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Critics Call Massachusetts Slot Bill a Giveaway

MASSACHUSETTS – As reported by the Boston Globe: "As state Senate leaders prepare their strongest push in years to expand gambling in Massachusetts, the spotlight has been fixed on a controversial plan to legalize high-end, resort-style casinos.

"But if the prospect of a Bay State Bally's has sparked the loudest debate, critics of expanded gambling say a related proposal to license slot machines at the state's racetracks raises equally serious public policy questions.

"At issue is a proposed plan that would allow only the state's four track owners to submit bids for three slot machine licenses, licenses that would potentially raise the value of the financially ailing facilities by at least $100 million. Two of those racetracks are in the district of Senate President Robert E. Travaglini, who for years has counted on those facilities for campaign support.

"…But state Treasurer Timothy P. Cahill said the proposal unnecessarily minimizes competition and would probably hurt the state's chances for attracting the highest bids. He also expressed concern that most of the state would be excluded from the plan, because no racetracks are located in Central and Western Massachusetts.

"…Cahill is not the only one expressing concerns. Earlier this year, Governor Mitt Romney's chief economic adviser, Robert Pozen, testified at a State House hearing that the administration would probably oppose any bill that props up the state's struggling racing industry.

"Casino developers are also crying foul. The developers, who have bought options on parcels from Palmer to New Bedford in anticipation of a casino bill, are upset that the bill would create a new Gaming Commission that would take private land and lease it to casino developers at top dollar. But the bill would not do the same with the state's financially ailing racetracks, allowing track owners to realize the new, far higher value of their businesses after buying a license.

"In addition, the one or two casino licenses the plan could make available would probably cost $100 million, but the racetrack licenses would cost only $25 million, Senate leaders say. And not only would there be no limit on what kinds of companies could bid for the casino licenses, but all bidders would probably have to promise a minimum investment of $300 million in a new casino facility, lawmakers say.

…Spokeswoman Ann Dufresne said Travaglini has not taken an active role in the push to expand gambling, an idea that has enjoyed strong support in the Senate for years before Travaglini became the body's leader in January. Dufresne also said that the legislation is still in draft form and thus is subject to changes.

"…But she added that Travaglini does consider the racing industry a high priority. "It represents 2,500 jobs in his district, and he's concerned about one of the major employers in his district," she said.

"…While the Massachusetts gambling bill stands a strong chance of passing in the Senate, its ultimate fate is uncertain. Because lawmakers closed a $3 billion budget gap earlier this year without resorting to slot machines and casinos, Romney spokeswoman Shawn Feddeman said the governor remains unconvinced that the state will need to allow expanded gambling to solve its fiscal troubles…"

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