By Michael Carl
The Massachusetts Legislature held a public hearing today on a host of proposals to make casinos legal in the Bay State.
The hearing today by the Joint Committee on Economic Development and Emerging Technologies is an effort by the legislature to reconcile 16 casino or legalized gambling bills that have been introduced. If casino gambling is passed in this session, Massachusetts would join 27 other states that have legalized casinos.
Bill supporters talked openly about how Massachusetts casinos will be different and how the Commonwealth of Massachusetts will “get it right.”
State Chamber of Commerce head Paul Guzzi testified before the Committee echoing the promise that casinos will bring badly
Committee on Economic Development. (Photo by Michael Carl)
needed money, “In one of our studies, we were talking about 1 to 2.3 billion dollars into the state’s economy. What the state would actually gain in the treasury is 380 million dollars.”
Mr. Guzzi also says the gaming industry means jobs, “One of our studies said the casinos will bring at least ten to twelve thousand one time construction jobs based on the governor’s original proposal.”
Mr. Guzzi promises more.
“Based on three resort casinos, the estimates were 10 to 22 thousand jobs,” Mr. Guzzi says. “It’s not a perfect panacea as the end-all strategy. We support research, tourism, health care, and high tech industry. It’s just one strategy.”
The public hearing had a diverse group of spectators. One group was from a racetrack and they were vocal in their support. A group member who declined to give his name says gaming is money, “We run a race track and we’re for slot machines. They’ll bring in more money.”
The supporter didn’t address the issue as to whether the slot machines would take away revenue from the on-track betting part of their business.
Some legislative support is conditional. New Bedford Democrat Robert Koczera is concerned about location.
“The economic benefit has to help the areas of the state where the jobs are needed the most,” Mr. Koczera says. “They won’t come close to fulfilling their potential if they’re located in an area that doesn’t need the jobs.”
Financial benefit is also on the minds of bill opponents. Democrat Susan Tucker doesn’t like the prospects for the elderly.
“What are we going to do about the elderly. I’m concerned with retirees who will dump their entire social security checks in the slot machines in one day,” Senator Tucker says.
Massachusetts Family Institute President Kris Mineau says the social costs are way too high.
“It’s been absolutely shown by studies at the University of Illinois and elsewhere that for every dollar the state takes in gaming revenues, three dollars are paid out in social costs,” Mr. Mineau says.
“These costs are never evaluated by a legislature going into the debate. They’re so enticed by the seemingly free money. This is not free money,” Mr. Mineau explains. “We pay a horrible price as a state if we do this. MIT and Massachusetts General Hospital are testifying to the social costs. There are also so many personal testimonies of people whose lives have been ruined by gambling addictions.”
“The predatory gambling of slot machines and casinos leads to bankruptcy, suicides, domestic violence, embezzlement. So 60-percent of white collar crimes are created by gambling addictions. U. S. government studies have shown that within fifty miles of a casino, gambling addictions double,” Mr. Mineau concludes.
Pushing aside those concerns, Massachusetts House Speaker Robert DeLeo is a vocal supporter who says, “I view gaming as an additional industry that could help support our statewide economy and build on travel and tourism.”
That was the promise of casinos in Atlantic City, New Jersey thirty years ago. The promise has not been fulfilled. A story in the October 25 New York Times quotes gambling executive Tim Wilmott as saying, “Atlantic City is in a death spiral.”
The Times story also reports that at Harrah’s, rows of slot machines go unused. Plans for mega casinos have been cancelled amid dozens of empty hotel rooms.
When asked about Atlantic City’s fortunes, Massachusetts Chamber of Commerce head Paul Guzzi says, “Massachusetts isn’t Atlantic City. We have many other reasons for people to come to Massachusetts.”
It’s those other Massachusetts attractions that interest Massachusetts Family Institute leader Kris Mineau.
“There is absolutely no difference between how casinos impacted Atlantic City and how they will impact Massachusetts. Everywhere you have these destination casinos there is a huge economic sucking sound,” Mr. Mineau says.
“They drain money from the local small businesses, the hotels and restaurants. They cannot compete with these destination casinos that specialize in predatory gambling. That money doesn’t stay in Massachusetts. It goes to Las Vegas and it goes to international investors,” Mr. Mineau continues.
“The local economy in Atlantic City has been ruined and it’s almost like a ghost town. Detroit is almost destroyed economically because of its casinos,” Mr. Mineau says. “That’s the last thing we want in Massachusetts.”
Posted under News
This post was written by mcarl on October 30, 2009
