Massachusetts’ House Speaker DeLeo has long been a proponent of bringing slot machines to race tracks throughout the state. He recognizes that slots gaming has a huge power right now. In a survey done a few months ago, Las Vegas operators realized that though they believed their table games to be the big money makers, it was actually their slots games that were bringing in the biggest revenue dollars. For example, a good table game can bring in $10,000 twice a week. Upon first inspection it may seem that the table is a top-dollar revenue builder and casino operators were putting a lot of their focus and energy into the game. After the study though, things were truly brought to light. Sure the casinos were operating a few big-dollar tables, but slots games were bringing in twice as much consistently. Consider that if a casino had one-hundred slots games bringing in on average $0.50 per spin at a rate of 100 spins per hour. That fleet of one-hundred machines are bringing in on average $5,000 per hour. Initially it may seem that they are bringing in just fifty-cents or a dollar here and there, but when you add it all up, it quickly becomes apparent how much the games bring in. Plus they are only growing in popularity and that is pushing their value to the casino gaming market up that much quicker. You are going to love the games and so do millions of other wagerers for their own reasons.

This is a fact that is not beyond DeLeo. He sees the dying racing market and has been trying to use the power of slots games to revive it. It could be because of his personal investment of the issue though and critics are citing that as his main push. His father was an employee for years of Suffolk Downs and two of the biggest race tracks are currently in DeLeo’s district. This could make for a good reason he is pushing for the changes and some anti-slots and anti-gambling activists are calling him out for a vested interest in the changes. He may have to take a step back if he cannot consistently prove that bringing slots gaming to the race tracks are a state-wide benefit and not just for his own benefit.

Slots gambling is taking over in the world now that the recession is over and businesses everywhere are looking for money generating tools. The recession was difficult on the market and more companies than ever either bowed out of the business market altogether, or are still struggling to regain their financial footing. One thing that has proven its worth over the years is slots gambling. The unassuming games have been huge money makers for gaming companies and they are now proving to be lifesavers for city and county governments. The best thing about the games is that they are highly flexible. Gaming developers are coming out with new slots games almost every month. If you looked at the market a few months ago, that doesn’t mean that you are going to find the same things in the market now. It is all moving quickly and if you love slots gaming then you should continuously check back with your favorite companies regularly. Not only are new games coming out, but companies are introducing new generations of the most popular games in the market.

Massachusetts legislators are in on the debate over slots gaming and whether or not to bring it to racetracks. The state has long been taking votes on the issue, asking the public what their thoughts are on the issue. The public seems to want gambling to be expanded within the state though. A recent poll showed that 60% of the voters are for expansion and wanting to bring in casino slots gambling. They believe that it would positively affect their areas and bring in the money they need to turn the economy of Massachusetts around. The number of 60% is up from 56% a few months ago so it looks like more residents of the state are getting on the slots gambling bandwagon. They realize how much money is available and how much it could change the economy. Not only would it bring in an additional revenue generating activity, but it also would create jobs needed by the market. Overall the public is voicing its own opinion and stating that gambling and slots would have a positive effect on their market.

Massachusetts is in the midst of huge changes when it comes to gambling laws. Slots have been used to bring in much-needed revenues to the state. The gambling-tax revenue is in the millions and highly coveted by state officials who are struggling with the deficit. The recession was hard on every state and Massachusetts is feeling the crunch too. The deficit was large prior to the recession, but times have changed and brought an even heftier financial burden on the state. It is now left to look for various ways of generating additional cash.

State Representative Karyn E. Polito is pointing her finger at the House officials. The Democratic House has a plan to permit two resort casinos to bring slot machine gambling to their facilities at four race tracks. Polito claims that the move is purely political and has some inside benefit for the parties involved. She is on her way to a potentially successful bid as state treasurer and believes that the licenses should not be handed to race tracks. Rather, the licenses should go through the proper bidding process; by offering it solely and automatically to race tracks, favoritism is being used for an inside motivation.

Though some believe Polito is anti-gambling, she has proven that is false. She believes that the two casinos in the state and four race tracks will develop new non-tax revenue sources for the state. They also will introduce a new job base for the suffering state. Though she is encouraging of the move, she still believe the approach the state took to handing out licenses was the wrong move. The move gives the illusion of an insider agreement that may not necessarily be an advantage to all parties involved, or fair. The plans for the formalizing of the move should be completed by the end of July. That means that all the debates have to be sorted out clearly in upcoming weeks. Most likely Polito’s accusation will open the door to at minimum an investigation of the issue. Hopefully it will bring the necessary changes and make them manageable and fair for all potential parties involved in the gaming industry as it develops in the future.

Residents in Massachusetts are wondering what is happening with slot machines in the state. It’s been a long standing debate within the state whether or not to allow slots gambling in or not. Part of the issue is that legislators don’t know what is going on so they can’t communicate to the voting public what the status of the games is. Governor Deval Patrick  and the House Speaker Robert A DeLeo have been going at it regarding the issue for months now. Each one offered his own opinion on what to do, and no resolution is in sight.

