,” Yelton said. “I believe it’s a sign of the economic times and a result of the recession and tightening of the credit markets.
“There are many, many factors that influence this situation. There are many other gaming companies that are able to continue without seeking bankruptcy protection. I wouldn’t go so far to say that this is an omen of gaming in Indiana.”
Atlantic City: Union Files Suit Against Bailout
If casinos are so profitable, why the bailout with taxpayer money?
Union sues for public vote on $300M A.C. casino tax break
Wayne Parry
ASSOCIATED PRESS
ATLANTIC CITY - An Atlantic City casino workers union filed a lawsuit Tuesday seeking to let the public vote on whether a new mega-casino should get $300 million in state tax breaks.
Local 54 of the Unite Here union says the Revel casino, which could open next year, could push at least two other struggling Atlantic City casinos out of business, and argues the state shouldn't help that process along.
The union filed a referendum petition in January, but Atlantic City rejected it. That led to Tuesday's filing of a lawsuit in state Superior Court.
"I went door to door in my neighborhood collecting signatures because I believe this bailout of a casino company is just wrong," said Jean Stewart, a member of the union's petition committee. "The fact that the city is trying to prevent me from voting is one of the most insulting things that anyone has ever done to me."
Union president Bob McDevitt said the petition had nearly 1,800 signatures.
"If this bailout is such a good deal for the city and the state, why are they afraid to air it in public?" he asked. "What are they hiding?"
Last year, Revel applied for an incentive through a state economic stimulus program. The application is pending.
Under the deal, the casino would be rebated three-fourths of its sales and room taxes for 20 years. The company projects that will mean a $300 million tax break.
"We're not getting a $300 million lump sum tax break up front," said Revel spokesman Joe Jaffoni. "It's spread out over 20 years, based on the business we would generate."
The Revel complex is widely seen as the most crucial piece of Atlantic City's efforts to keep up with crushing competition from slot machines, and soon, table games, in neighboring Pennsylvania, Delaware and New York. The $2 billion ocean-themed casino is under construction at the northern end of the Boardwalk.
The nation's second-largest gambling market is in its fourth year of a revenue slump that began when the first slots parlors opened in the Philadelphia suburbs. It also lost a casino, and about 3,000 jobs, when Pinnacle Entertainment demolished the Sands Casino Hotel to make way for a new casino that it later abandoned due to the recession.
The lawsuit also seeks details of Revel's application for state tax incentives.
Union sues for public vote on $300M A.C. casino tax break
Wayne Parry
ASSOCIATED PRESS
ATLANTIC CITY - An Atlantic City casino workers union filed a lawsuit Tuesday seeking to let the public vote on whether a new mega-casino should get $300 million in state tax breaks.
Local 54 of the Unite Here union says the Revel casino, which could open next year, could push at least two other struggling Atlantic City casinos out of business, and argues the state shouldn't help that process along.
The union filed a referendum petition in January, but Atlantic City rejected it. That led to Tuesday's filing of a lawsuit in state Superior Court.
"I went door to door in my neighborhood collecting signatures because I believe this bailout of a casino company is just wrong," said Jean Stewart, a member of the union's petition committee. "The fact that the city is trying to prevent me from voting is one of the most insulting things that anyone has ever done to me."
Union president Bob McDevitt said the petition had nearly 1,800 signatures.
"If this bailout is such a good deal for the city and the state, why are they afraid to air it in public?" he asked. "What are they hiding?"
Last year, Revel applied for an incentive through a state economic stimulus program. The application is pending.
Under the deal, the casino would be rebated three-fourths of its sales and room taxes for 20 years. The company projects that will mean a $300 million tax break.
"We're not getting a $300 million lump sum tax break up front," said Revel spokesman Joe Jaffoni. "It's spread out over 20 years, based on the business we would generate."
The Revel complex is widely seen as the most crucial piece of Atlantic City's efforts to keep up with crushing competition from slot machines, and soon, table games, in neighboring Pennsylvania, Delaware and New York. The $2 billion ocean-themed casino is under construction at the northern end of the Boardwalk.
The nation's second-largest gambling market is in its fourth year of a revenue slump that began when the first slots parlors opened in the Philadelphia suburbs. It also lost a casino, and about 3,000 jobs, when Pinnacle Entertainment demolished the Sands Casino Hotel to make way for a new casino that it later abandoned due to the recession.
The lawsuit also seeks details of Revel's application for state tax incentives.
Twin River: False Promises, Bad Mistakes, Job Losses
ARLENE VIOLET - Twin River's bad deal back on the table
The only thing worse than one mistake is many mistakes.
When it comes to the Twin River slot parlor (or the casino, as it calls itself on its Web site,) Rhode Island has bought into one bad deal after another. The newest proposal is another bad deal.
The first error made by Gov. Don Carcieri was to rush through a deal with BLB without bid after Wembley, the senior partner, ran afoul of legal trouble. Harrah's and other gaming giants had offered more money to the state to secure a license for full gaming. The then minor partner, BLB, struck a sweetheart deal with the state to continue its operation. Nothing was put into the state contract to require its own fiscal separation and liquidity maintenance from BLB's other corporations, his next major mistake. When BLB went into bankruptcy, it was its debt default primarily on its other operations as opposed to Twin River that brought them to the court.
Twin River could have survived on its own if there wasn't a diminution of its value by cross-collateralization and overextension. It was this expansion of its own empire that brought about the demise of the otherwise credit-worthy Twin River. Back in 2005 in this column I advocated for curbs on extended borrowing that might jeopardize the Lincoln site. The governor failed to set these limits in the contract, which has directly led to the situation today. Properties in Colorado and other places have run into red ink, thereby bleeding into Twin River, which ended up as collateral for these bad loans elsewhere.
BLB also managed to get a "slippage clause" passed by the state. This clause insulates the owners from losses to a competitor in R.I. although BLB was trying to get insulation from any nearby competitor. The original protection sought by the company was full of more moxie. At the time BLB's consortium of investors were trying grab some casino business via tribes in southeastern Massachusetts, which would directly compete with Twin River. They also owned part of Mohegan Sun. In effect, they were seeking financial protection for the very competition it set up. The legislature balked. Now the company is trying to "shore up" the clause, whatever that means. Vigilance is needed.
BLB Investors also tried to get an 18-year lease from the state under the guise that its finances required it. When Rep. Steven Cosentino of the House Finance Committee expressed skepticism and asked for financial data as to why such a lease was necessary, BLB refused to provide what it called "proprietary information." Cosentino tried to stop this train wreck, which the governor supported.
Now the company is seeking 10 times as much as its last deal with the state regarding the marketing. Carcieri agreed to pony "up to" a million dollars for advertising in the last deal. Now, Twin River investors want $10 million from taxpayers and a new $1.4 million of taxpayers' dollars paid to them to manage the facility.
Putting aside a moment how untoward it is for the state to be doing this promotion, again this proposal, including the gambling license is without bid. Of course, the governor will argue that the dog is already out on the track (oops, I guess not, since they want to drop the racing and the attendant jobs associated with greyhound racing) so there's no time to do this especially with the Speaker of the Massachusetts House stating that he looks favorably on casinos coming to the Bay State. In R.I. there will be a wringing of hands about being too late as the leaders on Smith Hill hope the taxpayers forget about the hosing that was given to the Narragansett tribe. How about letting the tribe and its backers run the facility for the banks that got stiffed by BLB? Shouldn't we at least entertain some proposals from other interested parties?
The jobs at the site have been shaved to 500 from about 1,200. Whatever happened to the argument made in the last deal about the necessity of concessions in order to maintain jobs? Getting rid of the dogs will ax more workers.
So what is this current situation really all about? Quite simply, it's about gambling and encouraging it in spades to fill the state coffers. Despite all the sanctimony of "how bad gambling is" and his opposition to it, gaming has expanded exponentially under this governor.
This state has failed to diversify its job base, so now it has to throw the dice. No doubt the "evil" of a full casino will be blinked at. The same leaders who went apoplectic over a full casino for the Narragansetts are poised to grant it to insiders who could care less about the state. They, no doubt, will give the same concessions as the tribe was looking for receiving a higher percentage from the gaming tables for itself. This will happen while competitive proposals are ignored again. The bankers will be happy but the Rhode Island taxpayer will roll snake eyes.
- Violet is an attorney and former state attorney general.
