Spending the same money twice

Gov. Deval Patrick may be conjuring up visions of casino riches for the state, but it’s not necessarily so. Numbers are slippery, of course, and a skilled advocate can make them stand up and bark on command. But state Rep. Dan Bosley, D-North Adams, a casino opponent who’s been studying the issue for more than a decade, makes a compelling case for why Patrick’s fondest desires are unlikely to come true.

At a forum this morning sponsored by the Massachusetts Institute for a New Commonwealth (MassINC), Bosley said that Patrick is depending on money that is already being spent for other purposes. According to various studies, between 30 percent and 70 percent of money spent on casino gambling is nothing more than an “economic transfer.” (David Kravitz live-blogged the event at Blue Mass. Group.)

“Even though you’ve created a new revenue source … it’s not new revenue,” Bosley said. “I think it is very disappointing that the governor has decided to do this.” Later, he added: “It’s not new money. It’s just rearranging money.” And money that is spent on casino gambling may be money that isn’t spent at local restaurants and other small businesses.

More than 100 people crowded into a function room at the Omni Parker House for the nearly two-hour event, with television cameras lined up in the back of the room. With the governor making his unfortunate announcement yesterday, casino gambling has become the top issue on Beacon Hill.

Nothing particularly surprising was said. Joining Bosley on stage were state Treasurer Tim Cahill, who repeated his well-known support for casino gambling, which he explained most recently in an op-ed piece for the Boston Globe today. The third speaker, the Rev. Richard McGowan, a Boston College economist and casino expert, offered analysis.

It was an in-depth, civil discussion of an issue that has often become obscured by the vehemence with which many of the combatants express their views. (I am definitely not excluding myself.)

Another challenge was raised by state Sen. Susan Tucker, D-Andover. After offering some numbers on the state’s already-high dependence on gambling revenues from the lottery (numbers that were disputed with surprising vehemence by Father McGowan), Tucker noted that there are two racetracks in New Hampshire just over the border from her district.

According to Tucker, New Hampshire legislators have told her that they currently have no interest in building casinos — but that they would seek to transform those racetracks into casinos if gambling venues in Massachusetts began eating into their business. Worse, she observed, New Hampshire might tax its casinos at a lower rate than Massachusetts, which could then force Massachusetts to do the same.

“The fact is that this is an industry that depends on addiction for its revenues,” Tucker said, expressing puzzlement over the argument put forth by Patrick, Cahill and others that money from casino gambling would be set aside to help chronic gamblers with their addiction. “If a medication harms three people, we take it off the shelves,” she said.

At one point, Cahill offered a familiar argument — that Native American tribes such as the Mashpee Wampanoags, who propose building an enormous casino in Middleborough — have a right under federal law to operate casinos, and that the state should get ahead of the issue in order to protect its own interests.

“Even if we’re saying no, we’ve got two Indian tribes that are pushing very hard,” he said.

But Bosley said he “disagree[d] strongly with that,” explaining that federal decision-makers must, under the law, take into consideration where the state stands on casino gambling. Bosley added that the state’s leverage to stop tribal casinos from coming to Massachusetts was undermined considerably by Patrick’s announcement. “We’ve just blown that,” he said.

Of course, in order to become law, Patrick’s proposal must pass muster with the Legislature. And though it seems likely to win approval in the Senate, there’s a good chance it will die in the House. Speaker Sal DiMasi is a longtime opponent of casino gambling, and Bosley is one of his lieutenants.

Bosley said the House would give Patrick’s bill — not yet filed — serious consideration. But his remarks suggested that he can’t wait to kill it, and that he’s confident he’s got the votes. “There’s nothing new in the governor’s proposal,” Bosley said, noting that previous gambling plans have also come with promises of endless wealth for the state, and that the House has defeated every one of them — and by increasing margins over the years.

No doubt the pressure to approve gambling will be greater this time, especially with proposals for steep transportation taxes (Globe; Herald) looming. But there are plenty of people and institutions who’ve come out against gambling, too. At the moment, there’s no reason to think that House members won’t stick to their principles.

