The Deval Patrick CONSPIRACY on Casinos & Local Aid. Also see Denis Guyer, Andrea Nuciforo.

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www.boston.com/news/local/articles/2008/03/07/casino_study_backs_patrick/
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www.boston.com/news/globe/editorial_opinion/gambling_mass/
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www.boston.com/news/specials/casino/
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Governor Deval Patrick, joined by AFL-CIO President Robert Haynes (right), spoke to reporters yesterday after securing the union's backing for his plan to license three resort casinos. (WENDY MAEDA/GLOBE STAFF) 2/8/2008
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Posted by "Scott" from Williamstown, Massachusetts on January 26, 2008.

Check it out, all towns in Bosley's district are getting the shaft from Patrick, Just compare Pittsfield to North Adams and see. Check other districts that are covered by Reps who oppose casinos.

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"Budget worries leaders"
By Scott Stafford, Berkshire Eagle Staff
Saturday, January 26, 2008

NORTH ADAMS — Reactions by Berkshire city mayors and town managers to Gov. Deval L. Patrick's proposed budget is mixed, depending on funding levels.

But up and down the county, administrators are nervous, some are doubtful, about the more than $100 million anticipated from casino licensing fees — upon which municipal funding relies in the governor's $28.2 billion budget.

In the corner office of North Adams City Hall, Mayor John Barrett III is hoping to make up for a $281,000 net loss in state funding — and that's assuming that casino revenues materialize during the coming fiscal year.

"That budget is dead on arrival," Barrett said. "The governor promised he wouldn't balance the budget on the backs of cities and towns, but here he is balancing his budget on the back of this city. I'm very disappointed and I don't know how we're going to deal with it. We're just hoping the Legislature will help us out with some of the problems."

Among Barrett's concerns is charter school funding and health insurance for retired teachers, both of which would cost the city more under Patrick's budget plan.

"It's not very good for North Adams," Barrett said. "And to make things even worse, that budget is counting heavily on the casinos (revenue) coming through, which everyone says has little or no chance of getting through the Legislature."

Highlights of the governor's proposed budget include an additional $100 million for new public safety provisions and a $368 million increase in education funding.

In Pittsfield, Mayor James M. Ruberto is grateful for a $2.5 million increase in the city's education budget proposed by the governor. Other city operations are funded at the same level "for all intents and purposes," said Ruberto.

"I think the governor should be commended for his commitment to education," he said.

Ruberto noted that the casino licensing proceeds are being used to bolster declining lottery revenue, a staple for municipal funding from the state.

"I think we're all suffering from the lack of growth in the lottery, and hopefully that shortfall will be met, if not through gaming, then proceeds from some other source," he said.

Ruberto agreed with Barrett in calling for a revision of the charter school funding formula.

"I think that this budget shows how important it is that the charter schools should be funded in another way," he said. "Our school system should not suffer the per-head charge (for students choosing to attend charter schools), nor should any other school."

For some Berkshire towns, funding is at best at the same level as last year, and includes the casino funding source that is causing jitters there too.

According to William Ketcham, Adams town administrator, the town is slated to be funded at the same level as last year, but when inflation is factored in, that funding level results in a net reduction.

"It's nice to see the attempt to keep the funding level steady, but to keep things steady it should go up slightly with the inflation rate, which it does not," Ketcham said. "So there is less we'll be able to do with the money — the net is going to be down a little bit, and a lot of this (funding) is from the (casino) gaming proceeds, which consequently makes us a little nervous."

During an interview last week, Peter Fohlin, town manager in Williamstown, questioned the wisdom of including the casino revenue.

By including the casinos funds as a revenue source in the budget, Fohlin said, the governor "has turned the whole thing into an even bigger guessing game, when what we need from the state is predictability."

Burke LaClair, Great Barrington's town manager, noted that with the casino revenue, the town's state funding numbers are essentially the same.

"I understand why it's (the casino revenue) in his budget, but I'm certainly not counting on that as assured revenue," LaClair said. "But this is just the kickoff, and not necessarily where it's going to end up. We are going to wait and see how the House and the Senate approach the bigger picture."

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A Boston GLOBE EDITORIAL
"Labor doubles down for casinos"
January 26, 2008

POWERFUL LABOR unions are preparing a major push in support of Governor Patrick's bill to create three destination casinos in Massachusetts, even if it requires running up the backs of lethargic legislators.

"We want to put them on notice," says Sean O'Brien, president of Teamsters Local 25. "We're not going to support any candidates that don't support our issues." A letter to that effect is on its way to state legislators. It's an especially aggressive approach, O'Brien says. But like other union leaders in the state, O'Brien says he cannot stand by and watch the Legislature squander what the Patrick administration estimates to be the potential creation of 30,000 construction jobs and 20,000 permanent jobs.

Labor is flexing its muscle for a good reason. Patrick has proposed a rational and lucrative plan to bring three destination casinos to the state. Licensing fees alone could generate $800 million, with recurring revenues for the state of about $400 million annually. His plan includes sound protections for those at risk of compulsive gambling. Yet the Legislature has sat on its hands.

Patrick told Globe editors yesterday that he is ready to spur lawmakers to action on his economic-development plans. His casino effort is already underway. Earlier this month, the governor and his top economic advisers made a major pitch for casinos to labor leaders. The building trades and hotel workers didn't need much convincing. But support from the Massachusetts Teachers Association reinforces the governor's view that casino revenues are critical to the state's wider ability to support education and aid to cities and towns. Patrick drove home that point even harder this week when he included in his budget some of the anticipated revenue from the auction of casino licenses. His message for the Legislature yesterday was: "If you have a better idea, bring it."

Lobbying efforts by labor are sure to be heard by House Speaker Salvatore DiMasi, whose skepticism about casino gambling is a major impediment to getting a bill passed this session. DiMasi prefers to concentrate on the economic development possibilities of Patrick's $1 billion life sciences initiative. But that won't placate the AFL-CIO, the state's largest labor organization representing 400,000 workers. They are fighting for the majority of adults in Massachusetts who have no college degrees and aren't likely to benefit directly from higher-end job initiatives. And casino jobs, as a rule, pay decent wages and provide healthcare and pension benefits. The AFL-CIO is expected to unveil a casino strategy soon that is sure to go beyond quiet lobbying and legislative breakfasts.

The governor needs to make the most of labor's enthusiasm. The unions are offering Patrick invaluable shock troops - at a time when he needs a victory.

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"Time to support casinos"
The North Adams Transcript - Letters
Monday, January 28, 2008

To the Editor:

It's wonderful that in our country we can express opposing views regarding political issues. Having served and lived for a total of six years stationed in West Berlin, Germany, during the 1970s and 1980s with the U.S. Army, I've seen first hand how different life can be and how lucky we are as Americans to have choices and opportunities.

What I do not understand is why a number of our elected officials oppose Gov. Patrick's support for the establishment of three casinos in our state. Let's face it, we need financial help in this state!

I have no facts or figures to share with you other than this: How many of our state residents visit Connecticut, New York, New Jersey, Las Vegas and elsewhere, to go and spend their money at casino resorts? I assume the number is significant, and the bottom line is simple: This is money leaving OUR state.

The people who choose to visit these locations are adults. I may be wrong, but I believe most adults who visit these locations are not addicted to gambling. I personally know a handful of people who visit these locations, and they are superb, educated, responsible adults.

Why would our elected officials refuse an opportunity to provide, as Gov. Patrick stated, an opportunity to "create 20,000 permanent jobs?" Representatives are supposed to represent and support the views of their constituents, regardless of their own viewpoints. I'm not convinced this is always the case.

Personally, I do not gamble and have not visited a casino. But I think it's irresponsible in our state of fiscal woes not to support this initiative. The casinos will create jobs, provide funds to the state, and our citizens might just choose to spend more of their money in OUR state.

Will there be associated problems with casinos? Sure, just like there are problems with just about any large corporation in our state. Nay-sayers will always come up with reasons why we should not have casinos.

One thing I appreciated and learned in the Army was to always look for and concentrate on solutions. "Don't tell me why we cannot do something; tell me HOW we can do it!" was what our leadership taught, trained and lived every day.

We are living in the 21st century, and we need to move forward and solve problems. We need help. We need new ideas. We need to be fiscally responsible. Stop the drain of money leaving our state and create the 20,000 jobs these casinos will bring. It's a tremendous opportunity.

Chuck Roberts
Williamstown, Massachusetts
Jan. 25, 2008

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"AFL-CIO supports Patrick on casinos"
By Matt Viser, Boston Globe Staff, February 8, 2008

NATICK - Governor Deval Patrick won the backing of the state's largest labor organization for his casino proposal yesterday, giving him a strong partner to help him pressure skeptical legislators.

AFL-CIO leaders voted unanimously at an executive board meeting to endorse Patrick's plan to license three resort casinos around the state as a way of spurring economic development and creating jobs.

Patrick has launched a concerted effort to round up organized labor support for legalized gambling, and this is the biggest endorsement so far. The AFL-CIO has more than 400,000 members from 700 local unions. Patrick's casino effort also has the backing of the Massachusetts Teachers Association; UNITE HERE, which represents hotel and food service workers; and Teamsters Local 25, which sent letters to legislators saying they risked losing endorsements if they voted against casinos.

AFL-CIO officials said yesterday they would make the casino proposal one of their top priorities this year, on par with healthcare reform and education. They said they plan to lobby legislators vigorously and will take a lawmaker's stance on casinos into account when deciding whom to endorse and campaign for over the course of this election year. The union also plans a grass-roots campaign, encouraging members to write letters to local papers, call radio talk shows, and call legislators.

"We're engaged," said Robert J. Haynes, president of the AFL-CIO. "We're happy to participate in this effort. We think it's very, very good for the Commonwealth, and we're going to do our best to make sure it's passed. . . . We're going to be very aggressive."

Haynes said there are no plans to field candidates against those who vote against casinos. Still, the move presents many lawmakers with a difficult choice: whether to support the governor's controversial casino legislation or risk alienating a powerful interest that helped many of them get into office.

"We are trying to encourage the Legislature to bring this to a hearing, to a debate, and to a vote, up or down," said Patrick, flanked at a hotel ballroom by two dozen union workers holding signs that read, "CASINOS = 20,000 jobs for Massachusetts."

Patrick's casino legislation has provisions that would encourage casino developers to use union workers, and it also gives organized labor a seat on an advisory committee that would have influence over casino regulations.

The casino bill is before the Joint Committee on Economic Development and Emerging Technologies. While Patrick called for a deadline for action yesterday, no hearings have been scheduled, and there are indications that it faces an uphill battle.

Twelve of 19 members of the committee said they are inclined to vote against the proposal unless wholesale changes are made, according to an informal Globe poll in December. Three members said they are leaning in favor of the proposal, and four said they are on the fence.

House Speaker Salvatore F. DiMasi is seen as a chief obstacle. His office released a statement yesterday responding to the union move. "We understand that union leaders want jobs for their members, but the question is, what kind of jobs do we want?" the statement said. "We think the focus should be on higher-paying, stable jobs in the life sciences, biotech, and the innovation economy."

Other legislators said that the union endorsement was significant, but that its effect would be minimized on a hot-button issue that has many other interest groups trying to chime in.

"I definitely think this has an impact," said Senator Mark C. Montigny, a New Bedford Democrat who is skeptical of the casino proposal. "But how many people vote on a major issue like this based on a single group, even one as powerful as this. I don't know that it changes things dramatically."

While the unions are a powerful and organized constituency, casino opponents have been working to become more organized, including the Massachusetts Restaurant Association, the League of Women Voters, and the Massachusetts Council of Churches.

"I'm not afraid of them, and I'm not afraid of Donald Trump on this," said Laura Everett, spokeswoman for Casino Free Mass, a coalition of statewide groups opposed to casinos. "We have a larger question here about what kind of jobs we want. Are we cultivating a dynamic, forward-looking job force, or are we settling for quick fixes?"

In recent weeks, the governor has increasingly sought to put pressure on legislators to act by appealing directly to their constituents across the state. Patrick made a pitch in an annual address last month before the Massachusetts Municipal Association and mentioned it in his impassioned State of the State address. Lieutenant Governor Timothy P. Murray invited 20 mayors to the State House specifically to talk about casinos. Several Cabinet members have started making appearances at meetings across the state to encourage local officials to get behind the plan.

Patrick also put $124 million in projected casino revenues into his budget, putting fiscal pressure on legislators to act on his proposal. The AFL-CIO said yesterday it is not taking a position on whether the casino revenues should be included in the budget.

Unions love casinos because they result in thousands of new jobs for constructing roads, hotels, and resorts and potentially unionized jobs in the casinos themselves.

Casino salaries would average about $45,000 to $50,000 and would add $50 million to $80 million to the state tax rolls, Patrick said. He also argues that his casino proposal would create 20,000 new and permanent jobs and 30,000 construction jobs, although some critics have suggested those estimates are overblown.

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Matt Viser can be reached at maviser@globe.com.

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A Boston GLOBE EDITORIAL
"Patrick gets tough over casinos"
February 11, 2008

EFFORTS by the Mashpee Wampanoag tribe to place its planned casino site in Middleborough in a federal trust are more likely to end in a drawn-out fight than a healthy payoff for either the tribe or the residents of Massachusetts. The Patrick administration is right to resist the Wampanoags' efforts and to encourage the tribe instead to bid for a state-issued casino license.

The tribe, which won federal recognition last year, is now seeking to establish official sovereignty over more than 500 acres, which would place it largely outside the state's jurisdiction. The Patrick administration has sent an 125-page objection to the federal Bureau of Indian Affairs, arguing that the tribe has failed to provide adequate safeguards in such areas as zoning, public safety, labor, consumer protection, and the environment. These are substantive issues, but the real message is that the administration is serious about following its own casino plan.

Patrick proposes sensible legislation that would license three destination casinos across the state. The plan is carefully crafted to generate new jobs and new tax revenues, including an estimated $600 million to $900 million in one-time licensing fees and about $400 million in annual revenue. The proposal even offers special consideration to casino developers who join with federally recognized Indian tribes from Massachusetts. The Wampanoags' gambit could weaken this well-designed plan by diluting the worth of the licenses and reducing the state's take. And it opens the door to the snarled world of the federal Indian Gaming Regulatory Act, which poses risks for the tribe as well as the state.

The 1988 law, known as IGRA, provides the statutory framework for tribal gambling. But what, if anything, gets built on that framework is far from predictable. It often takes years for an Indian casino proposal to wind its way through the Department of Interior. More complicated still is the requirement that the tribe and the state negotiate a compact that can cover oversight, payments in lieu of taxes, and methods to handle civil and criminal matters. Such negotiations often break down when one side accuses the other of failure to negotiate in good faith.

The bramble of IGRA-related court cases should serve as a warning. Some decisions place few restrictions on the kinds of gambling that tribes can offer on their land, including full-fledged casinos in states where slots and table games are prohibited. Other decisions leave the tribe with little recourse if it believes a state has failed to negotiate in good faith. One day, the wind blows toward tribal self-determination. The next day, it shifts in the direction of state sovereign immunity. And the secretary of the Interior, not a state's elected officials, calls the final shot.

The federal law is too big a crap shoot. Massachusetts - and the tribe - can do better.

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The Boston Globe, Op-Ed, GEORGE BACHRACH & PHILIP WARBURG
"Rural casinos leave a huge carbon footprint"
By George Bachrach and Philip Warburg, February 11, 2008

IF YOU'D like to get a glimpse of Governor Deval Patrick's vision for "destination" casinos, take a virtual trip south of the border to Foxwoods, somewhere in the wilds of southeastern Connecticut.

The location of this mega-gambling parlor - purportedly the world's largest - doesn't seem to matter. The official website describes it only as "within easy driving distance from four of the East Coast's major cities: New York, Boston, Hartford, and Providence."

We support the governor's desire to find new ways to boost the Massachusetts economy. But in his headlong rush toward resort casinos as job creators and revenue generators, he seems to be blinded by the glare of sleek hotel towers rising out of verdant New England countryside. He also seems to be forgetting his administration's recently proclaimed commitment to a very different road map - one that will lead Massachusetts toward urgently needed reductions in the greenhouse gas emissions that are hurtling New England and the world toward climate catastrophe.

Resort casinos, if successful, draw people - lots of people, round the clock and throughout the year.

If Massachusetts sites these mega-resorts in remote locations, a lot more people will be racking up highway miles, giving an unwelcome boost to automobile-generated greenhouse gas emissions - the state's fastest-growing contributor to global warming. All of this comes at a time when we need to be strengthening our towns and cities rather than promoting sprawl.

Foxwoods, by its own estimate, draws more than 40,000 visitors daily with many, if not most, arriving by car. We can only expect the same, or worse, if the governor's dream of three resort casinos sited in the open countryside comes true.

The governor has been candid in expressing his "misgivings about a casino in any city." He asserts that "the whole point is to create a resort destination." Urban residents have raised valid concerns about social and other impacts of casinos located in their communities. But have the governor's capable advisers clued him in to the environmental costs of creating miles-from-nowhere mega-magnets?

Patrick's advisers often speak with passion and determination about the need to promote "smart" growth by bringing new jobs, better public transit, and affordable housing to our cities and towns. They acknowledge the obvious benefits of policies designed to get people out of their cars, reducing greenhouse gas emissions and other forms of air pollution associated with long driving distances. They also espouse smart growth as a way to stem the encroachment of low-density sprawl into the Commonwealth's dwindling farmland and forested areas, and as a way to keep highway construction and maintenance costs within bounds.

It's hard to imagine a development scheme more inimical to those worthy goals than the governor's resort casinos.

Included in Patrick's casino bill, now before Beacon Hill lawmakers, is a requirement that casinos conform to the Commonwealth's "sustainable development principles." Along with environmentally friendly building design and use of renewable energy, casinos are to apply the US Green Building Council's Neighborhood Development Rating System, which calls for projects to be sited where jobs and services are accessible by foot or public transit.

It's a mystery how this smart growth standard squares with the governor's promotion of remotely sited "destination casinos." The endless stream of cars reaching far into the countryside will ensure that even a "green" casino has a very dirty environmental footprint.

The Patrick administration's road map for combating climate change - slated for release this spring - must incorporate an earnest and ambitious commitment to smart growth policies.

Ignoring the environmental impacts of remotely sited casinos is an oversight the governor simply cannot afford if he wants to be taken seriously as a leader in the battle against climate change.

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George Bachrach is president of the Environmental League of Massachusetts. Philip Warburg is president of the Conservation Law Foundation.

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"Mayors, unions band together to support casino effort"
The Associated Press (The Berkshire Eagle Online)
Tuesday, February 19, 2008

BOSTON (AP) — A coalition of politicians, labor and business leaders is forming to support the development of resort-style casinos in Massachusetts.
The group, which includes Boston Mayor Tom Menino, is officially launching today.

The Massachusetts Coalition for Jobs and Growth includes the state AFL-CIO and the mayors of other cities, including Salem and Chicopee.

They are coming together to support Gov. Deval Patrick's efforts to build three casinos in the state.

Supporters say casinos would create thousands of jobs and bring in millions of dollars of revenue to Massachusetts.

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"Gambling's costs outweigh its gains"
The Berkshire Eagle - Letters
Sunday, March 02, 2008

Quakers have historically opposed gambling as a way to finance the operations of government. So, when Governor Patrick proposed the legalization of casino gambling to offset possible operating deficits and to create jobs, the members of South Berkshire Friends Meeting used the introduction of this legislation as an opportunity to examine the principles underlying our traditional objections.

The moral and social costs of gambling are well known and our concern is deeply held. In addition to the pressure on families and marriages created by gambling, casino slot machines are the most addictive form of gambling. But the heart of the governor's argument was economic: increased state revenues, economic development, and job creation. Relying on statistical and social research published by our sister faith communities in the Massachusetts Council of Churches, we learned that:

— Neighboring states with casino gambling have not met their budget problems with promised gambling revenue. In fact, estimates show that for every dollar realized through gambling revenue, it requires three dollars from taxpayers to pay for social services and protective agency costs to deal with problems related to gambling.

— The promised job creation and economic development rarely occur, leading two of the most pro-business papers (The Wall Street Journal and The Boston Business Journal) to oppose the introduction of casino gambling.

On further reflection, local Quakers have not changed our minds about gambling. At a Meeting for Business held this month, South Berkshire Friends Meeting (Quaker) adopted the following position:

We deplore the legalization of gambling by the commonwealth of Massachusetts, including the use of slot machines, in order to raise revenue for public services. This is wrong in principle. In light of the social and economic costs of gambling, we should tax ourselves for the services we require rather than depending upon social ills to finance social services.

STORRS OLDS
Great Barrington, Massachusetts
The writer is clerk of South Berkshire Friends Meeting.

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"Speaker DiMasi rips governor’s casino proposal"
March 3, 2008 - afternoon
By Boston Globe Staff

House Speaker Salvatore DiMasi said today that Governor Deval Patrick’s plan to license three resort casinos in Massachusetts is "clearly losing credibility" after a Globe analysis found that the administration was "excessively optimistic" in its estimate that the proposal would create 30,000 construction jobs.

“When the Governor embraced casino gambling in September, I raised a number of critical questions I felt needed to be answered before we allowed a casino culture into our Commonwealth,” DiMasi, a longtime critic of casino gambling, said in a press release issued by his office. “To date, most of those questions remain unanswered and, as evidenced by a Boston Globe analysis published on Sunday, new questions are coming to light.”

The Globe story compared Patrick's assumptions with other New England casinos and an industry standard. Gus Faucher, director of macroeconomics for Moody's Economy.com, when asked by the Globe to make an independent analysis, said building three casinos at a cost of $1 billion each in Massachusetts would create a total of 4,000 to 5,000 new construction jobs -- not 30,000. Even a group representing building trade unions -- Patrick's major ally in the casino debate -- said Patrick's projection was 10,000 jobs too high.

In the story Sunday, a spokeswoman for the state economic development secretary said in a statement: "We have confidence in our casino job projections and have hired an independent third-party firm with extensive expertise in the gaming industry to provide an analysis of the governor's plan."

In the statement today, DiMasi ripped the Patrick administration.

"It seems like we have a proposal where no tough questions were even asked -- let alone answered," DiMasi said. "The Governor clearly has the burden of convincing the Legislature that this casino plan should be adopted. So far, the case has not been made, the evidence isn't there and the Governor’s arguments for casinos are clearly losing credibility."

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"DiMasi scoffs at casino job plan: Says governor's bid 'losing credibility'"
By Sean P. Murphy, Boston Globe Staff, March 4, 2008

House Speaker Salvatore F. DiMasi stepped up his attacks yesterday on Governor Deval Patrick's proposal to license three resort casinos in Massachusetts, accusing the governor and his staff of failing to do their homework and calling Patrick's prediction that it would generate 30,000 new construction jobs "absurd."