The only thing worse than one mistake is many mistakes.
When it comes to the Twin River slot parlor (or the casino, as it calls itself on its Web site,) Rhode Island has bought into one bad deal after another. The newest proposal is another bad deal.
The first error made by Gov. Don Carcieri was to rush through a deal with BLB without bid after Wembley, the senior partner, ran afoul of legal trouble. Harrah's and other gaming giants had offered more money to the state to secure a license for full gaming. The then minor partner, BLB, struck a sweetheart deal with the state to continue its operation. Nothing was put into the state contract to require its own fiscal separation and liquidity maintenance from BLB's other corporations, his next major mistake. When BLB went into bankruptcy, it was its debt default primarily on its other operations as opposed to Twin River that brought them to the court.
Twin River could have survived on its own if there wasn't a diminution of its value by cross-collateralization and overextension. It was this expansion of its own empire that brought about the demise of the otherwise credit-worthy Twin River. Back in 2005 in this column I advocated for curbs on extended borrowing that might jeopardize the Lincoln site. The governor failed to set these limits in the contract, which has directly led to the situation today. Properties in Colorado and other places have run into red ink, thereby bleeding into Twin River, which ended up as collateral for these bad loans elsewhere.
BLB also managed to get a "slippage clause" passed by the state. This clause insulates the owners from losses to a competitor in R.I. although BLB was trying to get insulation from any nearby competitor. The original protection sought by the company was full of more moxie. At the time BLB's consortium of investors were trying grab some casino business via tribes in southeastern Massachusetts, which would directly compete with Twin River. They also owned part of Mohegan Sun. In effect, they were seeking financial protection for the very competition it set up. The legislature balked. Now the company is trying to "shore up" the clause, whatever that means. Vigilance is needed.
BLB Investors also tried to get an 18-year lease from the state under the guise that its finances required it. When Rep. Steven Cosentino of the House Finance Committee expressed skepticism and asked for financial data as to why such a lease was necessary, BLB refused to provide what it called "proprietary information." Cosentino tried to stop this train wreck, which the governor supported.
Now the company is seeking 10 times as much as its last deal with the state regarding the marketing. Carcieri agreed to pony "up to" a million dollars for advertising in the last deal. Now, Twin River investors want $10 million from taxpayers and a new $1.4 million of taxpayers' dollars paid to them to manage the facility.
Putting aside a moment how untoward it is for the state to be doing this promotion, again this proposal, including the gambling license is without bid. Of course, the governor will argue that the dog is already out on the track (oops, I guess not, since they want to drop the racing and the attendant jobs associated with greyhound racing) so there's no time to do this especially with the Speaker of the Massachusetts House stating that he looks favorably on casinos coming to the Bay State. In R.I. there will be a wringing of hands about being too late as the leaders on Smith Hill hope the taxpayers forget about the hosing that was given to the Narragansett tribe. How about letting the tribe and its backers run the facility for the banks that got stiffed by BLB? Shouldn't we at least entertain some proposals from other interested parties?
The jobs at the site have been shaved to 500 from about 1,200. Whatever happened to the argument made in the last deal about the necessity of concessions in order to maintain jobs? Getting rid of the dogs will ax more workers.
So what is this current situation really all about? Quite simply, it's about gambling and encouraging it in spades to fill the state coffers. Despite all the sanctimony of "how bad gambling is" and his opposition to it, gaming has expanded exponentially under this governor.
This state has failed to diversify its job base, so now it has to throw the dice. No doubt the "evil" of a full casino will be blinked at. The same leaders who went apoplectic over a full casino for the Narragansetts are poised to grant it to insiders who could care less about the state. They, no doubt, will give the same concessions as the tribe was looking for receiving a higher percentage from the gaming tables for itself. This will happen while competitive proposals are ignored again. The bankers will be happy but the Rhode Island taxpayer will roll snake eyes.
- Violet is an attorney and former state attorney general.
Profitability: A Mirage, MGM Mirage, that is
MGM Mirage to sell $845 million in bonds
(AP)
LAS VEGAS — Casino operator MGM Mirage said Tuesday it will sell $845 million in new bonds due in 2020, looking to build a healthier balance sheet amid a gambling industry slump.
MGM, the world's second biggest casino operator, is seeing gamblers make fewer trips to its resorts and spend less money when they do.
Last month the company said it had reached a deal with lenders to extend the deadline for paying off about $3.6 billion worth of debt to February 2014. In all, the company owes almost $13 billion.
MGM said it will offer the new bonds in a private sale. The notes will be backed by a mortgage on the MGM Grand Las Vegas resort with the proceeds used to pay off bank debt, the company said.
(AP)
LAS VEGAS — Casino operator MGM Mirage said Tuesday it will sell $845 million in new bonds due in 2020, looking to build a healthier balance sheet amid a gambling industry slump.
MGM, the world's second biggest casino operator, is seeing gamblers make fewer trips to its resorts and spend less money when they do.
Last month the company said it had reached a deal with lenders to extend the deadline for paying off about $3.6 billion worth of debt to February 2014. In all, the company owes almost $13 billion.
MGM said it will offer the new bonds in a private sale. The notes will be backed by a mortgage on the MGM Grand Las Vegas resort with the proceeds used to pay off bank debt, the company said.
Aqueduct: More Flake Flak
Minister Withdraws as Investor in Aqueduct Casino
The Rev. Floyd H. Flake, one of New York’s most influential black pastors, announced on Tuesday that he had removed himself as an investor in the company that was chosen by Gov. David A. Paterson to build and operate a casino at the Aqueduct racetrack in Queens.
The move came on the same day that the company with which Mr. Flake had been involved, Aqueduct Entertainment Group, was required by the state to provide extensive financial documentation regarding its smaller investors. State Lottery Division officials said they were sifting through the material, and would not comment on whether the company had met the requirements of the filing deadline.
The developments, the latest in a troubled eight-year process to develop a casino in Queens, raise another potential problem for the state budget, facing a deficit of roughly $9 billion in the fiscal year that starts April 1. Should the deal fall apart before a March 31 deadline, the state would lose a $300 million up-front payment from Aqueduct Entertainment.
Jeffrey Levine, a partner in Aqueduct Entertainment, said the company remained committed to obtaining state licensing of all its investors by month’s end and had access to the needed cash. The group’s primary investors include Mr. Levine, a Queens developer, and others with deep experience in gambling and large-scale construction.
Because of his political stature, Mr. Flake’s small financial stake in the company took on an outsize role in the controversy surrounding the selection process. As pastor of the Greater Allen A.M.E. Cathedral of New York in St. Albans, Queens, his endorsement is seen as influential among thousands of parishioners.
In January, Mr. Flake met with Mr. Paterson three days after the governor announced the selection of Aqueduct Entertainment. Mr. Flake, who had made public comments supportive of a candidacy for governor by Attorney General Andrew M. Cuomo, has said the discussion touched upon whether he might welcome an election bid by the governor.
The State Senate had long supported the selection of the Flake group. The president of the Senate, Malcolm A. Smith, is a protégé of Rev. Flake’s. But the Assembly speaker, Sheldon Silver, resisted, and he insisted on several conditions before supporting Mr. Flake’s group. Investigators have subpoenaed records from Mr. Paterson’s administration related to Aqueduct Entertainment’s selection.
Whether or not his administration played a role in the initial selection, Governor Paterson no longer needs Mr. Flake’s endorsement. Amid a swirl of investigations that are also exploring his intervention in a domestic violence case involving a close aide, the governor recently said he would not seek election.
Answering reporters’ questions in Albany on Tuesday, Mr. Paterson said he had recused himself from the Aqueduct negotiations, following the advice of his lawyers. Asked whether he still thought Aqueduct Entertainment was the right choice, Mr. Paterson said he “certainly thought it was right at the time.” “Whether or not they are able to comply with the protocols is the same problem that one of the other companies was unable to do last year, and so we’ll just wait and see whether that application is valid,” the governor added.
The last deal to build the casino, centered on video lottery terminals, fell apart one year ago, when the company that had been selected, Delaware North, could not raise $370 million it needed to pay the state.
A spokeswoman for Mr. Flake said he was unavailable for an interview. In a prepared statement, Mr. Flake said he withdrew because the bid had become a distraction from his oversight of the church’s many operations, including a school, housing for the elderly and retail facilities.
