Casino Bill: More Inflated Promises; Pattern of Regulatory Violations in PA & MI
Granite State Coalition
Against Expanded Gambling
Immediate Release:
Casino Bill: More Inflated Promises; Pattern of Regulatory Violations in PA & MI
Contact: Jim Rubens, (603) 359-3300
Over the past two weeks, the special House casino committee has closely examined SB152, the casino bill written by lobbyists for Las Vegas-based Millennium Gaming. Skepticism about the bill among even pro-casino legislators has mounted to the point where Millennium is being forced to make yet loftier promises, today that it will spend $600 million on its proposed Salem casino.
“Casino developers consistently overpromise delivery dates, casino amenities, tax revenue, and regulatory compliance to get casinos legalized and to win licenses,” said Jim Rubens, chair of Granite State Coalition Against Expanded Gambling. “If Millennium and its lobbyists want to overcome the skepticism, they should write the promises into their bill.”
Remove the temporary facility provision;
require construction of the permanent facility before the casino is permitted to operate;
shorten the 5-year delivery date for the permanent facility;
require a bond or bank irrevocable letter of credit for completion of the permanent facility;
disclose the infrastructure and site acquisition cost deducts from the promised $600 million (Millennium paid $200 million for the derelict Meadows race track site);
show how Millennium will comply with New Hampshire casino license requirements better than it has in Pennsylvania and Detroit, MI.
Over the period June 2009 to March 2013, Millennium’s Meadows Racetrack and Casino has racked up a total of $174,000 in fines by the Pennsylvania Gaming Control Board for 13 separate regulatory violations, including 4 instances of failure to adhere to required internal accounting controls, 7 instances of underage access and/or underage gambling, and 2 instances of allowing access by self-excluded gamblers.
The February 13, 2002 Detroit Free Press reported that the Michigan Gaming Control Board issued a $425,000 fine (its then stiffest fine ever) against the Greektown Casino and Millennium Management (whose principals were Bill Paulos and William Wortman) for improper business dealings, failing to have written contracts, failing to use competitive bids for its rewards program, failure to keep written records as required for this program, and for improper dealings with former shareholders and their wives who had previously been banned from Detroit gambling enterprises, and for attempting to circumvent this ban by conducting business through related third parties to conceal the banned transactions. One year before this fine was levied, Greektown management had been notified by the Gaming Control Board that dealings with these former shareholders were not permitted.
“Why should we expect that Millennium will not adopt this same pattern of continuing regulatory violations if it were allowed to operate here in New Hampshire?” said Rubens.
Rubens points to the gap between promised versus the actual casino built in Oxford, Maine and to the fact that the Oxford casino has already been flipped to an out of state casino conglomerate, promises of Maine ownership notwithstanding. In Pennsylvania, casino developers subject to competitive licensing (ie, not the track casinos, which were guaranteed licenses) inflated revenue projected by up to 50 percent.
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