Sports gambling in Las Vegas. Photo (cc) 2022 by Sarah Stierch.
A new study out of Northwestern University shows that betting on sports is having a devastating effect on lower-income families as they gamble away their savings in the hopes of a big payoff that never comes. Michael Jonas of CommonWealth Beacon writes:
The study found that legalization of online sports betting has not led people to divert money from other forms of entertainment to this new sector, but has instead led them to overextend their budgets at the expense of saving money through investment accounts, especially among the most financially vulnerable households.
The study linked sports betting to “a large decrease” in deposits to brokerage accounts, accompanied by “decreased credit availability, increased credit card debt, and a higher incidence rate of overdrawing bank accounts.” In all, say the researchers, access to online sports betting “exacerbates financial difficulties faced by constrained households.”
Elected officials’ ever-expanding pursuit of easy tax money has led them to ignore their responsibility to the public welfare. The state lottery goes back to the ’70s, but there was no need for it to add addictive games such as scratch tickets or — coming soon to a digital device near you — allow online gambling.
Legalizing casino gambling was a massive mistake, and sports gambling is worse. But such are the times we live in.
There is a ridiculous quantity of media news to sift through this morning. I just want to make a brief comment about The Boston Globe’s report that publisher-owner John Henry twice tried to buy the Everett casino.
Newspaper owners can do what they like. The Globe already has the challenge of covering Henry’s Red Sox, and The Washington Post must negotiate owner Jeff Bezos’ ownership of Amazon. Patrick Soon-Shiong, the billionaire surgeon who owns the Los Angeles Times, is an entrepreneur who’s been involved in his share of controversies. Corporate chain owners have their own business entanglements.
Still, casinos are a miserable, contentious business. We should all be glad that Henry stayed out of it — and I wish he’d realized even before making an inquiry that it would put his journalists in a difficult position.
I’m glad that state gambling officials are looking into whether Wynn should continue to hold the license for the casino that’s being built in Everett. But Gov. Charlie Baker and the Legislature should go much, much further. The legalization of casino gambling pushed by Baker’s predecessor, Deval Patrick, was one of the worst decisions ever made in this state. It should be undone. The Everett property should be put to a better and higher use. Why not make it part of the region’s bid for Amazon’s second headquarters? How about the facility that Apple wants to build?
Unfortunately, we know what’s going to happen. Maybe the license will be transferred to Sheldon Adelson or another casino executive. Maybe even that won’t happen — Wynn could “retire” from his company and life would go on as usual. It’s a shame. Ultimately the casino business will do for Greater Boston what it did for Atlantic City, laid low through the machinations of yet another sleazy casino operator, Donald Trump. And we’ll all be wondering what our state’s leaders were thinking.
The Boston Globe’s Tim Logan has an important story today about an emerging new paradigm for funding public transportation: charging a fee to property owners who will benefit from it.
It’s already working in some areas, Logan reports. Columnist Shirley Leung notes that Steve Wynn is paying a substantial subsidy to improve Orange Line access to his proposed Everett casino (which I still hope will never get off the ground, but that’s another matter).
My wicked smart Facebook community has already been talking about using such fees to pay for the $1 billion extra that it’s going to cost to build the Green Line Extension into Somerville and Medford. It sounds to me like a great idea, especially since — as state Secretary of Transportation Stephanie Pollack tells Logan — developers are already assessed fees for road improvements. I’d rather see them pay for a new MBTA station than a new interchange.
As always, we need to avoid unintended consequences. There’s already a danger that small, independent businesses will be forced out as property values soar. Perhaps they could be exempt from whatever fee structure the state ultimately decides to adopt.
Longtime readers know that I don’t disclose who I’m voting for. Yes, I’m a liberal, and if you tried to guess I’m sure you’d be right most of the time. But I firmly believe that journalists — even opinion journalists — should keep their choices to themselves. It’s not a matter of objectivity; it’s a matter of independence.
But I feel no such compunction about ballot questions. After all, I analyze and express my opinion about issues. It seems silly to refuse to say how I’m going to vote on Question 3 after writing repeatedly that I’m staunchly opposed to casino gambling.
