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Wagner Expects Further Gambling Debate in Massachusetts

Posted on May 5th, 2011

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In an effort to create new jobs and increase tax revenues, Massachusetts eyes the possibility of establishing a new and formidable industry by expanding gambling. This was the statement issued by Rep. Joseph Wagner, House Speaker DeLeo’s new point man. In view of the upcoming biennial public hearing regarding gambling bills, Wagner—who also sits as the new House chairman of the Joint Committee on Economic Development and Emerging Technologies —expressed his view that discussions regarding the matter are basically moving in a similar manner as compared to the previous session. It can be recalled that the House failed last summer to agree on the bill that would expand gambling. This included discussions on the Wonderland racetrack’s closing as well as downsizing in other tracks.

The debate on whether to establish casinos revolve around points raised by those who are for it and those who have expressed opposition to the idea. Those in favor believe that casinos shall provide much-needed lifeblood to the state’s relatively dismal economic situation. On the other hand, there are those who feel that the said establishments carry with them serious social problems and drawbacks that are enough to warrant the non-approval of the bill. Apart from that, it also seems that DeLeo and Gov. Deval Patrick’s previous disagreements are still in existence, and have yet to be addressed and resolved. Wagner however, remains steadfast in his conviction that new sources of revenue are needed by the state in order to sustain crucial public policy initiatives such as public education, health care, public safety, and infrastructure. He added that all these are the rationale for considering the idea of expanded gambling, and should be the primary focus of the debate and discussions. After all, being able to identify a new source of revenue is not commonplace in the Legislature.

With the current state of this measure, legalized gambling may very well be a possibility for Massachusetts, what with Online Gambling coming in as “a major competitive threat” to the state’s lottery which is able to bring in $4.5 billion annually, with $800 million to $900 million in local aid. The highly-accepted Fitch Ratings reported the same in April, saying that the passing of ratification of either a regional or a federal online gambling bill has grown to be “increasingly likely”. Although the state economy has strengthened in the previous year with decrease in unemployment incidence, lawmakers are still fully aware of the need to create more jobs. Wagner added that those who are in the field of public service acknowledge how the state income is considered as the lifeblood of state revenue. With the number of jobs that can be created by the gambling industry, Legislature must seriously consider its potential.

This may pose as a great challenge as leaders remain unchanged in spite of the heavy turnover this year. Wagner recognizes the possibility that former hindrances may still be present. He also expressed uncertainty as to how the new Senate composition will influence the debate on the subject matters, adding that although Senate President Therese Murray is for expanded gambling, there are a considerable number of senators whose stands on the issue remain indistinct. Wagner is also optimistic that the “good deal of emotion” everyone experienced in July will be able to help the Legislature move the discussion further this time. He also said that although some gambling establishments expressed their intent to share revenue with the immediate cities and towns, he thinks that the intention is one prompted by the intention to secure business interests by gaining favor among community and town political leader. Such, he thinks, will probably fail to influence the legislators’ take on the matter.

With lessons learned from last year’s highly-charged debate on gambling, Wagner said that he anticipates only one hearing on the twelve bills filed. He also shared that he was initially uninterested to take over the economic development post, but admits that the position and the challenges that go with it have somehow grown on him. Finally, Wagner disclosed that he has yet to get specific instructions from DeLeo on how to go about the proceedings in discussing the merits of the gambling bill, or any bill for that matter. The only clear direction that he received from DeLeo was to focus on the creation of jobs.