Yes, casinos hurt local businesses

The Boston Globe’s Jenifer McKim today reports that Robert Goodman, an expert on casino gambling, believes a proposed casino and slot-machine emporium at Suffolk Downs would harm local businesses.

“No serious economic impact analysis has been done in Massachusetts,” Goodman tells McKim. “More money is going to be sucked out of the local economy.”

But aren’t casinos supposed to be good for the economy?

In fact, the negative effect described by Goodman is so well-known that Glenn Marshall, the disgraced former chairman of the Mashpee Wampanoag tribe, reportedly promised business owners in Middleborough that he would give them money to offset the harm that would be done by the casino the tribe had proposed for that town. (The tribe recently dropped the long-dormant Middleborough scheme in favor of a site in Fall River.)

According to a story by Alice Elwell in the Enterprise of Brockton in September 2007, Marshall had promised local business leaders that he would “help” if the casino harmed restaurants in town. Selectman Wayne Perkins was quoted as saying this would have taken the form of “comp points” — scrip given to casino visitors that could be used at Middleborough businesses, which in turn could trade them in for cash. (The original link seems to be broken, but I wrote about it at the time.)

A casino is a self-contained economic machine that sucks money out of customers who might otherwise spread it around at local businesses, a fact Marshall backhandedly acknowledged in promising “comp points.” It then funnels the cash to high-rolling investors — and, of course, to the state, which is why Beacon Hill is now on the verge of approving this monstrosity.

The Globe’s corporate cousin, the New York Times, editorialized on Monday:

Casinos are a magnet for tainted money and promote addiction, crime and other ills….

The state’s politicians should also stop chasing gamblers. At a time when casino revenue is slumping across the country, it doesn’t even make economic sense. They need to make hard decisions on taxes and spending, and focus on developing stable industries, improving education and working their way to growth. If they keep holding out for a false jackpot, everyone will lose.

The Globe editorial page, by contrast, has been consistently if cautiously pro-casino. Too bad. As the region’s dominant media player, the Globe could exercise some real leadership on this issue.

Photo (cc) by Jamie Adams via Wikimedia Commons.

Middleborough casino fiasco is finally, officially over

I’m not sure when I first wrote that the “resort casino” the Mashpee Wampanoag tribe wanted to build in Middleborough would never come to pass. But here’s something I wrote on Aug. 28, 2007, shortly after Middleborough residents approved a deal with the tribe (widely reported) and also voted to advise officials that they did not want a casino built in town (barely reported):

Obviously the Middleborough casino will never be built. The big-money players will move on once they realize that this will be tied up in the courts for years. Dissident tribal members are already suing in federal court. Middleborough casino opponents vow to keep fighting.

Today Cape Cod Times reporter George Brennan writes that the tribe has finally, officially dropped its Middleborough proposal and is instead focusing on Fall River. An announcement is scheduled for this afternoon. Brennan, in turn, cites a report by Michael Holtzman in the Fall River Herald News that the city received a comitment letter from the tribe last Friday.

Middleborough’s gain is Fall River’s loss, and I hope folks in that economically distressed city can see through the spin and knock this down. (Holtzman notes that the casino proposal has a long way to go.) But I am nevertheless glad to see that the town where I grew up is no longer in any danger — not even theoretically — of hosting what was, at one time, intended as the world’s biggest casino.

“I’m very disappointed, but it doesn’t surprise me,” Middleborough town manager Charles Cristello tells Alice Elwell of Brockton’s Enterprise.

Mr. Cristello, your town just got saved.

Getting more than he’s betting on

Writing in the Boston Globe, Paul McMorrow raises an important point about Massachusetts House Speaker Robert DeLeo’s quest to build two casinos and install slot machines at four racetracks.

Right now, the Mashpee Wampanoag bid to build a casino in Middleborough is being stymied mainly because casino gambling is illegal in Massachusetts. Once it’s legalized, the door is open not just for the Middleborough location, but for other tribal casinos as well. McMorrow writes:

In DeLeo’s rush to appease the building trades and carve out some action for the two racetracks in his district, the speaker of the House is setting the table for a gambling expansion in Massachusetts that has the potential to be far broader than anything he’s pitching. He’s opening the door to new gambling halls on Martha’s Vineyard and the Cape, in Middleborough and Fall River. It’s also something neither he, nor anyone else on Beacon Hill, can control.

And though McMorrow doesn’t say it, you can be sure that officials in New Hampshire, Rhode Island and Connecticut won’t stand pat if casinos are built in Massachusetts.

It is sad that none of the major candidates for governor — not Gov. Deval Patrick, Republican Charlie Baker nor independent Tim Cahill — opposes this financial and social boondoggle-in-the-making.

Profile in cowardice

CommonWealth Magazine’s Michael Jonas considers the sad case of state Rep. Ellen Story, an Amherst Democrat who candidly admits she reversed her longstanding opposition to casino gambling in order to please House Speaker Robert DeLeo.

How casino gambling nearly destroyed a family

Gail Spector, editor of the Newton Tab, has written a must-read column on how casino gambling nearly destroyed her family because of her late father’s gambling addiction. Always a problem, his addiction raged out of control once the Oneida Indian Nation’s Turning Stone Resort and Casino, in upstate New York, opened near the town where they lived.

Spector’s personal story is well-told and deeply moving, and I don’t want to spoil it by trying to excerpt it here. I will instead go with her conclusion:

Preying upon and purposefully aggravating the torment and destruction that gambling addictions cause families is cruel. Further justifying it as a means to create local aid for communities is devious and shameful.

Unfortunately, it appears that is precisely what the Massachusetts House is on the verge of doing — to be followed, you can be sure, by the Senate and Gov. Deval Patrick.