Still standing: The Herald’s Dave Wedge reports that Mashpee Wampanoag tribal-council president Shawn Hendricks wants to discuss the troubled Middleborough proposal with Patrick. This past Saturday, I linked to an item by Cape Cod Today blogger/reporter Peter Kenney claiming that Hendricks and two other tribal leaders would resign later that day. Obviously that didn’t happen.

That’s the problem with predictions. In fact, on Saturday a newspaper reporter asked me to predict what Patrick would say. I declined the invitation; but if I had taken her up on it, I would have said that Patrick would probably say “no.” I’m glad I kept my counsel.

Disclosure #1: I write the “Mass.Media” feature for MassINC’s quarterly magazine, CommonWealth.

Disclosure #2: Just click here.

Original photo online at state Treasurer Tim Cahill’s Web site. From left, Bosley, McGowan, Cahill and CommonWealth acting editor Michael Jonas, the moderator.

New Bedford’s loss, Middleborough’s gain

My first choice is no casinos anywhere in Massachusetts. My second choice is no casino in Middleborough. It’s my hometown, the process has been an utter disgrace, federal and state investigations are under way, and I don’t want to see the rural character of the town destroyed.

So even though I believe the proposed Middleborough casino is good and dead anyway, I’m pleased to see that both the Cape Cod Times and the New Bedford Standard-Times (sister papers) report that Gov. Deval Patrick’s plan for three state-approved casinos could further harm the Middleborough bid.

Stephanie Vosk reports in the Cape Cod Times that the troubled Mashpee Wampanoag tribe could find its Middleborough property wedged between casinos in New Bedford and Boston, which would make its own plans dubious at best. In the Standard-Times, Curt Brown and Steve Decosta write that New Bedford officials are ready to rock with a waterfront site, and that there are indications Patrick wants one of the three casinos in that city.

The Boston Herald and the Boston Globe round up Beacon Hill reaction. In an editorial, the Globe opines: “Massachusetts lawmakers who have opposed casino gambling in the past, including House Speaker Sal DiMasi, must come to terms with Patrick’s proposal or provide revenue ideas of their own.”

Well, actually, no they don’t. Doing the right thing does not require you to deal with the cost of sticking to your principles. The state’s revenue needs are a different subject that can be dealt with at another time.

But I’m certainly pleased that state officials, at least, seem to be leaning toward New Bedford rather than Middleborough. If the Mashpee tribe pushes for federal approval to operate a casino outside of state regulations, it’s likely to find itself competing with venues that are already up and running. That’s good news for my hometown.

My standard disclosure.

Patrick’s corruption tax

The Boston Globe’s Frank Phillips reports that Gov. Deval Patrick has decided to support three Massachusetts casinos. Under his plan, the state would put them out to bid, and the Mashpee Wampanoags would receive no special consideration. Given the avalanche of trouble under which the tribe’s proposed venue in Middleborough has fallen, I’ll stick with my prediction that that particular casino will never be built.

(Update: Or should I say backdate? Boston Herald reporters Scott Van Voorhis and Casey Ross had essentially the same story yesterday. An alert commenter called my attention to it, but for some reason Blogger ate it when I tried to post it.)

But this isn’t just a tragedy — it’s a tragedy foretold. Patrick and the officials around him have been watching as the Middleborough proposal has dissolved into corruption, investigations and recriminations. Three of the five selectmen who support the plan face a recall election, and the other two, also casino supporters, would if they hadn’t been elected too recently. Patrick knows exactly what he’s getting into; his eyes are wide open. He’s putting his entire governorship at risk, and he’s doing it strictly for money.