The unusually harsh critique from DiMasi, who until now has said only that he was skeptical of Patrick's plan, signaled that the speaker is preparing for a no-holds-barred fight as the House plans hearings on the governor's proposal.

"The governor's arguments for casinos are clearly losing credibility," DiMasi said in a written statement.

DiMasi was reacting to a report published in Sunday's Globe that detailed how Patrick's prediction of 30,000 new construction jobs, 10,000 each from three $1 billion casinos, rested solely on a gambling industry estimate and appeared excessively optimistic.

The report said that just 2,600 new construction jobs have been generated by the $1.5 billion expansion of two casinos in Connecticut. The story also quoted an independent financial analyst who said that 4,000 to 5,000 new construction jobs appeared more reasonable for three casinos statewide.

Although his administration defended its estimate, Patrick downplayed the significance of the figure, even though he cited it as evidence of gambling's economic benefits in his State of the State speech Jan. 24.

"There are going to be all kinds of claims about whether it's 30,000 construction jobs or 20,000 construction jobs or 5,000 con struction jobs," he said. "I can tell you that whatever the number is, it beats the opposition, which is zero."

Later in the day, answering reporters' questions a second time, Patrick responded to DiMasi's broadside by saying he would continue trying to persuade individual House members of the merits of casinos.

"He is making a lot of noises that sound like he has made up his own mind," Patrick said of DiMasi. "But there are a lot of other members in the body. They are entitled to a point of view."

DiMasi's salvo was clearly a blow to casino supporters in the House, who have been waging an uphill battle. An informal Globe survey of House members last week indicated that more than a third of representatives remain undecided and that negative votes outnumber the positive by a significant margin.

"It's frustrating," said Representative Brian Wallace, a Boston Democrat who has been marshaling votes in favor of casinos. "We are changing votes, we are convincing people on the merits, but a lot of people aren't to going to stand up because of these statements. [DiMasi] is a very, very powerful guy."

Senate President Therese Murray, who is generally in favor of casinos, declined to comment yesterday. But Senator Michael Morrissey, a Quincy Democrat who supports gaming, said that DiMasi was trying to change the focus of the casino debate and "play a little offense."

"Even if we say the governor was a little overoptimistic, what about 20,000 jobs?," said state Senator Michael W. Morrissey. "That's not exactly small potatoes. That's a lot of jobs. It's good for the state. Good for the economy."

But DiMasi suggested that Patrick was losing ground with legislators, who must approve the plan for it to forward.

"The governor clearly has the burden of convincing the Legislature that this casino plan should be adopted," DiMasi said. "So far, the case has not been made. . . . The evidence isn't there."

DiMasi highlighted another aspect of the Globe story, the source of the 30,000 estimate. Patrick's administration has acknowledged that the source was Suffolk Downs, a major player in the state's horse and dog track gambling industry and a would-be bidder for a casino license.

Suffolk Downs asserted it would generate 10,000 construction jobs on a $1 billion casino in East Boston in a report submitted to Daniel O'Connell, the state economic development secretary, who is shepherding the casino proposal for Patrick. The administration then multiplied that estimate by three, for three casinos, to come up with 30,000, according to a written reply to Globe questions by O'Connell's office.

"The fact that those figures were taken from Suffolk Downs, a casino advocate, at face value and simply multiplied by three [makes] the argument . . . even more questionable," the DiMasi statement said. "As of today, it seems like we have a proposal where no tough questions were even asked, let alone answered."

DiMasi has come under fire himself and is the subject of an ethics complaint filed by the state Republican Party for playing golf in Florida with a top Suffolk Downs executive, Joseph O'Donnell, while the track was vying for a casino. DiMasi has said that he did nothing wrong and that, in fact, he should be lauded for turning down a golf invitation from casino mogul Donald Trump.

Suffolk Downs responded to DiMasi's broadside yesterday by issuing a statement from its chairman, Bill Mulrow. Mulrow said Suffolk Downs gathered input from multiple parties to develop the construction jobs estimate it gave to the Patrick administration. Mulrow suggested the 10,000 figure took into account work that would be performed over multiple years and in multiple phases.

"We consulted with gaming, finance, and construction experts in our projections,' the statement said. "It is clear that there are different methodologies. . . . Regardless of which projections are used, the economic benefits jobs, revenue, and increased tourism are compelling."

O'Connell stood by the state's estimates and methodology. He said DiMasi neglected to mention other important aspects of the plan, including 20,000 permanent casino resort jobs. O'Connell's office has not performed independent studies, but last month hired Spectrum Gaming Group of New Jersey to analyze financial benefits and the job creation potential of Patrick's plan.

The proposal calls for inviting casino developers to bid for three licenses, one in Metropolitan Boston, one in Southeast Massachusetts, and one in Western Massachusetts. Patrick believes the state can raise about $200 million to $300 million in license fees, which are to have 10-year terms, for each casino. In addition, he believes the state will receive up to $400 million in total annual gambling proceeds from the three facilities.
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Andrew Ryan and Andrea Estes of the Globe Staff contributed to this report.
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A Boston GLOBE EDITORIAL
"Unnecessary hype on casinos"
March 4, 2008

GOVERNOR Patrick wants to see three resort casinos built in Massachusetts, but he hurts his own cause by making hyperbolic claims about the potential job benefits. Unvarnished information should be sufficient to make the case, if faithfully presented by the administration and carefully considered by the Legislature - beginning with a hearing of the joint economic development committee on March 18.

In a Globe report on Sunday, several analysts contradicted Patrick's claim that his casino plan would create 30,000 construction jobs. One macroeconomics expert placed the figure at 4,000 to 5,000 new construction jobs over a three-year building period. Job estimates by another economist reached as high as 20,700. There are many variables at play, not the least of which is the size of a resort. But based on typical labor costs for modern casino projects, which usually range from 27 to 33 percent of their construction budgets, it's hard to see how job creation could possibly climb to 30,000.

There is no need for Patrick to oversell casinos. They offer a chance to recapture millions of dollars now spent by Massachusetts residents in Connecticut casinos. Cards must be dealt. Meals must be served. Security must be enforced. And there is no arguing with the fact that resort casinos are a labor-intensive industry. Benefits also extend to the rest of the state. Taxes on gross gambling receipts in Massachusetts could be used for property tax relief, health, education, or other state needs. Though Patrick's job and revenue figures may be open to challenge, his basic premise is sound: passage of a casino bill opens a new economic development front in Massachusetts.

For their part, casino critics offer a game of "gotcha," a diversion that doesn't create a single job or dollar in tax relief.

Within two weeks, a report commissioned by the Greater Boston Chamber of Commerce should shed more light not only on job figures but on other areas in dispute, including Patrick's estimate that the state could realize $400 million in annual revenue from three resort casinos. Critics, including the Massachusetts Taxpayers Foundation, contend that the state would be lucky to pocket half that amount. Legislators, many of whom are undecided on casinos, will be looking for dispassionate information. The chamber's report could fill that role, coming as it does from an organization whose membership is itself split on the benefits of casino gambling.

There is no precise mathematical formula to resolve the debate over casino gambling. There are social costs, such as gambling addiction, to weigh against the economic development and revenue gains. Patrick's excessive job claim makes his sales job harder. But it doesn't diminish the overall soundness of his proposal.

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"Patrick challenges DiMasi over casino proposal: Criticizes speaker for not devising revenue plan"
By Matt Viser, Boston Globe Staff, March 5, 2008

Governor Deval Patrick fired back at House Speaker Salvatore F. DiMasi yesterday over his criticism of Patrick's casino construction job estimates with a simple message: Put up or shut up.

Patrick, seeking to shift the focus from a dispute over specific jobs numbers, sent a letter to each of the 155 members of the House chiding DiMasi for not coming up with a revenue plan of his own.

"Attacking ideas without proposing sound alternatives is not good economic policy, nor what the public expects or deserves," Patrick wrote. "If the speaker has other proposals that will generate the benefits of our legislation, including direct property tax relief for over 1 million households, I look forward to hearing them."

A Globe report Sunday said Patrick's estimate that building three casinos in Massachusetts would produce 30,000 construction jobs appeared excessively optimistic, compared to actual experience and independent estimates.

On Monday, DiMasi, citing the Globe report, accused the governor and his staff of failing to produce a realistic jobs estimate and said Patrick's plan is losing credibility on Beacon Hill. He called Patrick's estimates absurd.

But Patrick and his economic development secretary, Daniel O'Connell, countered yesterday that the dispute over casino construction jobs should not be allowed to tarnish the overall promise of casino gambling, including new jobs and a new source of revenue for the state.

"Regardless of whether the proposal creates 30,000 construction jobs over the next few years or 5,000 to 20,000 construction jobs, as reflected in other estimates, one thing is certain: The speaker's alternative will create zero jobs," the governor said in his letter to lawmakers.

O'Connell, who is shepherding the governor's casino proposal, appeared to shift his stance after standing behind the original estimates Monday. He conceded in an interview yesterday that the governor's 30,000 construction jobs estimate was "not a precise calculation," even though Patrick used it to help sell his casino plan in his State of the State speech Jan. 24.

O'Connell stood by other estimates that Patrick has touted, including 20,000 permanent jobs at the casinos and $400 million in annual gambling proceeds for the state.

It is a sensitive time for the casino debate. With hearings scheduled to begin March 18, an informal Globe survey of House members last week indicated that more than a third of representatives remain undecided and that negative votes outnumber positive by a significant margin.

DiMasi was unavailable to respond to Patrick's letter last night, said his spokesman, David Guarino.

"It is understandable that the governor is concerned, since the numbers do not add up and he's losing credibility on this issue," Guarino said.

The state Republican Party also pounced yesterday and poked Patrick for his out-of-state campaigning for presidential candidate Barack Obama.

"Governor Patrick sure is earning his title as the Great Exaggerator," Barney Keller, spokesman for the Massachusetts Republican Party, said in a written statement. "He knows how to buy a plane ticket to Ohio, but he doesn't know how many jobs his own plan will supposedly create."

Meanwhile, a team of the governor's Cabinet secretaries met for an hour yesterday with members of the Mashpee Wampanoag tribe to discuss the tribe's proposal for a casino in Middleborough.

It was the first meeting since Patrick's administration filed a formal objection to the tribe's plans with the Bureau of Indian Affairs.

The tribe is seeking federal approval to build a casino without state oversight, while Patrick wants to see the tribe develop its casino under his proposal for state licenses, which would ensure that the state gets a share of revenue.

Both sides were conciliatory in public statements after the closed-door meeting yesterday, but they did not provide details of their discussions or shed any light on their positions.

"We definitely want to work with the state," said tribal council chairman Shawn Hendricks. "Our tribe members, we live here; we have friends here. It's common sense that we would, you know, build a relationship. We don't want to come out in a negative light and come out in a controversy with anyone."

Hendricks also said that, although the tribe is working with the state, it would continue to pursue its federal application.

"When would we want to build it?" Hendricks said. "Three days ago."

If the tribe is able to win federal trust status for the land, the property effectively becomes sovereign territory, and the state risks being shut out of gambling proceeds. State regulators would not have any sway over details such as zoning, traffic, environmental impact, and public safety. The value of any future state-licensed casinos would also be diluted.

The argument of inevitability for an Indian casino has been another key selling point for Patrick. An Indian casino is coming, he says, so the state should make sure it happens on its own terms.

"There's no question in my mind that there will be a facility taken into federal trust by the tribe," O'Connell said in the interview yesterday. "We will have a Native American casino in the Commonwealth and in the not-too-distant future."

Meanwhile, the state's racetrack advocates are pushing for a compromise that would allow for slots at the state's four racetracks. A similar proposal in 2006 failed by a 100-to-55 vote, but track owners are arguing that they could bring much-needed revenue to the state quicker than casinos.

Several track-friendly legislators will probably attempt to substitute their own legislation enabling slots at tracks for the governor's casino bill.

A pro-casino organization, the Massachusetts Coalition for Jobs and Growth, announced new supporters yesterday, including Mayor William Scanlon of Beverly, Mayor Edward Caulfield of Lowell, the Lowell City Council, and the Springfield Police Patrolman's Association.
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Matt Viser can be reached at maviser@globe.com.
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"Casino numbers recrunched, officials' roles are crunched"
The Boston Globe, Letters, March 5, 2008

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FOR THOSE legislators who find it difficult to publicly support casino gambling in the Commonwealth because House Speaker Salvatore DiMasi's "skepticism" has made them "reluctant to . . . buck a leader who controls much of their political success," I would like to note: You were elected to help us, the citizens of Massachusetts, not yourselves, nor DiMasi ("Lawmakers undecided on casinos," Page A1, March 1).

Legalized gambling goes on in states that border Massachusetts. Opening casinos here is an opportunity to increase income to this state. It will hopefully help fund programs that are short of money, and perhaps even lower our tax burden in the future. To deny this to us is self-serving.

Yes, there is a concern about gambling addiction. But those who are addicted will find their way to one of the border states.

Legislators need to ask themselves whom they represent.

PETER GRAY, Boston

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THE POLITICAL naivete or incompetence of Deval Patrick never ceases to amaze me. We now learn that not only was the governor wildly overestimating the number of jobs that would be created by his casino proposal (not a surprise), but he based those estimates on data provided by Suffolk Downs ("Number of casino jobs is disputed," Page A1, March 2). It's amazing that anyone thinks that any numbers about costs or benefits from a proponent and beneficiary of a government program deserve credibility. When Patrick ran under that vacuous slogan, "Together we can," someone should have asked, "can what?"

PHIL SHEVRIN, Lexington

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I AM DISAPPOINTED that creating construction jobs for the unionized building trades is given such emphasis in the decision to build or not build casinos.

It seems that our government regularly feels compelled to create work for construction workers regardless of our need or desire for the product. Construction jobs by their very nature are temporary and cyclical, while the decision to open up our state to casinos will affect us long after the resorts are completed.

Perhaps the casino question is one that should be put to the voters, rather than leaving it to legislators who might be in office because of the support they received from the unionized building trades.

The whole casino gambit is prime for corruption at all levels.

LINDA MacDONALD, East Weymouth

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www.boston.com/news/local/articles/2008/03/01/lawmakers_undecided_on_casinos/
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"Patrick sends lawmakers brochure lauding casino plan: Softens figures on job creation"
By Matt Viser, Boston Globe Staff, March 6, 2008

Aides to Governor Deval Patrick fanned out across the State House yesterday, delivering copies of an 11-page, color brochure extolling the benefits of the governor's casino plan to individual lawmakers, a move that emphasized his key arguments in advance of the scheduled release today of an independent analysis by the Greater Boston Chamber of Commerce.

The governor's brochure is largely a repackaging of his arguments in support of licensing three resort casinos. Created by administration staff for $1,000, it mentions that "tens of thousands" of construction jobs would be created, instead of the 30,000 figure they used for months before it was challenged this week as excessively optimistic.

"It will lead to tens of thousands of construction jobs, over 20,000 permanent jobs, and millions of dollars of new revenue," read a letter accompanying the brochure, written by Daniel O'Connell, the state's economic development secretary.

But in the glossy magazine, there are no dice. There's no slot machine. No golf course, spa, or restaurants. No casino.

Instead the brochure, titled "Destination Resort Casinos: Creating Jobs, Growing the Economy," uses stock photos. To illustrate the $50 million that would help those who develop gambling addictions, the administration used a stethoscope. In touting the money that would go toward communities experiencing spikes in traffic and crime, it used a group of people holding hands below the heading "community support."

The pamphlet was quickly criticized by opponents of the plan.

"It's like putting lipstick on a pig," said Representative Daniel Bosley, a North Adams Democrat and the chief casino critic in the House. "He keeps giving us the same information, wrapped up in a different package."

"The pamphlets sent out by Governor Patrick today are not half as slick as his phony economics," added Barney Keller, spokesman for the state Republican Party. "Instead of wasting money sending out these mailers, he should be focusing on providing Massachusetts residents with real job numbers for his proposals."

The brochure says 20,000 full-time jobs would be created; the state would reap $400 million in annual casino revenue, along with $50 million to $80 million in sales, meal, and hotel taxes. It highlights "the importance of acting now" by detailing the administration's concerns that the Mashpee Wampanoag Tribe would gain federal land and build a casino that the state would be unable to control.

The chamber is releasing a report today that analyzes the legislation the governor filed in October. The administration said it released the publication in advance of a March 18 hearing.

"As the hearing approaches, we feel it's important to provide the Legislature with as much comprehensive information regarding the governor's plan as possible," said Kofi Jones, spokeswoman for the state office overseeing the governor's legislation.

It was the second day in a row that Patrick issued a direct appeal to legislators.

On Tuesday he sent lawmakers a letter rebutting criticism from House Speaker Salvatore F. DiMasi, who cited a Globe report Sunday that said the construction jobs estimates were too optimistic.

"It's interesting that the governor is going to this extent," said Representative Ruth B. Balser, a Newton Democrat who opposes casinos. "This kind of glossy marketing attempt, I've never seen come from someone else in government before."
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Matt Viser can be reached at maviser@globe.com.
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(Photo by Matthew West)
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"Gov makes book for casinos: Patrick pushes plan with 12-page handout"
By Casey Ross, Thursday, March 6, 2008, www.bostonherald.com, Local Politics

Gov. Deval Patrick is intensifying his push to win approval for casinos by sending lawmakers a 12-page color magazine pitching the purported economic benefits of his plan to license three gambling resorts across Massachusetts.

The magazine, titled Destination Resort Casinos: Creating Jobs, Growing the Economy, was hand-delivered to legislators yesterday as Patrick and gaming opponents waged a vote-by-vote battle over the casino plan.

In his magazine, Patrick repeats assertions that casinos will generate $2 billion in economic activity and produce at least $400 million annually for transportation and property tax cuts.

The magazine drew immediate attacks from opponents yesterday.

“The pamphlets sent out by Gov. Patrick today are not half as slick as his phony economics,” said Barney Keller, spokesman for the state’s Republican Party. “Instead of wasting money sending out these (magazines), he should be focusing on providing Massachusetts residents with real job numbers for his proposals.”

Patrick aide Kofi Jones said Patrick is trying to keep the debate focused on economic potential instead of politics in advance of a hearing planned for March 18.

“As the hearing approaches, we feel its important to provide the Legislature with as much comprehensive information regarding the governor’s plan as possible,” she said.

The publication, which cost taxpayers $1,000 to produce, contains sections on job creation, state revenue estimates and a page titled, “The Importance of Acting Now.”

“The Masphee Wampanoag Tribe has submitted a land-in-trust application . . . for the purposes of operating a tribal casino,” the document states. “Unfortunately, a tribal casino authorized in conjunction with the land-in-trust does not guarantee adequate safeguards for the commonwealth’s residents . . . because state law may not apply on tribal land.”

Patrick has repeatedly used the potential for a tribal casino to argue that the state must create a legal framework for expanded gaming, or face the prospect of an Indian casino built without state controls.

State Rep. Daniel Bosley, the leading casino opponent in the House, has shot down that argument, saying a tribal casino is far from certain and that the tribe must follow a long regulatory process to gain approval for a proposed facility in Middleboro.

[Dan] Bosley (D-North Adams) and House Speaker Sal DiMasi have sharply opposed Patrick’s plan, forcing the governor to step up his effort to win votes from rank-and-file lawmakers.

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A Boston GLOBE EDITORIAL
"Casino study royale"
March 7, 2008

LEGISLATORS WHOSE minds remain open to the potential benefits of building three resort casinos in Massachusetts should look carefully at a new study sponsored by the Greater Boston Chamber of Commerce. Although the authors take no position on whether to bring casino gambling to Massachusetts, their data suggests that the Patrick administration has been right all along to press the proposal as a realistic means to create new jobs and tax revenue.

The findings of the independent study by UHY Advisors, a major accounting firm, squares with the administration's claims, with one notable exception. Governor Patrick predicted that his casino plan would create 30,000 construction jobs over a roughly three-year period. But the UHY study pegs that number at 10,000 to 11,500. Another expert estimated significantly fewer construction jobs - 4,000 to 5,000 - in a Globe report on Sunday.

But one optimistic finding in the study is the projection of $2.7 billion in gross gambling revenues by 2012. The Patrick administration usually cites a figure of $2 billion. If the higher UHY figure is sound, it could convince some lawmakers that Patrick's casino proposal is simply too lucrative to ignore.

Other findings of the new study are largely consistent with administration estimates. The authors foresee the creation of 17,000 to 21,000 permanent jobs in the labor-intensive industry once the casinos are up and running. Patrick puts that figure at 20,000. State revenue projections also line up. Patrick predicts that $400 million a year would flow to the state, which he wants to use for property tax relief and transportation projects. The study projects between $376 million and $429 million.

Casino opponents worry that compulsive gambling and other social costs will outweigh the economic benefits. They gained momentum recently after Patrick oversold the construction jobs. But the measured UHY study reinforces the administration's original argument that resort casinos can be a significant force both for economic development and new state revenues.

Dueling studies are sure to be on display March 18, when hearings are scheduled on Patrick's casino bill at the Joint Committee on Economic Development and Emerging Technologies. Some show that the number of crimes go up in casino counties. Others counter that crime rates fall after factoring in the population increases common to casino counties. Similar arguments may be heard concerning unemployment rates, home prices, and other common areas of dispute. But the real job of lawmakers is to clear away the underbrush of the debate and determine if casinos, on balance, are a net benefit for the state.

Based on the latest independent study, the answer is still yes.

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Tension hasn't always existed between Deval Patrick and Salvatore DiMasi. The two shared a laugh last year before unveiling a film tax credit proposal. (John Tlumacki/Globe Staff/File)
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The Boston Globe, Op-Ed, SCOT LEHIGH
"The darts are flying on Beacon Hill"
By Scot Lehigh, March 7, 2008

IT'S THE feud that won't go away: the Democratic speaker versus the Democratic governor.

The official word is that Deval Patrick and Salvatore DiMasi get along fine, but have strong policy disagreements.

And certainly neither man has been heard to mutter the State House equivalent of Henry II's "Who will free me from this turbulent priest?" - a question that caused several of the king's loyalists to think that it might please their sovereign if they sent the pesky Archbishop of Canterbury hurrying to meet his maker.

And yet, it has become apparent to everyone that if Patrick and DiMasi were college students, neither would list the other among his friends on his Facebook page.

Their latest spat began Monday, after the Sunday Globe offered a tough critique of the governor's estimate that building three casinos would create 1 billion new construction jobs. Um, sorry, I got carried away by the administration's infectious hyperbole. Make that 30,000 new hard-hat jobs.

