Thursday, November 7, 2013

Globe Glum About Casino Votes

They thought they were "$ure bets." They $hould know better.

"East Boston rejects casino at Suffolk Downs; Revere-only project considered" by Mark Arsenault |  Globe Staff, November 06, 2013

In one swift blow, East Boston voters dashed casino dreams years in the making Tuesday, defeating a $1 billion Suffolk Downs gambling resort proposal once widely considered a lock to win the state’s most lucrative gambling license.

With the project winning a majority of support in Revere, however, Suffolk Downs will explore moving the entire development onto the Revere side of the city line, Chip Tuttle, the track’s chief operating officer, told the Globe.

It was a difficult day across the state for supporters of Massachusetts’ emerging casino industry, as another well-established casino proposal fell in Palmer, where voters rejected a nearly $1 billion Mohegan Sun plan.

The twin defeats for the gambling industry come as casino executives and insiders have questioned the scrutiny Massachusetts regulators have put on the state’s applicants, and after one of the industry’s biggest companies dropped out of the Suffolk Downs project over questions about another business relationship.

In East Boston, voters proved to be unmoved by big promises, pro-casino endorsements from powerful politicians — including Mayor Thomas M. Menino — and nearly $2 million in campaign spending by Suffolk Downs.

Krysten Hunt, 24, summed up the anti-casino position, saying she did not want more potential traffic, pollution, crime, or gambling addiction in her neighborhood. “All that stuff? No, thanks,” she said. “It’s fine the way it is.”

The ballot box failure leaves the future of New England’s last thoroughbred racetrack in grave doubt. The 78-year-old track has been losing money for years, as its owners have pumped in cash to keep Suffolk Downs afloat in anticipation of adding a profitable casino.

“Voters . . . struck a decisive blow to the casino culture, a clear signal that the Commonwealth believes there are better economic options than casinos and slot barns,” John Ribeiro, chairman of the Repeal the Casino Deal campaign, said in a statement Tuesday night.

The casino proposal was widely expected to pass in Revere. But public opinion across Boston has long been divided on permitting a Suffolk Downs casino, and recent polls of East Boston voters also reflected a deep split in the neighborhood.

Suffolk Downs was probably hurt by a public relations blow three weeks before the vote, when the track dropped its hand-picked casino operator, Caesars Entertainment, after state investigators recommended that the gambling giant be disqualified from bidding for a casino license. Investigators raised several concerns, such as the company’s enormous debt and its licensing agreement with a New York boutique hotel company owned in part by a businessman allegedly linked to Russian mobsters.

Related: Caesars Disqualified From Suffolk Downs Casino Competition

Also see:


If Suffolk Downs cannot go on, only two proposals will be left standing in the contest for the Greater Boston license: a Wynn Resorts plan for the Mystic River waterfront in Everett and a Foxwoods project in suburban Milford.

Wynn won a referendum in June; Milford votes Nov. 19.

That's all the verbatim I got when I thought the best sentence was "Caesars [was] widely considered such a sure bet for the Greater Boston resort casino license." Also something else about the limited vote playing into the hands of opponents was worthy of reporting.

In Western Massachusetts, just one project remains — an MGM proposal in downtown Springfield. MGM won a referendum in July; it has not yet passed its state background check.

Palmer defeated the Mohegan Sun proposal, despite the company’s five years of ground work there, by a vote of 2,657 to 2,564 with a staggering 66 percent turnout.

Mohegan Sun chief executive Mitchell Etess noted in a statement that “the results . . . are extremely close — less than 100 votes. And the incredibly strong turnout is indicative of how engaged people on both sides of the issue have become.”

Etess said the company will ask for a recount.

Springfield political strategist Anthony Cignoli said Palmer has seen an influx of residents in the past seven years or so. They moved there for a rural lifestyle, he said, and apparently voted to keep it that way.

I like the web adder.

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"Ceasars signed deal with hotelier accused of having tie to Russian mob" by Mark Arsenault |  Globe Staff, October 24, 2013

Massachusetts investigators found that a Caesars corporate investigator had conducted a check into Arik Kislin’s background, turning up several pieces of eyebrow-raising material.

That material included an article published in 2000 by the Center for Public Integrity that reported allegations that Kislin’s uncle was a member of a Russian organized crime group and that the uncle owned a business allegedly being used by another man, Michael Chernoy, for fraud and embezzlement from Russian banks. Other reports the company reviewed said Chernoy faced a worldwide arrest warrant from Spain for money-laundering and organized crime charges, and that a company Kislin owned once cosponsored a US visa for Anton Malevsky, a man alleged to be a Russian assassin for a Moscow crime gang, according to the report. 