“Unfortunately, my ongoing participation in Aqueduct Entertainment has become a distraction that has taken me and my attention away from the community projects I created and nurtured,” the statement said.
Mr. Levine said Mr. Flake was concerned that details of his private finances would become public. The rapper Jay-Z, who had planned to hold a stake of less than 1 percent in the company, as had Mr. Flake, has also withdrawn, Mr. Levine said.
Mr. Flake said in a recent interview on NY1 that he would not be involved in the gambling aspect of the project, but in possible future real estate development, including moderately priced housing, on the Aqueduct site.
The Rev. Floyd H. Flake, one of New York’s most influential black pastors, announced on Tuesday that he had removed himself as an investor in the company that was chosen by Gov. David A. Paterson to build and operate a casino at the Aqueduct racetrack in Queens.
The move came on the same day that the company with which Mr. Flake had been involved, Aqueduct Entertainment Group, was required by the state to provide extensive financial documentation regarding its smaller investors. State Lottery Division officials said they were sifting through the material, and would not comment on whether the company had met the requirements of the filing deadline.
The developments, the latest in a troubled eight-year process to develop a casino in Queens, raise another potential problem for the state budget, facing a deficit of roughly $9 billion in the fiscal year that starts April 1. Should the deal fall apart before a March 31 deadline, the state would lose a $300 million up-front payment from Aqueduct Entertainment.
Jeffrey Levine, a partner in Aqueduct Entertainment, said the company remained committed to obtaining state licensing of all its investors by month’s end and had access to the needed cash. The group’s primary investors include Mr. Levine, a Queens developer, and others with deep experience in gambling and large-scale construction.
Because of his political stature, Mr. Flake’s small financial stake in the company took on an outsize role in the controversy surrounding the selection process. As pastor of the Greater Allen A.M.E. Cathedral of New York in St. Albans, Queens, his endorsement is seen as influential among thousands of parishioners.
In January, Mr. Flake met with Mr. Paterson three days after the governor announced the selection of Aqueduct Entertainment. Mr. Flake, who had made public comments supportive of a candidacy for governor by Attorney General Andrew M. Cuomo, has said the discussion touched upon whether he might welcome an election bid by the governor.
The State Senate had long supported the selection of the Flake group. The president of the Senate, Malcolm A. Smith, is a protégé of Rev. Flake’s. But the Assembly speaker, Sheldon Silver, resisted, and he insisted on several conditions before supporting Mr. Flake’s group. Investigators have subpoenaed records from Mr. Paterson’s administration related to Aqueduct Entertainment’s selection.
Whether or not his administration played a role in the initial selection, Governor Paterson no longer needs Mr. Flake’s endorsement. Amid a swirl of investigations that are also exploring his intervention in a domestic violence case involving a close aide, the governor recently said he would not seek election.
Answering reporters’ questions in Albany on Tuesday, Mr. Paterson said he had recused himself from the Aqueduct negotiations, following the advice of his lawyers. Asked whether he still thought Aqueduct Entertainment was the right choice, Mr. Paterson said he “certainly thought it was right at the time.” “Whether or not they are able to comply with the protocols is the same problem that one of the other companies was unable to do last year, and so we’ll just wait and see whether that application is valid,” the governor added.
The last deal to build the casino, centered on video lottery terminals, fell apart one year ago, when the company that had been selected, Delaware North, could not raise $370 million it needed to pay the state.
A spokeswoman for Mr. Flake said he was unavailable for an interview. In a prepared statement, Mr. Flake said he withdrew because the bid had become a distraction from his oversight of the church’s many operations, including a school, housing for the elderly and retail facilities.
“Unfortunately, my ongoing participation in Aqueduct Entertainment has become a distraction that has taken me and my attention away from the community projects I created and nurtured,” the statement said.
Mr. Levine said Mr. Flake was concerned that details of his private finances would become public. The rapper Jay-Z, who had planned to hold a stake of less than 1 percent in the company, as had Mr. Flake, has also withdrawn, Mr. Levine said.
Mr. Flake said in a recent interview on NY1 that he would not be involved in the gambling aspect of the project, but in possible future real estate development, including moderately priced housing, on the Aqueduct site.
Monday, March 8, 2010
The McDonald's of Gambling
Monica Yant Kinney: The lifeblood of Parx casino in Bucks is low-roller locals
Inquirer Columnist
Las Vegas uses volcanoes, Emeril Lagasse, and spa treatments to make losing seem fun. Philadelphia's casino "experience" is shaping up to be neither entertaining nor exotic, defined instead by hot dogs, cigarettes, and convenience.
For proof, head to Bensalem, where Parx - formerly called PhiladelphiaPark Racetrack - made $400 million last year. Impressive for a not-spot plopped among strip malls.
Inside the smoke-filled slots box, much of what casino bosses took for granted has changed. Gone are the days of wooing "whales" and dissing grannies in fanny packs. Parx president Dave Jonas says his revenue comes almost exclusively from local low rollers.
"We underestimated significantly how many trips our customers were going to make," Jonas said at last month's Pennsylvania Gaming Congress in Valley Forge.
"When I was in Atlantic City, to have 12 to 15 trips out of customers, they were VIPs," Jonas said. At Parx, "it's not uncommon for us to have 150 to 200 trips."
Moderator Michael Pollock, a well-regarded casino analyst, paused to digest the statistic.
"You said 150 to 200 times a year," he repeated. "That's three to four times a week, essentially."
"Yes," Jonas confirmed, most of his players fit that profile. In fact, because Parx players tend to live within 20 miles of Street Road, many go even more frequently.
"We have customers," Jonas boasted, "who give us $25, $30 five times a week."
A new way of life
Besides work and the gym, there's no place I go three to five times a week. And, beyond Target and Wegmans, nowhere I drop as much cash.
Jonas should be proud of Parx's haul. But if frequency can portend problem gambling, should he - and we - worry about thousands of people who've made playing a way of daily life? It didn't take much to lure them, beyond proximity, free valet parking, and $50 comps. "If you live 15 minutes away, you really don't need a room," Jonas told the casino group. His customers "come in, grab a hot dog or maybe a chicken sandwich," gamble three hours, "then go home and sleep in their own bed."
This I had to see to believe. For expert observation, I took C.P. Mirarchi and Kevin Gregan on a field trip last week to Parx.
Mirarchi is a lawyer-turned-counselor (www.thegamblingcounselor.com) who treats fellow gambling addicts through Genesis Counseling Centers, based in Collingswood. Gregan is Mirarchi's boss, a veteran clinician who diagnosed his own addictive potential after "losing the baby's diaper money" in a poker game.
Neither man had been in a casino in years. Both did double takes at the full house we found on a Wednesday at 11 a.m.
Chasing the dream
"You can see that people who may not be doing anything are out doing something that breathes life into them," Gregan noted. "But at the same time, they're watching their money disappear. How many of these people can truly afford to be participating in this activity?"
If most Parx players go three times a week, what to make of the guy who tells me he's there twice a day? Regularity won't automatically breed depravity, but surely everyone knows the house always wins.
"Everybody in there is one pull away from a different lifestyle, one pull away from the dream," Mirarchi said from experience. "The hardest thing for any addict to do is give up that dream."
We tried to get lunch, but Parx's steak house serves only dinner, and the Foodies counter steps away from the casino floor didn't entice.
"This," Mirarchi marveled, "is the McDonald's of gambling." Fast food offers familiarity close to home. So does Parx.
Even better for that twice-a-day player I met? The casino never closes. I'll share his story Wednesday. He's having the time of his life.
Inquirer Columnist
Las Vegas uses volcanoes, Emeril Lagasse, and spa treatments to make losing seem fun. Philadelphia's casino "experience" is shaping up to be neither entertaining nor exotic, defined instead by hot dogs, cigarettes, and convenience.
For proof, head to Bensalem, where Parx - formerly called PhiladelphiaPark Racetrack - made $400 million last year. Impressive for a not-spot plopped among strip malls.
Inside the smoke-filled slots box, much of what casino bosses took for granted has changed. Gone are the days of wooing "whales" and dissing grannies in fanny packs. Parx president Dave Jonas says his revenue comes almost exclusively from local low rollers.
"We underestimated significantly how many trips our customers were going to make," Jonas said at last month's Pennsylvania Gaming Congress in Valley Forge.