And yes, I will start with Question 3, which I think is by far the most important matter on the ballot. I have been fighting against casino gambling since 2007, when the Mashpee Wampanoag tribe tried to build a casino in Middleborough, the town where I grew up. The bid eventually fell apart amid a miasma of anger and corruption (what a surprise, eh?).
But Gov. Deval Patrick and the state legislature, to their everlasting discredit, kept the issue alive with a 2011 law allowing for the opening of three casinos and one slots parlor. It is an outrage. A “yes” vote on Question 3, which you can be sure I’ll be casting tomorrow, would once again outlaw casino gambling in Massachusetts.
Casino gambling has been tied to an ocean full of social and economic ills — increased rates of crime, divorce, even suicide, and hollowed-own business districts as the spending shifts to the local casino. The stench of corruption is inevitable. Look at Everett, the locus of federal indictments even before one shovelful of dirt has been turned over.
I am disappointed that both major-party gubernatorial candidates, Republican Charlie Baker and Democrat Martha Coakley, say they would be open to finding a way to build a casino in Springfield even if Question 3 is approved. One aspect they may not understand is this: If casino gambling is legal, then tribal casinos become inevitable. You can’t let Springfield have a casino without opening the door to one, two or more tribal casinos as well. (And never mind the condescending attitude Baker and Coakley have about Springfield’s economic prospects.)
My fear is that Question 3 will lose decisively, thus creating the impression that Massachusetts residents are pro-casino. Polls consistently show that people are in favor of casinos in the abstract and against them when someone proposes to build one in their neighborhood. If Question 3 does go down, we can still fight them one at a time. But a “yes” vote would put the matter to rest once and for all.
Question 1. I’m voting “no.” A “yes” vote would repeal a law that indexes the gasoline tax to the rate of inflation. Our gas taxes are still on the low side, as anyone who drives through Connecticut can attest. Our transportation system needs a huge amount of investment whether you’re talking about rail, subways or highways and bridges.
Question 2. A “yes” vote would expand the bottle-deposit law, and I’m all for it.
Question 4. This is a perfect example of why some issues should not be decided by referendum. Passage of Question 4 would make medical leave mandatory at most private companies in Massachusetts. It’s an enormously complex issue. I’m voting “yes” because I’m concerned about the message that it would send if it goes down to defeat.
To my surprise, The Boston Globe didn’t endorse in the governor’s race today. Maybe tomorrow? Maybe next Sunday?
But an even bigger surprise is the paper’s strong editorial against casinos. This is great news for those of us of us who oppose casinos on the grounds that they will breed crime, social dysfunction and traffic nightmares. In a delicious reference to the indictments that have already been handed down over the Everett project, the editorial calls casino deals “flypaper for low-lifes.”
Sadly, both candidates for governor, Martha Coakley and Charlie Baker, have left the door open to moving ahead with a casino in Springfield even if Question 3 passes. That’s a fight for another day. First casinos have to be defeated. Please vote “yes” on 3.
The chaos that has broken out over the split between Suffolk Downs and Caesars Entertainment is good news for casino opponents. At the very least, it increases the likelihood that East Boston residents will vote no on Nov. 5. At most, we may be able to look forward to delays and lawsuits for years to come.
I was particularly struck by the accusation — reported by Mark Arsenault in The Boston Globe — that Caesars separated one wealthy gambler from his money by keeping him liquored up and plying him with painkillers. I know nothing about the details of that accusation. But it actually fits well with the business model for casinos.
I’ve flagged this before, and it’s worth flagging again: according to Michael Jonas of CommonWealth Magazine, casinos could not survive if it weren’t for the problem gamblers who provide a disproportionate share of the revenues. Jonas explains it this way:
Just how much of the revenue casinos bring in is from the losses of those with gambling problems? One of the most thorough studies of this issue was done in 2004 in Ontario, where researchers had a sample of residents maintain diaries logging their gambling expenditures. The study, prepared for the government-supported Ontario Problem Gambling Research Centre, estimated that 35 percent of Ontario casino revenues were derived from moderate to severe problem gamblers. Such gamblers accounted for 30 percent of revenue from casino table games and a whopping 62 percent of revenue from slot machines.
I remain appalled that Gov. Deval Patrick and the Legislature legalized casinos and slots, which are associated with higher rates of crime, divorce and suicide. But I’m optimistic that these social parasites can be stopped one at a time.