For those not in the know, the Russian Mafia is the Jewish Mafia. That's why the papers hate Putin.

Further investigation by Caesars turned up additional information that suggested that Kislin had ties to criminals and criminal activity, the report stated.

“During this investigation, investigators have consulted with various law enforcement entities, including the Federal Bureau of Investigation, regarding Arik Kislin and the information detailed within this investigative report,” state investigators wrote. “In response to our request for information, we received information from the FBI that Arik Kislin is in fact known to them and has been linked to various members of Eurasian Organized Crime.”

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Investigators also raised questions about the financial suitability of Richard Fields, largest shareholder in Suffolk Downs.

The review of Fields’ personal income tax returns revealed continuous reporting of significant losses, the report states....

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Best to move to the next table, 'er, town.

"Gaming panel chief skeptical of Revere plan" by Mark Arsenault |  Globe Staff, November 07, 2013

Prominent politicians treaded lightly around the topic on Wednesday, sensitive to the strong message from East Boston that the neighborhood opposes a casino at Suffolk Downs....

In addition to the surprising no vote from East Boston on Tuesday, a prominent casino project also failed in Western Massachusetts, where Palmer voters narrowly defeated a proposal from Mohegan Sun. The casino company is seeking a recount.

With the two losses this week, troubles continued to mount for casino applicants in Massachusetts.

Only five of the 11 original commercial casino and slot machine parlor applicants have won referendums: Wynn Resorts in Everett; MGM in Springfield; Penn National Gaming in Plainville; Cordish Cos. in Leominster; and Raynham Park in Raynham.

Five other applicants have struck out, including the two on Tuesday. Hard Rock International lost a vote in West Springfield; Rush Street Gaming abandoned a Millbury slot parlor project due to a lack of public support; and Ourway Realty was disqualified by the gambling commission after disclosure that a key employee had taken more than $1 million from the money room at Plainridge Racecourse.

The commission showed flexibility by allowing Penn National to replace Ourway as the proponent of a slot parlor at Plainridge, a precedent Suffolk Downs supporters cited in defending the track’s interest in continuing its bid in Revere.

One of the original applicants has not yet faced voters: Milford residents will decide on a Foxwoods casino referendum Nov. 19.

The defeat of the Palmer project Tuesday leaves only MGM in Springfield in contention for the Western Massachusetts resort casino license. In the competition for the Greater Boston license, Wynn and Foxwoods — at the moment, the only two remaining applicants — have not yet passed the mandatory state background checks. Competition for the third resort license, in Southeastern Massachusetts, is on a delayed schedule and so far has just one applicant.

RelatedInterest lags for southeast casino in Mass.

The three applicants for the sole slot parlor license authorized by state law have all won approval of their host communities and have passed background checks.

Suffolk Downs was the one casino project in the state that straddled a border and thus had two host communities. The proposal — which included two hotels, restaurants, shops, a spa, and other amenities — needed to pass referendums in both East Boston and Revere to move forward.

When East Boston rejected the $1 billion plan, by a margin of 56 percent to 44 percent, Revere’s mayor, Daniel Rizzo, asked Suffolk Downs to explore shifting the project entirely into Revere.

Related:

Suffolk Downs casino friends, foes take to streets
Neighbor vs. neighbor over East Boston casino
Scars in East Boston

That isn't that much of a divide, 56-44.

Key track officials declined interview requests Wednesday. Suffolk Downs chief operating officer Chip Tuttle issued a brief statement saying that track officials respect the vote in East Boston.

“We will also work to honor the clear affirmation of our vision for development that creates economic benefits by the voters of Revere and our duty to our family of workers and horsemen to explore options in Revere,” he said.

About 52 acres of the roughly 163-acre racetrack property are in Revere. It is unclear whether Suffolk Downs could create a new design for the smaller parcel in time to meet a Dec. 31 state deadline for resort casino applicants to submit all remaining documents for their applications. The state gambling commission is reluctant to extend deadlines, in fairness to other developers that have met them, said Crosby.

“We’ll listen to anything but I guess that would be a tough case,” he said.

Suffolk Downs also controls the former Wonderland racetrack, which is entirely in Revere and may offer another location for a Revere-only casino.

But that would also raise a host of questions:

Casino opponents who led Suffolk Downs’ defeat on Wednesday blasted the track’s “wealthy owners and investors” for “mobilizing to find a way around the voice of the people and Massachusetts gambling law.”

“It is clear upon review of the statute that the casino referendum needed to pass in both East Boston and Revere in order for the developers to move forward,” the Suffolk Downs opposition group, No Eastie Casino, said in a statement.

The group called for Boston officials “to take East Boston’s resounding no for an answer on the casino question,” and to protect the neighborhood from casinos in other communities.

