(Boston) – United to Stop Slots in Massachusetts (USS Mass) a non-partisan statewide coalition has provided education to legislators, citizens, organization and the Administration on the net costs of legalizing expanded gambling.The long term economic drain and saturation of the market has citizens re-thinking expanding gambling, especially as the costs to taxpayers emerge in other states.
“Statewide leaders including Governor Patrick and the Mass Chiefs of Police Association are joining the USS Mass coalition in the call for an independent comprehensive cost-benefit analysis before legalizing predatory gambling, slots and casinos,” stated USS Mass president, Kathleen Conley Norbut.“It is time for citizens in the Commonwealth to be told the whole story of the costs and impacts of slot parlors, racinos and slot casinos.”
Today’s Globe released a recent poll with evidence of the waning support for expanding gambling in the Commonwealth.
As for expanded gambling, which Patrick and lawmakers are currently negotiating, 33 percent said they support creating resort casinos, while only 3 percent supported adding slot parlors at the state’s race trace track; 16 percent said they had no preference, and 38 percent said they don’t want expanded gambling in the state.
For more information on the comprehensive costs and impacts of slot parlors, racinos and slot casino, please do not hesitate to contact USS Mass.
Ya just can't make up this stuff! Let me preface this must read article with a shout out to the members of the USS Mass coalition who have been tracking the misinformation pattern and the misuse of public funds/institutions for the benefit of the slots/casino industry.
Dear Professor Clyde Barrow: First of all, you’ve got guts. It takes a rare kind of fortitude to throw yourself behind the proposition of casino gambling here in Massachusetts while having the same name as the bandit -- the two-armed bandit, that is -- played by Warren Beatty in that movie where Faye Dunaway was young Bonnie Parker. (Given how deftly the Patrick administration thus far has handled this issue, I’m surprised we haven’t seen an earnest disquisition on the morality of gambling from Father Jesse James, SJ.) Now, I don’t wish to cast aspersions about your academic work at UMass-Dartmouth on behalf of the Fleece the Suckers Act of Whenever. Others have done that, of course, most notably the people who noticed you were also in the employ of a gaming proponent who wants to build a casino in New Hampshire. However, this does present something of a conundrum. You have long maintained we need casinos here to keep our local sheep in the pen, rather than sending them off to get shorn in Connecticut. So now the Patrick administration has embraced your study as a means to help it build casinos, while you’re helping other folks build one north of the border. It seems logical, therefore, to conclude that you could find an economic reason to build a casino almost anywhere, up to and including the bottom of Cape Cod Bay. Perhaps that could be the plot of the upcoming thriller: Oceans 1, or Deval and Clyde.
The weather's changing and silly season is upon us.
First, Mohegan Sun announces they are in the game for the low-chip price of $25-$50 million dollar licensing fees, no high roller $200-$250 million dollar entry fee for those boys.
Then, 10 Western MA legislators respond to the plea from labor to build a casino in Palmer, the real western MA - not to be confused with the abutting town of Warren (in Worcester County - boo!) by signing a pledge to not support casinos if it ain't in western MA, as long as it ain't in their district. There isn't even a coherent proposal on the table and they aren't asking questions let alone the important questions about cost-benefit. This is not the brain trust of western MA...Rep Scibak, c'mon!
Then, and I say then, Palmer Town Councillor Paul Burns gets out his megaphone and blasts the honorable state Senator Stephen M. Brewer and Palmer's native son, state Representative Todd Smola in both the Springfield Republican and with a Letter to the Editor in the Journal Register newspaper. The pledge for what? There are 17 pathetically disparate, inept bills filed with the Committee for Emerging Technologies and Economic Development (sheesh that needs an acronym...CETED). CETED, oh my, see Ted? Prophetic or what? See Ted roll in his grave as Democratic leadership race to the bottom to fund government services through predatory gambling and exploitation of human weakness. At least the Councillor is thorough and makes sure that none of the people he is hell bent on pissing off, miss his public diss-fits and covers himself in both papers.