DiMasi promptly pounced, issuing a statement that labeled the administration's fanciful 30,000 estimate "absurd" and added that Patrick's arguments in support of the casinos "are clearly losing credibility."

Patrick then fired back with a letter to Sal's minions in the House, complaining that the speaker shouldn't be "attacking ideas without proposing sound alternatives."

Nor did the back and forth end there. Getting into the spirit of things, the speaker's spokesman then took a poke of his own at the guv.

Now, I think there's an easy explanation for DiMasi's latest dart. Having just been caught with his putter out - that is, embarrassed by the Globe's account of his golf outings with Joe O'Donnell, one of the principals at casino-hungry Suffolk Downs - the speaker likely wants to demonstrate that, despite his golfing buddy's urgings, he hasn't wavered a whit in his opposition to gambling.

This, however, was only the latest episode in the ongoing tensions.

Another came in late January, when DiMasi graciously used Patrick's rocky start as governor to raise doubts about a potential Barack Obama presidency, saying that he didn't want the president "to be in there in a learning process for the first six months to a year."

For his part, Patrick portrayed that gibe as a case of an untamed tongue wagging an undisciplined speaker, making it known that DiMasi had expressed regrets for his remark.

"He came in, he's all hat in hand, and he said, 'I just can't help myself,' " the governor told the Lowell Sun, adding that though he liked DiMasi, "There's always going to be the glib sort of dig because he can't help himself. Even he says he can't."

So, to be serious for a minute, what explains the tension between Beacon Hill's two highest profile Democrats?

A legislator for almost three decades, DiMasi is said to view Patrick as an amateur who considers himself a cut above the other denizens of the State House. Intent on maximizing his own power, the speaker likes to prevail - and to take credit. One member of a past administration recounts trying to persuade DiMasi to accept a compromise this person described as "win-win," only to have him reply, "You have to understand, I don't care about win-win. All I care about is a win.' "

Another source who knows both men says that DiMasi brings a street-corner competitiveness to his political style, and can't resist taking the occasional whack. "This is temperament meeting opportunity," he says. "Patrick's naïveté and inexperience are just too much for Sal not to take advantage of."

For his part, Patrick seems to see himself as a Democratic CEO who should be allowed to set the overall course for the Legislature to follow. Further, the governor can be thin-skinned, with a propensity toward prickliness when challenged or criticized.

One close observer of state government sums up the two perspectives - and the tensions - this way: "I think there is frustration on the part of the governor and his people because he is the governor and he got elected statewide, while the speaker is elected by just a handful of people in the North End. I think there is frustration on the part of the speaker that the governor and his people don't consider the legislative leaders as co-equal partners inside the building."

That's not to say the relationship can't ever be productive. But thus far, what one-party rule has ushered in on Beacon Hill is more an era of comedy than comity.
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Scot Lehigh's e-mail address is lehigh@globe.com.
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Massachusetts Speaker of the House Sal DiMasi stayed on message with his opposition to casino gambling as he addressed the breakfast gathering of the Greater Boston Chamber of Commerce held at the Hyatt Regency in Boston.
(Globe Staff Photo / George Rizer)
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Surrounded by union officials with the State House as a backdrop, Governor Deval Patrick addressed a gathering of union workers and reaffirmed his commitment for casino gambling and the jobs he says it would create.
(Globe Staff Photo / George Rizer)
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Union workers who gathered on the Boston Common listened to Patrick reaffirm his commitment for casino gambling in the state.
(Globe Staff Photo / George Rizer)
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Tom White (left) of Middleborough and Ed Petrelli of Hull held signs during the rally on Boston Common.
Hundreds of casino supporters rallied before a legislative hearing to urge lawmakers to support Patrick's casino plan.
(AP Photo / Michael Dwyer)
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Robert Haynes, state president of the AFL-CIO, spoke at the rally. He urged his members to attend the legislative hearing at the State House on the casino plan.
(AP Photo / Michael Dwyer)
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People packed the Gardner Auditorium at the State House for the legislative hearing on casino gambling in Massachusetts.
(AP Photo / Michael Dwyer)
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Janice Loux (left), president of Unite Here Local 26, applauded as Patrick finished his testimony at the State House.
Patrick conceded that his proposal to build three resort-style casinos faced likely defeat in the House, but he pressed lawmakers to allow for a full and open debate.
(AP Photo / Michael Dwyer)
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State Representative Thomas Calter spoke during the legislative hearing.
(Globe Staff Photo / Dominic Chavez)
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Senator Susan Tucker listened to questions during the hearing.
(Globe Staff Photo / Dominic Chavez)
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(David L. Ryan/Globe Staff)
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"Patrick urges lawmakers to resist pressure, consider casinos"
By Matt Viser and Andrew Ryan, Globe Staff, March 18, 2008

Governor Deval Patrick acknowledged in testimony today that the prospects were bleak for his casino proposal, but he urged lawmakers to resist pressure from legislative leaders and continue to explore the economic advantages of expanded gambling.

“I have no illusions about the plans in the House for this legislation,” Patrick said during a standing-room-only hearing at the State House, according to prepared remarks distributed by his staff. “But I am here anyway, because what you do in this committee will determine whether that full and open debate is even possible. I am simply asking that an open debate begin -- rather than end -- today.”

The testimony before the Joint Committee on Economic Development and Emerging Technologies was part of a long-awaited hearing on Patrick’s plan to license three resort casinos. Union workers in hard hats, religious leaders, academics, environmentalists, and online poker players have converged on the State House to discuss the bill. The committee could issue a report on the bill today and send it to the full House for consideration as early as Thursday.

House Speaker Salvatore F. DiMasi set a dire tone this morning for what was expected to be a difficult day for proponents of expanding gambling as he blasted the governor’s plan.

“Casinos will absolutely cause human damage on a grand scale,” DiMasi said during a 30-minute address at the Greater Boston Chamber of Commerce. “After six months of debate on this bill, I believe this evidence is not there, the case has not been made, and time is running out.

“Right now, my answer is no.”

Shortly after DiMasi made his strongest rebuke to date, Patrick spoke at a rally on Boston Common, trying to shore up support for his proposal. He addressed a crowd of about 200 union workers in sweat shirts and wearing yellow, blue, and brown hard hats. The governor said in his testimony before the committee that the criticism of his proposal has been spirited, acrimonious, and at times so contradictory it became absurd.

“The most amusing part for me is having the same people argue in one minute that these facilities will produce little or no revenue and few new jobs,” Patrick said, “and then in the next that they will be so successful that they will suck all the economic life out of the surrounding communities.”

While DiMasi disparaged job projections and other specifics at the chamber breakfast, he also attacked the proposal in broad, moral strokes.

“The cost of cleaning up the human devastation brought by casino gambling is too great,” DiMasi said, according to prepared remarks distributed by his staff. “The cost of creating a casino culture is too high.”

At the State House, the committee heard testimony from a wide range of lawmaker whose differing opinions clashed. Passing on Patrick's proposal won’t stop casinos from coming to Massachusetts, said Representative Thomas Calter, a Democrat from Middleborough, where the Mashpee Wampanoag tribe is looking for federal approval to build a casino.

"Gaming is coming," Calter said. "The question is who is going to control it."

Representative Daniel Bosley, an ardent gambling critic who chairs the committee, pointed to the Lottery as a cautionary tale in which the state has become addicted to gaming. It began as a single daily number game and had grown into dozens of scratch tickets, Megabucks, Mega Millions, and Keno.

"We love the revenues,” said Bosley, a Democrat from North Adams, “but we hate how we get them."

Bosley's co-chair, Senator Jack Hart, also spoke about the Lottery, but the Democrat from South Boston cast it in a different light.

"We're already in the gambling industry," said Hart, who is leaning toward supporting Patrick's plan. "Do the benefits in the end outweigh the social costs?"

Meanwhile, a key Senate supporter said he may seek a binding statewide ballot question on casinos in the fall.

"It certainly would be an appropriate subject matter for a statewide referendum," said Senator Steven C. Panagiotakos of Lowell, chairman of the Ways and Means Committee, adding that he believes that even casino opponents in the House might be persuaded they should give the public a chance to voice their opinion.

Panagiotakos said the issue is too important to be lost in the increasingly personal struggle that has developed between the governor and DiMasi.
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Andrea Estes and Frank Phillips of the Globe staff contributed. Material from the Associated Press is included in this report.
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"Casinos proposal on brink of defeat: Close verdict by panel against Patrick plan 'I can count,' governor says of today's vote"
By Matt Viser, Boston Globe Staff, March 20, 2008

In a day of frenzied, behind-the-scenes wrangling, secret vote counts, and last-minute deals, House Speaker Salvatore F. DiMasi orchestrated a narrow committee vote yesterday against Governor Deval Patrick's resort casino proposal, setting up certain defeat today by the full House of one of the governor's cornerstone economic initiatives.

The committee vote was closer than had been expected as recently as last week, as senators and Republicans on the committee swung the governor's way over the final two days. After an initial vote yesterday produced a tie and a parliamentary dispute, House leaders delayed a final vote for four hours, which gave them time to come up with something more decisive.

Ultimately, DiMasi engineered the 10-to-8 vote against Patrick's plan by changing the vote of a Republican House member, Richard J. Ross of Wrentham, at literally the last minute. After the intense arm-twisting and DiMasi's victory, the only question for today was how badly Patrick's bill will be defeated in the House.

"I can count," Patrick said last night, acknowledging the inevitable. "I can count."

Over the day, Beacon Hill was gripped by a series of confusing events played out behind closed doors. Two votes were taken by e-mail and phone yesterday and counted in House and Senate offices instead of committee rooms, after members of the Joint Committee on Economic Development and Emerging Technologies heard 13 hours of testimony Tuesday.

The vote means that when the House convenes today, it will be deciding whether to uphold or overturn the committee's negative recommendation. Overturning a committee recommendation is unusual, and DiMasi has vowed it will not happen in this instance. The Senate has generally been considered in favor of the bill.

The dispute over casinos and other issues between the governor and the House speaker has become the dominant feature of Beacon Hill politics so far in the governor's early term, and the hard feelings appeared to bubble up again yesterday.

Patrick denounced the process that resulted in the death of his initiative as "midnight maneuvers."

"It's disappointing, but not surprising," Patrick said. "The process - given the midnight maneuvers last night, and backing and forthing today - speaks for itself."

He also suggested DiMasi has not kept a promise to provide a full and fair debate in the House.

"You can't have an open debate on the House floor with the maneuvered and engineered outcome from the committee like the one we had," he added.

During a brief press conference, DiMasi defended the process as "full and fair."

"There is going to be a full debate on the governor's bill," DiMasi said.

He also denied putting any pressure on lawmakers or making promises to help secure a negative committee vote. "Not at all," he said. "No deals, no bargains, nothing."

An initial tie committee vote that would also have resulted in a negative recommendation yesterday was challenged by Patrick and his allies on the committee on parliamentary grounds. DiMasi was forced to cancel a public appearance yesterday morning as he continued to twist arms and seek sufficient votes to win a clear negative recommendation on the governor's bill.

By 4 p.m., he had persuaded a single Republican lawmaker, Ross, to change his vote.

Ross has been a key figure since Tuesday evening when, as hours of testimony continued and it became clear from private head counts that the committee was evenly divided, DiMasi entered the hearing room and sat in the front row, sternly looking over the members for about 15 minutes. Later in the night DiMasi called several legislators into his office, including Ross, to try to pressure them to change.

Ross said he had given his word to the governor last week that he would vote to send the casino legislation out favorably. "I'm sticking with the governor," Ross said Tuesday night. "I think Sal's very surprised."

Despite what DiMasi said, Ross indicated a deal was behind his change. Questioned by reporters, Ross said he switched his position from agreeing with the governor after speaking by phone with Plainridge Racecourse president Gary Piontkowski.

"It was down to the eleventh hour, the 59th minute," said Ross, a first-term House member from Wrentham who also said he met with DiMasi twice in 16 hours. "Ultimately I owe my vote to the people in the district, how they wish me to vote."

Ross said DiMasi indicated he would allow the House to consider a bill to install slot machines at the state's four racetracks, including Plainridge. Similar slots legislation has failed miserably in prior votes, but Ross said DiMasi promised he would allow it to come to the House floor again.

As events unfolded yesterday, even some lawmakers were befuddled. Legislator shuttled in and out of the office of Representative Daniel E. Bosley, the House chairman of the Economic Development Committee.

"We don't know what's going to happen," said Representative Ellen Story, Democrat of Amherst and a committee member, just before the final vote was announced. "The phone is ringing a lot."

Senator Bruce E. Tarr, a Republican from Gloucester, accused Bosley of stifling debate and making decisions without consulting committee members. The two votes were taken by e-mail, and the first vote was never officially announced. With the exception of listening to testimony, none of the committee's deliberations were conducted in public.

"I would have rather had the committee reconvene in the light of day after a marathon meeting and evaluate our options," Tarr said. ". . . I would have liked the process to have been a little bit more democratic."

But others shrugged over how the Beacon Hill gears turned on the casino debate.

"To call it arm-twisting isn't fair," said Representative Bradford Hill, an Ipswich Republican who voted in favor. "This is politics."
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Matt Viser can be reached at maviser@globe.com.
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"House rejects casino bill; backers vow to roll again: Racetracks, unions, tribe pursue strategies"
By Matt Viser, Boston Globe Staff, March 21, 2008

Led by House Speaker Salvatore F. DiMasi, the House last night resoundingly defeated Governor Deval Patrick's casino bill, 108 to 46, but racetracks, unions, and other gambling proponents vowed to keep up their lobbying blitz.

Among the gambling initiatives still bubbling on Beacon Hill were a renewed push for slot machines at the state's four racetracks, a plan for a statewide casino referendum, and maneuvers in the Senate to resurrect the governor's bill, which would have licensed three resort casinos in the state. The focus will also turn to a quest by the Mashpee Wampanoag tribe, which is asking the federal government to allow it to build a $1 billion resort casino in Middleborough.

But yesterday the biggest spotlight remained on the House, where DiMasi strongly declared his political victory. Patrick, having given up his fight by Wednesday night, left the state for New York.

"The big money special interests lost, and the people of Massachusetts won," DiMasi said in a statement. "Members of the House withstood incredible pressure from the deep-pocketed gambling industry, unions, and the governor's office."

Patrick's spokesman Kyle Sullivan said Patrick had to leave the state to attend to undisclosed personal matters.

The defeat of Patrick's legislation has significant consequences in the debate over next year's state budget, which contains a shortfall estimated at $1.3 billion. The governor had proposed relying on $124 million of casino licensing revenues to help balance the budget. Attention will now shift to a proposal by DiMasi to raise $152 million by increasing the state's cigarette tax by $1 a pack.

After six months of impassioned debate, the votes were all but decided yesterday. The governor's legislation came to the House floor facing insurmountable odds, given an unfavorable recommendation on Wednesday from the Joint Committee on Emerging Technologies and Economic Development.

Most lawmakers leaned back in their chairs during six hours of testimony, nodding off, attempting to finish crossword puzzles, and writing text messages on their cellphones. Representative Richard Ross, who cast the deciding vote in committee Wednesday that resulted in a negative recommendation, ate from a bin full of red licorice as the debate droned on.

The vote followed nearly six hours of debate on the House floor, where members sparred over the benefits and ills of expanded gambling. They argued whether the bill had received a fair committee hearing and whether it was inevitable that Native Americans would win approval for gaming in Massachusetts.

"We have not given this bill due process," Representative Martin Walsh, a Boston Democrat, said just before DiMasi slammed down the gavel and said he was out of time. "We have not given this bill a fair hearing," Walsh said.

"We had a full and fair hearing," countered Representative Daniel E. Bosley, a North Adams Democrat who oversaw committee hearings on the governor's legislation and sparred with opponents for about an hour yesterday.

In the end, none of the leaders would answer questions after a week of press conferences and recriminations. While Patrick had left the state, DiMasi went through a back door into his office, avoiding a pack of reporters gathered in the hallway outside the House chamber.

Through his press aides, Patrick attempted to move the focus off his dramatic loss and onto some of his other proposals, including several education intiatives and a $1 billion life sciences bill that was approved yesterday by the Senate.

"Governor Patrick appreciates all the legislators who stood with us today," said Sullivan. "The governor looks forward to continuing to work with House and Senate leadership and members to push our comprehensive jobs creation and economic development agenda."

As the House went through the motions of killing Patrick's landmark bill, racetrack owners were strategizing over ways to put momentum behind a bill that the speaker has vowed to bring to the House floor for discussion. Representative David Flynn, a Bridgewater Democrat, is spearheading a proposal that would allow each of the state's four racetracks to install 2,500 slot machines. Each track would have to agree to pay a $50 million licensing fee and give the state 50 percent of the slot revenues, which would generate an estimated $400 million annually.

"It brings it right to the forefront," said Flynn, the longest-serving member in the House. "I'm the only game in town."

A similar proposal in 2006 failed 100 to 55, but track owners are arguing that chances are better now.

"I'm hoping we can all get together now and the governor can say I need the revenue now because I lost casinos, and DiMasi will agree, too," said Gary Piontkowski, president of Plainridge Racecourse in Plainville. "Am I optimistic? I'm not doing cartwheels that I think we're going to get this. But I know one thing: We won't be mudded by the casinos and the casino culture arguments."

The governor has said he would veto any legislation that specifically included slot machines at racetracks, but those statements were made as he was trying to promote his own proposal for three resort casinos. "As far as I'm concerned, that's off the table," Patrick said in a press conference earlier this week.

DiMasi has in the past been vehemently opposed to slots at the tracks, but recent actions indicate he may be more amenable. He met with Flynn several weeks ago and committed to allowing a slot machine proposal to come to the House floor in the coming weeks.

Yet Mayor Thomas M. Menino of Boston, who supported a resort casino at Suffolk Downs, does not support slots at the tracks. "A destination resort casino is much more what the city needs, rather than just slots," said Dorothy Joyce, spokeswoman for Menino.

Senator Steven C. Panagiotakos of Lowell said he plans to propose a nonbinding statewide ballot question on casinos in the fall. The move, which would need House and Senate approval, would increase public pressure on lawmakers if the vote mirrored public opinion polls that indicate that the majority of Bay State residents favor casinos.

"The House's argument has been that it's going to change the culture and character of Massachusetts," Panagiotakos, chairman of the Ways and Means Committee, said last night. "Well, the best to decide that is the people of Massachusetts."
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Matt Viser can be reached at maviser@globe.com.
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A Boston GLOBE EDITORIAL
"The House always wins"
March 21, 2008

YESTERDAY, HOUSE Speaker Salvatore DiMasi finished off a worthy casino bill that brimmed with the potential for creating 20,000 permanent jobs and $400 million in annual recurring revenue for the state. That's quite a feat for one lawmaker, even the powerful North End Democrat who calls the shots in the 160-member House.

In October, Governor Deval Patrick introduced a solid bill to license up to three resort casinos in the state. Patrick never said casinos would rank among the great temples of humankind. But he saw the importance of creating good jobs for workers whose skills don't fit well with the state's knowledge industries. The potential for new revenues was also great in a state with no appetite for broad-based tax increases. And no other industry was lining up to spend an estimated $800 million on one-time license fees. By emphasizing destination casinos, the bill sought to attract visitors and avoid convenience gambling. And it contained generous provisions to help the 1.9 percent of adults who are pathological gamblers.

But perhaps this thoughtful plan was doomed from the start. DiMasi took umbrage when the Patrick administration challenged him to drop his opposition or come up with a better revenue and job plan. DiMasi fired back with broad examples of legislative initiatives, such as stimulus packages and faster permitting rules - things the public would expect from its lawmakers under ordinary circumstances.

DiMasi, to be fair, is taking some tough stands to address an anticipated $1.3 billion budget gap, including proposals to close corporate tax loopholes and increase the cigarette tax. And he is showing leadership by backing a plan to give cities and towns total discretion to steer their employees into a lower-cost health plan used by state workers. The problem, in the end, wasn't so much that DiMasi was doing too little but that he was doing too much to kill a good casino plan.

DiMasi's lobbying tactics were also telling. He does not support the introduction of slot machines at the racetracks - a wise decision, because the model has more negatives and doesn't generate the kind of jobs and revenues associated with destination casinos. Yet while lobbying House members to kill the casino bill, he promised at least three legislators that he would not block their attempts to bring a racetrack slots bill to the House floor. And this from the leader who predicted Tuesday that casinos would "cause human damage on a grand scale."

The speaker showed his clout. But it wasn't his most productive victory.

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"Steve Norton" - March 26, 2008 - Reader's Comment on The Berkshire Eagle Online:

In a speach today in Massachusetts, Secretary of Labor, Suzanne Bump referred to the 125,000 unemployed in Massachusetts; and the quality of graduates from famous institutions like Harvard and MIT,that can't find the right kind of jobs. But many of the State's unemployed lost their jobs in textile factory closings; and may not have the educational skills for Bio Science positions; but casino gaming does not even require a high school diploma, while providing a living wage, family health insurance and 401k plans.

The Governor's proposal was referring to 3 casinos with an average of 6,700 jobs each. Foxwoods and Mohegan Sun employ in excess of 20,000 for 2 properties. The top 3 Atlantic City casinos, in a very competitive market and with the closest major population an hour away; would have paid Massachusetts over $500 million in casino taxes, at the proposed tax rate of 27%. Patrick only projected $400 million, and these 3 locations would have effectively been monopolies.

Today casino in Atlantic City spend $1.5 billion at Atlantic County businesses, and the industry is responsible for over 60,000 jobs for residents of 6 South Jersey counties; that had seen their glass factories close (like the MA experience with the textile industry), and the resort city had seen its once famous Boardwalk hotels closed or converted to subsidized housing.

Certainly the Life Science industry will do a lot to keep college graduates from leaving the State. But the State is gambling $1 billion to attract this new industry, while gaming companies would probably bid over $1 billion to get the 3 casino licenses. This year, two race tracks in Indiana, just paid license fees of $500 million, for the right to add 2,000 slots to each of their tracks; and in addition, pay a tax rate on slot win, that escalates from 41% to 51%.

Doesn't Massachusetts need to attract an industry, like gaming, to give those under or un-employed Palmer and Holyoke textile workers, or N,ew Bedford fishermen a new place to earn a living.

Doesn't Massachusetts need both Life Science and gaming? Any problems from gaming already exist in Massachusetts; with the most successful State Lottery, the 2 largest casinos in the US, within 2 hours of Boston and a recently expanded Rhode Island race track with slot machines. Why not bring most of that $1.1 billion back from CT and RI, while adding thousands of new jobs, billions in construction, millions in new taxes and a major new tourist attraction that will draw visitors from NY, CT, VT, NH and overseas. According to Secretary Bump, Massachusetts attracted 21 million visitors Statewide, last year. Atlantic City a community of only 40,000 attracted 34 million visitors in 2007.