"When I was in Atlantic City, to have 12 to 15 trips out of customers, they were VIPs," Jonas said. At Parx, "it's not uncommon for us to have 150 to 200 trips."
Moderator Michael Pollock, a well-regarded casino analyst, paused to digest the statistic.
"You said 150 to 200 times a year," he repeated. "That's three to four times a week, essentially."
"Yes," Jonas confirmed, most of his players fit that profile. In fact, because Parx players tend to live within 20 miles of Street Road, many go even more frequently.
"We have customers," Jonas boasted, "who give us $25, $30 five times a week."
A new way of life
Besides work and the gym, there's no place I go three to five times a week. And, beyond Target and Wegmans, nowhere I drop as much cash.
Jonas should be proud of Parx's haul. But if frequency can portend problem gambling, should he - and we - worry about thousands of people who've made playing a way of daily life? It didn't take much to lure them, beyond proximity, free valet parking, and $50 comps. "If you live 15 minutes away, you really don't need a room," Jonas told the casino group. His customers "come in, grab a hot dog or maybe a chicken sandwich," gamble three hours, "then go home and sleep in their own bed."
This I had to see to believe. For expert observation, I took C.P. Mirarchi and Kevin Gregan on a field trip last week to Parx.
Mirarchi is a lawyer-turned-counselor (www.thegamblingcounselor.com) who treats fellow gambling addicts through Genesis Counseling Centers, based in Collingswood. Gregan is Mirarchi's boss, a veteran clinician who diagnosed his own addictive potential after "losing the baby's diaper money" in a poker game.
Neither man had been in a casino in years. Both did double takes at the full house we found on a Wednesday at 11 a.m.
Chasing the dream
"You can see that people who may not be doing anything are out doing something that breathes life into them," Gregan noted. "But at the same time, they're watching their money disappear. How many of these people can truly afford to be participating in this activity?"
If most Parx players go three times a week, what to make of the guy who tells me he's there twice a day? Regularity won't automatically breed depravity, but surely everyone knows the house always wins.
"Everybody in there is one pull away from a different lifestyle, one pull away from the dream," Mirarchi said from experience. "The hardest thing for any addict to do is give up that dream."
We tried to get lunch, but Parx's steak house serves only dinner, and the Foodies counter steps away from the casino floor didn't entice.
"This," Mirarchi marveled, "is the McDonald's of gambling." Fast food offers familiarity close to home. So does Parx.
Even better for that twice-a-day player I met? The casino never closes. I'll share his story Wednesday. He's having the time of his life.
Sunday, March 7, 2010
Gambling Crimes
When a business model depends on addiction to exist, increased crime should come as no surprise. Most of those investigated, prosecuted and ultimately sent to prison for gambling related crimes were previously law abiding citizens.
Public servants are big fish in gambling blacklist net
BY DAVID HUNN
ST. LOUIS POST-DISPATCH
03/07/2010
Wellsville, MO. — For years, the crimes that barred gamblers from Missouri casinos read like Mafia movie plots.
Men with ties to Kansas City's notorious La Cosa Nostra ran illegal betting rings, threatened witnesses and skimmed money from Las Vegas casinos, according to FBI testimony. And the state, seeking a Mob-free gambling industry, banned each from Missouri's riverboats.
But that was more than 10 years ago. The blacklist is dealing from a new deck, and blackballing a different kind of professional: the public servant.
In the last year, four Missourians were barred from casinos for crimes of "moral turpitude," bringing the list to 17. Three were civil servants. Authorities say they fed gambling habits with embezzled tax dollars.
A St. Louis County school superintendent funneled district money to his personal life insurance fund, while often gambling 20 days or more a month.
A Kansas City-area elected administrator siphoned at least $118,000 from disabled clients' Social Security accounts, then used it, authorities said, as a "frequent customer of the area's casinos."
And a grandmother here in Wellsville stole from her community's only public school.
This town in the fields northwest of Warrenton was stunned to learn that local school bookkeeper Carolyn Yelton had admitted writing herself at least 88 district checks for about $200,000 over five years.
"I can't think of a time anyone's been caught for stealing money here," lifelong resident Chuck Jennings, 66, said at the time.
Yelton, who pleaded guilty in April and is now at the Greenville federal prison in mid-Illinois, declined an interview request for this story. Authorities said she had placed more than $1 million in play at area casinos over the same period.
"There should be a sanction against people like that," said Gene McNary, executive director of the Missouri Gaming Commission and former St. Louis County prosecutor. "Those people should be kept out of the casinos for life."
But commission leaders say they didn't intend to double down on civil administrators, specifically.
MOB ROOTS
Missouri's blacklisting process, they said, has no mechanism for identifying gamblers among the thousands of criminals prosecuted each year, unless the crime is gambling-related.
So the commission relies on referrals. And those come only as parole officers, police, state workers and others run across something that reveals a criminal's motivations.
Often, leaders said, it's just a story in the morning paper.
And sometimes it's the criminals themselves, fresh from court, telling the commission that a judge has ordered them banned.
Which is a far break from Missouri's — and the country's — blacklist roots.
Nevada's now infamous "black book" began in 1960. After well-publicized congressional hearings on organized crime, the state grew concerned about the image of its largest industry and the possibility of incoming FBI investigations. The blackbook quickly gained 11 profiles, all alleged mafiosi, complete with pictures, rap sheets and FBI file numbers.
In the coming years, as casinos opened from New Jersey to Illinois, state commissions worked to prove that organized crime wasn't on their game floors.
So when Missouri's blacklist started, in 1994, suspected Kansas City mobsters were the first to make it on, and still occupy five slots on the list.
Their files inside the Missouri Gaming Commission's Jefferson City offices are often several inches thick, filled with appeals. And they tell stories — such as that of William D. Cammisano Jr. — ready-made for television.
Cammisano, son of alleged Kansas City boss Willie "the Rat" Cammisano, was arrested after one of his "financial backers" was found with seven bullets in his head. Cammisano, 38 at the time, denied involvement and was never tied to the crime.
But the FBI had a card up its sleeve. It caught him on wiretap intimidating his teenage girlfriend, a potential witness. He was convicted of obstruction of justice in 1989, and banned from casinos five years later. Five others with Mob ties were blacklisted after that. And then, for about 10 years, the list went unused. It's unclear why.
'A PROCTOLOGICAL PROCEDURE'
But in 2006, the state gambling commission got a new director, McNary, who told his staff to find a use for the list. And, over the next four years, the state added an assortment of criminals.
Many of the first few, most of them banned in 2006 and 2007, were thieves, such as Kathleen Edwards of Nevada, Mo. Over 19 months, Edwards cashed $421,000 in 79 unauthorized checks from the furniture shop where she worked, because, she told law enforcement, she was mad she hadn't gotten a raise, and needed "to pay for an online gambling addiction."
The next group, barred in late 2007 and 2008, were gamblers caught cheating, who, according to state law, had to be blacklisted.
Ellis Quinn Jr. was the Royal Flush arrest for authorities. Commission records say he distracted craps dealers in the Midwest and South so he could sneak bets onto tables after the dice had stopped rolling. He was so successful that Missouri troopers copied the security video depicting Quinn's fraud to train their officers.
And that leaves a new group blackballed last year. Outside of one, charged with armored car robbery after an early conviction for illegal gambling, all are public servants:
Former Riverview Gardens School District Superintendent Henry P. Williams was convicted of theft and tax fraud.
Bonnie Sue Lawson, a Buchanan County elected official, stole from the Social Security accounts of the disabled adults she was supposed to tend.
And Yelton, known as Kay, dutifully kept the books for Wellsville-Middletown schools until she quit in 2007, whispers of her crime already running through town.
Now, many of the original gangsters on the country's first blacklists are dead. But the remnants still guide the system. Rules remain strict. Casinos get fined tens of thousands of dollars for such sins as serving underage patrons, allowing excessive intoxication and breaking rules made to ensure fair games.
And gambling commissions across the country still investigate everyone involved in casinos, pulling criminal records, checking bank statements and even visiting homes to make sure lifestyles fit the paychecks.
"I've heard it compared to a proctological procedure," said David Schwartz, director of the Center for Gaming Research at the University of Nevada, Las Vegas. "They go into everything."
And even when such actions are not well-received, commission leaders say, they stick to their bets.