Not to be outdone, the President of USS Mass was featured in today's Statehouse News (despite their cozy relationship with O'Neill Associates - casino shills extraordinaire and ad sponsors for SHN) setting the record straight on the laugh-ability of the inevitability word out of the Senate President's mouth. At least there are more syllables and therefore potentially more thought to saying the word, "inevitable" than "ca-ching!"
STATE CAPITOL BRIEFS – THURSDAY, OCT. 8, 2009 STATE HOUSE NEWS SERVICE
GAMBLING FOES DOUBT S.P. MURRAY’S ‘INEVITABLE’ CLAIM Casino opponents are speaking out against Senate President Therese Murray’s assertion that casinos are “inevitable,” saying proponents are trying to oversimplify and paint the introduction of expanded gambling as foregone. “It’s all over the map,” said Kathleen Conley Norbut, a casino opponent who held meetings Thursday with state officials. “This inevitability is the proponents’ message, and it’s a clever marketing ploy, but it’s not based in fact.” Norbut, a Monson resident who leads United to Stop Slots in Mass., said she met with first assistant Attorney General David Friedman and chiefs of staff to Sens. James Eldridge and Susan Tucker, discussing the downsides of casinos and what she called a need for a cost-benefit analysis. “[Murray] has yet to speak about the mitigation costs, the cost of the gaming regulatory commission, the cost for infrastructure,” Norbut said. “The costs are extraordinary, and our research shows that there is … in fact a long-term economic problem.” Asked whether she believed casinos were likely to pass next year, Norbut replied, “I think it’s very complex, and I don’t think they have it together.” Murray made her claim Wednesday in a WBUR interview broadcast Thursday.
Ya, and there's a casino in Middleboro today too, not! That was "inevitable" wasn't it?
Governor Patrick where are you? We could use some leadership on this messy issue you brought to the Commonwealth. Stop the insanity. Take the whole thing off the table, due diligence, create a cost-benefit analysis commission...I'll serve. Cripes we did a ground breaking study in the Quaboag region with local Selectmen and appointed volunteers with no money.
BTW, thanks for the funding for the EMTs, it's not really stimulus but it's needed. Still sad the town was too cheap to fund it ourselves.
As a culmination of 1 1/2 years of study the neutral, non-partisan Western MA Casino Task Force finalized the following list of 23 major concerns for municipalities in our region regarding Legislative proposals for expanded gambling/gaming. This is not the short list and any legislator worth their paycheck must pay heed to the impacts involved.
July 23, 2009
Honorable Senator Steven M. Brewer
Honorable Senator Stanley C. Rosenberg
Honorable Senator Gale D. Candaras
Honorable Senator Karen E. Spilka
Massachusetts State House
Boston, MA02133
Dear Senators:
Representing fifteen towns in the western Massachusetts region, WMCAT was initiated in August of 2007 by the Monson Board of Selectmen to address potential issues facing our communities from the possible legalization of casino gambling in the Commonwealth as proposed by Governor Deval L. Patrick.The Monson Board of Selectmen notified community leaders in the QuaboagValley region to organize and discuss the pending legislation and impacts on the region.The WMCAT currently consists of an elected or appointed representative and an alternate from over fifteen communities in the region.The WMCAT mission:
“To assure that the economic, social, and quality of life interests of communities within the Western Massachusetts region are protected and all impacts resulting from the potential development of expanded gambling/gaming within the region are recognized.”
At the April 22, 2009 WMCAT meeting, Senator Brewer requested an extensive list of concerns and issues from the task force for inclusion in any future “amendment” process regarding casino or slot legislation. The following list has been developed by members of the task force as high priority concerns for our communities:
Legislation
A.Comprehensive cost-benefit analysis of slot parlors and mega-casinos.
The legislature will perform a comprehensive cost-benefit analysis and develop data-driven budgets by region that account for fiscal revenues and both operating and capital investment expenses. Benefits/revenues will result from income and property taxes, license fees, job creation, reduction of welfare rolls, and ancillary economic development for regional businesses. Costs/expenses will result from capital investment projects, infrastructure expansion and maintenance thereof; mitigation compensation to affected regional communities for issues defined in the paragraphs below; and state and regional oversight and administration expenses.