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"Let people vote on casino plan"
The Berkshire Eagle - Letters
Tuesday, April 08, 2008

According to your story of March 24, the University of Massachusetts-Dartmouth finds state residents gambled $1.1 billion out of state, garnering $233 million in tax revenue for Rhode Island and Connecticut. You report the same day on the state's struggle with a $1.3 billion spending gap.

There is a lot of opposition in the House to any type of casino proposal, and has been for years. My feeling is that gambling (though our state lottery is OK) is more a moral and personal issue. I don't believe the legislative members know their constituents' personal and moral feelings and are going with their own. This issue is too important to be left to our legislative body.

Governor Patrick's plan is sound and helpful to the state's overall economy. We are losing revenue to other states, along with the revenue we will lose from those people in New York, Vermont and New Hampshire who travel through our state to get to those Rhode Island and Connecticut casinos, or those people in Rhode Island and Connecticut who may want to experience a Massachusetts casino.

If our state government does not fix the budget problem, and I feel the casinos are a fix in the right direction, all I can see is the usual higher taxes and cut or reduced programs. Therefore, put a special referendum vote on the ballot of the next statewide vote or hold a special statewide vote and let the people decide, and no matter which way the vote goes, matter closed.

SCOTT R. THERRIEN
Pittsfield, Massachusetts

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"Patrick: Casinos plan could still fly: Says talk not based on possibility that DiMasi will leave"
By Glen Johnson, Associated Press, The Boston Globe Online, May 8, 2008

BROOKLINE - Despite a recent high-profile defeat, legislation to legalize casino gambling in Massachusetts may yet come back, Governor Deval Patrick said yesterday.

Patrick said he wasn't basing his statement on the possible departure of House Speaker Salvatore F. DiMasi, a gambling opponent, but a confluence of other factors.

The governor told a Brookline Chamber of Commerce audience that an unyielding need for property tax relief, the possibility of slot machines at the state's racetracks, and ongoing efforts by the Wampanoag Indians to build their own casino will revive the discussions.

"There's a lot of interest in it, and issues that die in one session don't die a permanent death," Patrick said. "They tend to come back over time."

Under one scenario, Patrick said, casino gambling supporters might try to expand the slot machine bill to include resort-style casinos. Patrick projected that his plan for three casinos would generate at least $600 million in licensing fees, $400 million in annual tax revenues, and 20,000 permanent jobs.

DiMasi led the effort to kill the plan. He argued the revenues would be offset by social and economic costs, including lost business at other tourist destinations.

More recently, though, potential successors have been jockeying for position as DiMasi has faced allegations of ethical lapses. The speaker has said he's not leaving, and Patrick answered a flat "no" when asked whether his comments in Brookline were rooted in a suspicion the speaker would leave.

Yet on two occasions with his audience, the governor raised the prospect of a renewed gambling debate.

Patrick held fast to his support for the plan, despite criticism from one questioner, who labeled casino gambling "predatory." The governor said that he once had doubts about casinos, but that he felt the gains outweighed the costs.

"It may yet come back in the Legislature," he said of his plan.

Later, when asked about how to provide permanent property tax relief, the governor complained that the House had rejected four ideas he proposed.

After ticking off his ideas for 1 percent increases in the meals and hotels taxes, as well as closing a telecommunications tax loophole, he said, "Resort casinos have been rejected for the time being."

A DiMasi spokeswoman declined to comment.

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"Death threats targeted DiMasi: Guard provided amid casino fight"
By Frank Phillips, (Boston) Globe Staff, May 14, 2008

House Speaker Salvatore F. DiMasi was given State Police protection at his North End home after he received what authorities felt was a credible death threat during the highly charged debate over casino gambling, said three people who have been briefed on the threat and the State Police response.

During two separate periods - each spanning two weeks during March and early April - police assigned an undercover officer to stand watch outside DiMasi's North End condominium, because of threats contained in an anonymous letter sent to his State House office and overheard in a conversation, said the sources, who requested anonymity because of the sensitivity of the investigation.

The sources would not release details about the overheard conversation, such as where it occurred and who was involved. But they said one of the parties in the conversation mentioned specific details of DiMasi's private life, including the kind of dog he has and when he walks it.

Although the gambling issue was never specifically discussed in either case, the threats were made as DiMasi was publicly working to block Governor Deval Patrick's bid to license three casinos in the state. Patrick's proposal ultimately failed.

An undercover officer was assigned to remain outside DiMasi's home from late afternoon each day until 9:30 the next morning during both two-week periods, the sources said.

Captain Barry O'Brien, a State Police spokesman, confirmed that the threats against DiMasi were made and that an investigation is underway. O'Brien would not confirm that protection was provided to the speaker.

"We are not inclined to discuss the nature or the type of protection we would provide in the course of an investigation like this," O'Brien said.

DiMasi declined to have the police protection at his State House office. Security at the entrances of the building scan for weapons, and a State Police officer sits down the hall from the speaker's office outside the governor's office. Police had recommended a 24-hour detail, the sources said.

While DiMasi's office often gets nasty letters and phone calls, the sources, who read the letter and know the details of the reported conversation, said the threats in both cases were specific enough to prompt the speaker and his staff to contact the State Police.

The letter, which contained a specific threat to his life, came several weeks before the House vote on casinos. It warned the speaker that the writer knew where "you hang," the sources said.

Those speaking in the overheard conversation, which took place in a public facility a day or two after the casino vote, were quoted as saying that unspecified actions by the speaker were "unacceptable," according to the sources.

One of the parties in the conversation claimed to know DiMasi's daily habits, such as his hours for walking his dog, exactly where he lives, and where he goes on weekends, according to the sources. What concerned DiMasi and State Police were the specifics about his private life, the sources said.

DiMasi, who was in the Worcester area on official business yesterday, declined to comment.

The casino bill dominated the debate on Beacon Hill for several months and set off passion on both sides. A coalition of liberals, social conservatives, civic groups, and religious organizations argued strongly against legalized gambling. Casino advocates, including labor unions and racetrack and casino operators and developers, accused DiMasi and the House leadership of turning their backs on them.

Patrick had touted the casino plan as an economic development project that would generate thousands of union jobs.

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"Speaker DiMasi says yes to casino referendum"

By Scott Van Voorhis, Wednesday, May 21, 2008, www.bostonherald.com, Local Politics

House Speaker Sal DiMasi, after orchestrating a lopsided defeat in March of a proposal to bring resort casinos to the Bay State, now says he supports putting gambling on the fall ballot.

DiMasi’s comments, in a statement sent out this morning to reporters, come as the Senate considers attaching casino and slot machine amendments to its proposed budget.

DiMasi (D-North End) warned that such a move could create a budget impasse with the House, which has already voted against expanded gambling. Instead, DiMasi said he will support as a “compromise” a proposal by state Sen. Steven Panagiotakos (D-Lowell) to put the question before voters this fall.

“The budget is the most important bill we debate each year and is far too significant to be bogged down in these kinds of major, controversial public policy debates,” DiMasi said in a statement. “Rather than have our budget negotiations stall over a potential casino impasse, I suggest we put this before the voters in a nonbinding referendum and reconsider it next year.”

The statement by the House leader is the first indication that he might be willing to consider a deal on expanded gambling after years of strong opposition to slot machine and casino proposals.
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Article URL: www.bostonherald.com/news/regional/politics/view.bg?articleid=1095516
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"DiMasi softens stance on casino bill"
By Steve LeBlanc, Associated Press
Thursday, May 22, 2008

BOSTON — House Speaker Salvatore F. DiMasi said yesterday he'd support a proposal to let residents cast a nonbinding vote this fall on whether to allow casino gambling in Massachusetts.

DiMasi, a staunch casino gambling opponent, also said he'd be willing to let lawmakers reconsider the gambling issue next year.

The shift by DiMasi revives the casino gambling debate just two months after House lawmakers overwhelmingly defeated the plan by Gov. Deval L. Patrick to license three resort-style casinos in Massachusetts.

Patrick projected that his plan for three casinos would generate at least $600 million in licensing fees, $400 million in annual tax revenues and 20,000 permanent jobs.

DiMasi issued the statement just hours before the Senate began debate on a Republican-sponsored amendment that would have added Patrick's casino plan to their version of the state budget.

Senate Republicans filed the amendment to force a debate on casinos in the Senate, which has traditionally been more open to the idea but didn't get a chance to debate Patrick's plan.

DiMasi said he was worried that the amendment could create a budget impasse. He said he would instead support a proposal by Senate Ways and Means Chairman Steven Panagiotakos, D-Lowell, to put a nonbinding casino question on the fall ballot. Panagiotakos supports casinos.

"The House made its views on casinos clear in May. But rather than have our budget negotiations stall over a potential casino impasse, I suggest we put this before the voters in a nonbinding referendum question and reconsider it next year," DiMasi said in a written statement.

Later yesterday, the Senate voted 29-9 to create a joint House-Senate committee to explore the casino issue instead of adopting the casino amendment. During debate, Republicans said the Senate should take the chance to have a full discussion of the casino plan.

"I suggest we deal with this issue. We deal with it now," said Sen. Bruce E. Tarr, R-Gloucester. "We need to be counted on this issue."

But others said the Senate's massive $28 billion state budget plan was no place for a debate on the complex issue of casino gambling. Sen. Stanley Rosenberg, D-Northampton, said it made more sense for the Senate to create the joint casino gambling committee.

"We will neither do justice with this issue if we continue this debate today and we will really compromise the rest of the budget debate," Rosenberg said.

Gambling critics urged the Senate to reject both the casino plan and the temptation to study it more.

"This is a Pandora's Box," said state Sen. Robert O'Leary, of Barnstable. "It will change the character of Massachusetts in a way that we will come to regret."

Patrick was not immediately available for comment on DiMasi's statement or the Senate vote.

Patrick's Housing and Economic Development Secretary Dan O'Connell issued a written statement saying repeated polls have already shown public support for the governor's casino proposal.

"With all due respect to the speaker, we feel that a non-binding referendum may not be the best course of action at this time," O'Connell said. "The House's opposition to the proposal has settled the question for this legislative session."

In March, House lawmakers voted 106-48 to send Patrick's bill to a study committee, effectively defeating it and ensuring it could not come back up for debate for the rest of the year. The move also blocked the Senate from debating the bill.

After the defeat in the House, Patrick turned his attention to other priorities — including initiatives to expand the life sciences and renewable energy industries — although he hadn't given up completely on the casino plan.

Earlier this month, Patrick told a Brookline Chamber of Commerce audience that the plan "may yet come back in the Legislature" but offered few details at the time.

Patrick has also pointed out that the Mashpee Wampanoag Indian tribe are moving ahead with plans to build their own casino in Middleborough. He argues the state could lose hundreds of millions in fees and revenues if it doesn't move quickly to license casinos.

DiMasi, however, repeatedly warned of bringing a "casino culture" to Massachusetts. He has argued that expanded gambling would drain revenues from other businesses and increase personal bankruptcies, petty crimes and other social ills.

Supporters of a second bill to license 2,500 slot machines at the state's four race tracks said they received a promise from DiMasi to allow the bill to come to the floor of the House for a debate this year. The bill has yet to surface.

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A (Boston) GLOBE EDITORIAL
"Gambling at the polls"
May 23, 2008

IN MARCH, House Speaker Salvatore DiMasi smothered the Patrick administration's bill to license up to three resort casinos in Massachusetts. Now, he is compounding his error with an unwieldy proposal to put Patrick's casino gambling bill on the ballot as a nonbinding initiative.

Such a ballot question would tell lawmakers little of any value. Polls already show that most state residents support casino gambling in the abstract. Voters were looking for legislators to debate specific aspects of the governor's bill. How many casinos? Where? Under what kind of oversight? And where would casino tax revenues go? But DiMasi stifled such debate, in the course of twisting arms to keep the bill from passing the House or even receiving a favorable committee report.

The ballot ploy might help deflect the anger of pro-casino forces, especially organized labor. But it confuses everyone else.

DiMasi says he offered the ballot initiative as a compromise measure to the Senate, where a group of Republicans had introduced a pro-casino amendment to the state budget. Yet that amendment was soundly defeated a short time later. Now it is the ballot question proposal that is distracting lawmakers from their budget deliberations.

If the ballot question goes forward, further commotion is almost guaranteed, from casino industry sharpies and from opponents of casino gambling, all of whom are sure to flood the airwaves with exaggerated claims. Subterfuge is also no stranger to these campaigns. Last year, Globe reporter Sean Murphy exposed the activities of casino executives who were negotiating to open a Mashpee Wampanoag casino in Middleborough while spending millions of dollars to defeat a potential rival Indian casino in Rhode Island on the grounds that such establishments weaken the social fabric of society.

This page supported Patrick's casino plan, because it had the potential to provide 20,000 permanent jobs and $400 million in annual revenue in a state that has no appetite for broad-based tax increases.

But Patrick's bill was not the last word on how the revenues should be used. He wants to spend the money for transportation upgrades and to provide property tax relief in the form of an income tax credit. But there could be wiser uses for the money, such as education or healthcare. No ballot campaign can resolve complexities like these.

All these questions could be explored further if Patrick reintroduces his casino bill next year. Maybe DiMasi will even see that there is no substitute for serious legislative debate.

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"Patrick says he would negotiate with tribe over a casino: Says Wampanoag situation being monitored closely"
By Matt Viser, (Boston) Globe Staff, June 11, 2008

Governor Deval Patrick said yesterday that he is closely monitoring the Mashpee Wampanoags' plans for an Indian casino in Middleborough and would be prepared to negotiate with the tribe if it formally requests a casino pact with the state.

"They have expressed an interest in working with us when the time comes," Patrick said in response to questions from reporters. "But, no, there's no negotiation happening yet."

Patrick lost a bid this year in the Legislature to license three casinos in Massachusetts. With that defeat, the focus for gambling has shifted to the tribe's plans, which have been filed as an application with the federal Bureau of Indian Affairs. It has previously been disclosed that the state and tribe have engaged in preliminary talks; in coming months they have the potential to become more serious.

The tribe wants to build a $1 billion resort casino on property it owns in Middleborough. Before it can do that, the federal government must approve its application to place the land in a federal trust, a process that can take months or years.

The state could be a partner in the development and get a cut of the proceeds if the tribe signs an agreement with Massachusetts officials and wins approval from the Legislature. The tribe has an incentive to work with the state and sign a compact, because it could offer a full-scale, "class three" casino with table games and Las Vegas-style slot machines, according to Bureau of Indian Affairs rules.

The tribe can proceed on its own after winning federal trust status for the land and the property effectively becomes sovereign territory. But in that case, the tribe would offer only "class two" bingo-style slot machines, which are not as popular with gamblers and not as lucrative for casino operators. The state would probably be shut out of a share of gambling proceeds under that scenario. The tribe and the state could begin negotiations now, but any agreement would not go into effect until the tribe has sovereign land.

A source who has been briefed by the tribe said the Mashpee Wampanoag may decide to ask the state to enter more formal negotiations. "This has always been moving along steadily, and it will all rapidly pick up speed over the next month or two," the source said. "The Legislature will have this before them next year."

Patrick administration officials are meeting with the tribe today to discuss transportation issues around their site as part of the federal and state review of impacts.
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Matt Viser can be reached at maviser@globe.com.
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"Merging of tracks may advance casino: Deal is finally hammered out"
By Matt Viser, (Boston) Globe Staff, August 14, 2008

Suffolk Downs and Wonderland Greyhound Park race tracks finalized a deal yesterday to form a partnership that will reshape the state's racing industry and could have a dramatic impact on the debate over legalizing casino gambling in Massachusetts.

After nearly two years of contentious negotiations, the colorful owners of the two tracks came to terms in an effort to project a unified front that could help them obtain a lucrative license to open a resort casino.

"We have been working on this kind of agreement for a while, but the time has been well spent, because we now have gotten it right," Richard Fields, principal owner of Suffolk Downs, said in a statement. "We have today an excellent understanding that will . . . commit the joint resources of our companies to the goal of a premium resort-style casino which will bring new jobs to the area."

Details of the agreement were not made public. But one person briefed on the partnership said it spells out several different scenarios, including a massive resort-style casino, slot machines at the tracks, and a new commercial development. Any gambling expansion would hinge on state approval.

Under any scenario, Suffolk Downs would have an option to purchase Wonderland. The two entities will share in any financial benefit from future development at either site, but those terms vary, depending on what is built, according to a person with knowledge of the agreement, who requested anonymity because the details have not been made public.

Until that purchase option is exercised, both properties will be run separately. The exact financial terms are unclear, but Wonderland will use some of the proceeds from the deal to immediately pay the nearly $800,000 in taxes it owes the city of Revere, according to two people briefed on the terms of the deal.

While Wonderland will remain open for now, it is still unclear what will happen to the 73-year-old Revere dogtrack over the long term.

In the statement announcing the deal, track owners made a point of saying that horse racing would continue at Suffolk Downs, located in East Boston, but made no commitment whether dog racing would continue at Wonderland.

Wonderland may remain open until a decision is made by state officials about granting slot machine licenses to racetracks. If that bid fails, the property could be converted into a commercial or residential development.

Another reason for not making any commitments on Wonderland is a question on November ballots that could ban dog racing in the state and would cause Wonderland to shut down if it passes.

"Right now it's business as usual," Wonderland owner Charles Sarkis said in an interview yesterday. "I can't tell you what it will look like in six months, because I don't know what's going to happen."

Combining the two tracks could also make a clearer case for a casino license in Greater Boston, if Governor Deval Patrick decides in January to refile his casino legislation. In March, the Legislature rejected the governor's proposal to license three resort casinos in Massachusetts.

The two tracks, located just 2 miles apart, had been positioning themselves for the same casino license. Their competition became a distraction during the debate and may have contributed to the proposal's defeat. Administration officials and supportive legislators appealed to track owners several times last year to form a partnership, because their squabbling was splintering support for resort casinos.

"Everyone's getting on the same page here," said Representative Brian Wallace, a South Boston Democrat and a top casino advocate. "Everything is marching along toward casinos."

Suffolk Downs and Wonderland combined spent nearly one-third of the $1.3 million spent last year on casino lobbyists. Suffolk Downs was seen as the leading contender for a Boston-area casino, with a politically connected ownership group and a large tract of land within minutes of Logan International Airport.

Wonderland has a much smaller plot of land - 35 acres, compared with 167 acres at Suffolk - but was aggressive in its effort to be seen as a player in the casino debate.

Its owners held casino partnership discussions with a number of investors, including Donald Trump, Foxwoods, Mohegan Sun, and the Aquinnah Wampanoag tribe of Martha's Vineyard, as well as Suffolk Downs.

Sarkis and Fields have been negotiating for nearly two years - meeting several times at Abe and Louie's, one of several dozen restaurants that Sarkis owns - but issues have come up each time to halt the talks.

Last November the two men agreed on terms before other Suffolk officials opted out because they thought the agreement was too generous to Sarkis.

Previous discussions involved bringing Sarkis into a casino development at Suffolk, while tearing down the Wonderland track and redeveloping that site as a hotel or something unrelated to the casino.

Talks began to heat up again about three weeks ago, and Sarkis and Fields had an amicable meal at Abe and Louie's. "At some point, it began to make sense for the both of us," Sarkis said.

"It just made sense to say, 'OK, we can't get anything done in the Legislature. Maybe just speaking with one [voice] is the way to go.' "

Sarkis said he also had numerous discussions about a deal with Joseph O'Donnell, a wealthy concessionaire who is one of the main owners of Suffolk Downs.

O'Donnell and Fields did not respond yesterday to requests for comment.
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Matt Viser can be reached at maviser@globe.com.
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(A Boston) GLOBE EDITORIAL
"A closer look at casinos"
August 15, 2008

THE HOUSE may have killed Governor Patrick's casino gambling bill in March, but it didn't disprove the evidence that the licensing of three resort casinos would be a net benefit for Massachusetts. The latest forensic report comes from Spectrum Gaming Group, an independent research firm, which estimates Patrick's plan would generate about $1.5 billion in gross gambling revenues during the first year of operation.

Last winter's raucous debate on the issue pitted Patrick, a seemingly reluctant convert to the cause of casino gambling, against House Speaker Salvatore DiMasi, a passionate foe of casinos. At times, each side overstated its case. The Patrick administration exaggerated the potential number of construction jobs. DiMasi and casino opponents magnified the likely social costs, including compulsive gambling. But this month's Spectrum study and an earlier independent study sponsored by the Greater Boston Chamber of Commerce provide each side with plenty of objective analysis to consider. And with the Legislature out of formal session until January, members have plenty of time to digest the facts.

The Spectrum study supports the administration's basic assumption that casino gambling, if tightly regulated, deserves a place in the state's economy. Three well-placed destination casinos would attract $650 million to $900 million in casino spending from neighboring states and recover at least half of the $1.1 billion now spent by Massachusetts residents on casinos in Connecticut and Rhode Island, according to the study. The state could expect nearly $600 million in annual casino-related tax revenue, including meals and hotel taxes, and the creation of 20,000 new jobs. Social impacts, including traffic and other disruptions, are legitimate concerns. But they could be minimized with proper planning.

Mind the details

Patrick got the basics right, the report suggests. He sought to steer clear of undercapitalized slot machine parlors at racetracks and recognized the importance of including an Indian casino in his planning.

But the landscape keeps shifting. This week, for example, Suffolk Downs and Wonderland Greyhound Park formed a partnership that will be looking to build a resort-style casino in Boston. Such an urban casino could serve the city's convention trade. But it could also attract too many local "convenience" and problem gamblers instead of a broader and healthier demographic in search of destination casino amenities such as shows and restaurants.

If Patrick has any hope to convince the Legislature that casinos belong in Massachusetts, then he must gain lawmakers' confidence in his ability to negotiate the toughest deal with wily casino developers. The Spectrum study makes the essential point that public officials will enjoy a negotiating advantage only during the competitive bidding stage when industry officials will be anxious to prove that their presence will benefit the public. The study makes a powerful case that the state should insist up front on financial plans that advance job training and promote tourism and the convention business over convenience gambling. State officials should also stand firm on the need to protect the lottery, up to and including a requirement that casinos indemnify the lottery against any losses from casino competition.

Beware of false promises

The report issues another important warning - about casino operators who seek to win licenses by offering more than the proposed 27 percent tax rate on gambling proceeds set by the Patrick administration. Offers of higher rates are often a smokescreen for fewer jobs and other public benefits. When dealing with casinos, the most important skill is always to know when to walk away from the table.

The report's authors know all the angles played by casino developers. But the Patrick administration will need to show plenty of political skill to persuade DiMasi and other opponents that destination casinos can still be a good deal for Massachusetts. It's clear that Patrick's plan to use the tax proceeds from casino gambling for transportation infrastructure and modest property tax relief didn't resonate with the House. He will need a new strategy next year.