A playing card business came up for license renewal in Missouri last year. But the United States Playing Card Company, which distributes Bee, Bicycle and Hoyle cards, is owned by the publicly traded Jarden Corp. So Missouri began its investigation into all company directors.
A few of the conglomerate's top dogs were insulted, McNary said, and wouldn't consent to the search. Which ended the state's investigation.
The kicker? The card company, McNary said, won't be licensed this year to deal in Missouri casinos.
NJ: The Morgan Stanley Casino Bailout
Should taxpayers pay $300M for casino in Atlantic City?
Firm took a $10B government bailout, gave $14B in salary, bonuses to employees
Fresh from using $10 billion in federal bailout money to save itself, Morgan Stanley is now gambling that its investment in a 1,900-room casino-hotel on Atlantic City's boardwalk will hit another type of jackpot.
Morgan Stanley has provided most of the financing for the $2 billion casino project being built by Revel Entertainment Group in Atlantic City's South Inlet section. Work has continued on the exterior of the structure, but construction of the casino's interior was halted in January 2009 to await additional financing.
New Jersey's TIF law was revised last year as part of the Economic Stimulus Act of 2009. Before the revision, nine taxes, including one state-level tax, could be included in a TIF grant. Now 11 state taxes and 11 local taxes can be diverted to developers for up to 20 years.
"I watched from a distance and was aghast," LeRoy said of the revisions to the TIF law. "It's highly unusual to allow that much of a diversion." [Greg LeRoy, executive director of Good Jobs First, a Washington, D.C.-based organization that studies economic development.]
LOCAL CONTROL REMOVED. This is a consistent pattern around the country, much as Lincoln, RI residents overwhelmingly opposed 24/7 gambling at Twin Rivers --
State Sen. Raymond Lesniak, D-Union, sponsored the Economic Stimulus Act and also co-sponsored S-920, a bill that would ban referendums on local redevelopment ordinances. The latter bill, which was approved by the full Senate Feb. 22, was in response to Unite Here members' attempts to have a city ordinance authorizing the tax incentive plan revoked through a public referendum.
"Revel is not just another casino," Lesniak said at a Senate Economic Development Committee hearing on S-920 held Feb. 1. "It is a $2 billion investment in making Atlantic City a tourist destination, something that must happen for it to compete with new gambling operations in neighboring states."
Tourist Destination? Where have we heard that before?
Revel has also sought a $56 million municipal bond to help with road improvements around the project, and has applied for a five-year property tax abatement from Atlantic City that would save the company $50 million in local property taxes.
There's more information available: No Morgan Stanley Bailout
Recent Study Examines Poverty in Atlantic City
.
A high proportion of casino jobs are open to low-skill workers, and on any given day, many go unfilled. Yet in 1999 the city’s poverty rate was 23.6 percent, while the national rate was 11.3 percent; unemployment stood at 12.9 percent in 2000, compared to 5.8 percent in the nation.3 The city’s poverty rate is actually a bit higher than before the beginning of legalized gambling in 1978, when the city was in sharp economic decline,....
...the low-skill service jobs available in casinos or other industries may not provide enough income to escape poverty. Residents often noted that they or someone they knew held two or three casino jobs in order to make ends meet.
Maybe Beacon Hill can pretend gambling is something it isn't, but the stark facts are available for all to see.
Saturday, March 6, 2010
March 14, Wellesley Forum: Expanded Gambling
FOR IMMEDIATE RELEASE
Sunday, March 14
at Sprague Elementary School
from 3PM-5PM.
The forum,
“Expanded Gaming: The Pros and Cons of Bringing Casinos and Slots to the Commonwealth”,
is co-sponsored by Representative Peisch (D-Wellesley), Senator Cynthia Stone Creem (D-Newton), and Senator Susan Fargo (D-Lincoln). The forum will consist of a panel discussion, which will highlight both the arguments for and against bringing expanded gaming to the commonwealth. The panel will feature Senator Susan Tucker (D-Andover) and Mr. Gary Loveman, Chief Executive Officer and President of Harrah’s Entertainment. Following the discussion, the panel will take questions and comments from the audience, with Representative Peisch facilitating the discussion. All members of the public are invited to attend and participate in the forum.
“Expanded gaming will be one of the major policy issues debated this spring by the Massachusetts Legislature” said Representative Peisch, “This forum is designed to give residents of the community an opportunity to participate in the discussion."
Contact: Matthew Kitsos
(617) 722-2800 ext. 8594
Representative Alice Peisch to host informational forum on Expanded gaming
BOSTON – State Representative Alice Peisch (D-Wellesley) will host an informational forum for Metrowest area residents on the prospect of bringing expanded gaming to the commonwealth on
(617) 722-2800 ext. 8594
Representative Alice Peisch to host informational forum on Expanded gaming
BOSTON – State Representative Alice Peisch (D-Wellesley) will host an informational forum for Metrowest area residents on the prospect of bringing expanded gaming to the commonwealth on
Sunday, March 14
at Sprague Elementary School
from 3PM-5PM.
The forum,
“Expanded Gaming: The Pros and Cons of Bringing Casinos and Slots to the Commonwealth”,
is co-sponsored by Representative Peisch (D-Wellesley), Senator Cynthia Stone Creem (D-Newton), and Senator Susan Fargo (D-Lincoln). The forum will consist of a panel discussion, which will highlight both the arguments for and against bringing expanded gaming to the commonwealth. The panel will feature Senator Susan Tucker (D-Andover) and Mr. Gary Loveman, Chief Executive Officer and President of Harrah’s Entertainment. Following the discussion, the panel will take questions and comments from the audience, with Representative Peisch facilitating the discussion. All members of the public are invited to attend and participate in the forum.
“Expanded gaming will be one of the major policy issues debated this spring by the Massachusetts Legislature” said Representative Peisch, “This forum is designed to give residents of the community an opportunity to participate in the discussion."
Friday, March 5, 2010
Bankrupting Steve Wynn
From our friends in Philadelphia, Casino-Free Philadelphia --
On Wednesday, we confronted Vegas con man Steve Wynn with a simple message: We will ruin your company and run you out of town.
Wynn told the Philadelphia Daily News that this was the first time he'd ever had ordinary citizens confront him publicly about predatory gambling in a hearing. Thank you to the dozens of people who traveled with us to all who donated so generously.
And the chart at [located here] demonstrates the results: We showed up, and Steve's stocks plummeted.
When the formerly-Foxwoods casino went begging for investors -- after years of delays thanks to ongoing pressure from you, and thousands of Philadelphians like you -- they thought they had found their savior in Steve Wynn.
What Wednesday's hearing revealed was a distant billionaire with no interest in our city or our future.
Watch Steve Wynn argue with a Philadelphia Inquirer reporter, declaring that he has no knowledge of the city's plan for the riverfront. Earlier, he admitted he would soon buy out the local investors completely -- contradicting the fiction of all those local benefits.
Which is probably why even the PA Gaming Control Board -- having never met a casino developer it didn't rubber-stamp -- voted unanimously to ignore Wynn's proposal (and continue fining the project $2,000 per day). We know this isn't over, however -- it will take much efforts to run predatory investors like Steve Wynn out of town. But he's never before faced opposition like you.
Yet Wednesday's hearing demonstrated the power of your voice -- forcing Wynn to address questions about the impact of his predatory casinos, prompting the news media to cover Steve's smugness, and sending those precious stock prices into decline.
Until this fight is won,
Lily, Ivan, Francesca, Dan and the rest of Casino-Free Philadelphia
On Wednesday, we confronted Vegas con man Steve Wynn with a simple message: We will ruin your company and run you out of town.
Wynn told the Philadelphia Daily News that this was the first time he'd ever had ordinary citizens confront him publicly about predatory gambling in a hearing. Thank you to the dozens of people who traveled with us to all who donated so generously.
And the chart at [located here] demonstrates the results: We showed up, and Steve's stocks plummeted.
When the formerly-Foxwoods casino went begging for investors -- after years of delays thanks to ongoing pressure from you, and thousands of Philadelphians like you -- they thought they had found their savior in Steve Wynn.
What Wednesday's hearing revealed was a distant billionaire with no interest in our city or our future.
Watch Steve Wynn argue with a Philadelphia Inquirer reporter, declaring that he has no knowledge of the city's plan for the riverfront. Earlier, he admitted he would soon buy out the local investors completely -- contradicting the fiction of all those local benefits.