The cost-benefit analysis will address state based costs such as the Attorney General; gaming commission personnel, equipment, operating budget, software and all consultants; gambling addiction services; state police and overtime; domestic violence advocates at district courts serving the regions impacted by proposed expanded gambling/gaming; corrections and financial counseling.Subsidized health care costs for transient workers and workers not covered by proposed expanded gambling/gaming health insurance.
B.Establish Regional Mitigation Trust Funds.
The Legislature will establish a Mitigation Trust Fund (MTF) for each region impacted by proposed expanded gambling/gaming which reflects data-driven fiscal costs. Regional MTF Oversight Committees will be established to oversee the allocation/dispersal of MTF Funds and to review the regional impacts and costs annually. These regional committees will be comprised of 5-7 members, 70% of which will be elected locally by a vote from the region such as the Western MA Casino Task Force, to assure fair and equitable regional representation. Each Mitigation Trust Fund will be fully funded from license and tax revenues prior to use of any revenues from proposed expanded gambling/gaming for other state initiatives.
C.Local representation on Gaming Commission(s) & Oversight committees.
The legislature will appoint local and regional representatives of the communities impacted by proposed expanded gambling/gaming to all gambling/gaming commissions, and oversight committees.Local representation will ensure that host regions have equal voting power in decisions impacting the communities that they represent.
D.Public Safety – Police, Fire, Emergency Medical Services.
Legislation will provide data-driven fiscal mitigation funds for public safety costs to communities in the region impacted by expanded gambling/gaming.These costs will include but not be limited to personnel, materials and equipment, vehicles, and translators for non-English speakers.Compatibility with state police technology and equipment will be funded through proposed expanded gambling/gaming revenues not local tax receipts.
E.Environment.
Legislation will consider the impact on natural resources and will enforce all state environmental laws and regulations.Preference will be given to development proposals that utilize Smart Growth policies, including restoring existing structures and facilities; that preserve forestry, wetlands, and wildlife habitat; that minimize air, water, noise, hazardous waste and night light pollution; and that address other MEPA considerations.Credit for increased air pollution due to vehicular traffic will be mitigated through additional payments to host and regional municipalities and regional respiratory care facilities.
F.Infrastructure.
Legislation will assure that all infrastructure costs required to enable proposed expanded gambling/gaming will be borne by the developers/license holders.Examples in this category include but are not limited to: road and bridge improvements, utilities, upgrades to water/sewer facilities, etc.
G.Education.
All enrollment costs for new students due to worker surge in the region of a proposed expanded gambling/gaming facility will be paid by the revenues from tax and license revenues prior to any other state initiatives.These costs will include but not be limited to personnel, materials and equipment for ELL not currently taught in the school districts, special education, facilities and transportation.Legislation will provide annual assessment of education impacts to the region.
H.Zoning.
The legislature will prohibit “hot-bedding” and dormitory housing in communities abutting a potential casino.Local control over zoning supersedes proposed expanded gambling/gaming development proposals.The Commonwealth will provide legal protection for host and regional communities from lawsuits brought against the municipalities by proposed expanded gambling/gaming developers/licensees.
I.Work Force Development.
Proposed expanded gambling/gaming facilities will utilize local, regional and state workforces.Plans for skills development and retention of under-skilled and special needs workers will be promoted.Workers will be guaranteed the rights to organize and form unions on all levels of employment.Union wage and fair, open and competitive procurement laws will be enforced. Preference will be given to proposals that embrace work force development from developmentally disabled and unemployed populations and that include affordable housing and public transportation initiatives.
J.Housing.
Due to the impact from new private housing construction connected with potential expanded gambling/gaming the legislature will act to mitigate the stress on local services to the region by reforming 40B “Affordable Housing Law” to grant full credit to affordable non-publicly funded housing and manufactured housing as affordable housing stock.Each of these types of housing units will count 1.0 as an affordable housing unit.
K.Smart Growth Development.
Legislation will promote Smart Growth initiatives to revitalize areas with existing affordable housing stock, existing commercial buildings, infrastructure and natural resources.