There are many unmet needs in state government, so Patrick has his pick of ways to show how the extra revenue would benefit Massachusetts. In June, for instance, he unveiled his Readiness Project - a major redesign of the state's public education system. The costs are still being worked out. But the prospect of generating hundreds of millions of dollars annually for education could alter the casino debate.

Patrick's casino effort failed this year, but a bill that offers clear benefits for Massachusetts while imposing strict discipline on casino developers might be the strong hand in 2009.

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"We'd like to start the negotiations and get the ball rolling." - Shawn W. Hendricks Sr., Mashpee Wampanoag chairman.
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"Tribe wants talks on casino: Wampanoags seeking deal with governor"
By Matt Viser, (Boston) Globe Staff, September 3, 2008

The Mashpee Wampanoag tribe is planning to formally ask Governor Deval Patrick today to negotiate a compact for a $1 billion resort casino in Middleborough, an overture that could reignite the gambling debate and eventually clear the way for the state's first casino.

The tribe has already been pursuing a casino through a federal Department of the Interior application. But striking a deal with the state would probably speed approval and allow the tribe to offer bigger jackpots and more games, including blackjack and craps, while giving the state a share of casino revenues.

"We'd like to start the negotiations and get the ball rolling," tribal chairman Shawn W. Hendricks Sr. said yesterday in an interview. "I see no reason why the state wouldn't sit and talk with us."

Tribal officials are hoping to negotiate a deal with the state over the next several months that, if the necessary approvals from the federal government come through, could allow the tribe to start construction on a massive casino as early as spring. It would be similar to the deals struck by Connecticut for the Foxwoods and Mohegan Sun casinos. The billions earned by those casinos have proved to be alluring for the Mashpee Wampanoag tribe, as well as Patrick and some other Massachusetts officials who see legalized gam bling as a way to help pay for state needs such as road repairs.

The tribe will deliver a seven-page letter, which has been expected for several months and was obtained yesterday by the Globe, to the governor today with the request that negotiations begin "at the earliest mutually convenient date."

The move could give Patrick fresh ammunition if he decides to revive his effort to persuade the Legislature to license three casinos in Massachusetts. Patrick has contended that since the federal government might approve the tribe's casino regardless of the state's position, Massachusetts might as well embrace gambling, control the business, and reap a share for state coffers.

Administration officials declined to comment yesterday before seeing the letter.

Under the terms of the federal Indian Gaming Act, the tribe cannot force the state to begin negotiations because it does not have its federal lands taken into trust. The governor was hesitant in June about beginning negotiations until the tribe won placement of its land in federal trust.

"It doesn't start until they say it starts," Patrick said. "And there's not a lot of point in starting until the land-in-trust process is finished. . . . They have expressed an interest in working with us when the time comes."

Any deal between the tribe and the governor would probably also need the approval of the Legislature, so the tribe is also sending the letter to Senate President Therese Murray and House Speaker Salvatore F. DiMasi.

The tribe won federal recognition last year, which set it on course to build a resort casino with 4,000 slot machines, game tables, a 1,500-room hotel, and a host of amenities including a golf course.

Achieving the next step, getting federal approval to place its land in trust, can take several years, but tribal officials think it is on course for approval in the first or second quarter of 2009, according to the letter.

Compact negotiations can become complex and include discussions over who has jurisdiction over police and fire services on the property and how traffic would be handled. If a compact is signed, the tribe said it would upgrade Route 44, a $170 million expense.

Most significantly, the negotiations would determine what percentage of slot revenues the state would receive. When Connecticut negotiated with its tribes in the early 1990s, the Indians agreed to pay the state 25 percent of slot machine revenue.

For Patrick and the Legislature, choosing not to negotiate with the tribe could carry risks.

The Mashpees say in the letter that, even if the state does not approve a deal, it plans to pursue its federal rights under the Indian Gaming Act to develop a casino with bingo-style slots. Those slots, called lass two machines, look similar to regular slot machines but are not as popular with gamblers and not as lucrative for casino operators. Upgrading to better machines would require state approval.

"No matter what ultimately happens with the negotiations, please know that it is the tribe's intent to operate America's most successful casino resort in Middleborough," Hendricks wrote in the letter. "We hope that we can do so in a manner which benefits all of us to the fullest extent possible."

Patrick filed legislation last year that would have licensed three casinos in Massachusetts, creating jobs and bringing in state revenue. His legislation was voted down by the House in March, but the governor is expected to file new legislation when the Legislature reconvenes in January.

Still, there are multiple variables that could spell trouble for the tribe.

The Globe reported last week that slot revenues at the two Connecticut casinos and two Rhode Island slot parlors are down over last year, despite adding 1,300 slot machines in the last year. Slot revenues are also down nationally, according to a recent report from the American Gaming Association.

Hendricks, the tribal chairman, said yesterday in an interview that he was not concerned about declining slot revenues and downplayed the argument that New England's gambling market was saturated.

"It's the economy," he said. "We're not going to stop building houses just because the real estate market is down."

Another potential hitch is a US Supreme Court case that could prohibit further land-into-trust approvals. The case, which will be heard in November, stems from a dispute in Rhode Island over the Narragansett tribe's claim of 31-acres in Charlestown, R.I.

In a case signed onto by Massachusetts Attorney General Martha Coakley, the state of Rhode Island contends that federal law prevents the US government from taking land into trust for tribes recognized after the 1934 Indian Re- organization Act. The Narragansett tribe was federally recognized in 1983.

The First US Circuit Court of Appeals in Boston rejected the state's claim in July, but the US Supreme Court agreed to hear the case.
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Matt Viser can be reached at maviser@globe.com.
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"Governor warns mayors of cuts: Gov. Deval L. Patrick is preparing to unveil next week hundreds of millions of dollars in emergency cuts to the state's $28.2 billion budget for this fiscal year.", By DAN RING, dring@repub.com, Posted by dmuse October 11, 2008, 5:48 AM, The Springfield Republican Online Newspaper.

BOSTON - Gov. Deval L. Patrick set the stage Friday for possible cuts in state aid during an extraordinary meeting with Bay State mayors on the state's emerging fiscal crisis.

With stock market losses reducing capital gains taxes and other state revenues down, Patrick is preparing to unveil next week hundreds of millions of dollars in emergency cuts to the state's $28.2 billion budget for this fiscal year.

During a meeting in the governor's office Friday, Patrick and Lt. Gov. Timothy P. Murray assured mayors there are no current plans to slash state aid and that it would occur only as a last resort.

"Given the volatility of the economy ... no one can guarantee what is going to happen," Murray said after the meeting.

Chicopee Mayor Michael D. Bissonnette and Holyoke Mayor Michael J. Sullivan said the gist of the meeting was that municipal officials must prepare for cuts in state assistance, either during this fiscal year or for next year.

The men were among 27 mayors and municipal leaders attending the meeting. Ten listened in on a conference call.

Bissonnette said he is preparing for a cut in state aid to Chicopee of 7 percent, or $5 million.

"This is not fooling around," Bissonnette said. "This is serious business."

Chicopee's $150 million budget includes $70 million in state assistance. Bissonnette said a 7 percent cut would almost certainly mean laying off city workers.

Springfield Mayor Domenic J. Sarno said he appreciates Patrick will attempt to "hold harmless" state aid, but he is ready for possible mid-year cuts this fiscal year and then deep cuts for the fiscal year that starts July 1 next year.

"I hope I'm wrong," Sarno said, "(but) I have to err on the side of caution."

Springfield's $529 million budget is built on more than $310 million in state aid.

Sullivan said he wanted to commend the governor for launching a difficult discussion and laying the groundwork for state aid cuts.

Holyoke's $139 million budget is supported by $81 million in state aid.

Leaders of state colleges and the University of Massachusetts are also girding for a possible 5.6 percent cut next week.

William F. Messner, president of Holyoke Community College, said on Friday he is preparing for a 5.6 percent emergency cut, or $1.3 million.

Messner said he will ask the college board of trustees on Oct. 28 to raise student fees by $60 for the semester that starts in January. That would generate $300,000 and still leave $1 million in cuts to be dealt with.

The fee hike would amount to 4 percent over the current $1,400 that full-time students pay in tuition and fees for a semester, Messner said. The hike would allow the college to keep adjunct faculty who are critical for many programs, he said.

The cuts come as the Holyoke college's enrollment of 6,700 full- and part-time students is up by between 10 and 15 percent from five years ago, Messner said.

Presidents of Westfield State College and Springfield Technical Community College were unavailable Friday.

Greenfield Community College President Robert L. Pura said he will do everything he can to avoid raising student fees for the next semester. However, fees will definitely go up in the fall of next year, Pura said.

Edward F. Blaguszewski, spokesman for the University of Massachusetts at Amherst, said campus leaders are planning for cuts and discussing options, but he didn't want to be specific.

The five-campus university system and state and community colleges already saw their budgets cut this year when Patrick vetoed money from their budgets and state legislators sustained the vetoes.

During the meeting, Patrick spoke first, then left Murray in his place. Murray said layoffs of state employees will be announced next week when Patrick details specific emergency cuts.

Patrick still needs legislative approval to cut state aid and the courts. He currently can unilaterally impose emergency cuts to the executive branch.

Rep. Daniel E. Bosley, D-North Adams, said he expects legislators will vote to give Patrick emergency powers to cut state aid to communities.

Municipal leaders should "hope for the best and plan for the worst," Bosley said.
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Reader's Comment:
mrst2222 says...
310 million in state funding for Springfield, the cesspool of Massachusetts? Just what are they doing with that money, since the city only seems to get worse? Talk about wasting tax dollars. The other cities don't receive a third of that amount and do far better? Who is running Springfield anyway???
Posted on 10/11/08 at 8:01AM / Footer
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"Scratched tickets"
The Berkshire Eagle - Editorial, Friday, October 24, 2008

The economic crisis the state and nation are confronting is so complex that good news usually comes with a bad side. Yes, it is good, for example, that Americans appear to be cutting down on credit card expenses and spending more wisely. However, Americans are expected to spend less money on Christmas gifts this year which will hurt businesses — and slow the economy. Aggravating.

The Massachusetts lottery, which used to be able to count on a consistent base of ticket purchases that would often increase during the course of a year, is anticipating a 1.5 percent drop in lottery revenues in 2008. The good news, observes state treasurer and lottery head man Tim Cahill, is that residents are being smart and not trying to gamble their way out of economic problems. The bad news, Mr. Cahill also points out, is that this decline has a tangible impact on state revenues. The net loss to the financially strapped state is expected to be about $17 million.

The Lottery has been an important component in funding for education and other programs, and that money will either have to come out of the rainy day fund or programs will have to be trimmed or eliminated. It is unseemly to generate state revenues from the vices of residents, and if the state becomes as addicted to its gambling revenues as gamblers are to their games, the same fate may befall the state as befalls gamblers whose luck has run out.

The theory that gambling was somehow immune from economic slowdowns or would even benefit from them has been disproved, here and in Connecticut, where revenue is down at the state's two casinos. The state's economic problems may inspire calls for the resurrection of the governor's three-casino plan but it should do just the opposite. Whether the times are good or bad, gambling is a dangerous way to fund government.

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William McDermott wrote the tribe's constitution.
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"In the seat of Wampanoags' power: Lawyer a strong force in tribe's bid for casino"
By Sean P. Murphy, Boston Globe Staff, October 26, 2008

MASHPEE - As a founding father of the modern Mashpee Wampanoag tribe, lawyer William A. McDermott Jr. cuts an unlikely figure.

He is not a member of the tribe, nor even a Native American. But the heavy-set, glad-handing Dorchester political operative is arguably the single most powerful figure in the fractured Mashpee Wampanoag government.

He wrote the Mashpee Wampanoag constitution. He engineered the defeat of a hostile tribal council candidate. He even helped banish dissenters from the annual powwow.

And above all, he is using political skills honed in the wards of Boston and Chelsea to keep the tribal government functioning during its quest for a $1 billion resort casino in Middleborough.

Even McDermott's old friends are surprised at the role he has developed as the tribe's powerful enforcer.

"Billy's gainfully employed? That's a good thing," joked Daniel F. Pokaski, chairman of the Boston Licensing Board. "I'm not sure how much experience he has with Indian tribes, but I hope they are paying him well."

Critics within the tribe say McDermott is doing the bidding of the wealthy international gambling executives who have invested more than $10 million into the tribe's casino plans.

"McDermott is running the show, sent here by the investors - and getting a good piece of the pie, too, I assume," said Amelia Bingham, a critic of the 13-member Mashpee Wampanoag Tribal Council whose "shunning" from tribal activities was coordinated by McDermott.

But McDermott's defenders say he always puts the tribe's interests first.

"His commitment to the tribe is impeccable, without suspicion," said Gayle Andrews, a tribal member and spokeswoman for the tribal council. "He's always there for the tribe."

McDermott, 62, declined requests to comment. Scott Ferson, who heads a Boston public relations firm hired by the tribe, said McDermott has a contract with the tribe and is paid undisclosed fees. Nearly all of the tribe's budget, according to publicly filed financial records through 2005, is funded by payments from the tribe's outside investors, a partnership that includes gambling executives Sol Kerzner and Len Wolman.

His role is becoming increasingly important now that the tribe has formally asked Governor Deval Patrick to begin negotiations for an agreement. Such a pact under federal law terms would exchange the state's blessing for a casino for a state share of the winnings. Patrick rejected the overture as premature, but negotiations may be months away.

Maintaining a veneer of trust in the tribe and its billion-dollar gambling enterprise is not always easy. The Mashpee Wampanoag government has been beset by negative news that has highlighted the high degree of internal turmoil and a lack of professional administrators at the helm.

Glenn Marshall, the former tribal chairman, resigned last year after admitting he lied about details of his military career and following disclosure of a 1981 rape conviction. His successor, Shawn Hendricks, is embroiled in a messy divorce. He admitted in court to using steroids and his wife had a restraining order against him for several months this year.

Meanwhile, the finances of the tribal council remain under the scrutiny of the Internal Revenue Service and the office of Attorney General Martha Coakley after some tribal members made allegations of money being misused or missing. McDermott is scrambling to get the tribe's required financial filings as a public charity up to date.

When visited unannounced at his law office in West Roxbury, McDermott declined to comment.

A specialist in state election law, McDermott has counseled and befriended many Democratic politicians, including US Representatives William Delahunt and Stephen Lynch. He grew up in Savin Hill, earned his law degree at Suffolk University, and learned his trade as a Boston election commissioner. He later served on the Boston Redevelopment Board, and then as city lawyer in Chelsea.

In 1993, he worked on the losing mayoral campaign of one of his Savin Hill neighbors, James T. Brett.

"There's no one better with numbers - he's the legend, the best," said Brett, president of the New England Council, which promotes economic growth. "You ask him how many voters in Ward 13, precinct 10, and he knows it off the top of his head."

Edward Jesser, a political consultant, said he and McDermott on many occasions have amiably whiled away the evening hours and finally closed the bar of Doyle's pub in Jamaica Plain. "He's smart and works hard, and he's great company, too," he said.

Now, after almost 35 years of slogging it in places where Indians were thought to be a baseball team from Cleveland, he has landed deep-pocket clients that generate a steady stream of work.

And it means McDermott can claim something none of his Dorchester peers can. The Mashpee Wampanoag are a sovereign nation, with its own constitution, and McDermott was one of the two lawyers who drafted it. While that may not put him on a par with John Adams, who drafted the Massachusetts constitution, it does give him broad powers as a top specialist on tribal government affairs.

His work for the tribe dates at least to 2002, when he persuaded the town of Mashpee to support the Wampanoags' bid for federal recognition as a tribe. In exchange, the tribal council agreed not to open a casino in the Cape Cod town.

"That agreement is as much his as anyone's," recalled Mashpee Selectman John Cahalane, one of the town negotiators.

He helped the tribe stay on the path to toward a casino in 2005, when tribal member Paula Peters, a casino skeptic, declared herself a candidate for the post of tribal chairwoman.

Detroit businessman Herbert Strather, who at the time was the primary outside investor in the casino deal, worried in a letter to the tribe that his team would be unable to work with Peters.

McDermott found a way to scuttle her bid.

Using his knowledge of the tribal constitution that he had written, he made the case that Peters could not prove she attended prior tribal council meetings. On the technicality, her name was removed from the ballot five days before the election.

Peter's lawyer said she had been "ambushed." But the casino investors were satisfied.

In 2006, tribal members Amelia and Stephen Bingham sued the tribe in Barnstable Superior Court for access to records of the tribe's deal with the developers. A state court judge ruled he had no authority in the affairs of a sovereign Indian nation. The records remained out of public view.

Even in victory, however, McDermott wrote to the tribe's chairman explaining the tribal council could forbid Bingham, 85, and her son, Stephen, from voting, running for office, attending meetings - even going to the annual powwow, the biggest social event of the year.

When 100 tribe members voted to rescind the shunning order, McDermott said that was not permitted under the constitution, calling such a vote an impermissible challenge to the tribe's "political integrity."
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Sean Murphy can be reached at smurphy@globe.com.
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"Mohegan Tribe leases site in Palmer for casino"
By Thomas Grillo, Friday, November 14, 2008, www.bostonherald.com, Business & Markets

The Mohegan Tribe is gambling that the Legislature will approve casinos in the Bay State next year. The Connecticut-based tribe has leased 152 acres in Palmer, the potential site of a resort casino.

“If legislators pass a measure that would allow gambling, we believe Palmer is an exceptional site, and we’d be proud to develop and bring our product to the people of Massachusetts,” said Charles Bunnell, the tribe’s chief of staff.

cw2 Securing the land is the next step in getting a foothold in Western Massachusetts. Earlier this year, Gov. Deval Patrick’s proposal for three resort casinos was rejected by House Speaker Sal DiMasi (D-North End) and other House members.

Mohegan’s lease with Northeast Realty Associates LLC is for 50 years with an option to extend for another 49 years. It includes an option to purchase the property in the future.
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Article URL: www.bostonherald.com/business/general/view.bg?articleid=1132301
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"Casino advocates roll dice again: But new bill lacks key House support"
By Matt Viser, Boston Globe Staff, January 14, 2009

Several state lawmakers, backed by politically powerful labor unions, are planning to file a casino bill today that is based on the failed gambling legislation that Governor Deval Patrick championed last year.

But the bill's fate appears highly uncertain. It does not have the backing of the governor this time around, at least not yet, nor does it have the endorsement of any prominent lawmakers in the House.

The legislation, a five-page summary of which was obtained by the Globe, is being sponsored by Representatives Brian Wallace and Martin Walsh and Senator Joan Menard.

"We need the money and the jobs," Wallace said. "We're talking thousands of jobs and millions of dollars, and, in this economy, that's the selling piece."

He said the AFL-CIO was backing the bill, but had not yet tried to garner support among top House and Senate lawmakers.

"We support this bill because it creates jobs and revenues and that's what we need in this Commonwealth," said Robert Haynes, president of the AFL-CIO.

Patrick's legislation last year, which would have licensed three casinos around the state, dominated Beacon Hill for months. But the governor has been less enthusiastic about reviving the debate, and the gambling industry, often seen as being recession-proof, has struggled recently.

Patrick declined to comment yesterday through his spokesman, Kyle Sullivan, and the governor was noncommittal last week about whether he would push for licensing casinos again.

"I'm not going to file something that isn't going anywhere," he said in an interview. "There's a conversation there we have to have."

Patrick said in the interview that he was not deterred by the economic woes in the gambling industry, saying that other businesses are going through similar problems.

The new legislation would allow for one casino in Suffolk, Hampden, and Bristol counties. Special preference would be given to the Mashpee Wampanoag tribe, which is trying to build a casino in Middleborough using its rights as a federally recognized tribe.

In a nod to the declining revenue in the industry, the 10-year casino licenses would cost $225 million apiece, compared with an open-ended bidding process that Patrick estimated would bring $200 million to $300 million. Payments would be spread over three years, rather than all up front.

Developers would also have to sign an agreement with the host community, as well as gain approval from the legislative bodies of two-thirds of the communities in the county.

The legislation would require 27 percent of gross revenue to go to the state.

The owners of Suffolk Downs, which was the front-runner to build a casino in the Boston area, remain interested in a license and strengthened their position several months ago by forming a partnership with Wonderland Greyhound Park in Revere.

They are expected to back the new legislation.

House Speaker Salvatore F. DiMasi, who was the chief stumbling block to the governor's bill last year, has not changed his position on the issue, his spokesman, David Guarino, said yesterday. DiMasi declined to comment on the new legislation, which Guarino said he had not seen.

Senate President Therese Murray did not rule out a casino debate and suggested the state should work with the Mashpee Wampanoag tribe. But she also did not seem to endorse the current legislation.

"Having three licenses was two too many," Murray said in an interview. "And given this economic climate, we have to see who would bid. But the pushback from the membership would be, 'Why would you do this in a down economy, having people using the little money they have to gamble?' I know I've been buying more lottery tickets."
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Matt Viser can be reached at maviser@globe.com.
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"Still a bad gamble"
The Berkshire Eagle, Editorial, Wednesday, February 04, 2009

While it was impossible to take seriously former Speaker Salvatore DiMasi's attempt to blame dark forces in the casino industry for a demise that was very much his own doing, there is no denying that the replacement of the anti-gambling House leader with the pro-gambling Robert DeLeo changed the political equation in the state when it comes to introducing casinos. What hasn't changed is the argument against casino gambling — in fact, it has grown stronger in recent months.

Governor Deval L. Patrick's plan to introduce three casinos into the state last year fell apart largely because of the unbending opposition of Mr. DiMasi. Mr. DeLeo, who has two racetracks in his eastern Massachusetts district, has made it clear that he wants slot machines introduced at both of them, which will inevitably push the state down the slippery slope to casinos. Mr. DeLeo, the governor and Senate President Therese Murray, also a gambling proponent, discussed the gambling issue during the course of a meeting Monday.

When economic times are hard and revenue sources for state programs are drying up, the temptation to pursue easy money in the form of casino gambling becomes even more difficult to resist. Casinos, however, are not immune to the ravages of a recession-battered economy, as we are seeing today. The Twin River slot parlor in Rhode Island, suffering so much from large declines in gambling revenue over the past several months that it cannot meet its debt obligations, may soon become a ward of the state. The two casino giants in southeastern Connecticut, Foxwoods and Mohegan Sun, have been laying off workers just like many other businesses throughout the Northeast. The percentage of the take these casinos pass on to the state has declined along with their overall business, making the social costs of gambling, crime and addiction foremost among them, proportionately larger.