Governor Deval Patrick is concerned with the effects he believes slot machines will have on their residents. He is stating that slot machines will bring in crime, corruption and addiction. He also cites that without the proper contingency plans to handle legalizing and regulating slots gambling, the state is sure to fall into hefty problems. On the other hand, Patrick says that he is in support of bringing casino gambling to the state, but he wants to know the consequences first. He wants the slot machines to be brought in only after there is a thorough review of the potential problems and how to solve them is compiles. Patrick seems to have a focus on creating more of a solid plan before going through with the move. He has also said that many legislators and citizens are too focused on the potential millions of dollars that have come into other states and counties as a result. Though the money is an advantage, it isn’t a sure-thing. No one knows what exactly slots will bring in terms of revenue and projections are not always accurate. Relying on them is the most foolish move the state legislators can make.

DeLeo believes that the state needs to begin with slot machines and then make the “natural progression” to table games and big time casinos. He says that you have to have slot machines at the tracks because they are basically the cornerstone of gambling. DeLeo is trying to push forward legislation that would legalize slot machines at all of the state’s four racetracks.

Slots lovers in Massachusetts are tired of waiting for the machines to come to the state. The decision to bring slots to the state has long been under debate. On one side you have the pro-slots people who believe that they are a fun game and bring in the much needed revenue to various states, cities and counties. Legislators are working overtime to write laws that legalize and regulate gambling due to the huge money at stake. On the other hand you have the critics of bringing gambling into the state, city and counties. They believe that legalizing gambling would inevitably bring in crime, money laundering and violence to their areas. They believe that the ethical-price to pay is not worth the millions of dollars most legislators are trying to bring into the areas.

Regardless of what pans out eventually, both sides are going to be excited for a final decision. Those who want slot machines are ready to play and those who don’t are ready to move on. Every week the state of Massachusetts touches on another issue and makes it seem like the decision is close to being made. Governor Deval Patrick is not picking sides easily and that is causing more problems with voters. They want to know his official stance on the issue. Some say that he is purposely being closed-mouthed about it due to wanting to be reelected. If that is true, the plan may be backfiring since some people are saying that because he won’t pick sides they are choosing to vote for someone else.

The only information Patrick has divulged over the past few months is that if slots are approved for the state, he would want them to only be in casinos and not sprinkled around the state. Many people are also asking if he would allow them in racetracks since tracks are suffering greatly since the recession. He is being called to make decisions public about the issue as soon as possible. In upcoming months the public will see if he is willing to take a position on the issue or not. It is very important that he remains transparent on issues, but it is unknown if gambling will be one of them.

The last concern of Massachusetts regarding slot machine parlors, is the huge cost of building them. Though it sounds good to bring in money in tax-revenue dollars from gambling, the first step is to create viable contenders in the gambling market within the state. Analysts are warning that the state needs to be aware of the huge up-front cost of creating gambling centers for the public. For example, the Twin River in Rhode Island cost over $700 million to expand. Sure it brought along with it an increased number of slot machines—from 3,200 to 4,750—but the upfront cost was tremendous to the state. In the end the expansion brought the state $248 million in gambling revenue. Now gambling revenues are second only to income tax and sales tax revenues within the state. Though Twin Rivers did bring in huge money, its owners are defaulting on their loans and cannot pay their own bills to sustain operations.

Kathleen Norbut, president of United to Stop Slots in Massachusetts, a nonprofit anti-gambling cooperative, said that while casinos would produce temporary construction jobs, gambling’s long-term effects are another issue. She said, “We are going headlong into an industry that historically promotes corruption and addiction.” She cites the notable need for additional patrolling in areas with casinos, the need for greater addiction resources and more costs to the state as a whole as reasons why gambling may not be the cure-all legislators are making it out to be. She also added that creating casinos within the state of Massachusetts would “cannibalize local economies,” resulting in hundreds of millions of dollars in social costs.

Norbut’s words were corroborated by a June 2009 study ordered by Connecticut’s Governor Jodi Rell. Her goal was to find out the true impact casinos have on the economy. The study showed that: “Norwich, the largest municipality in the region of Connecticut’s two casinos, has casino-related costs anywhere from $1 million to $2.5 million a year, including an increase in police overtime from $85,000 in 1991 to more than $280,000 in 2008.” In addition, the report noted that “for both Foxwoods and Mohegan Sun, we assume 40 percent of the jobs come from the displacement of other area businesses.”

Then there is the issue of unemployment. One of the biggest problem the recession created for the nation was the huge unemployment rate. Most states experienced rates well over 10% and they are still hovering high.  Without job creation, people aren’t making money. Without money, people can’t spend. Without spending, the economy has little, to no, ability to repair itself. The government knows it needs to focus on job creation and is currently offering various tax initiatives to small businesses to create jobs. For example, just three Detroit-area casinos employ over 8,000 people. That is great news for the city because its unemployment rate is at a staggering 29%. Gambling revenues are down by about 2% but that still brought in over $120 million to the state.