Which is probably why even the PA Gaming Control Board -- having never met a casino developer it didn't rubber-stamp -- voted unanimously to ignore Wynn's proposal (and continue fining the project $2,000 per day). We know this isn't over, however -- it will take much efforts to run predatory investors like Steve Wynn out of town. But he's never before faced opposition like you.
Yet Wednesday's hearing demonstrated the power of your voice -- forcing Wynn to address questions about the impact of his predatory casinos, prompting the news media to cover Steve's smugness, and sending those precious stock prices into decline.
Until this fight is won,
Lily, Ivan, Francesca, Dan and the rest of Casino-Free Philadelphia
You can do the same in the Bay State by supporting --
United to Stop Slots in Massachusetts
Add your name to the email list and join us in opposing predatory gambling that degrades communities.
Wynn Proposes "Tacky" for Philly
Pennsylvania passed gambling legislation at midnight on the Fourth of July, under the cloak of darkness.
Editorial: Leaving Las Vegas
Las Vegas casino mogul Steve Wynn is being touted as the latest savior for the foundering Foxwoods casino. But Wynn's vision for the Foxwoods site is further confirmation that casino gambling in Philadelphia will be a down-market industry, preying mostly on the poor and elderly who can least afford it.
Wynn is scheduled to appear before the state Gaming Control Board tomorrow to outline his plans to build and operate Foxwoods. Gamblers expecting a casino remotely like the $1.6 billion Bellagio resort that Wynn built in Las Vegas will be sorely disappointed.
Wynn's plan calls for a low-budget casino more fitting to its lousy waterfront location in South Philadelphia, not far from a Wal-Mart.
Gone are the original plans for a hotel that could at least attract gamblers from out of town to help bolster the city's tourist trade. Instead, the latest Foxwoods incarnation will just be acres of slot machines and scores of table games aimed at the locals living paycheck to paycheck or on fixed incomes.
Wynn made some goofy comments last week about building a "dandy" casino for all the area Italians, Jews, and other ethnic groups that like to play craps and gamble. For good measure, Wynn he said he plans to include a Vietnamese restaurant for Asians who live in the area. Nothing like a politically correct casino.
The place sounds so cheesy it's not even clear that Wynn will put his full name on the joint. Instead, he is considering putting just his initials on the casino.
But first Wynn needs the state gaming board to allow him to take over the project. Knowing the gaming board, that's likely just a formality.
The Foxwoods casino has been beset with problems from the start. The troubles stem mainly from the poor location on the Delaware River.
Neighborhood opposition delayed construction. Mayor Nutter initially opposed the location, but his position has flip-flopped. Nutter is now on board and eager to tap the gaming tax revenues.
To placate neighbors, Foxwoods in 2008 proposed to move to the Gallery mall on Market Street, another problem site. But the gaming board sent Foxwoods back to South Philadelphia.
In the meantime, the faltering economy hit the Indian tribe that operates the flagship Foxwoods casino in Connecticut. If Wynn takes over, the tribe would remain as an investor.
More important, the local investors - which include businessman Lewis Katz, developer Ron Rubin, and Comcast-Spectacor Chairman Ed Snider - who have contributed handsomely to Gov. Rendell over the years will finally get their jackpot. And isn't that what legalized gambling in Pennsylvania is really all about?
Editorial: Leaving Las Vegas
Las Vegas casino mogul Steve Wynn is being touted as the latest savior for the foundering Foxwoods casino. But Wynn's vision for the Foxwoods site is further confirmation that casino gambling in Philadelphia will be a down-market industry, preying mostly on the poor and elderly who can least afford it.
Wynn is scheduled to appear before the state Gaming Control Board tomorrow to outline his plans to build and operate Foxwoods. Gamblers expecting a casino remotely like the $1.6 billion Bellagio resort that Wynn built in Las Vegas will be sorely disappointed.
Wynn's plan calls for a low-budget casino more fitting to its lousy waterfront location in South Philadelphia, not far from a Wal-Mart.
Gone are the original plans for a hotel that could at least attract gamblers from out of town to help bolster the city's tourist trade. Instead, the latest Foxwoods incarnation will just be acres of slot machines and scores of table games aimed at the locals living paycheck to paycheck or on fixed incomes.
Wynn made some goofy comments last week about building a "dandy" casino for all the area Italians, Jews, and other ethnic groups that like to play craps and gamble. For good measure, Wynn he said he plans to include a Vietnamese restaurant for Asians who live in the area. Nothing like a politically correct casino.
The place sounds so cheesy it's not even clear that Wynn will put his full name on the joint. Instead, he is considering putting just his initials on the casino.
But first Wynn needs the state gaming board to allow him to take over the project. Knowing the gaming board, that's likely just a formality.
The Foxwoods casino has been beset with problems from the start. The troubles stem mainly from the poor location on the Delaware River.
Neighborhood opposition delayed construction. Mayor Nutter initially opposed the location, but his position has flip-flopped. Nutter is now on board and eager to tap the gaming tax revenues.
To placate neighbors, Foxwoods in 2008 proposed to move to the Gallery mall on Market Street, another problem site. But the gaming board sent Foxwoods back to South Philadelphia.
In the meantime, the faltering economy hit the Indian tribe that operates the flagship Foxwoods casino in Connecticut. If Wynn takes over, the tribe would remain as an investor.
More important, the local investors - which include businessman Lewis Katz, developer Ron Rubin, and Comcast-Spectacor Chairman Ed Snider - who have contributed handsomely to Gov. Rendell over the years will finally get their jackpot. And isn't that what legalized gambling in Pennsylvania is really all about?
Pennsylvania, Foxwoods, Wynn
The last week in Philadelphia has provided some pretty interesting casino news. Here's some of the background story --
Casino Only For Wynn Resorts In Philadelphia
Steve Wynn and his Wynn Resorts company have built some of the finest gambling destination resorts in the world. Their plan, however, for a revived casino project in Philadelphia is to keep things simple.
Wynn Resorts confirmed on Tuesday that they would be taking control of the project that has been stalled now for quite some time. The company still needs to gain regulators approval, but Wynn hopes to take of that himself on Wednesday.
That is the day that has been chosen for Wynn to travel to Harrisburg to unveil his plan to the Pennsylvania Gaming Control Board. The Board had threatened to take the license away from the Foxwoods project because of the delays, but Wynn is now confident that the casino will be built in a timely manner.
Wynn gave some details of what the casino will look like on a conference call with analysts. he claims that the casino will not, "look like a slots in a box," and spoke of his vision of a one story casino with several amenities.
The facility will have not only the slot gambling floor, but a poker room, an Asian restaurant, Italian restaurant, and a steak house. Table games would also be offered at the casino now that Pennsylvania lawmakers have legalized blackjack and other table games.
The Mashantucket Pequot tribe was the majority owner under the previous deal, but will now become a minority owner in the casino. Local investors will also keep their minority shares with Wynn becoming the majority owner.
Casino Only For Wynn Resorts In Philadelphia
Steve Wynn and his Wynn Resorts company have built some of the finest gambling destination resorts in the world. Their plan, however, for a revived casino project in Philadelphia is to keep things simple.
Wynn Resorts confirmed on Tuesday that they would be taking control of the project that has been stalled now for quite some time. The company still needs to gain regulators approval, but Wynn hopes to take of that himself on Wednesday.
That is the day that has been chosen for Wynn to travel to Harrisburg to unveil his plan to the Pennsylvania Gaming Control Board. The Board had threatened to take the license away from the Foxwoods project because of the delays, but Wynn is now confident that the casino will be built in a timely manner.
Wynn gave some details of what the casino will look like on a conference call with analysts. he claims that the casino will not, "look like a slots in a box," and spoke of his vision of a one story casino with several amenities.
The facility will have not only the slot gambling floor, but a poker room, an Asian restaurant, Italian restaurant, and a steak house. Table games would also be offered at the casino now that Pennsylvania lawmakers have legalized blackjack and other table games.
The Mashantucket Pequot tribe was the majority owner under the previous deal, but will now become a minority owner in the casino. Local investors will also keep their minority shares with Wynn becoming the majority owner.
Wednesday, March 3, 2010
What if ....?
What if the voters, taxpayers and residents of the Commonwealth of Massachusetts had been offered an Independent Cost Benefit Analysis of the
BIG DIG
and an opportunity to have an open and transparent public discussion about the actual costs.....?
