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Friendlier Environment for Gambling Debate Looms

Posted on May 7th, 2011

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Nine months after the intense albeit open-ended negotiations on issues gripping the gambling industry, Massachusetts lawmakers expect a similar turn as hearings start today. Members of the legislature are optimistic that this year’s discussions will be done under a more friendly and less politically intense atmosphere. With Gov. Deval Patrick no longer strained by pressures of a re-election campaign, many predict that he will be more receptive to arguments in support of the legalization of gambling. On the other hand, many have observed how the governor’s primary antagonist on the issue, House Speaker Robert DeLeo, has mellowed down and adopted a calmer attitude.

Still, those who lobby for and those who do not approve of gambling legalization still have their work cut out for them. It appears that a fresh set of arguments are in order as several factors have affected the passion and urgency used by several leaders in viewing the issue. For one, lawmakers who previously expressed their intention and approval to curb collective bargaining are expected to convey their support to gambling. Such is deemed part of the strategy to please labor leaders as more casinos would mean more construction jobs. Another factor that may help gambling proponents is the high unemployment incidence. This—coupled with budget cuts in various social programs as offshoots of the loss of federal stimulus money— force leaders to reconsider the potential revenue that gambling can bring into the state’s coffers.

Inspite of these recent changes, proponents must up the ante to convince officials. Lawmakers may feel less anxious in coming up with additional income sources after a recent tax report revealed that collections have exceeded original assumptions by $587 million. It also is possible that some have grown weary of the issue, as it has dragged on for years. Many believe that the gambling legalization gridlock has deviated the government’s attention from other equally important economic and social concerns. Like the previous year, it is also expected that Patrick, DeLeo and Senate President Therese Murray will discuss the issue outside legislation. All three claim that they are in favor of casinos, but were unable to provide clearer details to elaborate their stands.

It can be recalled that Patrick and DeLeo’s debate last year provided some of the more interesting highlights and scenes in the hearings. DeLeo’s support to racetracks and former tracks who wish to offer open slot machine parlors—apart from granting the former with casino licenses—was strongly opposed by Patrick. However, it was clarified by the governor the he supports full-scale resort style casinos. Still, spokesperson Brendan Ryan said that Patrick’s main concern is not about casinos, emphasizing that conversations regarding the matter rarely came up. Meanwhile, DeLeo is stalwart in his political stand which, he justifies, is prompted by the need to maintain the employment of those working in the ailing horse and dog racing industries. Cities and towns which seek to impose high taxes to strengthen their budget may implement so on slot machines. DeLeo added that the arguments to be presented in the hearing shall be instrumental in moving discussions further.

Amid DeLeo and Patrick’s legislative squabble is Senate President Murray who, among the three, has not expressed a clear and solid stand on the issue. Last year, she agreed with DeLeo on a bill allowing resort casinos and slot parlors, but did not give much effort to convince legislature members to supersede Patrick’s rejection of the said compromise. Murray has also stated that the gambling debate may turn the government’s focus away from other concerns such as how casinos will have a negative effect on the state’s small businesses, as well as end up compounding current social problems.

Gambling industry executives who have already spent $4.6 million for the past two years remain undaunted. Inspite of very disappointing results in 2010, they will still attend and testify in the hearing, confident that this year could be the year. Their pitch to the legislature will consist of data and statistics showing how legalizing gambling will make open doors for huge investments, thousands of jobs and, ultimately, state revenues worth millions. One of the many predicted investors to come is Wynn Resorts, owner of several casinos in Las Vegas and Macau. Kim Sinatra, Wynn’s senior vice president and general counsel, said that the company shall announce in the hearing a planned $1 billion to $1.5 billion casino investment in Massachusetts—one that shall boast of entertainment facilities, a hotel, convention space. Sinatra explained that Wynn’s interest to set up business is due to Massachusetts’s market size and political conditions.