Will House Speaker Sal DiMasi stand in Patrick’s way? He’s a longtime opponent, and Phillips reports that DiMasi’s recent conciliatory rhetoric on the issue is nothing more than an attempt to avoid embarrassing Patrick. It shouldn’t take a huge amount of backbone on DiMasi’s part to stick to his principled position. He’ll have Cardinal Seán O’Malley, former attorney general Scott Harshbarger, former John Hancock chief executive David D’Alessandro and a host of other good people in his corner.

The governor must be stopped. Together we can!

My standard disclosure.

Beyond the FBI’s casino probe

First, an anonymously sourced blockbuster from a man who’s amassed an admirable track record in getting to the bottom of the mess involving the Mashpee Wampanoag tribe and the proposed Middleborough casino. Cape Cod Today blogger/ reporter Peter Kenney posted an item earlier this morning saying that the new tribal council president, Shawn Hendricks, and council member Desire Hendricks Moreno may resign this afternoon. This, of course, comes in the wake of news that the FBI is investigating the tribe’s finances, about which more below.

Now, then, back to my regularly scheduled post. The proposed casino — which would be the largest in the world, according to the Brockton Enterprise — has been dead since Aug. 23. That’s when Kenney confirmed his earlier report that Glenn Marshall, president of the tribal council, had lied about his military record, and had been convicted of rape in the 1980s as well.

The next day, the story was all over the media, and by the following week Marshall was gone. But only the casino’s most ardent supporters, joined perhaps by a few political naifs, failed to realize what had happened. The lid had been lifted off a barrel of sleaze, and practically every day has brought a new story. And there is still plenty more to come.

Now comes word, in today’s Boston Globe, Boston Herald and Cape Cod Times, that the FBI is investigating the tribe’s finances. Once again, I’m in awe of Kenney’s sources. He first got wind of this on Wednesday, and posted a more detailed story yesterday morning.

The crucial issue here is whether the probe is aimed at Marshall alone, or at the entire tribal leadership. Based on a preponderance of what we know, it would seem to be the latter. That, of course, would include Hendricks, Marshall’s handpicked successor, who would be removed if a recall effort being led by tribal elder Amelia Bingham and her son Steven succeeds (unless he resigns, of course).

For instance, here’s what Kenney reported yesterday: “Presented to council chairman Shawn Hendricks, treasurer Nelli Ramos and council member Desire Hendricks Moreno were formal demands for the council’s financial records as well as personal financial records from all three officials.”

In the Herald, reporter Dave Wedge has the same information and attributes it to an on-the-record source, tribal spokeswoman Amy Lambiaso. Lambiaso does describe it as “an investigation into Glenn Marshall,” but obviously the feds are seeking information that could reflect on other tribal leaders as well.

In the Globe, reporters Sean Murphy and Christine Wallgren offer a slightly different interpretation, writing:

Amy Lambiaso, a spokeswoman for the tribe, said the investigation focuses on Glenn Marshall, the former tribal chairman….

“It’s our understanding it is an investigation into Glenn Marshall and not any of the other tribe members,” she said.

Fair enough. But again, it does not appear that the feds can do their job unless they’re also looking at what the other tribal leaders knew and when they knew it.

The most detailed overview of what’s going on right now is provided in the Cape Cod Times by reporters George Brennan and Stephanie Vosk. Not only do they report on the FBI probe, but they also get into a separate IRS investigation of Marshall, as well as an inquiry launched by the state attorney general, Martha Coakley. Not to sound like a broken record, but Kenney has been all over these developments as well.

Also not to sound like a broken record, but how can Gov. Deval Patrick step up and offer his support for casino gambling given what’s going on in Southeastern Massachusetts? This is what you get when you embrace gambling. Nothing that’s happened is surprising, except that it all came out so quickly following the two votes by Middleborough town meeting (yes to a casino deal; no to a casino) on July 28.

