Licenses in Hand, Casinos Are Coming Back for More

The day after last week’s election, in which the pro-casino forces spent $14 million to defeat the casino law repeal effort, the state’s Gaming Commission officially awarded the casino licenses that beforehand had been only provisional, pending the outcome of the vote.

So you might well think that now that the licenses have been awarded and the i’s have been dotted and t’s crossed, everything is ready for takeoff. But that’s not how things work in the gambling world. As casino opponent Steven Abdow told the Globe yesterday, from the experience of other states we know what happens next: the casinos return to the Legislature with another wish list. Turns out that the law they lobbied so hard for is, well, not quite all of what they want.

For the past few months the casinos been working hard, and successfully, to get the state’s Gaming Commission on their side. The Commission, for example, now supports the notion that casinos should be exempt from the responsibility of checking to see if gambling winners are on the list of persons who are delinquent in paying child support or past due taxes before they make payouts. The state lottery isn’t exempt, but the Commission (which, incidentally is charged with protecting the lottery’s interests) appears to be of the view that casinos deserve an easier time.

And here’s another of the many changes the gambling industry wants. The law the Legislature passed three years ago requires casinos to file reports on the complimentary services — “comps” in the trade lingo — that they provide. Comps are things like a free drink, a free meal, a free room — whatever will keep the gambler on the premises. In one famous case, a very wealthy casino patron was treated to comps in the form of private jet flights to Las Vegas, which contributed to her racking up a staggering $1 billion in gambling losses. It’s hardly surprising that the Legislature regards the complimentary services a casino provides as worthy of the state’s regulatory attention.

But the industry has complained that these reporting requirements are administratively burdensome and wants them to be eliminated, and again, the Gaming Commission has taken the casinos’ side. The reports on complimentary services are unnecessary, the Commission agrees, not only because they would burden the casinos but also because the Commission itself cannot even “envision a compelling use for this data.” Well, here’s an idea — maybe a compelling use for the data is to see if complimentary services are playing any role in increasing compulsive gambling — like the casino law contemplated?

The Legislature will not return to formal sessions until January, so one might expect that bills to tilt the gambling law further in the industry’s favor will not emerge until then. But don’t count on it. You, like most of the members of the House of Representatives, were probably unaware that this past summer House Speaker Robert DeLeo quietly (very quietly) added a pro-casino provision to an otherwise uncontroversial bill on state-chartered banks. The House passed the bill without comment on the gambling law change (which reads opaquely as follows: “the second paragraph of section 3 of said chapter 167B, as so appearing, is hereby amended by striking out the last sentence”) discreetly tucked inside. If the bill is enacted during the remaining months of 2014, the casino industry will have defeated a law now on the books that prevents ATM’s from being placed inside casinos. If it’s not enacted, it will undoubtedly be back again in 2015, along with who knows what other requests.

So the lesson from other states is that now that the Massachusetts licenses have been issued, it’s time for us to really be on our toes. Eternal vigilance is the price of the “responsible gaming” the Legislature promised us. Assuming that one can even envision such a thing.

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