L.Transportation.
Legislation will encourage developers/license holders to reduce regional vehicular traffic by subsidizing low emission public transportation for workers and patrons, providing reduced emission/shuttle busses, rail, etc.
M.Marketing.
Proposed expanded gambling/gaming facilities and their partners, affiliates or subsidiaries will be prohibited from marketing to youth.Marketing materials including but not limited to: logos, materials, clothing, samples of products, will be prohibited to youth.Direct gifts to schools, youth organizations, sports teams, etc., will be prohibited.
N.Ownership.
Legislation will consider restrictions on non-US majority ownership of any proposed expanded gambling/gaming development or facilities.
O.Courts.
Legislation will provide annual assessment of court based services and budgetary needs, track increased impacts and provide fiscal offset for the regional impacts.
P.Ethics.
Legislation will strive for the fullest transparency of all interactions with proposed expanded gambling/gaming.Legislation will prohibit any legislator, municipal official or other individual in an appointed or elected capacity from employment with gambling/gaming entities for five years from effective date of any proposed legislation to expand gambling/gaming in the Commonwealth.
Q. Regional Voting.
Legislation should consider ballot approval of any proposed expanded gambling/gaming facility by host and abutting/directly impacted communities.
R.Casino Expansion.
Legislation will prohibit additional proposed expanded gambling/gaming licenses subsequent to any proposed initial expansion of gambling/gaming in the Commonwealth.Any community that is utilized for host or ancillary services (including but not limited to parking lots, service buildings, employee housing) will be eligible to require a host contract with the casino developers/licensees for impact to the community.Third party businesses that provide a proposed expanded gambling/gaming facility with the above ancillary services will qualify the community for host impact agreements with the proposed expanded gambling/gaming developers.
S.Protection of taxpayers and region from profit loss, bankruptcy and reduction in lottery receipts and local aid.
Legislation will protect taxpayers and regions from lost revenues due to bankruptcy, small business closure and reduction in state subsidies currently provided from lottery receipts and local aid.Data-driven analysis of fiscal impacts will be reviewed and mitigated through the Mitigation Trust Fund on an annual basis to reflect the “real costs” to communities impacted by proposed expanded gambling/gaming.
T.Social and public health costs.
Baseline studies paid through any potential enabling legislation for any proposed expanded gambling/gaming site will be conducted to determine current regional resources.Full funding of regional social and public health costs will be paid by the revenues from tax and license revenues prior to any other state initiatives.Annual analysis of “real costs” will be conducted for the purpose of transparent and accurate mitigation.
U.Underage restrictions.
Legislation will require any proposed expanded gambling/gaming facility to restrict access to gambling for all persons under age 21 years.Legislation will require separate entrances for entertainment venues appropriate for persons under age 21 years.
V.Professional and Technical Assistance.
Legislation will assure professional and technical assistance to regions impacted by proposed gambling/gaming, through the municipalities, which will include but not be limited to: zoning, housing, infrastructure, etc.
Legislation will provide for inclusion of regional representation during the expanded gambling/gaming proposal selection/approval process.
Thank you for your attention to these matters.We appreciate the diligence and attention you have committed to this issue.Please protect the communities that we call home throughout any considerations of expanded gambling in the Commonwealth.
Sincerely,
Edward S. Harrison, Chairman
Western Massachusetts Casino Task Force
Attachments
APPENDIX A - Definitions
The Western MA Casino Task Force recommends that legislation for any proposed expanded gambling/gaming facility consistently utilize the following terms.
Host – municipality or municipalities hosting structures and ancillary structures for any proposed expanded gambling/gaming facility.
Abutting – municipalities sharing at least one border with a Host community (above).
Region – the area including a host and abutting/directly impacted communities to any proposed expanded gambling/gaming facilities (see sample Appendix B).
Regional – pertaining to the region (above).
Regional Map showing sample impact region was included, maybe I can link it when it is posted on the Pioneer Valley Planning Commission website.