Should three casinos be introduced into Massachusetts, and perhaps a fourth if a tribal casino is built in Middleborough, the casino glut at a time of declining gambling revenues will make it impossible for them to fulfill their hype as economic panacea. Given the reality that gambling preys disproportionately upon the poor, the state also has a moral responsibility not to cynically pursue more money from those who can least afford it at a time when the economy is already eliminating jobs and undermining social programs.

Beacon Hill has an in-House expert, so to speak, in Representative Daniel Bosley of North Adams, who has been exploring the gambling issue since well before Governor Patrick brought it to the foreground a year ago. Mr. Bosley is well-informed on the alleged benefits of casinos as well as their many tangible drawbacks, and was a key adviser to Mr. DiMasi on the issue. If Mr. DeLeo freezes him out of the discussion ahead, voters will know that the fix is in.

The governor has proposed a series of new or increased taxes to make up a substantial revenue shortfall for 2009, and taxes are always controversial. Slot machines at race tracks and casinos in a sense constitute a tax, one that falls hardest on those who can least afford it. The benefits, such as they are, are overstated and of less significance in a poor economy. Change in House leadership aside, gambling is a still a bad hand for Massachusetts.
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www.topix.net/forum/source/berkshire-eagle/TBGTAC363C0FDD8SR
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Newly elected House Speaker Robert A. DeLeo. Photo by Nancy Lane.
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"Robert DeLeo ‘open-minded’ on Bay State casinos"
By Hillary Chabot, Tuesday, February 3, 2009, www.bostonherald.com, Local Politics

A duo of pro-gambling studies boosted the odds of casinos in the Bay State yesterday and fueled renewed interest by newly elected House Speaker Robert A. DeLeo and Gov. Deval Patrick.

DeLeo, who said he’s sympathetic to slots at financially struggling racetracks, said the debate on gaming could come as early as April and a vote on a new bill legalizing three casinos could happen this year.

“This is a bill that could take a whole lot of study,” said DeLeo (D-Winthrop), who discussed casinos during a leadership meeting with Patrick and Senate President Therese Murray yesterday. “I’m going into this open-minded.”

A study released yesterday by the University of Massachusetts at Boston found that hotel workers without a college education made more and received better benefits at casinos than those outside the industry.

The State House News also released a poll showing 57 percent of state residents would support another effort to legalize gaming.

Former House Speaker Salvatore DiMasi halted a bill filed by Patrick last year to license three casinos to raise badly needed revenues for the state. Now that DiMasi is gone, many casino proponents believe gaming has another chance.

“I think there’s a renewed interest. This has some life to it now,” said Rep. Brian P. Wallace (D-Boston). “Under Sal, they didn’t want to sign onto a bill where the speaker is dead set against it.”

Wallace plans to file an AFL-CIO-backed bill tomorrow that would legalize three casinos. More than 20 lawmakers have signed onto the bill since DeLeo took over, Wallace said.

“If there is a proposal and we get to a point where we’re doing horse-trading, then I’m sure we’ll take that up,” Patrick said.

However, gambling critics have threatened to put a repeal of any casino legislation on the state ballot, said casino foe Rep. Daniel E. Bosley (D-North Adams).

“In this economy you have to be careful when you count casino revenue because I’ve met with a number of groups who said, ‘If this ever does pass we’ll put it on the ballot,’ ” Bosley said.
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Article URL: www.bostonherald.com/news/politics/view.bg?articleid=1149623
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"State, tribe may clash over Middleboro casino"
By Kyle Alspach, wickedlocal.com, Middleborough, Massachusetts
Saturday, February 07, 2009, 11:48 P.M. EST

MIDDLEBORO - A showdown over competing casino plans in the region looms once again, with renewed interest on Beacon Hill for commercial casinos and the Mashpee Wampanoags standing firm in their plans for a tribal casino in Middleboro.

Gov. Deval Patrick and other state officials prefer to work a deal with the tribe that would allow the Middleboro casino to function as a commercial, not tribal, casino.

But the tribe and its investors have no interest in such a deal, and say they expect their $1 billion resort casino would be built before a state-licensed casino.

“Whatever that commercial proposal would be, they would know there was a competing destination casino in Middleboro,” said Scott Ferson, a spokesman for the tribe’s casino project.

The recent talk of expanding gambling in Massachusetts may seem like déjà vu. But much has changed since last March when House lawmakers voted down Patrick’s casino plan.

In recent months, the slumping economy has put the state budget in desperate need of new revenues. And the House speaker, an ardent gambling foe, has been replaced with a gambling supporter.

“I think the odds are more favorable for expanded gaming in Massachusetts than they’ve been in 15 years,” said Clyde Barrow, a UMass-Dartmouth gambling researcher.

That leaves the Mashpee tribe with some of the same questions it faced when commercial casinos were being mulled at this time last year.

What should the tribe, and its investors, do if the state decides to license a casino for Southeastern Massachusetts? Does the tribe go for the license and drop its bid to open the casino on sovereign tribal land, or does it plow ahead with its plans, knowing it may have a competing casino nearby?

The tribe’s answers haven’t changed either: the tribe still has no interest in opening a commercial casino, according to Ferson.

And with the Middleboro casino a year closer to reality, lawmakers should have doubts about licensing a commercial casino for Southeastern Massachusetts, Ferson argued.

As of yet, the Mashpee don’t possess sovereign tribal land in the town. The federal Bureau of Indian Affairs is still reviewing the plan to convert more than 500 acres off Route 44 into tribal territory, where the tribe’s resort casino would be built.

Ferson said the approval could come this spring, though opponents of the casino say that’s optimistic.

A casino on tribal land would not have to pay taxes but would depend on a compact agreement with the governor, since casino-style gambling — known as “Class III” gaming — is illegal in Massachusetts.

The agreement would likely provide a portion of casino revenues to the state in exchange for allowing the casino to sidestep the state rules.

Meanwhile, lawmakers are set to consider a host of different plans for expanding gambling in the state.

Proposals filed in the Legislature range from licensing several casinos to bringing slot machines to racetracks, or some combination of them.

Casinos are being considered again in the wake of House Speaker Salvatore DiMasi’s resignation. DiMasi was a major force last year in halting Patrick’s three-casino plan.

Barrow, of UMass-Dartmouth, believes at least 30 or 35 House lawmakers voted against the plan as a result of DiMasi “calling in favors,” and likely would support casinos now that someone else is in charge. New Speaker Robert DeLeo of Winthrop supports putting slot machines at tracks and says he’s open to casinos.

Advocates say casinos would capture gambling dollars that are leaving the state for Connecticut and Rhode Island, and the troubled state government would be one of the winners.

The state has seen a more than $2 billion budget shortfall in recent months due to the down economy, and Patrick predicts the next budget may have to be even slimmer.

Casinos are earning less than in the past as consumer spending slows, according to reports. But the state could still earn hundreds of millions from casino licensing fees and as much as $1 billion a year in revenue taxes, according to state Sen. Marc Pacheco of Taunton.

Meanwhile, gambling opponents are vowing to place a repeal on the state ballot if the governor and Legislature sanction casinos in Massachusetts.

State Rep. Daniel Bosley of North Adams said a citizen petition drive would garner enough signatures to postpone the implementation of any casino legislation.
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Coming Monday: Is it finally in the cards for the Raynham track to get slot machines?
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Kyle Alspach can be reached at kalspach@enterprisenews.com.
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"Tribe picks new officers, chairman: Record number of Wampanoags turn out for vote"
By Emily Canal, Boston Globe Correspondent, February 9, 2009

A record number of Wampanoag tribe members, including a pair of previously shunned members, voted yesterday in a Mashpee tribal government election that brought a new chairman to office.

Cedric Cromwell, who favors developing a tribal-owned casino in Middleborough, was elected tribal chairman with almost 60 percent of the vote, beating three other candidates. Rounding out the slate of tribal officers, Aaron Tobey was elected vice chairman, Mark Harding treasurer, Marie Lopez-Stone secretary, and Selena Jonas council member.

"They have an incredible balance of education and business knowledge and cultural and traditional heritage," said Paula Peters, a tribal member and spokeswoman, who described the new administration as reformers. "That will take us a long way and we have to be patient. It won't change what happened overnight because it's been too long."

Stephanie Tobey-Roderick and Michelle Fernandes, two of four tribal members who had been ostracized by the previous chairman, were among the 600 people who arrived at the Mashpee headquarters to vote yesterday afternoon, Peters said.

In addition to Tobey-Roderick and Fernandes, Amelia Bingham and her son Steven were shunned from the tribe in December 2006 after suing to gain access to financial records in an effort to expose alleged financial misconduct.

The group was shunned under the leadership of Glenn Marshall, who resigned as tribal chairman in August 2007 after a 1981 rape conviction was discovered.

It was the first regular election the tribe has held since August 2007 and Peters said it did not occur without controversy.

David Pocknett, the previous vice chairman, tried to prevent the four shunned members from voting, even though tribal judge Rochelle Ducheneaux had reinstated them at last month's meeting. Ultimately, Pocknett's efforts to block them from voting were unsuccessful.

Cromwell said he and the other officers in the new administration have been involved with the tribe all their lives, but Cromwell has not held office with the Wampanoags before. He said the new administration is interested in economic development, including casinos, and plans to look at renewable power sources like windmill and solar technology.

"This administration will pursue with all integrity efforts to develop a casino in Middleborough, but [we] are also open other initiatives," said Cromwell.

He did not elaborate on any plans because he said he wants to consult other tribe members.

Cromwell was elected with 356 votes. Tobey won with 257 votes, Harding with 322 votes, Lopez-Stone with 238 votes, and Jonas with 345 votes.

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House Speaker Robert A. DeLeo
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"DeLeo's new team includes DiMasi lieutenants, but few Rogers supporters"
By Matt Viser, Boston Globe Staff, February 12, 2009, 1:52 PM

House Speaker Robert A. DeLeo is retaining some of former speaker Salvatore F. DiMasi's key lieutenants in his own leadership team, including Speaker Pro Tempore Thomas Petrolati, whose involvement in ticket-broker legislation is part of an influence-peddling investigation by Attorney General Martha Coakley.

And despite DeLeo’s calls to unify the House after his bitter battle to secure the gavel, his list of new chairmen and vice chairmen spurned the supporters of former majority leader John H. Rogers, his rival. Few of Rogers's supporters made the list, and Rogers himself was demoted from majority leader to a rank and file member.

When Coakley announced the indictment of DiMasi's former accountant and close friend Richard Vitale in December, the only people she referred to besides Vitale were DiMasi and Petrolati. She said that Vitale "communicated directly" with DiMasi and Petrolati "on multiple occasions" to lobby for the ticket brokers without registering as a lobbyist. DiMasi had denied even knowing that Vitale represented the group.

DeLeo refused to answer several questions about why he chose Petrolati – and would not even use his name during a three-minute press conference.

“Take a look at the team as a whole and I think you’ll be impressed with the talent and knowledge that we have,” he said.

DeLeo is also promoting several up-and-coming lawmakers to key positions. Representative Charles A. Murphy, a Burlington Democrat, will become chairman of the Committee on Ways and Means, and Representative James Vallee, a Franklin Democrat, will become majority leader.

The new speaker also, notably, removed Representative Daniel Bosley, a North Adams Democrat, from his chairmanship of the Economic Development and Emerging Technologies Committee. That committee helped ensure that Governor Deval Patrick’s casino legislation went down in defeat last year. DeLeo has placed Representative Brian S. Dempsey, a Haverhill Democrat who called himself more “open-minded” on casinos, in charge of that committee.

DeLeo is also promoting Representative Ronald Mariano to become assistant majority leader. Mariano was among several lawmakers who socialized with lobbyist Richard McDonough at the 2007 Kentucky Derby. McDonough -- who was a lobbyist for Cognos ULC, a software vendor at the center of an ethics controversy – was reimbursed $13,000 for his expenses.

Mariano, through a spokesman, told the Globe in November that he paid his own way, although he refused to produce receipts.

DeLeo promoted Representative Robert P. Spellane, a Worcester Democrat, to become chairman of the Public Service Committee. Spellane, who was formerly vice chairman of the committee that regulates banks, has been forced to explain how he was able to forgo a year's worth of payments on a $340,000 loan from a local bank with an executive who supports him politically.
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www.boston.com/news/local/massachusetts/specials/021209_committee_leadership/
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www.boston.com/news/local/massachusetts/specials/021209_committee_assignments/
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The lack of workers at development sites was a stark reminder of the worst economic downturn in Las Vegas history. (Louis Traub/ Associated Press
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"What happens in Vegas resonates in Massachusetts: Industry's downturn may force backers of gambling to lower projections for state"
By Matt Viser, Boston Globe Staff, February 24, 2009

LAS VEGAS - Cranes tower over the construction site, but they don't move. The steel awaits, but there are rarely any workers.

If there is a fitting emblem to the dire financial straits on the Las Vegas Strip caused by the national recession, it is here, in front of The Venetian, one of the world's most famous resort casinos. Its opulent marquee is overshadowed by a partially complete luxury condo tower, a $600 million project that has been halted indefinitely.

As Massachusetts returns to the idea of licensing resort casinos a year after Governor Deval Patrick's gambling proposal died in the Legislature, state officials are encountering a gambling industry that is suffering a hangover, like a gambler at 7 a.m. after a bad night, pockets empty.

Tourism and gambling revenues have shrunk. Stock values of casino companies are plunging. Financing for construction is tight. The casino moguls who were scouring Massachusetts for locations to build gambling and golf resorts just a year ago are now trying to stave off bankruptcy.

"One has to wonder whether or not Massachusetts has let this train pass them by," said Alan Feldman, a senior vice president at MGM Mirage, which operates several major casinos including the Bellagio and the MGM Mirage in Las Vegas.

Patrick's plan to license three resort casinos in Massachusetts failed last year in large part because of opposition from House Speaker Salvatore F. DiMasi. The debate revived when DiMasi resigned last month, making way for a new speaker, Robert A. DeLeo, an enthusiastic supporter of adding slot machines at the state's dog and horse racetracks.

Even as the political stars are lining up on Beacon Hill, the downturn in the gambling and tourism markets may force state officials to reevaluate and potentially scale back their plans. For instance, casino executives said they would be far less likely to spend $200 million to $300 million for a 10-year license and agree to pay at least 27 percent of casino revenue to the state, which were the numbers proposed by Patrick last year.

If any proposals do gain traction, they will probably not match the lavish vision laid out by the governor, at least not initially.

"Nobody is going to go build the next version of the Mirage in Massachusetts right now," said Gary Loveman, the chief executive at Harrah's Entertainment, which operates seven Las Vegas hotel casinos. "It's just not feasible."

Loveman, a Bay State resident, has for years expressed interest in expanding in Massachusetts, and he continues to talk with Suffolk Downs officials about a potential expansion there.

Instead of resorts, Loveman said, the Massachusetts Legislature should pursue an incremental approach to expanded gambling by legalizing slot machines at the racetracks, including Suffolk Downs. One model, he said, would be similar to Detroit, where state officials allowed for temporary casinos until developers could secure more funding and build bigger tourist destinations.

Richard Fields, the principal owner of Suffolk Downs, said he remains confident that he could finance and develop a resort casino at the East Boston track.

There could also be a market for less well-known developers who are not on the Vegas Strip but who have been steadily building casinos across the country.

"There's plenty of money sitting on the sidelines," said David Nunes, a developer who has been putting together a joint venture to attempt to build a casino near Interstate 495 in Milford. "All these new gaming groups are attached to private equity firms with deep pockets, and Massachusetts is the last great market to go. People will show up. They'll just be different players."

Patrick has declined to say whether he plans to renew a push for casinos but has said he would not necessarily be deterred by economic woes in the industry.

Sheldon Adelson, Las Vegas Sands Corp. chief executive, in a rare, hourlong interview last week inside his office at The Venetian, said Massachusetts can't expect to win the lucrative windfall that Patrick forecasted last year unless the terms are more favorable to developers.

"I will do everything I can to be in my own hometown, in my own state," said Adelson, a Dorchester native. "However, it's going to be more difficult.

"I don't think there's anybody left in the casino business that would pay $350 million for a license for 10 years," he added. "They won't do it."

Adelson has seen losses that would make anyone blanch. He was the third-richest man in the world in 2007 - earning an average of $20.5 million a day - but saw his net worth decline $4 billion in September alone, according to Forbes magazine. Las Vegas Sands has endured stock declines and Adelson has poured $1 billion of his money into the company.

Adelson said he wants to build a resort on land near the nexus of Interstate 495 and the Massachusetts Turnpike on a site he won't identify. And while he thinks a casino with all the amenities is the only way Massachusetts can compete with the two Connecticut casinos, he is not ruling out a scaled-down facility.

"Will we do a slot parlor? Yeah," he said. "But we don't think that's in the best interest of the state of Massachusetts."

Overall, he said, he remains bullish on gambling. "I've been told since I was a kid there were two things that people never forget: how to ride a bicycle and how to have sex. And also how to gamble - so I say there's three things," said Adelson. "People aren't going to stop gambling."

But just outside his office window, Las Vegas is suffering its worst downturn ever, and specialists say it may be more than a temporary blip. Nevada has had 12 consecutive months of declining casino revenues, and the annual numbers fell for the third time in state history - dropping 9.7 percent last year, a far deeper decline than the 1.3 percent in 2001 and 0.3 percent in 2002.

Visitor volume, average room rates, and convention attendance were all down last year, according to the Las Vegas Convention and Visitors Authority. In December alone, gaming revenue along the Las Vegas Strip fell 23 percent, to $474 million.

Stock for MGM Mirage has fallen 94 percent over the last year, and Las Vegas Sands has dropped 97 percent. Meanwhile, the casino company that Donald Trump founded filed for bankruptcy last week.

"We've never been in this severe of a downturn," said Frank Streshley, senior research analyst at the Nevada Gaming Control Board. "These are some of the best marketers to market their products. . . . but people are spending substantially less."

At 8:30 on Wednesday night at the Venetian, 18 of 36 card tables had not a single gambler sitting at it, leaving dealers with little to do. Inside the Palace Court Slots in Caesars Palace, there were two gamblers at about 100 machines.

At the Bellagio, where "Karma Chameleon" played lightly over the speakers, entire rows were empty, which some gamblers insist is because the casinos are stingy.

"I've never seen the slots so tight," said Roy Morey, 71, a retiree from Tucson who for the first time in 10 years wasn't planning to spring for show tickets. "Normally I'd gamble until 11 at night. Now we're finishing at 8 and going back to the room. We're just not winning."

One group of tourists walked along Las Vegas Boulevard last week lugging a bag of pretzels and five boxes of cereal from CVS back to their hotel, so they wouldn't have to eat out as much.

The guy standing outside Caesars Palace handing out free passes to "exclusive" nightclubs has noticed the downturn: Tim Rusling used to make $5,000 a month working three days a week, and now he's making half the pay for twice the work. He said he also has lowered his standards, and he's handing the free passes out to more people who appear less wealthy.

There are half-built projects on prime Vegas real estate, after casino companies took out billions in bonds to build luxury condominiums and high-end casino resorts. Boyd Gaming halted its $4.8 billion Echelon resort through at least the rest of this year, leaving the skeletons of concrete and steel buildings. MGM, which is trying to build an $8.6 billion complex called CityCenter, revealed last month it would eliminate 200 residential units, reduce the height from 49 floors to 28, and defer the grand opening for another year, to late 2010.

Still, most are optimistic that Las Vegas will bounce back. Just ask Pete "Big Elvis" Vallee, a 410-pound man who makes his living singing three times a day, five days a week at Bill's Gamblin' Hall and Saloon.

"This town has been a little sore," he said, looking through tinted glasses. "We'll come back. This economy will come back."
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Matt Viser can be reached at maviser@globe.com.
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"Casinos not a safe bet"
The Berkshire Eagle - Editorial
Wednesday, February 25, 2009

If state officials are interested in reviving the idea of licensing casinos as a way of generating additional revenue, it appears that now isn't the time. The recession that has crippled the national economy is affecting the casino industry, too. Judging by the money they normally take in, Las Vegas and similar gambling meccas may appear to be recession-proof. But according to The Boston Globe, tourism and gambling revenues in Vegas have dropped significantly, stock values in casino companies have declined, and financing for new construction is getting harder to obtain. Obviously, the prognosis is not promising. It makes more sense for the state to impose a new gas tax then attach its hopes to an industry that is currently suffering and brings with it a whole set of unique problems the state doesn't need.

The debate over casino revenue, proposed by Gov. Deval L. Patrick when he took office two years ago, is being discussed again following the resignation of former House Speaker Salvatore F. DiMasi, who was an opponent of the proposal. Mr. DiMasi's successor as House Speaker, Robert A. DeLeo, apparently supports placing slot machines in the state's horse and dog tracks. Slot machines would certainly give the state's long suffering race tracks a bump at the gate, but they would also bring along the problems that are associated with casino gambling, albeit on a smaller scale. Given the current state of the gaming industry, it appears that even if a casino proposal was approved, what could be built would be much smaller than what Gov. Patrick originally proposed. With the state's current financial problems, and the national economic downturn, it's hard for state officials not to see revenues from either casinos or slot machines as a panacea to cure several financial ills especially when so much potential revenue goes to similar venues that are located in neighboring states.

But not everyone in the gaming industry sees it that way. Sheldon Adelson, a Dorchester native who is the chief executive of the Las Vegas-based Sands Corp., told The Globe that he doesn't believe anyone in the casino business would pay $350 million for a 10-year casino license, the terms that the Patrick Administration proposed last year. Adelson, according to The Globe, is interested in building a casino somewhere near the intersection of Route 495 and the Massachusetts Turnpike, but hasn't ruled out the construction of a scaled down facility. When someone with close ties to the casino industry expresses those feelings, state legislators should take notice. These are challenging economic times, but there have to be better ways for the state to raise revenues than re-open the debate on an already failed proposal.

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"Tribe blasts, opponents hail court land trust decision"
2/24/09, 6:31 pm, posted by Jim Kinsella, capecodtoday.com/blogs

"Supreme Court ruling throws serious obstacle at casino plans: Mashpee Wampanoag will seek congressional help to reverse impact of decision"
By James Kinsella

To Cedric Cromwell, newly elected chairman of the Mashpee Wampanoag Tribal Council, today's Supreme Court decision is "just another assault on tribal sovereignty."

To Mark Belanger, who opposes the tribe's plans to put a casino in Middleboro, the decision validates what "[we] opponents have been saying all along."

The court's 6-3 decision that the federal government could not place land into trust for newly recognized tribes throws a serious obstacle in the way of the tribe's plan to build a $1 billion casino in Middleborough.

Key to that plan is the tribe's request to the federal government to take 539 acres in Middleborough into trust, allowing the tribe to build and operate a casino on the property even if gambling remains illegal in Massachusetts.