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Maybe you would like to test your "skill" at the gaming tables?

"Two N.Y. towns sue over casino deal" Associated Press, September 23, 2013

ALBANY, N.Y. — With a vote coming soon on whether to expand casino gambling in New York, two small upstate towns are asking a court to throw out the rules that would govern the rollout and a related deal between the state and the Oneida Indians.

The towns of Verona and Vernon argue in a federal lawsuit for nullification of an agreement this year between the state and the Oneida Indian Nation that would allow the tribe to put up to 25,000 acres of land into trust.

While the lawsuit does not seek to disrupt the Nov. 5 statewide referendum, a victory by the towns would throw a monkey wrench into the state’s plan to regulate casino expansion. And it would invalidate an agreement the two towns argue would devastate them by taking away their ability to tax and regulate a substantial amount of land within their boundaries.

‘‘The people that are in those communities are going to have to make it up by paying higher taxes,’’ said Town of Vernon Supervisor Myron Thurston.

Voters will consider an amendment to the state constitution that would allow Las Vegas-style casinos on non-Indian land. If approved, rules negotiated between Governor Andrew Cuomo and legislative leaders would initially allow three upstate casinos.

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"Rosy wording of NY casino referendum challenged" by Michael Gormley |  Associated Press, October 03, 2013

ALBANY, N.Y. — A judge has set an Oct. 11 date to hear a lawsuit that challenges the rosy language the Cuomo administration and Legislature have used in a November referendum to authorize seven Las Vegas-style casinos in New York.

The court date was set in state Supreme Court in Albany on Wednesday in attorney Eric Snyder’s lawsuit against the state Board of Elections, which approved the measure for the ballot, Snyder said.

The referendum was rewritten over the summer from a traditional, bare-bones question to one that now promises jobs, more school aid, and lower taxes, all of which are disputed.

Cuomo had no immediate comment Wednesday. He says his casino initiative will bring jobs and $1 billion in revenue to the state.

Related: Cuomo on Casinos 

Opponents cite the cost of casinos in tax dollars for public safety and addiction recovery programs and the stress on families. Good-government groups also are concerned about the flow of campaign contributions from wealthy casino operators.

Why would anyone be concerned about them hedging betting on politicians?

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"After decades, Catskills casinos closer to reality" by Michael Hill |  Associated Press, November 07, 2013

MONTICELLO, N.Y. — After decades of waiting, Catskills residents who believe casinos can revive long-gone tourist traffic think they may finally hit the jackpot.

‘‘It will bring a lot of jobs — bring the town, county, and region back to what we were at one time,’’ said town of Thompson supervisor Anthony Cellini, who has been trying to land a local casino for almost 40 years. ‘‘We were the hospitality capital of the Northeast, and we’d like to be that way again.’’

Generations ago, hotels and bungalow camps in the lake-laden area were packed each summer with tourists — many of them Jewish families from the New York City area. But the crowds thinned out by the ’70s. Promises of landing a casino have been like a three-card monte game played out for decades.

Maybe it is true, but my point is this paper is not being written for me or you. It is being written for the only people left reading them: the elite and Jews.

The money card never came up until Tuesday, when voters approved an amendment to the state constitution that authorizes seven Las Vegas-style casinos. Two will be in the Catskill-Hudson Valley region, where some potential sites include old Borscht Belt hotels.

The development can’t come soon enough for some of the shopworn towns in this upstate area. In Monticello, Brian Fleischman stood on a faded stretch of Broadway while on break from his job at the Monticello Bagel Bakery. He hopes casinos can revive the area.

‘‘We’ve been hearing it for 40 years already and nothing happened,’’ he said. ‘‘And now finally it’s getting approved and I think it’s a great thing.’’

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On Wednesday afternoon, Governor Andrew Cuomo spoke to a highly appreciative crowd of supporters at Bethel Woods Center for the Arts, the Catskills music venue built on the original site of the 1969 Woodstock concert. The governor said passage of the casino referendum will ‘‘fundamentally change the trajectory of the Catskills.’’

‘‘We finally have a magnet for attracting tourists from downstate, from New York City,’’ he said.

The ballot proposition passed with 76 percent of the vote in Sullivan County and 60 percent in Ulster County, according to unofficial results. The results were split in two other counties with potential sites, with 54 percent in Saratoga County voting no and 69 percent in favor in Tioga County.

In Monticello, Gary Sommers said the amendment was a good thing for the area. But he said now it’s important to make sure the coming casinos are not self-enclosed entities that keep customers — and their money — inside the resorts....

That is exactly what they are built to do.

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UPDATECompulsive gambling advocates turn to military