The sales tax increase is too much, the lack of common sense to keep it under the neighboring state's sales tax is incomprehensible. Gas tax discourages use of fossil fuel and dependence on foreign oil (yes, there is a connection to spending trillions of dollars on wars in the Middle East).
Imagine this lot supporting casino legislation when they can't figure out that they shouldn't be taking gifts to do their jobs! 50 years of waste and corruption in the billions and billions of dollars is what it took to begin to reform transportation in the Commonwealth. The Legislative Leadership (oxymoron) that has worked under the dome for years now realizes that pension reform is needed: VETO the proposed budget Mr. Governor, go "D".
STATEMENT FROM GOVERNOR DEVAL PATRICK:
Friday, June 19, 2009
“I pledged to veto the Legislature's proposed sales tax increase unless the Legislature first enacted meaningful reforms in the pension system, the transportation network, and our ethics and lobbying rules. In the last 10 days, the Legislature has passed and I have signed legislation eliminating long-standing pension abuses. They have also passed what, at first review, seems to be a good-faith effort at reforming our broken transportation system. I commend the House and Senate for their work on these reform measures.
“However, the fact that we have not been able to pass a strong ethics reform bill -- despite the clear need to restore the public's trust -- threatens all the progress we have made. For the Legislature to enact a 25% increase in the sales tax without first passing a strong ethics bill goes against the pledge that the Legislative leaders and I made, and that the public expects us to keep, to deliver all three reforms before new revenue.
“We know what to do. The House passed a solid ethics bill. The Senate's bill contains a good new idea regarding campaign finance. Legislative leaders should quickly agree to final ethics legislation that includes the strongest provisions from the House, the Senate and my original bill -- including a gift ban and campaign finance reform. Without that, I will veto the sales tax.”
What makes Massachusetts different than many of the states that have legalized slots and class III casinos? Are we smarter, dumber, more wizened or just too stuck in our Yankee ways to go the way of the majority of states that have legalized predatory gambling? I don't know the answer. I just know that we have citizens who are willing to think about the issue, have the skills to research the issue and separate the corporate marketing messages from data.
Tonight the Palmer Citizens Committee chaired by a pro-casino resident will report their findings to the Town Council. I have included some excerpts from the findings on fiscal impacts on education that mirror the report that I generated and was published by Spectrum Gaming, commissioned by Governor Patrick. The sub committees are comprised of a mixture of pro/anti and agnostic casino residents. The feelings of the members really do not matter however, because the bottom line is there is never adequate mitigation for slot parlors and casinos.
Contingency Plan(2.) for Palmer School System should Casino become reality (based on 2008 costs): 1. New Elementary School with a capacity of 1,000 - Estimated construction cost: $ 40,000,000.00 2. New Middle School or High School with a capacity of 1,000 - Estimated construction cost: $ 40,000,000.00 - $100,000,000.00. 3. Each additional student entering the Palmer School System will add $10,804.00 (2007 budgetary $’s) to the annual school budget 4. Faculty competent in various foreign language(s) to teach in the E.L.L. program. Should this program have to be expanded as much as some of the Ct. surrounding towns to the casinos where as many as 29 foreign languages are utilized to teach(3.), the estimated cost would be: $ 58,000.00 (per teacher/year @ current compensation rate) for 29 additional Teachers (1 language/teacher) would represent $ 1,682,000.00/year in additional teacher salaries on an annual basis. Dr. Fournier: Additional comments: Risk of Losing Grant-in-Aid: If the casino becomes reality, it may jeopardize Palmer’s standing in the way of grant-in-aid from the state as we will no longer be considered needy and thus lose that funding.
Lack of State and Federal Aid for New School Construction: Should Palmer be required to build new schools to accommodate anticipated enrollment increases due to the casino impact, there is no current funding available through the state like there was in the early 1990’s when Palmer built a new high school and elementary school with 77% state funding. It is now based on a formula of approximately 60% state funding when available. The Stimulus package that was just passed by Congress calls for funding “repairs and improvements” to existing structures. There is no funding budgeted for “new construction” at this time. Mitigation Funding not anticipated from the State: If the casino becomes reality with its associated impacts on the education system in Palmer, then Fournier doubts very much that the state will come through with mitigation funding for our education system.