The tribe, however, received federal recognition in 2007, long after Congress passed the Indian Reorganization Act in 1934.

In today's ruling, the court ruled that the federal government could take land into trust for tribes recognized before the act, but not after.

"How can you put a date on when someone becomes a tribe?" asked Cromwell, who called the ruling "absurd."

Cromwell said the tribe will be sending letters to U.S. senators Edward M. Kennedy and John F. Kerry, and to Congressman William Delahunt, seeking legislation to once allow the tribe to take land into trust.

"We're going to look to Congress to correct what the court set out to do," Cromwell said.

But Belanger, who blogs as the Bellicose Bumpkin, questions whether the tribe now will succeed in its plans to build and operate a casino.

"This project isn't inevitable," he said. "In fact, it's highly doubtful. [The decision] means that it's not going to happen."

Even if Congress clears the way for construction of the casino, Belanger said, the court decision has completely skewed the tribe's schedule for building and opening a casino.

Further, he states on his blog that Congress "can only place federal lands into trust. The only federal land in Middleborough is the tiny parcel currently occupied by the Middleborough Post Office. World's smallest casino anyone?"

If Congress doesn't act, the tribe can't build a casino in Middleborough, according to Dennis Whittlesey, the attorney who negotiated a casino agreement between the town of Middleborough and the tribe.

Adam Bond, a former selectman in Middleborough, said he could forsee Congress making a quick fix to allow tribes such as the Mashpee Wampanoag to still have land taken into trust. Bond said the casino represents potential tax revenue to the federal government.

Gov. Deval Patrick opposes the taking of land into trust for a casino. A state spokeswoman said the state is "reviewing the decision to ascertain what impact it may have on tribes in Massachusetts."

Belanger opposes a casino in Middleborough, saying casinos represent a failed, predatory model that takes money out of the local economy and carries social costs.

Speaking of the Supreme Court's decision, Belanger said, "The State of Massachusetts should take a lesson from this. We, the people, are driving the bus when it comes to casinos and slot machines."

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"Boston celebrates St. Patrick's Day" - 2009
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House Speaker Robert DeLeo, left, presented a mini slot machine to Massachusetts Gov. Deval Patrick, right. (Bizuayehu Tesfaye/AP Photo)
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"Dean presses speaker on slots, says delay could snuff industry"
Arlington, Massachusetts - with news from the Arlington Advocate
By Jim O’Sullivan/State House News Service, Thursday, April 2, 2009, 2:29 P.M. EDT

Boston, Mass. - House Speaker Robert DeLeo’s support for slot machines at state racetracks is not ardent enough, the chamber’s longest-serving member said Thursday.

House Dean David Flynn said DeLeo’s decision to push the gambling debate back on the legislative calendar could be a death sentence for tracks desperate for cash. Racetracks could have slots up and running within 90 days, Flynn said, but state government would need at least six months to prepare for a major gambling expansion.

“I’m disappointed that he wants to debate this ‘some time this session’,” Flynn said. “We should be doing it now, and I feel strongly about that.”

DeLeo, whose district includes two tracks, has stepped back from the enthusiasm for slots he flashed during the opening hours of his speakership. At a Greater Boston Chamber of Commerce breakfast Tuesday, the speaker said he expected "slots or the possibility of gaming in the future."
"Later on in the legislative session you are going to see us take up this issue and you are going to see us debate it in full," he said.

In a statement emailed Thursday, DeLeo spokesman Seth Gitell said, “Speaker DeLeo welcomes a free, open and comprehensive debate on gaming later in the legislative session.”

Flynn (D-Bridgewater), a consistent champion of the Raynham dog track, estimated the state was foregoing $750,000 in revenue per day by not sanctioning slot machines.

Gambling revenue estimates fluctuate dramatically. The slot parlor proposal Treasurer Timothy Cahill laid out earlier this month called for three venues that would generate up to $240 million annually through taxes, and up to $3.3 billion in immediate licensing fees, figures later doubted by analysts and lawmakers.

In 2006, the last time the Legislature voted on slot machines, proponents estimated the machines would create 4,000 jobs and $500 million in revenue.

Flynn’s claim of a $750,000 per diem translates to more than $273 million in revenue.

The House’s top gambling opponent, Rep. Daniel Bosley, doubted Flynn’s numbers, saying, “Ask him to document that. I love the dean, but trust but verify.”

Bosley (D-North Adams) said Flynn’s timing was bad, pointing to the gambling industry’s sliding revenues, and saying, “Everybody’s taking losses all over the place. Why would now be the time for slot machines?”

Flynn said the slots are needed to sustain the four tracks, and called postponement until later in the session a harsh blow to the racing industry. “As far as I’m concerned, that’s too late, and I say that because we’ll be out of business in January.”

During a State Lottery Commission meeting Thursday, Cahill said he expected slots to be debated “this year.”

Board members said they were considering approaching legislative leadership to redefine the definition of a slot machine, in the wake of recent police scrutiny of controversial phone card arcade games. Lottery general counsel Charles McIntyre warned that his counterparts in other states who attempted to define slot machines more narrowly ended up creating inadvertent loopholes that cause more harm than good.

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"Casino backer loses Middleborough vote: Winner says it's time to move on"
By Christine Legere, Boston Globe Correspondent, April 5, 2009

MIDDLEBOROUGH - Voters in yesterday's town election tossed out an incumbent selectman, a supporter of a controversial plan to build a casino resort here, and elected his opponent, who had been a passionate foe of the plan.

Finance Committee member Stephen McKinnon beat Steven Spataro, earning 1,022 votes. Spataro received 972 votes.

McKinnon said tensions and bitterness over the casino issue remain and that voters probably supported the candidate who they believed would bring more openness to the Board of Selectmen.

"I think there is still that wedge, to be perfectly honest," he said.

In 2007, town officials and the Mashpee Wampanoag tribe signed a deal for a billion-dollar casino resort on 539 acres that tribal leaders hoped to put into federal trust. The agreement infuriated many residents who felt the deal was made behind closed doors and without public input. The deal was eventually approved by residents during Town Meeting.

McKinnon said it is time to move on.

"In this town, we've been too focused on the casino," he said. "We need to look at the whole host of problems we face."

CasinoFacts, a group that opposes the casino, had published the slate of local candidates it endorsed on its website and yesterday urged residents to get out and vote for its picks, which included McKinnon.

"Today is the day to vote for change, transparency and a brighter future for Middleborough," the group declared on its website.

But one of its other choices, Greg Stevens, who sits on the group's board of directors, failed to win the one-year seat that became available after Selectman Adam Bond resigned in January. He lost to Alfred Rullo, who had not declared a position on the debate, and won 1,063 votes. Stevens picked up 990 votes.

In recent months, Stevens had tried to distance himself from his position on the casino, and told voters he was running to bring more transparency to the board and to allow residents more opportunities to present their ideas at public meetings.

He has described the selectmen's treatment of residents who disagreed with them as rude and dismissive.

At the height of the debate, Selectwoman Marsha Brunelle would bang her gavel down when residents dissented.

In the race for town moderator, former selectman Wayne Perkins ran against Ed Beaulieu, who is fairly new to the town.

Beaulieu also ran on a platform that promised more openness to residents, but Perkins beat him by a slim margin, picking up 1,047 votes. Beaulieu earned 1,004 votes.

In Arlington, voters also went to the polls, casting ballots in several races, including for the School Committee.

John W. Hurd and Clarissa Rowe, incumbents on the Board of Selectmen, faced no challengers and were reelected.

In the School Committee race, in which three candidates ran for two three-year terms, incumbent Jeffrey D. Thielman was reelected, earning 3,008 votes. Cindy Starks won the second spot with 3,454 votes, beating Joseph C. Tully, who had 2,528.
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Globe correspondent John Guilfoil contributed to this report.
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A Boston Globe Editorial - Short fuse
"Lobbyists: Crocodile tears for the poor"
April 9, 2009

It's amazing to see business lobbyists suddenly show concern for the little guy when profits are on the line. During Tuesday's legislative hearing on Governor Patrick's new revenue proposals, representatives of alcohol, restaurant, and telecommunications interests were tugging on the heartstrings, saying the proposed taxes were regressive. The American Beverage Institute said lifting the sales tax exemption on alcohol would hurt those "least able to pay," according to the State House News Service. A satellite TV firm said a proposed tax on its service would disproportionately hurt rural, immigrant, and lower-income families. Pretty soon, these same forces will be pushing for a progressive income tax in Massachusetts. Or maybe not.

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Massachusetts State Senate President Therese Murray
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"Legislative leaders warming to casinos"
By Matt Viser, Boston Globe Staff, April 15, 2009

State Senate President Therese Murray said today that a bill allowing casinos in Massachusetts will be debated by both houses of the Legislature this fall as lawmakers intensify the push to expand gambling in the face of plunging tax revenues.

Murray pretended to pull the lever of a slot machine this morning when asked by a reporter about casinos, and even added an exclamatory "Ka-ching!"

"We need the revenue," Murray said at a Greater Boston Chamber of Commerce breakfast at the Park Plaza Hotel. "To see that over $900 million leaves the state every year to Connecticut and Rhode Island, even if we could pick up $700 million, we would all take that."

Allowing a casino bill to reach the floor of either house would be a significant step forward for advocates of expanded gaming. The measure was blocked in the past by former House Speaker Salvatore F. DiMasi, whose replacement, Robert A. DeLeo, supports the expansion of gambling.

The Senate would have passed a casino bill last year, Murray said today, if it had gotten through the House.

"There was an appetite last time," Murray told reporters after the speech, adding, "but there's a bigger appetite this time."

“There is interest among the leadership in having the conversation," Governor Deval Patrick said in a brief interview. "I think it will come later in the year."

DeLeo said “later on this session there will be a debate on gaming.”

“I’ve been a supporter of slots, and as I’ve told the governor before I’m open to a discussion relative to casinos,” he said during a meeting with Globe editors and reporters. “It’s obviously a very controversial subject matter, and … we have to try to get it as right as we can the very first time out of the box.”

He said the House is “already doing some studies” on expanded gambling and said Representative Brian Dempsey, a Haverhill Democrat and chairman of the House Committee on Economic Development and Emerging Technologies, has started meeting with proponents and opponents.

“Gaming seems to come up as the end-all,” DeLeo said, sounding a cautionary note. “If we do gaming, then everything is going to be fine in the Massachusetts economy. I want to be clear, while I’ve been a supporter, it’s not. I look at it as one revenue source we can tap into as a commonwealth.”

The leaders of both houses and Governor Deval Patrick have been talking about casino legislation for some time, according to Murray. Casino revenues would not be included in next year's budget, Murray said, and the state may not start reaping the financial benefits of expanded gambling until 2011.

Murray has asked two senators -- Senator Michael Morrissey, a Quincy Democrat, and Senator Stanley Rosenberg, a Northampton Democrat -- to lead the negotiations for the Senate. Morrissey has been a vociferous advocate for expanded gambling, while Rosenberg is opposed.

Still, there are significant differences to be worked out among the top leaders, including over whether to pursue resort casinos, as the governor has favored, slot machines at the race tracks, as DeLeo has pushed, or a third proposal by Treasurer Timothy Cahill to auction licenses for slot parlors.

Murray declined to say this morning which version she preferred. In the past, she has been lukewarm to the idea of a casino in an urban location such as Boston.

“If you talk to some of the senators who represent that area, it’s a congestion issue,” she said this morning when asked whether she would oppose a Boston casino. “But those are things that can be worked out in legislation.”

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"Mayors, unions revive casino push"
By Matt Viser, Boston Globe Staff, April 21, 2009

A group of influential mayors, including Thomas M. Menino of Boston, and trade unions re-launched their campaign today to persuade lawmakers to legalize casino gambling in Massachusetts, adding further momentum to a hot-button debate that is expected to take place on Beacon Hill this fall.

The group, called the “Massachusetts Coalition for Jobs and Growth,” is sending out letters to municipal officials to try to persuade them to get behind resort-style casinos, the version that is supported by Governor Deval Patrick.

House Speaker Robert A. DeLeo, whose district includes Suffolk Downs and Wonderland racetracks, has expressed strong backing for slot parlors, with the most likely venues being the state's existing dog and horse racing tracks. Treasurer Timothy P. Cahill, who oversees the lottery, has supported auctioning three licenses for slot parlors.

Senate President Therese Murray last week added more momentum to the debate, saying the state needed to find a new source of revenue as the state struggles through a budget crisis. “Ka-ching,” Murray told a group of business leaders at a hotel ballroom, jerking her arm downward as if pulling the lever on a slot machine.

The letter from local officials, which is going out this week, was signed by Mayors Thomas M. Menino of Boston, Kimberley Driscoll of Salem, Thomas Ambrosino of Revere, and City Manager Jay Ash of Chelsea.

“We don’t have the luxury to continue a policy that exports Massachusetts tax revenues, jobs, and tourism to Connecticut and Rhode Island,” Menino said in a statement. “We have an opportunity with the authorization of resort casinos to create a new and sustainable revenue source for the state and cities and towns that will also create thousands of new jobs and stimulate tourism and economic development growth. And we need to seize that opportunity now.”

The coalition so far includes:

Mayor Tom Ambrosino, City of Revere
Mayor Tom Menino, City of Boston
City Manager Jay Ash, City of Chelsea
Mayor Kimberley Driscoll, City of Salem
Mayor Mark Hawke, City of Gardner
Mayor Carolyn A. Kirk, City of Gloucester
Sheet Metal Workers LV # 17
Greater Boston Labor Council
New England Regional Council of Carpenters
Local 103 I.B.E.W
Sheet Metal Workers LV # 17
Massachusetts Teachers Association
Massachusetts Building Trades Council
Carpenters Local 624
Massachusetts AFL-CIO
Carpenters Local 218
Suffolk Sterling Racecourse
Jason Smith, Selectman, Framingham
WFCW Local 1445

Here is a copy of the letter from the mayors:

Dear Fellow Municipal Official:

As Gov. Deval Patrick and the Massachusetts State Legislature decide the future of gaming expansion in Massachusetts, we are asking you to join with us in supporting the licensing of three gaming, entertainment and destination venues that will require the investment of more than $3 billion in private sector spending within our economy --- a critical and much-needed fiscal and economic development initiative that will generate hundreds of millions of dollars in new local aid to be distributed to our struggling cities and towns.

Each of us is well aware that most of Massachusetts’ 351 cities and towns face severe budgetary pressures likely to result in thousands of municipal employee layoffs and almost unimaginable curtailment of programs and services. At the same time, Gov. Deval Patrick and the Legislature must address a $1 billion state budget deficit --- and that budget deficit next fiscal year may well approach or exceed $2 billion.

Further, taxpayers have made it clear in public opinion polls, at town meeting, and most demonstrably in a slew of city and town budget override votes, that they are opposed to most --- if not all --- tax increases.

Operating under the existing status quo, there is very little leeway, even by cutting jobs, programs and services, that state government and cities and towns can effectively address these fiscal inequities. As local officials, this leaves us no alternative other than to cut operating budgets --- by all means necessary.

But it doesn’t have to be this way.

Studies show that three gaming, entertainment and destination venues will generate nearly $500 million in new tax revenues, create 10,000 construction jobs and more than 20,000 casino-related jobs, spawn economic development statewide, generate more than $400 million in casino-related goods and services spending among Massachusetts small businesses, and revitalize the state’s tourism and hospitality sectors.

And, as a UMass Dartmouth Center for Policy Analysis recommended, by apportioning half of all new casino tax revenues to local aid, Massachusetts cities and towns would receive more than $200 million annually in additional local aid --- an estimated 10.4% increase over existing lottery disbursements.

Additionally, by dedicating to local aid an estimated $600 million in licensing fees from the three casinos --- apportioned over three years --- cities and towns would receive another $200 million annually as the casinos were being built and entering their first full year of operation..

Since 2003, Massachusetts residents have spent more than $1 billion annually at the Connecticut casinos and Rhode Island slot parlors. All told, since the casinos and slot parlors opened in 1993, Bay Staters have spent well about $12 billion at Connecticut and Rhode Island gaming venues. That spending has resulted in Massachusetts residents generating $4 billion in tax revenues to the Connecticut and Rhode Island state treasuries, monies used to fund education, local services, police and fire, property tax relief, and scores of other initiatives --- in Connecticut and Rhode Island.

Massachusetts simply cannot continue to export its gaming, entertainment and tourism and hospitality sectors’ tax revenues and jobs into the Connecticut and Rhode Island economies.

That’s why we’re asking you to join with us in contacting your state senators and state representatives, and urge them to license three gaming, entertainment and destination venues that allows Massachusetts to reassert its fiscal and economic competitiveness --- and to provide new and sustainable local aid revenues vital to the fiscal and economic future of our Commonwealth’s 351 cities and towns.

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"Gambling fever develops 2 strains: Camps divide into casinos vs. slots"
By Matt Viser, Boston Globe Staff, April 22, 2009

For gambling proponents, it was like drawing a full house in poker when state Senate President Therese Murray raised her arm last week, mimicked pulling a slot machine lever, and said, "Ka-ching." But even with new momentum for legalized gambling in Massachusetts, disagreements abound over what form it should take.

Mayor Thomas M. Menino, Suffolk Downs racetrack, and a coalition of trade unions and North Shore politicians renewed their push yesterday to legalize full resort casinos in Massachusetts. Their vision mirrors the pitch by Governor Deval Patrick last year to license casinos on the scale of those in Las Vegas and Connecticut, complete with lavish hotels and other amenities.

Other political heavyweights, including state Treasurer Timothy P. Cahill and House Speaker Robert A. DeLeo, have been making the case that major players in the casino industry have fallen victim to the economic downturn, are trying to stave of bankruptcy, and are not in a position to build lavish resorts. They argue that stripped-down slot machine parlors would be easier and cheaper to build and would produce money for state coffers sooner.

"I feel there has to be a component for slots at the tracks before we even have a discussion relative to casino gambling," DeLeo told reporters yesterday. "My position hasn't changed. . . . I see it as a relatively quick way of gaining revenue."

Resort casino advocates counter that Massachusetts needs to compete directly with Connecticut's destination casinos, Foxwoods and Mohegan Sun. They also want the higher number of jobs that resorts would generate.

"We don't have the luxury to continue a policy that exports Massachusetts tax revenues, jobs, and tourism to Connecticut and Rhode Island," Menino said yesterday in a statement. "We have an opportunity with the authorization of resort casinos to create a new and sustainable revenue source for the state and cities and towns that will also create thousands of new jobs and stimulate tourism and economic development growth. And we need to seize that opportunity now."

The coalition includes a range of local officials, from mayors to selectmen. Trade unions in the group include sheet metal workers, carpenters, and the Massachusetts AFL-CIO.

The topic of casinos dominated the State House last year before its defeat was engineered by House Speaker Salvatore F. DiMasi. DiMasi resigned in January and was replaced by DeLeo, who is a gambling proponent.

But some of those pushing for resort casinos are coming from DeLeo's own district, which includes Suffolk Downs and Wonderland racetracks

"I can say categorically and unequivocally, this is not a criticism of anything that Speaker DeLeo has proposed," said Mayor Thomas Ambrosino of Revere, who favors resort casinos. "Perhaps there's some compromise out there that says, let's move eventually to resort-style casinos but start with slot machines."

The letter from local officials, which is going out this week, was signed by Menino, Ambrosino, Mayor Kim Driscoll of Salem, and City Manager Jay Ash of Chelsea.

The coalition was initially formed last year to advocate for the governor's proposals, and it has largely been led by Suffolk Downs.

Last year, for example, the operators of Suffolk Downs enlisted Mayor Michael Bissonnette of Chicopee to be featured on a pamphlet, mailed statewide, that sought to make the case for resort-style casinos.

Suffolk Downs also paid for a 50,000-piece mailing that went out statewide in November 2007 and was signed by Robert J. Haynes, president of the Massachusetts AFL-CIO.
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Matt Viser can be reached at maviser@globe.com.
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Patrons try their luck at slot machines at the Mohegan Sun Pocono Downs casino in Plains Township., Pa. The same group that owns this facility wants to build a casino in Palmer. (Mohegan Sun photo).
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"Palmer Study Committee cites potential costs of casino, ways to avoid burden"
By The Republican, By NANCY GONTER, ngonter@repub.com - Saturday May 09, 2009

Massachusetts can - for now - only dream of raking in the kind of cash coming from slot machine tax revenues in Pennsylvania.

Since the first slot machine casino opened there in 2006, the Keystone State took in $2 billion in taxes and casino license fees through the end of last year. Pennsylvania collects an average of $2.5 million a day in slot machine taxes, and in 2008 $1 billion went for property tax relief, according to its state Gaming Control Board.

Plains Township, a small community adjacent to the larger city of Wilkes-Barre, Pa., finances half its town budget from slot machine revenue. It is the site of Mohegan Sun Pocono Downs, operated by the same tribe that wants to locate a $1 billion casino in Palmer.

Casino operators in Pennsylvania are subject to a complex system of taxing that results in approximately 55 percent of slot revenues going back to the state and communities.

If Massachusetts were to legalize casino gambling, just how the state, a host community and surrounding towns will benefit - or bear the burden - remains unclear.

Legislation to allow casino gambling and slot machines at race tracks is before the state Legislature and is expected to be taken up in the fall. With state tax revenues in a free fall and massive cuts to the state budget in the offing, support for passage of casino legislation is said to be growing.

In Palmer, the Casino Impact Study Committee, a group formed by the town to examine the impact of a casino there, recently issued a report stating the town's taxpayers should not have bear the burden of hosting such an enterprise.

The Mohegan Tribal Gaming Authority has a 99-year lease on more than 150 acres across from Exit 8 of the Massachusetts Turnpike between Route 32 and Breckenridge Street in Palmer. If the state allows it, the tribe hopes to build a resort casino there.

The report by the casino committee listed a litany of expected costs related to a hometown casino, including the need for up to 24 more police officers at $1.9 million, expansion of the Fire Department at up to $2.5 million, and the possible construction of two schools at $40 million each.
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Paul E. Burns
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"There needs to be some mechanism to ensure the host community does not end up becoming a net loser in the process. Whether we negotiate that with the casino, the state or some combination it needs to be taken into consideration," Town Councilor Paul E. Burns said.

The committee's report includes a cover letter signed by all 12 members that recommended hiring a professional negotiator to deal with the tribal authority. "The town must have a host agreement in place that will cover all of the expenses set forth in this impact report so that no burden is placed on the citizens to cover any of the expenses associated with a casino," the letter states.