Slot machines were instrumental to the economy throughout the recession. In Pennsylvania, taxpayers benefited by saving over $786 million on the property tax and wage tax fees.  Slot machine taxes paid that huge chunk and without it, people would have had to stretch their budgets even further to manage. 

Getting back to Massachusetts, legislators are looking to mirror the successes other states have had with slot machine gambling. The only thing left on the table other than legalization is regulation. Exactly what percentage would the state be privy to? If you look at neighboring states, there are various calculations that dictate how much the state can bring in. For example, in Connecticut the Mohegan Sun and Foxwoods casino give either 25% or $80 million, whichever is greater, to the state from its slots revenues. That total for 2008 was about $395 million dollars. The first proposal in 2007 was for the state of Massachusetts to take 27% of all gross casino revenue or $100 million, whichever was greater.

Massachusetts is hoping its planning brings the same amount of revenue and helps to fund the state’s deficit and fund various programs.  Analysts are cautioning that the state may not see such huge numbers in the near future, however. The Rockefeller report warns that “gambling revenue from existing operations tends to grow more slowly than state tax revenues.” The post-recession economy has slowed gambling revenue growth even more.  The financial community is warning that slot machine revenue may help, but it is not necessarily a sure-fire hit for the state. Nor is it something that will happen overnight. People still have to get back into gambling, after all, for it to work at all.

Part four coming next.

There were many supporters of the initiative that ranged from race track owners and executives to legislators looking to bring in an additional money-generating move for the state. Thus far, experts are estimating that by legalizing and regulating gambling the state could potentially have access to $170 million to $500 million in revenues, compared to the $395 million Foxwoods and Mohegan Sun provided to Connecticut last year. In addition, the Economic Development Committee also heard estimates that casinos could create between 1,000 and 10,000 jobs, including short-term construction jobs and longer-term employment for the state. Looking at the numbers from neighboring states, Rhode Island, Connecticut and Maine employ 23,600 people as a result of gambling and are showing signs of bringing more jobs to each state due to further expansions.

Casino owners and supporters are working hard to try to keep gambling money in the state. With casinos available in other, easily reachable, neighboring states many residents are traveling to gamble elsewhere. If the state could create viable casinos within, they could benefit from the money available and build up their own state infrastructures. So far at least 24 stats are in the midst of gambling and casino expansion since the recession began. The Nelson Rockefeller Institute of Government at the State University of New York found that state income from gambling increased nationwide at a steady 5% annual rate — from $15 billion in 1998 to $24 billion in 2008.

Connecticut brought in $184 million in slots revenue in 2008. The interesting fact is that was when the recession was most detrimental to the state. The previous year it was $196 million. It’s no doubt that casino gambling has brought millions of dollars into the economy already. Legislators know the financial power they have with legalizing gambling and bringing in tax-revenues. A University of Massachusetts study showed recently that Rhode Island brought in $240 million from Twin River Casino and approximately $43 million from Newport Grand Casino in 2008. Maine brought in over $23 million from Hollywood Slots Casino. With numbers like this, it’s no wonder Massachusetts is pining for slot machines. The stress of a huge deficit and the aftermath of the recession is bringing legislators to few options for finding additional money.

Part three coming next.

Massachusetts is facing a multimillion dollar budget shortfall. Like most states, Massachusetts is having difficulties managing post-recession. The biggest problem with finances is that the recession stopped people from spending. The unemployment rate skyrocketing, only added to the problem. Studies are showing that most people are working hard to pay down their debt, rather than putting money into the economy. Mary Lasitter, of Cambell, Missouri said, “The recession taught us that credit can be dangerous…we relied on it like lots of people but when we needed it most, our credit card company cut ours.” Lasitter’s story is not unlike that of many Americans. They stuffed away a credit card for “emergency use only.” It may have sat in a drawer for years. Then when the recession was at its height, they took it out to use it, only to find it was closed by their credit company or its limit was slashed.  Mid-recession credit card companies were taking many drastic measures to save themselves and most of those measures were detrimental to their customers. Customers quickly learned that the rules of credit were changing.

Massachusetts suffered huge unemployment rates and have still not shown notable signs of reinvigoration. The recession not only hurt people, it also hurt the state as a whole. Because of that legislators are looking to legalize and regulate gambling within the state. They see gambling as the only way to realistically put a dent into the huge deficit. Though the issue is up for sharp debate, both Senate President Therese Murray and House Speaker Robert DeLeo are now supporting resort casinos similar to Connecticut’s Mohegan Sun and Foxwoods. Their new positions come less than a year after the House rejected a proposal by Governor Deval Patrick that he claimed would “result in tens of thousands of construction jobs, over 20,000 permanent jobs and billions of dollars invested in our economy.” Before any changes could come, the Legislature would have to legalize gambling to include the one casino proposed by the Mashpee Wampanoag tribe for Middleboro. The change would help the state turn around its own economy without the intense help of the federal government for stimulus plans.

Part two coming next.