Mohegan Sun should bare the burden: If the casino becomes reality with its associated impacts on the education system in Palmer, then Fournier believes it is the developer who should be responsible for the mitigation funding. It should not fallback on the Town of Palmer.
A very sad day for a Constitutional officer and the Commonwealth to exhibit the nonsense of proposing slot parlors to bail Massachusetts from it's financial woes. When Treasurer Cahill first publicized his support for slots in the Commonwealth it was allegedly to be in-front of the inevitable-not, Indian casinos coming to Massachusetts. The Carcieri ruling has catapulted that myth into space. Now slot parlors, yikes.
The Spectrum Gaming reportcommissioned by the Governor and written by pro-casino business experts denounces racinos and slots without a destination resort. Few jobs created, money drained from the immediate economy and predatory gambling being the sole business product. The report further details the negative fiscal impacts of a casino upon abutting communities with the Town of Monson used as a model. I wrote the essay that was published in the Spectrum Gaming report analyzing potential impacts upon the school district should a class III casino be sited in Palmer. Class III destination resort casinos with all their glitter are not sound public or fiscal policy. Slot parlors are just an embarrassment.
Been busy working to elect a new state rep. in our district. http://www.votebrianashe.com/ Governor Patrick came to the wee little town of Hampden MA to endorse Brian Ashe. The Governor was gracious and elegant in his presentation and presence.
I'll be back after elections and recovery from the craze. -K
Governor Patrick commissioned Spectrum Gaming to provide an independent analysis of the market, impacts and review of the casino legislation that he proposed October 2007 and was subsequently killed by the House of Representatives in the spring of 2008.
The town of Monson is highlighted in the report. I had the pleasure of meeting the VP of Spectrum who visited our community and attended a meeting of the western MA Casino Task Force. The firm's representative was an intelligent man who listened attentively to concerns expressed by Selectmen and Town Councillors in our region. It was a pleasure to meet him and I am pleased that our community was considered in the report. The number one concern of Monson residents in a community survey about casinos was the "character of the town". We like our rural town and have grave concerns about the potential siting of a casino in an abutting community. The fiscal impacts of student surge are highlighted in the report.
The situation in Monson Monson is a rural, residential town (8,359) in western Massachusetts – in many ways a typical small town in the state. Its school district had a school enrollment of 1,525 for the 2007-08 school year. It spent $14.4 million to educate its students, or $9,075 per pupil. Of that amount, 36 percent came from Monson taxpayers and 64 percent came from state aid.
Town leaders said they fear that a major casino resort built near Monson would cause the student population to swell from casino-employee families seeking to live close to their employer. Each non-special education student that enters Monson Public Schools would inflate the district‘s budget by $9,075. The amount could be higher if the surge included students who required special education or English language learners (ELL); there currently are no ELLs in Monson Public Schools. (We note that many of the families that are attracted to a region because it offers casino employment come from non-English speaking cultures. This often requires a concomitant investment in unanticipated programs such as teaching English as a second language.) Further, the Monson elementary and middle school populations are ―near capacity and the high school is at more than 85 percent capacity. School transportation, which is funded locally, is another costly concern, according to Kathleen Conley Norbut, a Monson Selectman and Chairman of the town‘s Local Casino Study Committee. ―Additional buses and fuel to service additional routes and students without state assistance is untenable, she said. The school district already assesses students in grades 7-12 $1 per day, or $180 per year, to ride the school bus. (Update: Price increase for 2008-2009 - whoops, let me find our bill $210 for the year-KCN). With an average single-family property tax bill in the town of $2,825 for fiscal year 2008, town leaders say they would be forced to raise property taxes – perhaps dramatically – to adequately fund a surge in school enrollment.Most of that burden would fall on the residents, as residential property taxes account for 93 percent of the town‘s annual tax receipts.Norbut noted that in other nearby towns, such as Brimfield, Holland and Wales, residents account for closer to 100 percent of the local-tax burden. We recognize that even small changes in school enrollment in small communities can have a significant impact on school budgets. The Commonwealth must be prepared to offer financial assistance to such communities from mitigation programs, irrespective of the size of such impacts. You betcha.