The Mohegan Tribal Gaming Authority is prepared to work with Palmer and surrounding towns on a needs assessment of public safety, infrastructure and other improvements, according to Paul I. Brody, vice president of development for the authority. But, he questions whether the developer of a large mall or industry would be asked to provide all the upgrades needed to locate in a community. "We want to be treated in the same fashion," Brody said.

"As we have suggested on a number of occasions, we strongly urge Palmer to have a voice in the legislation in terms of specific distribution of gaming tax revenues for the towns most impacted," he added.

The gaming bill, filed in January by 11 legislators, including several from Western Massachusetts, calls for allowing 1,500 slot or video gaming machines at the state's four existing race tracks - Suffolk Downs in East Boston, Wonderland Greyhound Park in Revere, Plainville Race Course and Raynham Dog Track - with a $25 million license fee price tag and a tax of 65 percent on slot machine revenues. Suffolk and Wonderland, are both in the legislative district of House Speaker Robert A. DeLeo, D-Winthrop.
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Paul I. Brody
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It also calls for one resort casino each in Hampden and Bristol counties to be taxed at a rate of 17 percent of net revenues. The bill requires an endorsement vote from the town where the casino will be located and an agreement with the host and surrounding towns "to provide mitigation" which would be determined by a newly-created Gaming Commission.

Legislation calling for three resorts filed by Gov. Deval L. Patrick last year and defeated by the Legislature, had many more specifics. It called for a licensing fee of at least $200 million and an operating license payment of at least 27 percent of all gross gaming revenue, or $100 million a year, which ever is higher. It also called for an unspecified community impact fee for the host town and required the casino developer to pay for infrastructure improvements. The bill had a list of other demands, including job creation, designation of open space, on-site day care programs and career coaches for employees.

In Connecticut, where two casinos were built on tribal lands in the mid-1990s, the state gets 25 percent of all slot machine revenue. Between the Mohegan Sun and Foxwoods casinos, Connecticut has received an average $400 million annually in recent years, said Charles F. Bunnell, chief of staff for the Mohegan Tribe. The money is distributed to communities statewide based on population, although in 2005, legislation was approved to increase the amounts given to the host and surrounding towns, he said.

Before Mohegan Sun opened in 1996, it negotiated an agreement with its host town of Montville in which the tribe agreed to pay $500,000 annually, roughly the amount in tax revenue the town received from the previous owner. The payment is a "gesture of good will" because the casino is located on what is now tribal land, Bunnell said. An additional payment of $250,000 was made to the town in 2004 "just to say the relationship has been working so well," he said.

A casino is Massachusetts would differ as it would "strictly be a commercial venture," Bunnell said. "The tribe coming to Massachusetts would just be like any other developer, dealing with the community and the laws of Massachusetts," he said.
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Therese Murray
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Legislation here would need to be crafted so "a developer can make the numbers work," Bunnell said. In Kansas and Maryland, the tax structure was so high that casino developers backed away, he noted.

In Pennsylvania, the Mohegans took over the existing Pocono Downs race track in 2005, added slots when they were legalized in 2006 and doubled the number of machines last July.

The situation is similar to circumstances envisioned for Massachusetts in that the casino is not on tribal land and is a commercial venture. Pennsylvania takes a five-pronged approach to taxation, Robert Soper, the president and chief executive officer of that facility said in an interview.

Thirty-four percent of slot revenues go to the state directly for property tax relief, 5 percent to a tourism fund and another 12 percent to a fund to develop horse racing in the state, although that amount could drop as low as 7 percent, Bunnell said.

Two percent of revenue goes to economic development projects in Luzerne County, where the casino is located, with priority given to Plains Township and then to adjoining towns. Another 2 percent is set aside to fund half the town budget, which is approximately $2 million, and the remaining amount also goes for economic development, he said.

In early March, 20 projects in Luzerne County were given a total of $13.8 million in funding from slot machine revenues. They included a new police station and two cruisers for one town and surveillance cameras for another. More than 80 requests were received, said Steven Weitzman, press secretary for the state Department of Community and Economic Development.

"It's worked out well. It's a non-taxpayer source of funds to do some things. It gives us a pot of money to do things that would be difficulty or impossible to do," Weitzman said.

Pennsylvania announced in mid-April that nearly $770 million in gaming revenue will be available for property tax relief this year, the same level as in 2008. Nearly 2.7 million state residents saw their taxes reduced because of gaming revenue, with the statewide average expected to be nearly $200 again this year, according to a press release from the state's budget secretary.

Annual revenue at Pocono Downs alone was $170 million in 2008 and is expected to be higher this year, Soper said. For the month of March, slot revenues there were more than $18 million, nearly 36 percent higher than the prior March.

Statewide, revenue from slot machines is growing at nearly double digit rates and in March 2009, it was 9.4 percent higher than March 2008. That meant more than $85 million in taxes for that month alone.

In Massachusetts, debate on the pending casino legislation is expected to happen in the fall, according to Senate President Therese Murray, D-Plymouth, a past casino supporter. She believes Massachusetts should capture some of the $900 million that its residents currently spend at the two Connecticut casinos each year.

And, she believes there is strong support for the legislation to be passed this year. "There was an appetite last time, but there's a bigger appetite this time," she said.
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Reporter Dan Ring contributed to this report.
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CASINO IMPACT
The Palmer Citizens Casino Impact Study Committee says the following may be needed to compensate for a casino operating in town. Cost estimates are provided where available:

--Treatment center for problem gamblers: $190,000

--Possible construction of two schools: $40 million each

--Expansion of English Language Learners program in the public schools

--Hotel and restaurant management curriculum at Pathfinder Regional Vocational Technical High School: $154,000

--Adult basic education expansion at Top Floor Learning: $115,000, or a new site at the casino: $250,000

--Yearly contribution for purchase of open space and a full-time conservation agent

--13 addition employees in Department of Public Works: $845,000 annually

--New vehicles for Department of Public Works

--20-24 additional officers for the Police Department: $1.92 million annually

--Six police cruisers: $30,000-$35,000 each

--New police station

--Connection for water service from Quabbin Reservoir: $30-$50 million

--Sewer lines and other upgrades for the casino: $10.9 million

--20 full-time firefighters and a secretary for the Fire Department: $1.57 million annually

--Addition to the fire station: $2-$2.5 million

--New rescue truck and fire engine

--Expansion of Wing Memorial Hospital emergency room by two to four beds, including land purchased: $2-$2.5 million

--A full-time zoning enforcement officer

The committee also recommended the following action be taken locally:

--Adopt an ordinance to prevent "hot bedding," where landlords rent rooms to more than one unrelated tenant

--Approve a moratorium on new construction of multi-family housing

--Increase taxation of non-owner occupied multi-family dwellings

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"As economy sours, Mass. gambling debate heats up"
By Steve LeBlanc, Associated Press Writer, May 17, 2009

BOSTON --As lawmakers scramble for revenues, casino gambling -- declared dead just a year ago -- is seeing its odds surge again, helped on by a key change in leadership on Beacon Hill and the state's desperate need for cash.

On Monday, operators of the Mohegan Sun casino in Connecticut plan to open an office on Main Street in downtown Palmer to introduce themselves and help build public support for a possible Western Massachusetts destination casino.

The Mohegan Tribe has signed a 50-year ground lease on 152 acres in Palmer with the hope that Massachusetts lawmakers will finally give the green light to casino gambling.

"We believe that if gaming is introduced to the commonwealth we would be able to go into the market as the best known gaming company on the East Coast," said Mohegan Sun cheif executive Jeff Hartmann, pointing to the jobs that the casino could bring to the area. "We'll be there to introduce ourselves to the community."

Hartmann isn't alone.

The owners of the state's dog and horse tracks are also looking for a new lease on life by convincing the state to allow them to install slot machines.

For dog tracks like Wonderland Greyhound Park in Revere, the prospect of slot machines is particularly enticing since voters last year approved a ballot question to ban greyhound racing in Massachusetts at the end of the year.

And the Mashpee Wampanoag Tribe is still hoping to open a casino in Middleborough under a federal law that permits tribes to enter the gaming business.

One reason for the renewed optimism is the new House Speaker Robert DeLeo, D-Winthrop, who has the Wonderland and Suffolk Downs racetracks in his district.

Unlike former House Speaker Salvatore DiMasi, who quashed a proposal by Gov. Deval Patrick to license three resort-style casinos in Massachusetts last year, DeLeo supports expanded gaming -- although he prefers installing slot machines in existing racetracks first.

Despite having lost their most vocal supporter in DiMasi, gambling opponents aren't giving up.

Instead they are ramping up their pleas to lawmakers to resist what they say is the false promise of fast casino cash.

They say the hidden costs of casinos -- particularly the social costs of gambling addiction -- far outweigh any licensing fees or tax revenues the casinos may generate. They are also quick to point out that even casinos are taking a hit in the recession.

"We expect our elected officials to take the long view and not prey on the most vulnerable among us," said Laura Everett, spokeswoman for the group Casino Free Mass. "While it may be seductive to have this as a short term fix, it doesn't solve the fundamental problem of how we fund state services."

But even a short term fix could prove hard to resist as the state grapples with the worst fiscal crisis in more than a generation.

Revenue estimates continue to tumble, forcing lawmakers to make deep service cuts while also weighing unpopular tax increases.

Compared to both of those options, casino licensing fees and gambling tax revenues could sway enough support on Beacon Hill -- especially as the state continues to see Massachusetts residents drive over the border to spend their gambling dollars in neighboring states.

Leaders on Beacon Hill have tried to tamp down expectations of a fiscal silver bullet from casinos. While the extra money would be welcome, they say it's not going to be enough to dig the state out of its current fiscal hole.

They say lawmakers are faced with the much more immediate problem of crafting a new budget for the 2010 fiscal year that begins July 1 won't even be able to begin considering casino gambling until the fall.

Any revenue would likely come to late to help for the 2010 fiscal year.

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Palmer, Mass., its downtown shown in this 2003 aerial photo, is known for its railroad past, but automobile traffic is more a point of contention with residents weighing whether they want a casino to come to town.
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"Mohegans Seek Niche, Won't Tout Slots"
www.theday.com - By Brian Hallenbeck, 5/17/2009

Palmer, Mass. - When Mohegan Sun officials throw open the doors to their Main Street office here this week, they're not likely to start rattling on about the gambling options that would fuel the resort casino they hope to build off a nearby Mass Pike exit.

They won't be displaying slot machines. There will be no craps tables, no roulette wheels, no card games.

Instead, visitors will find some plush sofas and flashes of a freshly lacquered floor that might remind them of the one the women's professional basketball team pounds at the Mohegan Sun Arena in Uncasville. The walls of the office will be adorned with framed posters that capture the Connecticut resort's other features, its angular architecture, its cuisine and the top-tier performers whose appearances have helped transform the Nutmeg state's southeastern corner.

The storefront window displays will feature “non-gaming amenities,” said Paul Brody, the Mohegan Tribal Gaming Authority's vice president of development and point man for the Palmer project, one side devoted to “food and beverage,” the other to entertainment.

”Most people already know about the gaming,” Brody said.

And it's the chance to offer all that other stuff that warrants the authority's willingness to invest more than a billion dollars in Palmer, a western Massachusetts town more familiar with abandonment than economic development. In the 1960s, the railroad stopped picking up passengers here, and then the textile industry bailed out, too, leaving behind red-brick factory buildings and flat-faced tenements erected to house the factories' workers.

It's little wonder then that the Mohegan authority wants no part of Massachusetts Treasurer Tim Cahill's proposal to license three slots parlors in the state rather than full-scale “destination” resorts, at least as it pertains to Palmer. Cahill's plan has yet to gain much traction on Beacon Hill, but it's on the table, as are a number of casino bills the state legislature is expected to take up in the fall. As Massachusetts' projected budget deficit for fiscal 2010 soars, most observers increasingly believe the legalization of some form of casino gambling in the state is a sure bet.

In Palmer, whether a law authorizes full-scale casinos, like those Gov. Deval Patrick first envisioned a year ago, or Cahill's slots parlors could make all the difference. Last week, the town's Economic Development Advisory Committee hosted a forum in which Brody and Craig Stepno, a senior policy adviser in the state treasurer's office, participated.

It wasn't supposed to be a debate, but at times it felt like one.

Racetracks into racinos

Under Cahill's plan, Stepno said, the state would license a slots parlor in each of three geographic regions in the state - “Boston North, Boston South and western Massachusetts” - and each would be authorized to operate 2,500 to 3,000 video lottery terminals, or VLTs. The treasurer's office estimates the state could make between $1.9 billion and $3 billion in upfront licensing fees, and more on the sale of the terminals to the parlor operators. It calculates that a 27 percent tax rate on the parlors' winnings would generate from $200 million to $240 million a year.

It's also estimated that each slots parlor would employ about 1,000 full-time workers.

Perhaps the most attractive thing about the revenue stream the parlors would generate is the speed with which it could be tapped. Stepno said an existing racetrack facility could be converted into a “racino” featuring VLTs in three to four months. Building a slots parlor from scratch could be accomplished in about a year.

(Massachusetts has horse-racing facilities in East Boston and Plainville, and greyhound tracks in Raynham and Revere. None are in the western part of the state. In a statewide referendum last November, voters approved a ban on greyhound racing as of Jan. 1, 2010.)

”Slots are the fastest way to get revenue and create jobs,” said Stepno, who noted that Cahill also has reservations about the ability of gaming enterprises to finance construction of resort casinos given the economic climate.

Brody, while acknowledging that slots parlors, either at a racetrack or freestanding, may be attractive options in some parts of the state, they are not suited to western Massachusetts in general and Palmer in particular, where a gambling facility would have to be built from the ground up.

”Our belief is that it's not right for Palmer,” he said, adding that the Mohegan authority operates a racino near Wilkes-Barre, Pa., and knows what it's talking about.

The project Mohegan Sun wants to build, Brody said, would provide 1,000 to 1,200 jobs during construction and 2,500 to 3,000 permanent jobs thereafter. It would include a casino offering all the gambling options offered at Mohegan Sun in Uncasville, including poker; a 600-room hotel and spa; a mix of leased and casino-owned restaurants; retail shops; and “modest” entertainment and meeting space.

Brody said the casino could generate $500 million a year in gaming revenue “assuming a reasonable taxing policy,” and noted that the Mohegan authority has access to a $1.8 billion line of credit. He said that by the time construction commenced, capital markets likely would have loosened up.

Design and construction would take 12 to 18 months to complete.

Traffic: too much, too little

At Dominick's, a restaurant in Three Rivers, one of the four villages that make up Palmer, population 12,600, the regulars aren't shy about the prospect of a “destination” in their midst.

”You should be here in the morning at 7 a.m.,” said waitress Carol Dalessio, whose daughter owns the place. “My coffee crowd's all for it. They're mostly construction workers at that hour. Later in the day, you get some who are against it because of the demands on the water system, the police force. Some say, 'I'm all for a casino, but not in this town.' “

Bill Carolan agrees with that last suggestion.

”Traffic's the big issue,” he said. “It ought to be out at Mount Tom (in nearby Holyoke). That's where they ought to build it.”

”But the tree-huggers out there don't want it,” said Billy Rondeau, who's lived all of his 53 years in Palmer. “I don't think the town's roads were designed for the traffic. Friday afternoons are bad now. … I want the jobs though. Look at the factories that went. You hear these rumors that they're going to hire all Orientals and build tenement houses for them, but I don't know.”

On the slots-parlor-vs.-resort debate, Rondeau's made up his mind.

”Why go through all the trouble for the smaller thing,” he said. “If you're going to do it, do it right. Don't go half-assed.”

Such opinions are of no small consequence, since any casino legislation that passes is expected to give towns the right to decide for themselves whether they want to host a gambling facility. In a nonbinding referendum in 1997, Palmer residents voted 2,444 to 1,935 to allow “a hotel/conference resort with entertainment and casino gaming” on the very 150-acre site Mohegan Sun has optioned for its project.

Next time, the vote will be binding.

”It's definitely a divisive issue,” said Matthew Street, Palmer's town manager. “There's very little middle ground. People are either for it, against it or they're wait-and-see on what the legislature does.”

Diane Pikul's among the naysayers.

”I'm very upset about the casino,” she said. “I'll be able to look off my deck on Flynt Street and spit on it. I think it will bring more problems than it's worth.

”You get a lot of lower-income people who work at casinos, a lot of foreigners, and it puts a strain on the schools and services. “

Pikul, too, worries about the traffic, even though Mohegan Sun has said it's prepared to spend $60 million to $70 million on a highway “flyover” that would direct casinogoers from and to Exit 8 of the turnpike, lightening the load on routes 181, 20 and 32.

”The Brimfield Antique Show causes traffic problems now,” Pikul says.

Next month, an anti-casino group plans to demonstrate by simulating the traffic congestion it believes a casino development could cause.

But for too long, Blake LaMothe, a local businessman and railroad enthusiast, has been far more concerned about the lack of traffic in town.

”I don't think it's a bad idea at all,” he said of the Mohegan Sun project. “It'll bring taxes down, promote business. You'll see a lot more commerce in this area.”

LaMothe thinks a resort casino could put Palmer, once known as the town where seven railroads converge, back on the map. He'd like the Mohegans to help finance a railroad museum, and perhaps one dedicated to Indian tribes, too. Palmer could land the National Railway Historical Society's headquarters.

”What better place to put it?” LaMothe said.

"Regional"

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"Mohegan Sun casino to open MA office"
By Associated Press, May 17, 2009

BOSTON — As lawmakers scramble for revenues, casino gambling — declared dead just a year ago — is seeing its odds surge again, helped on by a key change in leadership on Beacon Hill and the state’s desperate need for cash.

On Monday, operators of the Mohegan Sun casino in Connecticut plan to open an office on Main Street in downtown Palmer to introduce themselves and help build public support for a possible Western Massachusetts destination casino.

The Mohegan Tribe has signed a 50-year ground lease on 152 acres in Palmer with the hope that Massachusetts lawmakers will finally give the green light to casino gambling.

"We believe that if gaming is introduced to the commonwealth we would be able to go into the market as the best known gaming company on the East Coast," said Mohegan Sun cheif executive Jeff Hartmann, pointing to the jobs that the casino could bring to the area. "We’ll be there to introduce ourselves to the community."

Hartmann isn’t alone.

The owners of the state’s dog and horse tracks are also looking for a new lease on life by convincing the state to allow them to install slot machines.

For dog tracks like Wonderland Greyhound Park in Revere, the prospect of slot machines is particularly enticing since voters last year approved a ballot question to ban greyhound racing in Massachusetts at the end of the year.

And the Mashpee Wampanoag Tribe is still hoping to open a casino in Middleborough under a federal law that permits tribes to enter the gaming business.

One reason for the renewed optimism is the new House Speaker Robert DeLeo, D-Winthrop, who has the Wonderland and Suffolk Downs racetracks in his district.

Unlike former House Speaker Salvatore DiMasi, who quashed a proposal by Gov. Deval Patrick to license three resort-style casinos in Massachusetts last year, DeLeo supports expanded gaming — although he prefers installing slot machines in existing racetracks first.

Despite having lost their most vocal supporter in DiMasi, gambling opponents aren’t giving up.

Instead they are ramping up their pleas to lawmakers to resist what they say is the false promise of fast casino cash.

They say the hidden costs of casinos — particularly the social costs of gambling addiction — far outweigh any licensing fees or tax revenues the casinos may generate. They are also quick to point out that even casinos are taking a hit in the recession.

"We expect our elected officials to take the long view and not prey on the most vulnerable among us," said Laura Everett, spokeswoman for the group Casino Free Mass. "While it may be seductive to have this as a short term fix, it doesn’t solve the fundamental problem of how we fund state services."

But even a short term fix could prove hard to resist as the state grapples with the worst fiscal crisis in more than a generation.

Revenue estimates continue to tumble, forcing lawmakers to make deep service cuts while also weighing unpopular tax increases.

Compared to both of those options, casino licensing fees and gambling tax revenues could sway enough support on Beacon Hill — especially as the state continues to see Massachusetts residents drive over the border to spend their gambling dollars in neighboring states.

Leaders on Beacon Hill have tried to tamp down expectations of a fiscal silver bullet from casinos. While the extra money would be welcome, they say it’s not going to be enough to dig the state out of its current fiscal hole.

They say lawmakers are faced with the much more immediate problem of crafting a new budget for the 2010 fiscal year that begins July 1 won’t even be able to begin considering casino gambling until the fall.

Any revenue would likely come to late to help for the 2010 fiscal year.

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"Mass. AG: Need tougher laws before more gambling"
By Glen Johnson, AP Political Writer, June 29, 2009

BOSTON --Massachusetts must strengthen its investigatory and regulatory laws before going ahead with any plans to expand gambling, Attorney General Martha Coakley said Monday.

The state's chief law enforcement officer said money laundering, wiretapping and criminal conspiracy laws need to be updated to police any additional gambling ventures.

She also said the state should quickly settle on how best to regulate and audit any expanded gambling, saying monitors are needed even before the first licensing fees are collected. And she urged members of the Senate committee before which she appeared to ensure her office, that of Auditor Joseph DeNucci and similar government entities receive a share of any gambling proceeds to cover the costs of such oversight.

"We cannot go zipping into this without considering those other areas," Coakley told the committee members.

The discussion came just hours before Gov. Deval Patrick planned to sign a $24.7 billion fiscal 2010 budget sharply cutting government services and also raising the sales tax by 25 percent.

Gambling proponents say those moves underscore the importance of expanding the industry in Massachusetts to capture some of the estimated $900 million in revenue gambled by Bay State residents in 2005 at Connecticut casinos.

Senate President Therese Murray has said the Legislature will likely act on a bill this fall, and some proponents suggest licensing fees could be levied within months to alleviate budget cuts contemplated in the fiscal year beginning Wednesday, or no later than the one that will begin July 1, 2010.

The audience in the Statehouse auditorium was filled with lobbyists and political consultants, including former House Speaker Charles Flaherty, testimony to the intense interest in the legislation and belief among insiders that something will happen soon.

Fueling the perception was the recent resignation of House Speaker Salvatore DiMasi, who stymied Patrick's attempt last year to license three destination resort casinos in Massachusetts. Patrick had estimated the casinos could bring in $600 million in licensing fees and $400 million in annual tax revenues, while creating 20,000 permanent jobs.

Yet critics say the state's precarious financial situation is no reason to prey on vulnerable people who may make bad bets.

Sen. Sue Tucker, D-Andover, shook her head as she noted Coakley's interest in expanded criminal statutes, saying it spoke volumes about the nature of the industry.

"Every time we hear about the numbers the industry is going to bring in, we never subtract these costs," Tucker said.

Tucker also questioned the state's ability to regulate the industry.

"They find out-of-control gamblers, they market to them because that's where their profits come from. So how do you effectively regulate an industry that depends on addiction for its profits?" the senator said.

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