This week The Pilot, the weekly paper published by Boston’s Catholic archdiocese, runs a terrific editorial on why casino gambling needs to be stopped, whether it’s in Middleborough, Palmer or East Boston. (Media Nation trivia: I worked as the production manager of The Pilot for a few months in late 1990 and early ’91.) A Middleborough resident who’s worried about the possible destruction of his town called it to my attention. Here’s a highlight:

Casino advertisements frequently depict casino gambling as a fleeting, joyous experience amidst a wonderland of entertainment and excitement. However, what is portrayed as an occasional weekend getaway all too often becomes an uncontrollable compulsion that can lead to broken families, bankruptcy and even suicide.

Studies show that instances of crime, prostitution and bankruptcy increase around casinos. Those living on fixed income, particularly the elderly and the poor, are easily lured by their promise of quick money and often spend money needed for essentials on gambling.

Gambling addiction is a self-destructive behavior that has dire consequences.

The fight against the Middleborough casino isn’t about mindless NIMBYism. The best possible outcome is to keep casino gambling out of Massachusetts — period. If people want to gamble in Connecticut or Rhode Island, let them. That’s not a reason for us to lower our standards.

My standard disclosure.

Kenney does it his way

After a slight lull, action is heating up once again on the casino front. Today’s highlights:

— In the Boston Phoenix, Adam Reilly profiles Peter Kenney (photo at left), the Cape Cod Today blogger/ reporter/ activist who was a key player in bringing down Mashpee Wampanoag president Glenn Marshall, and who continues to break important stories. I think Adam gets a little too hung up on whether Kenney is a “journalist,” but he’s got a lot of insight and some great quotes from the colorful Kenney. Here’s one: “Did I do it the way a traditional journalist would? According to journalistic ethics, if there are such things that are taught in school? No. Was I correct in what I said? Yes.”

— What will Gov. Deval Patrick say about casino gambling? We’re still waiting. Kenney himself writes that a source tells him Patrick has decided to punt and let the Legislature handle it. That would be good news, as House Speaker Sal DiMasi is a casino opponent. In the Cape Cod Times, Stephanie Vosk reports that whatever happens, casino gambling is likely to be the subject of a referendum on the state ballot.

— In the Brockton Enterprise, Michael DeCicco reports that the selectmen in Berkley have voted unanimously to fight against the building of a proposed casino in neighboring Middleborough. “We’re talking about transforming this area into something that will be unbelievable,” said chairman Robert Anctil. “It’s bad growth, not good growth.”

— In the Boston Globe, Sean Murphy looks at the plans for the proposed Middleborough casino and finds that it’s intended to “
draw a national tourist clientele because of its proximity to Cape Cod and would be crammed with 4,000 slot machines, 180 table games, and amenities like a 10,000-seat auditorium for sporting events and shows.” Not that it would harm the rural character of the town or anything.

My standard disclosure.

“Little time for debate”

The best description in the traditional media of the Middleborough town meeting that approved the casino-gambling deal appears in an editorial today in The Enterprise of Brockton. The whole thing is a must-read (linked moved; now fixed), but check this out:

This is a decision that will affect the state for generations. It will alter many lives, change the economy of the Bay State, create new issues and have many consequences. It is not a decision to be made lightly or hastily, so no one should hold Patrick to his previous promise to make a decision this week.

This rational approach is in sharp contrast to what has happened in Middleboro in recent months where residents reluctantly voted to support a casino, to be built by the Mashpee Wampanoag Indian tribe (or more accurately, their billionaire backers). There was little time for debate and reflection on how it would affect the town and the region, especially since there was always the subtle threat that if Middleboro didn’t make up its mind — and fast — the Indians would take their slot machines elsewhere.

To which I would add this: The “subtle threat” was not so much that the Indians would take their slot machines elsewhere, but that they would build them in Middleborough whether residents liked it or not. That’s why people were told to vote “yes” on the deal even if they opposed the casino itself. That’s why they turned right around after the first vote and voted “no” on an advisory question asking whether they wanted to see a casino built in town.

The editorial urges Gov. Deval Patrick to take his time on making a decision (apparently he needs no such urging), and concludes: “This may be the most important decision you ever make as governor. Don’t let anyone from any quarter put pressure on you. Do what is best for the long-term welfare of the people of Massachusetts.”