EAST BOSTON, Mass. — Oct. 19, 2013 — For more than a year, No Eastie Casino has pushed the City of Boston and Suffolk Downs to share more information about Suffolk Downs’ proposed Caesars Entertainment Resort. After ignoring repeated calls for greater transparency and concerns about Caesars’ solvency raised by East Boston residents, on Friday Suffolk Downs dropped the operations partner it chose in 2011 to run a casino in East Boston, Caesars Entertainment, only after state investigators informed them that Suffolk Downs likely would not pass the background check if Caesars stayed on. The Boston Globe reported that a number of concerns were brought to Suffolk Downs’ attention, including Caesars’ alleged business ties to organized crime.
But East Boston casino opponents say the stunning news late Friday demonstrates that residents cannot trust Suffolk Downs when it comes to whom they choose to bring into the neighborhood, said No Eastie Casino co-chair Celeste Myers.
“As recently as two months ago, Suffolk Downs owner Joe O’Donnell stated that Caesars was ‘as professional as they come,'” Myers said, pointing out Suffolk Downs’ frequent assertion that it shares Caesars’ values. “Clearly, they did not do due diligence in vetting Caesars — a company with which they have had a relationship since 2011 — and only ended the relationship when forced to do so.”
She added that Suffolk Downs has now picked two corporations, Caesars and Vornado Realty Trust, that have been unable or unwilling to pass background checks. In March, Vornado put its 19 percent stake in the casino plan into a blind trust after the majority of its executive team refused the state’s mandatory background checks. To our knowledge, Vornado has not divested completely from the casino partnership and voters remain in the dark about who will pick up its nearly one-fifth share in the project.
Caesars’ sudden departure also raises serious questions about the value of the City’s and Suffolk Downs’ host community agreement and shows that the promises in the mitigation agreement were made to be broken. Many key elements of the mitigation agreement-including key components of the jobs and small business plans-were tied to Caesars’ employee practices and Total Rewards programs. (Download our 16-page mitigation analysis here.)
No Eastie Casino leaders on Saturday formally called on Suffolk Downs to withdraw its casino application, in light of the information that emerged late Friday, and to share full details about their casino plans — including what they knew about Caesars and when they knew it — with the community at large.
“Now, more than ever, our neighbors and voters are seeing the glaring problems in the Suffolk Downs casino plans and the flaws in transparency that have plagued this fight from the start,” Myers said. “We hope Suffolk Downs and the City of Boston do the right thing and withdraw their support of this project. Until they do, our campaign will continue to reach out to and educate voters until we are victorious on Nov. 5.”
How sleazy do you have to be before you’re found to lack the morals necessary to operate a slots parlor? Very sleazy indeed. Mark Arsenault of The Boston Globe reports that former Plainridge Racecourse president Gary Piontkowski’s habit of stuffing cash into his pockets — $1.4 million in total — was just too much for state regulators to overlook.
Last month, we bestowed a 2013 WGBH News/Portland Phoenix/Providence Phoenix Muzzle Award upon the racetrack for its unsuccessful attempt to abuse the libel laws in order to silence a local blogger who opposed a slots license for the Plainville facility.
And today, in his Boston magazine blog, David Bernstein lays out Piontkowski’s relationship with former senator Scott Brown.
None of this should surprise anyone. It’s simply what you get with large-scale organized gambling. No casinos. No slots.
I was hoping this would go away so quickly that I wouldn’t have to write about it. But today Ethan Forman of The Salem News reports that local business leaders think a 24-hour, seven-day slots parlor in Danvers would just be a wicked awesome way of boosting the North Shore economy.
No surprise that our local Mr. Potters are excited about the idea of turning my town into Pottersville. But it looks as though those of us who oppose casinos and slots are going to have to mobilize — or at least get ready to mobilize.
As those of you who’ve been reading Media Nation for a few years know, I was a staunch opponent of plans to build a casino — at one time billed as the world’s largest — in my hometown of Middleborough. That plan collapsed, fortunately, and I hope this one will, too. At the very least, I find it hard to believe that the proposal would win a townwide referendum, no matter how many goodies the developers promise.
