Friday, January 29, 2010

Selective Hearing

DeLeo said finding resources for job creation initiatives will be "difficult" and described himself as both opposed to new taxes in the budget and "open to every idea that could generate state revenue and jobs." Regarding expanding gambling legislation he plans to roll out in February or March, DeLeo said, "The debate over the destination gambling issue is not a philosophical one. It is about a fight for job creation. It is a fight to expand our tourist attractions which in turn help to drive our economy. It is a fight to get shovels planted in the ground. To win this fight, I will make sure that any gaming legislation will require the creation of permanent jobs." Gambling bills are under review by the Economic Development Committee, although DeLeo is taking the lead on crafting a single bill.

-- From Statehouse News Service Jan. 28, 2010

Didn't take long for House Speaker Robert DeLeo to hone right in on President Obama's mandate to spur job creation, twisting 'job creation' to imply that casinos would create 'permanent jobs', spur tourism, and get those darned 'shovels in the ground.'

Back away from the Kool-aid, Bob.

Ok, boys and girls, let's review:

To create 30,000 jobs casino developers would have to spend 16.7 billion in construction. The most expensive casino in the world cost $2.7 Billion to construct.

Casino Resort jobs pay less than half the Massachusetts Median Income.

83% of retailers went out of business within the first 7 years of legalized gambling in Cripple Creek Colorado.
"A study commissioned by the New York Governor concluded that 1,208 more jobs would be lost rather than gained with gambling expansion due to a change in residents spending habits."

Source: Jerry Zremski, -- Doubts Raised on Casino Job Gains” The buffalo News, 8/18/02
Primary customers of casinos live locally - they are NOT tourists - and they spend less of their money locally.
"Gamblers spend 10% less on food 25% less on clothing, and 35% less on savings."

--Professor John Kindt. University of Illinois. Diminishing Or Negating the Multiplier Effect: The Transfer of Consumer Dollars to Legalized Gambling: Should a Negative Socio-Economic "Crime Multiplier" Be Included in Gambling Cost/ Benefit Analyses? 2003 Mich. ST DCL L. Rev. 281-313

78% of Local Businesses have shut down in Atlantic City since the opening of the first Casino.

"The prosecutor in Ohio and Dearborn County also warns that the economic development that was promised with the casinos has never really happened in that community and very little money is generated outside of the casino. That seems to be a similar issue with prosecutors in other communities as well."

--Indiana State Prosecutor Karen Richards
In a letter to the Mayor of Fort Wayne
describing her conversations with prosecutors in casino communities

"The local money will be diverted from the normal business purchases to the casino for everything from restaurants, refrigerators, automobiles, mortgages, and even college educations."

--Nicholas Mullane
First selectman of the town of North Stonington, Connecticut before, during and after the building of Foxwoods Casino.

Because the areas could not support the low wage jobs the casino was looking to fill in Connecticut, it brought in workers that would work for minimum wage.

-- Source: “Mayor: Casino Costly”: Sun Journal. Lewiston ME 10.22.08. By Leslie Dixon

“We were very disappointed in the economic spin-off. It just hasn’t come…When you bring in a development like [Casinos] it’s all about the money.”

-Mayor Susie Mendenhall-Ledyard County CT

According to the National Compensation Survey, Casino Resort employees make a Median annual salary of only $13,179, less than half the Massachusetts median income.

“… People were looking for jobs that paid the type of wage they had been making in the past,… but they realized those were not the jobs at the casino.”

-Grace Horne former employee in hiring department at Mohegan Sun

And those are just a few of the non-philosophical reasons legislators should stop promoting casinos - for the good of our Commonwealth.

Let's face it, Bob, you're latching onto the 'job' bandwagon to advance your private agenda of expanding gambling in the Bay State because you represent a racetrack district.

So tell me, despite all the non-philosophical evidence to the contrary, have you learned nothing from the lesson of Scott Brown? Enough with the special interests. Listen to the people, Bob. The people.
33%:support resort casinos
3%:support slots at tracks
16%:no pref
38%:don't want expanded gambling in the state at all

-- Source: Boston Globe


Middleboro Remembers said...

Way to go, DeLeo, after last week's election, the man still hasn't figured out that most voters oppose slots!

That's why the industry eschews statewide referendums or even public debates. That's why they stroke egos behind closed doors.

Good job, as always, Gladys.

Recently, Steve Norton, who writes innocuous sounding comments in local papers in response to casino articles, touted the great success of casinos in Atlantic City, with which he was involved.

Mr. Norton is negotiating in Massachusetts to open a casino(s), even though one of his companies has filed bankruptcy in one state and is seeking a bailout in another and missed an interest payment.

Huh? This is a sound financial partner?

Casinos were legalized more than 30 years ago in Atlantic City.

When will the streets be paved with gold?

Mr. Norton wrote:
"The Atlantic City average for a full time employee exceeds over $30,000 annually in salary, tips and benefits..."

As most have figured out by now, AVERAGE wage information includes highly paid management and administration that distorts the AVERAGE.

What employer hires you and quotes a salary that includes benefits and tips? Why, I guess a casino does.

A recent BSU study indicated that 'average casino workers' were paid about $14,000 per year.

What family will that support in Massachusetts?

The proliferation of low wage jobs actually drove down wages in the area.

Job growth was about 1%.

Sounds like we need sustainable jobs, jobs that we can be proud of, that provide a future, that provide for advancement, and not dead end slot parlor jobs.

Get Mr. DeLeo another drink that isn't KoolAid.

Bellicose Bumpkin said...

I'm so sick and tired of the jobs mantra. There is no evidence that the net effect in jobs will be positive. There is no evidence that net effect on the state budget will be positive. To the contrary, Grinols etal show negative effects.

Arguably, the state could recapture some money from CT and RI. Let's say a billion. Now simply add in the cost of regulation, policing, court costs, social costs, addiction treatment, and so on and see if it adds up. Counting benefits is easy and anything looks good when you only look at the upside.

Gladys Kravitz said...

But casinos are magic, remember? There are no costs. There is only money, falling from the sky like fire trucks and ambulance services.

In reality, a vote for expanded gambling is very shortsighted. But then, when you can leave office and blame the problems casinos and slots generate on the next guy filling your seat, you can afford to be shortsighted. If, that is, you just really don't care about the common good of the Commonwealth. Or, are very, very stupid.

Anonymous said...


"If you tell a lie big enough and keep repeating it, people will eventually come to believe it," said Goebbels,(Josef, Minister of Propaganda, Germany), in explaining the technique that he helped perfect. "The lie can be maintained only for such time as the State can shield the people from the political, economic and/or military consequences of the lie."

Yes, we all are sick & tired of the jobs propaganda, over used, tired out and not true. AND remember Unions that built Foxwoods had to take them to court to get their money, which took three yrs. for court settlement.

Oh ya, this is the business I want my state involved with.

Anonymous said...

Not only propaganda to worry about, but Politics-As-Usual. Sec.Salazar had a sunrise breakfast this morning with our Cape buddies, who by the way are flexing their DOI muscle by in-part stalling the Cape Wind project, which the Interior Sec also signs-off on -- as do Aquinna (who he's also meeting today). Btw, Aquinna are persueing a Freetown casino.