By Steve Friess Newsweek Web Exclusive May 5, 2008 Updated: 4:29 p.m. ET May 5, 2008
"This recession is really hurting everyone." It's even hurting the city of Las Vegas, the economy of which was once thought to be impervious to the economic swings suffered by the rest of the country. Not anymore.
Ouch!
According to the Las Vegas Convention and Visitors Authority (LVCVA), Las Vegas has seen gambling revenues fall only once since 1970: in the aftermath of the Sept. 11 terror attacks they dropped 1 percent in 2002 from 2001. So far this year they've fallen 4 percent, the number of conventions held has dropped 10.4 percent, and average daily room rates were off 3.8 percent in the first two in recent weeks the company eliminated 440 middle management jobs to save $75 million annually. "We made a structural change in our company to become more efficient and provide the same level of service, but we did have to advance that effort because we were also seeing a softening in the marketplace," says MGM Mirage spokesman Alan Feldman. What's leaving Las Vegas more susceptible to this economic crisis than to previous ones? Diversification. Roughly 60 percent of the Las Vegas Strip's revenues now come from nongaming activities. By contrast, in 1991 and 1992, when the last comparable slowdown occurred, nongaming activities provided just 42 percent of overall revenue.
"This is different from prior downturns," says Bill Lerner, a Deutsche Bank gaming-sector analyst. "Now that there are a lot more nongaming amenities, the visitation mix is leaning toward nongamblers, and the consumer coming to Vegas is different now than it was."
So, family-style gambling halls/resorts tank. It's always been about making money off gamblers and it always will be. The disney stuff was fluff.
Several annual conventions have seen fewer attendees show up and have seen those who do come stay for shorter periods. For example, last week's National Association of Broadcasters confab attracted 105,000 registrants, down from 111,000 in 2007, according to NAB executive vice president Chris Brown. Those figures could have been worse, Brown says, but advance registrations were so far down that several hotel-casinos voluntarily offered to cut room rates by $10 or more to encourage attendance. Says Brown, "That's never happened before."
Nearly 7 percent fewer cars crossed the Nevada-California border along Interstate 15 through February, reflecting in part that record-high gasoline prices are curtailing drive-in visitors from the largest neighboring state.
Note to Governor Patrick - Destination resort casinos are tanking.
Making matters worse, three airlines with substantial service to Las Vegas—Aloha, ATA and Champion—are going out of business.
Even the mortgage mess and the subsequent credit crunch have taken a toll on Vegas. Several major construction projects on the Strip are delayed due to financing problems, including a second tower for Donald Trump's new condo-hotel. Also delayed is a plan to build a $6 billion version of New York City's famed Plaza Hotel. And while construction continues on the half-built $3 billion Cosmopolitan Resort and Casino next to the Bellagio, the project may be in jeopardy after developer Bruce Eichner's company defaulted on a $760 million loan from Deutsche Bank.
Note to Unions - diversify your mind. Get excited about the Green Construction plans of the Administration, it's the future...casinos are the past!
March's figures will likely put the year-to-date numbers in negative territory. The stock price of MGM Mirage, owner of Bellagio, Mirage and eight other Strip resorts, has halved, from $100.50 in October to about $49 on Friday. In recent weeks the company eliminated 440 middle management jobs to save $75 million annually.
I live in the beautiful rural community of Monson, Massachusetts.
I am a lifelong Massachusetts resident.
Attended and swam varsity/co-captain, four years at Tufts University (B.S., 1982). Graduate school, Springfield College (M.Ed., 1989). Licensed Mental Health Counselor, certified Health Educator and School Psychologist.
Fourth woman to serve on the Monson Board of Selectmen 2003-2009.
Western MA Casino Task Force founding member, United to Stop Slots in Massachusetts, President. Monson Developmental Center Re-use Committee, Chairperson.
Having a voice in the democratic process and being a voice for those who cannot express their needs is one of my fundamental life missions.
I especially enjoy my son, our horse Willow and sunshine.