Look at what we’re dealing with now. A tribal chairman, Glenn Marshall, who left in disgrace. The entire tribal leadership facing a recall election. Three of Middleborough’s five selectmen facing a recall election. (The other two, including the chief casino enabler, Adam Bond, escaped only because they were elected too recently.) Two of the investors with dubious legal records. A mysterious meeting with the ethically challenged state Sen. Dianne Wilkerson.

Just walk away, governor. You don’t need this.

My standard disclosure.

Wilkerson leaps in (II)

Boston Globe columnist Joan Vennochi reports that Patrick aide Michael Morris didn’t expect to run into Amelia and Steven Bingham when he dropped by state Sen. Dianne Wilkerson’s office last week. She adds that it’s time for Gov. Deval Patrick to walk away from the mess that is casino gambling:

The push for expanded gambling in Massachusetts comes from racetrack operators, out-of-state promoters, and other gambling interests. If they haven’t made their case yet, that should tell Patrick something important. It’s a shaky case for everyone but them.

Interesting that the most experienced analysts in town, like Vennochi, Jon Keller and Steve Bailey, understand this. Let’s hope Patrick reaches the same conclusion.

Update: Peter Kenney has much more at Cape Cod Today. And, as I should have noted earlier, there’s a discrepancy between his and Vennochi’s accounts. According to Vennochi’s reporting, Morris was surprised to see the Binghams in Wilkerson’s office. According to what the Binghams told Kenney, Morris was surprised to see that the Binghams had brought advisers with them.

Kenney’s take is that Glenn Marshall’s downfall could lead to the re-opening of a lawsuit by the tribe against the town of Mashpee over Wampanoag land rights — and that Wilkerson, a member of the Senate Insurance Committee, has an obvious interest in a situation that could wreak havoc with property insurance.

My standard disclosure.

Wilkerson leaps in

Why would Gov. Deval Patrick need more time to decide on casino gambling when he’s already taken months? The Cape Cod Times’ David Kibbe does not provide an answer today, and maybe the real reason is known only to Patrick.

But Cape Cod Today’s Peter Kenney offers an interesting anecdote that may explain why Patrick wants a few more weeks. According to his latest report, Amelia and Steven Bingham met last week with state Sen. Dianne Wilkerson, D-Roxbury, at Wilkerson’s request, and were unexpectedly joined by Michael Morris, an aide to the governor.

The Binghams, members of the Mashpee Wampanoag tribe, are leading an effort to recall the tribal leadership following the resignation of Glenn Marshall, who had ordered them “shunned.” The meeting in Wilkerson’s office described by Kenney is all very cloak-and-dagger, so it’s hard to know what precisely is going on. But clearly something is happening.

As David Bernstein recently observed in the Phoenix, Morris, Patrick’s director of governmental affairs, previously worked for State Treasurer Tim Cahill, a supporter of casino gambling. For that matter, Patrick’s chief of staff, Doug Rubin, is also a Cahill alumnus. But according to Bernstein’s sources, Cahill has been unable to influence Patrick on the casino-gambling issue.

The Binghams have never said they oppose casino gambling. But Steven Bingham has said the deal negotiated by Marshall with investors contains too little money for both the tribe and the town of Middleborough, and that it will be null and void if the recall effort succeeds.

With three of Middleborough’s five selectmen currently facing recall as well, the latest developments raise the possibility that if the Mashpee Wampanoags ever build a casino, it might be in a different location.

My standard disclosure.

Chump change

The Weekly Dig shows that the money the government could collect from the proposed Middleborough casino — possibly as much as $100 million a year — is much ado about nothing.

No surprise there. But did you know that state taxes on alcohol already bring in nearly as much? Or that $100 million would not quite cover the annual interest charges on the Central Artery debt?

One more reason for Gov. Deval Patrick not to travel down this road.

My standard disclosure.