.
Would we be saddled with + $20 Billion to pass along to the next generation to pay?
.
Maybe it's pretty. Does it benefit Middleboro? Does it benefit most of the state?
.
Remember the
BIG DIG
when you hear the Speaker of the House tell you about gambling.
.
The legislative leadership that can't walk and chew gum at the same time is going to assure you they can negotiate, oversee, regulate, audit, investigate, prosecute, .... with sharks, yeah, right!
.
Three predecessors of the current Speaker of the House have left office under indictment.
.
When an elected official hasn't figured out, at the risk of his own party, that only 3% of voters favor slots at race tracks, don't you just kinda wonder?
.
Why would any elected official oppose an Independent Cost Benefit Analysis that has never been done?
.
Would it be horribly cynical to wonder what we don't know? Is this the Fourth Speaker who is doomed?
Saturday, February 27, 2010
Another Gambling Victim
State sponsored gambling is designed to create addicts. When 90% of revenues come from 10% of patrons, a figure the predatory industry never disputes, addiction is defined.
The common pattern of prosecutions is of previously law-abiding citizens who are victims of a flawed public policy that relies on a "Something for Nothing Scheme' to provide revenue at great public expense.
When will we learn?
Banking adviser from Rhyl 'stole to gamble'
A personal banking adviser was guilty of a "gross breach of trust" stealing thousands of pounds from customers' accounts.
David Collins, of Rhyl, Denbighshire, used the cash to feed his gambling addiction, Mold Crown Court was told.
One 93-year-old client lost £50,000, while several other elderly people were also victims.
Collins, 20, admitted eight charges of fraud and theft, and was sentenced to 21 months youth custody.
He asked for 11 further offences to be taken into consideration.
The court was told Collins had even stolen thousands of pounds from his own father's investments without him knowing.
You also stooped as low to commit crime against your own father
The judge, Mr Recorder Nic Parry
His employer, Abbey National bank, has refunded all customers and has stood the total loss of Collins' fraud against the bank, said to be £86,000.
The judge, Mr Recorder Nic Parry, said Collins was guilty of a breach of trust and had gone to some lengths to conceal his dishonesty.
"You abused the trust of your employer, but far more seriously you abused the trust of ordinary people, who no doubt had worked hard to save their monies," he said.
"You also stooped as low to commit crime against your own father."
He said several victims were elderly and had looked to Collins for guidance.
The defendant, in his position as an adviser, was able to sell and submit applications for accounts and credit cards, and process transactions by computer.
Position of trust
The court heard how Collins forged his father's signature and asked for a £11,255 withdrawal, followed by a second sum of £7,500, which was paid into an account he had opened.
Collins also transferred a total of £50,000 from the account of a 93-year-old customer, using the details of a colleague at the bank to make one of the transfers.
Prosecutor David Mainstone said that while the total loss to the bank had been £86,000, it was alleged Collins' total criminal benefit had been in the region of £126,000.
This was disputed by the defence and a financial hearing will be held next month.
Tony Rose, defending, said that his client appreciated that he had been in a high position of trust.
He took from accounts, intending to pay the money back, to fund what developed into a gambling addiction.
"He ended up robbing Peter to pay Paul and it got completely out of control," said Mr Rose.
Alabama
Governor Riley's Task Force Issues Information from Mobile County
Information below from Governor Riley's Press Office:
Successful Task Force Operation in Mobile County Yields Illegal Slots, Servers
Action serves to preserve justice and equity under the law, Tyson says
MOBILE - On Thursday, an investigation by the Governor's Task Force on Illegal Gambling determined that illegal slot machines were in play at a new casino in the Mobile County town of Chickasaw. That evening, John Tyson, Jr., Mobile County District Attorney and Commander of the Task Force, took action to close the facility and seize the illegal machines.
Authorities entered the building at approximately 7:00 p.m. and seized 25 devices that fit squarely within the definition of illegal slot machines under Alabama law. Managers of the facility cooperated with authorities and turned over to police computer servers and cash in use at the casino. This law enforcement operation was completed without incident and with the cooperation of Chickasaw police officers at the scene.
Tyson said the Task Force is working to make sure Alabama's laws against illegal gambling are equally and uniformly enforced. Municipalities and citizens alike must abide by the law, Tyson said, or else society would become disorderly and unfair.
"It simply would be unfair to allow one community to operate an illegal gambling facility while other municipalities - dozens of them - are faithfully obeying the law," Tyson said. "How can we ask some citizens to abide by the law while others blatantly and shamelessly defy it? How can we expect young people to understand and respect our laws if public officials endorse and promote lawless behavior?
"It's not fair to legitimate non-profits that operate actual charitable bingo if a few organizations are allowed to break the law by using illegal slot machines. Those illegal operations siphon off a huge percentage of proceeds that otherwise would be going to legitimate, legal charities and other legal businesses."
The closure of this facility and the seizure of machines should reassure communities in Mobile County and throughout the state that crime will not be tolerated, Tyson said.
"The best way to deter criminal activity is to consistently and fairly enforce criminal law," he said. "There can't be special breaks for certain people. As sworn defenders and enforcers of the law, we simply cannot pick and choose who has to obey the law and who doesn't. Criminal behavior is, ultimately, an illegal advantage that benefits a few who are willing to risk breaking the law to earn a profit. We must ensure equality of opportunity for law-abiding citizens, businesses and communities with consistent, fair application of law.
"Any community that is being enticed by organized gambling to set up a casino or that is currently seeing these establishments crop up in their back yard would be wise to carefully read Alabama's law against slot machines and see just how clear it is. They would also be wise to know that we will enforce it."
Under Section 13A-12-27 of the Alabama Code of Laws, possession and operation of a gambling device, and specifically a slot machine, is illegal in Alabama. That statute states:
"(a) A person commits the crime of possession of a gambling device if with knowledge of the character thereof he manufactures, sells, transports, places or possesses, or conducts or negotiates any transaction affecting or designed to affect ownership, custody or use of:
(1) A slot machine; or
(2) Any other gambling device, with the intention that it be used in the advancement of unlawful gambling activity.
(b) Possession of a gambling device is a Class A misdemeanor."
A slot machine is defined by Section 13A-12-20(10) of the Alabama Code of Laws as a gambling device that accepts cash or credit and dispenses prizes based on a game of chance, not skill. This definition states:
"SLOT MACHINE. A device that, as a result of the insertion of a coin or other object, operates, either completely automatically or with the aid of some physical act by the player, in such a manner that, depending upon elements of chance, it may eject something of value. A device so constructed or readily adaptable or convertible to such use is no less a slot machine because it is not in working order or because some mechanical act of manipulation or repair is required to accomplish its adaptation, conversion or workability. Nor is it any less a slot machine because apart from its use or adaptability as such it may also sell or deliver something of value on a basis other than chance."
Information below from Governor Riley's Press Office:
Successful Task Force Operation in Mobile County Yields Illegal Slots, Servers
Action serves to preserve justice and equity under the law, Tyson says
MOBILE - On Thursday, an investigation by the Governor's Task Force on Illegal Gambling determined that illegal slot machines were in play at a new casino in the Mobile County town of Chickasaw. That evening, John Tyson, Jr., Mobile County District Attorney and Commander of the Task Force, took action to close the facility and seize the illegal machines.
Authorities entered the building at approximately 7:00 p.m. and seized 25 devices that fit squarely within the definition of illegal slot machines under Alabama law. Managers of the facility cooperated with authorities and turned over to police computer servers and cash in use at the casino. This law enforcement operation was completed without incident and with the cooperation of Chickasaw police officers at the scene.
Tyson said the Task Force is working to make sure Alabama's laws against illegal gambling are equally and uniformly enforced. Municipalities and citizens alike must abide by the law, Tyson said, or else society would become disorderly and unfair.
"It simply would be unfair to allow one community to operate an illegal gambling facility while other municipalities - dozens of them - are faithfully obeying the law," Tyson said. "How can we ask some citizens to abide by the law while others blatantly and shamelessly defy it? How can we expect young people to understand and respect our laws if public officials endorse and promote lawless behavior?
"It's not fair to legitimate non-profits that operate actual charitable bingo if a few organizations are allowed to break the law by using illegal slot machines. Those illegal operations siphon off a huge percentage of proceeds that otherwise would be going to legitimate, legal charities and other legal businesses."
