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Senate Bill’s 3 Casinos-But-No-Slots-At-Tracks Proposal Similar To Gov. Patrick’s

Posted on June 4th, 2010

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In April, Massachusetts House Speaker Robert DeLeo’s bill calling for two resort casinos and 750 slot machines at the state’s four race tracks passed the House with a vote of 120-37. The bill advanced to the Senate but the upper chamber decided not to take up the bill saying it would introduce its own proposal for expanded gambling. This week, the Senate will present its bill at a caucus and the bill will get a public hearing on Tuesday. Sen. Stanley Rosenberg, D-Amherst, who helped prepare the proposal, confirmed that a debate has not yet been scheduled for the bill. The bill will still undergo debates and amendments.

The Senate’s proposed legislation is very much like what Gov. Deval Patrick proposed in 2007: three casinos in three sites across the state and no slot machines at the race tracks. The glaring contrast between the House bill and the Senate’s proposal is hinting at an impending conflict between the two chambers. The Senate bill would also allocate one casino for the Mashpee Wampanoag Tribe that is proposing to put up a huge integrated casino complex in Fall River, a provision not contained in the House bill. Rosenberg said if it’s about jobs and revenue, then it should be casino resorts, not slots. He said resort-style casinos have hotels and retail stores, and from the construction up to the operation of the facility, a lot of jobs would be created, but with slots, few jobs are needed and slots can flood the market.

Deleo, a son of a track worker whose constituency includes two racetracks, has been pushing for years to put slots at race tracks in an effort to help the ailing business. His spokesman, Seth Gitell issued a short statement saying the House speaker remains committed to the House bill and to the race tracks. Gov. Patrick also released a statement through his spokeswoman, Kim Haberlin, saying that he has always stated in the past that in expanding gambling in the state, only a limited number of casino resorts spread out in different areas in the state can provide employment opportunities and a continuing growth in the economy. Like Patrick, Senate President Therese Murray prefers resort-style casinos to slots at the racetracks.

The Senate has not provided revenue and jobs estimate because they have not yet finished their research and analysis. Rosenberg said the Senate proposal has still many unresolved items that need clearing up, like the tax rate, the license fees and what particular programs, if ever, would be funded by the revenues. The House bill would ask casino investors to put in $500 million and racetrack owners would invest $75 million each. The upfront licensing fees are estimated to be $260 million. The state anticipates receiving between $300 million to $500 million in tax revenue per year from the 25 percent tax on casino gambling revenue and 40 percent tax on racetracks. The number of jobs projected to be generated is 18,000.

If the Senate legislation is passed, the conflicting House and the Senate proposals would be settled through a conference committee. Rosenberg said the two incompatible versions should be patched up before the legislative session ends on July 31. Kathleen Norbut, president of the group United to Stop Slots in Massachusetts said the group has hired MS&L, a public relations firm, to enhance the group’s public prominence and to give more exposure to its advocacy. She said former attorney general Scott Harshbarger and former governor Michael S. Dukakis, leading critics of expanded gambling, will represent the group and talk to interviewers.

Norbut said that in the gambling business, the winners are the casino operators and business investors, and the losers are the taxpayers who ultimately are the ones who pay for the destructive consequences of gambling. She urged lawmakers to do a cost analysis before passing any legislation on any form of expanded gambling.