Meanwhile, the Boston Globe’s Brian MacQuarrie is taken for a ride with some happy gamblers who took a bus from South Station to Foxwoods. Among the people whom MacQuarrie meets is Curtis Harris of Cambridge, “a self-described poker professional.”

Harris, 34, tells MacQuarrie he has a system that brings in $100 a day, and that he supports his two children with his gambling. “This outing went well,” MacQuarrie writes. “Harris, who played nonstop from 2 p.m. Friday until noon Sunday, left with $710.”

Call me a cynic, but I’m guessing there are some aspects to Harris’ story that he withheld from MacQuarrie. The reason they say the house always wins is because the house always wins. And I don’t think making it easier for Harris gamble on his children’s future is going to make things any better for his family — to say the least.

Just vote “no” on expanded gambling

I just sent the following e-mail to my state representative, Ted Speliotis, D-Danvers:

Dear Ted —

I’m writing today to urge you to vote “no” on Speaker DeLeo’s bill to expand legalized gambling in Massachusetts. The negative effects of casinos and slot machines would be far greater than could be justified by any increased revenue the state would receive — revenue that, in all likelihood, would not be nearly as great as proponents predict.

Not only would casinos in Massachusetts be a bad idea in and of themselves, but they would almost certainly lead to expanded gambling in New Hampshire and Rhode Island.

I first became aware of the hazards of casino gambling when a few wealthy investors used the Mashpee Wampanoag tribe to put forth a plan in Middleborough, the town where I grew up, to build what at one time was described as the world’s largest casino. As you probably know, that effort was fraught with corruption. Glenn Marshall, the tribal leader, ended up going to prison.

Studies have shown that casinos lead to increased crime and a higher divorce rate, and have even been linked to an increase in suicides. I urge you to get the facts from United to Stop Slots in Massachusetts, which is online at www.uss-mass.org.

Sincerely,

Dan Kennedy
Danvers

Controlling the casino-gambling narrative

House Speaker Robert DeLeo and Senate president Therese Murray

CommonWealth Magazine’s Michael Jonas says that Massachusetts House Speaker Robert DeLeo, by focusing on the jobs that casino gambling would bring, is trying to control the narrative in a way that is not in accord with reality. (Boston Globe story on DeLeo’s proposal for two casinos and four racinos.) Jonas writes:

The battle over casinos is always a battle to control the narrative. If the narrative stays focused on jobs and putting people who are hurting and in real economic distress back to work, proponents win. If it’s about predatory gambling and the state partnering up with rich casino moguls to pick the pockets of the lower-income residents who will disproportionately be the ones dumping their paychecks into the slots DeLeo wants installed at the state’s four racetracks (two of which are in his Winthrop-based district), the prospects could get, well, dicey.

Jonas observes that compulsive-gambling rates double in areas where casinos are located — and that problem gambling isn’t just an unfortunate byproduct of casino (and racino) gambling, but part of the business model.

The great Gladys Kravitz surveys the landscape as well, and pronounces DeLeo’s speech yesterday to be a “trifecta”: (1) experts are already saying the racinos DeLeo envisons will have to grow into casinos in order to survive; (2) New Hampshire and Rhode Island officials responded by reviving their own casino plans; and (3) the Mashpee Wampanoag tribe’s fading hopes of building a casino in Middleborough got a jolt of life.

It’s an absolutely miserable situation. DeLeo, Gov. Deval Patrick and Senate president Therese Murray are all on record as supporting casinos. Patrick’s most plausible opponents in the governor’s race, Republican Charlie Baker and independent Tim Cahill, are pro-gambling as well.

United to Stop Slots in Massachusetts is where you can find out everything worth knowing about casinos and slot machines.

Photo (cc) allegedly by Martha Coakley, although I doubt she took it, and republished here under a Creative Commons license. Some rights reserved.

Breaking news: Middleborough casino still dead

Cape Cod Times reporter Stephanie Vosk writes that the former investors in plans to build a $1.6 billion casino in Middleborough may not be quite as former as the Mashpee Wampanoag tribe would have us think. And a lawsuit could be in the works.

An Indian casino for Fall River?

The Cape Cod Times reports that the Mashpee Wampanoag tribe is negotiating with Fall River officials to build a casino in that city — a claim that tribal council chairman Cedric Cromwell more or less denies, saying he remains committed to building a casino in Middleborough.

A casino would be bad news anywhere in Massachusetts. But, all things considered, an economically depressed city such as Fall River makes more sense than Middleborough, whose rural character would be harmed significantly by such a venture.

Friday morning update: The Cape Cod Times, as promised, has more details today. And it looks like negotiations are off to a fine start. Fall River Mayor William Flanagan tells the Times, on the record, that he has met with tribal leaders to talk about a casino. Cromwell denies it.

Globe still ignores Middleborough’s “no” vote

The myth lives on in the Boston Globe. Christine Legere writes today that the town of Middleborough “enthusiastically agreed to host what was to be the state’s first gambling house” two years ago.

In fact, residents attending a chaotic outdoor town meeting that summer voted decisively against allowing a casino to be built in Middleborough. As the Globe’s Sean Murphy reported in CommonWealth Magazine, “the vote was overwhelming against a casino,” even though town meeting had approved a casino deal with the Mashpee Wampanoag tribe earlier in the day.

I do love the quote Legere has from former selectman Adam Bond, the leader of the casino pack in 2007, in referring to the Wampanoags’ scaled-down plans:

It’s gone from a Tiffany operation with an arena, restaurants, and a large hotel to a gin mill with a buffet table. A small casino with a little food and some rooms says “Go gamble and have hookers.”

Bond goes on to suggest that a referendum be held to see if Middleborough voters support having a casino built in town. They don’t, and they didn’t two years ago, either.