The closure of this facility and the seizure of machines should reassure communities in Mobile County and throughout the state that crime will not be tolerated, Tyson said.
"The best way to deter criminal activity is to consistently and fairly enforce criminal law," he said. "There can't be special breaks for certain people. As sworn defenders and enforcers of the law, we simply cannot pick and choose who has to obey the law and who doesn't. Criminal behavior is, ultimately, an illegal advantage that benefits a few who are willing to risk breaking the law to earn a profit. We must ensure equality of opportunity for law-abiding citizens, businesses and communities with consistent, fair application of law.
"Any community that is being enticed by organized gambling to set up a casino or that is currently seeing these establishments crop up in their back yard would be wise to carefully read Alabama's law against slot machines and see just how clear it is. They would also be wise to know that we will enforce it."
Under Section 13A-12-27 of the Alabama Code of Laws, possession and operation of a gambling device, and specifically a slot machine, is illegal in Alabama. That statute states:
"(a) A person commits the crime of possession of a gambling device if with knowledge of the character thereof he manufactures, sells, transports, places or possesses, or conducts or negotiates any transaction affecting or designed to affect ownership, custody or use of:
(1) A slot machine; or
(2) Any other gambling device, with the intention that it be used in the advancement of unlawful gambling activity.
(b) Possession of a gambling device is a Class A misdemeanor."
A slot machine is defined by Section 13A-12-20(10) of the Alabama Code of Laws as a gambling device that accepts cash or credit and dispenses prizes based on a game of chance, not skill. This definition states:
"SLOT MACHINE. A device that, as a result of the insertion of a coin or other object, operates, either completely automatically or with the aid of some physical act by the player, in such a manner that, depending upon elements of chance, it may eject something of value. A device so constructed or readily adaptable or convertible to such use is no less a slot machine because it is not in working order or because some mechanical act of manipulation or repair is required to accomplish its adaptation, conversion or workability. Nor is it any less a slot machine because apart from its use or adaptability as such it may also sell or deliver something of value on a basis other than chance."
Florida: Simple Math and Flawed Public Policy
Editorial: New Florida gambling is a bad bet-and it’s not even close
by JAMES A. SMITH SR.
Executive Editor
Florida Baptist Witness
As legislators consider gambling expansion to balance Florida’s budget in tough times, they ought to keep in mind a simple mathematical formula: 3-1.
That’s not the odds that lawmakers will approve or vote down gambling expansion. Three-to-one is the ratio of government spending needed to address the social ills created by every additional dollar of casino gambling revenue.
Even Tallahassee politicians who didn’t succeed at math during their school days should realize new gambling is not a solution to what ails the Sunshine State.
New gambling is a sucker’s bet, but seemingly easy money is luring legislators once again, including some with previously sterling anti-gambling reputations.
Rep. Ellyn Bodanoff, R-Fort Lauderdale, and Rep. Alan Hays, R-Umatilla, have recently endorsed new casinos in light of the seemingly insurmountable fiscal realities and the losing battle with the Seminole Indian casinos.
Any legislator seriously contemplating more gambling in Florida should be asked if she or he has carefully considered the groundbreaking research of Earl Grinols. His book, Gambling in America: Costs and Benefits (Cambridge, 2004), evaluates casino gambling revenues and the social costs it produces.
His conclusion? The social costs to government resulting from casino gambling is three dollars for every dollar gained.
Grinols, distinguished professor of economics at Baylor University, assiduously asserts his research is independent, not funded by either side of the debate. Further, he notes, “I have no moral objections to gambling.”
by JAMES A. SMITH SR.
Executive Editor
Florida Baptist Witness
As legislators consider gambling expansion to balance Florida’s budget in tough times, they ought to keep in mind a simple mathematical formula: 3-1.
That’s not the odds that lawmakers will approve or vote down gambling expansion. Three-to-one is the ratio of government spending needed to address the social ills created by every additional dollar of casino gambling revenue.
Even Tallahassee politicians who didn’t succeed at math during their school days should realize new gambling is not a solution to what ails the Sunshine State.
New gambling is a sucker’s bet, but seemingly easy money is luring legislators once again, including some with previously sterling anti-gambling reputations.
Rep. Ellyn Bodanoff, R-Fort Lauderdale, and Rep. Alan Hays, R-Umatilla, have recently endorsed new casinos in light of the seemingly insurmountable fiscal realities and the losing battle with the Seminole Indian casinos.
Any legislator seriously contemplating more gambling in Florida should be asked if she or he has carefully considered the groundbreaking research of Earl Grinols. His book, Gambling in America: Costs and Benefits (Cambridge, 2004), evaluates casino gambling revenues and the social costs it produces.
His conclusion? The social costs to government resulting from casino gambling is three dollars for every dollar gained.
Grinols, distinguished professor of economics at Baylor University, assiduously asserts his research is independent, not funded by either side of the debate. Further, he notes, “I have no moral objections to gambling.”
MGM Mirage: More Casino Capitalism Casinos
MGM Mirage, Lenders Agree to Extend $3.6B in Debt
Casino operator MGM Mirage, lenders agree to extend maturity on $3.6B in debt
Casino operator MGM Mirage said Friday it has reached an agreement with lenders to extend the deadline for repaying about $3.6 billion of its debt to February 2014.
The move gives the Las Vegas company a bit more leeway as gamblers visit casinos less often and spend less on each trip. It has nearly $13 billion in outstanding debt.
MGM Mirage owns the most casinos on the Las Vegas Strip and is the world's second-largest gambling company by revenue after Harrah's Entertainment.
The company said the move requires MGM Mirage to repay $820 million to lenders that have agreed to the extension on the $3.6 billion. By October 2011, it must pay another $2.1 billion to lenders that do not agree to an extension.
"This amendment underscores the tremendous confidence our bank group has in our company," MGM Mirage CEO Jim Murren said in a statement. "The transaction provides us with additional long-term financial flexibility and reflects our continued commitment to strengthen our financial position."
MGM Mirage said last week that it lost $433.9 million, or 98 cents per share, during its fiscal fourth quarter, compared with a loss of $1.15 billion a year earlier.
Company executives have said fixing MGM Mirage's balance sheet is a top priority. Before the amendment, $5.55 billion in loans were scheduled to mature in October next year.
Casino industry analyst Bill Lerner of Union Gaming Group called the amendment "critically important" for MGM Mirage, because it would have had a hard time paying lenders back by 2011 without the market recovering in Las Vegas.
Now, earnings levels are comfortably ahead of where lenders need them to be, Lerner said.
"We estimate the company will exceed these levels by nearly 50 percent at both December 2010 and 2011 without the benefit of a strong recovery," he said.
Casino operator MGM Mirage, lenders agree to extend maturity on $3.6B in debt
Casino operator MGM Mirage said Friday it has reached an agreement with lenders to extend the deadline for repaying about $3.6 billion of its debt to February 2014.
The move gives the Las Vegas company a bit more leeway as gamblers visit casinos less often and spend less on each trip. It has nearly $13 billion in outstanding debt.
MGM Mirage owns the most casinos on the Las Vegas Strip and is the world's second-largest gambling company by revenue after Harrah's Entertainment.
The company said the move requires MGM Mirage to repay $820 million to lenders that have agreed to the extension on the $3.6 billion. By October 2011, it must pay another $2.1 billion to lenders that do not agree to an extension.
"This amendment underscores the tremendous confidence our bank group has in our company," MGM Mirage CEO Jim Murren said in a statement. "The transaction provides us with additional long-term financial flexibility and reflects our continued commitment to strengthen our financial position."
MGM Mirage said last week that it lost $433.9 million, or 98 cents per share, during its fiscal fourth quarter, compared with a loss of $1.15 billion a year earlier.
Company executives have said fixing MGM Mirage's balance sheet is a top priority. Before the amendment, $5.55 billion in loans were scheduled to mature in October next year.
Casino industry analyst Bill Lerner of Union Gaming Group called the amendment "critically important" for MGM Mirage, because it would have had a hard time paying lenders back by 2011 without the market recovering in Las Vegas.
Now, earnings levels are comfortably ahead of where lenders need them to be, Lerner said.
"We estimate the company will exceed these levels by nearly 50 percent at both December 2010 and 2011 without the benefit of a strong recovery," he said.
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