Democratic dilemma on casinos

October 8, 2012 8:59 am

One of the more baffling back stories in the government-backed push to expand gambling is that the elected officials often leading the way are Democrats. (See California, Massachusetts, Pennsylvania and New York.) It makes no sense for Democrats to support casinos and other forms of gambling, considering that those most often fleeced by the casinos are the poor, working class, elderly and minority.

In other words, the Democratic base.

In Maryland, Gov. Martin O’Malley, a Democrat who once opposed the idea of casinos, is now leading the way for more gambling. Washington Post columnist Robert McCartney says an upcoming referendum to add another casino and table games at existing casinos poses a moral dilemma for Maryland voters. Should voters support “expanding gambling to create jobs and raise government revenue (especially in Prince George’s County), even if it tends to pick the pocket of the poor?”

Polls indicate many Maryland voters oppose more gambling, despite millions of dollars in advertising telling the public that gambling is good. Not to mention, the media does a poor job of detailing the economic and social costs of gambling, and instead just regurgitates the talking points raised by lawmakers and casino supporters. Even still many voters understand the money from casinos comes mainly from the pockets  of those who can least afford to gamble. In the end, all taxpayers pay for those costs.

Perhaps the reason Democratic lawmakers support casinos can be found in McCartney’s warped rationale. The Post columnist is willing to vote for more casinos even though he knows they are bad.

“On the one hand, I hate that state government is actively supporting an activity that contributes to addiction and extracts money disproportionately from lower-income peope,” he writes.  ”Casino companies’ campaign contributions have tainted the political process. Their endless, confusing advertisements befoul the airwaves.

“But I’m willing to cover my nose and support Question 7 for one reason: It’s the only way right now to quickly help the Prince George’s economy. And heaven knows the county needs a boost.”

That is one twisted argument.

Will MGM’s alleged mob ties scuttle Maryland casino deal?

July 24, 2012 9:46 am

Gov. Martin O’Malley has spent the summer working behind the scenes on a deal to expand gambling in Maryland. His goal is to clear the way for MGM Resorts to partner with a local developer to build a large casino in Prince George’s County.

One issue that has not been addressed: MGM is partners with a family in China that has alleged ties to organized crime? Those ties were enough for New Jersey gambling regulators to balk at MGM’s co-ownership of a casino in Macau with Pansey Ho, the daughter of China casino magnate Stanley Ho who has been linked to organized crime in China.

An investigation by New Jersey gambling regulators did not accuse Pansey Ho of illegal activity but found her “unsuitable” as a business partner because of her financial dependence on her father, who provided 90 percent of the funds she contributed to the MGM casino in Macau. The scrutiny prompted MGM to sell its stake in an Atlantic City casino, choosing instead to keep doing business with Ho in more lucrative Macau.

The question raised by The Washington Post is whether Maryland gambling authorities would have the same concerns as New Jersey regulators. Some think it won’t be an issue, pointing to Las Vegas where MGM owns casinos.

Elected officials all talk about making sure that casinos avoid doing business with organized crime. But in Maryland, where casinos are just getting off the ground, the governor is working overtime to change the state laws to pave the way for a casino company with alleged ties to organized crime. That says all you need to know about how lawmakers look the other way when it comes to doing business with casinos.

Maryland’s casino battle royale

July 10, 2012 9:35 am

The heavyweight fight brewing between two Maryland developers shows how gambling supporters will say and do almost anything when it comes to casinos. It also shows that casinos have nothing to do with free market enterprise and are all about doing whatever it takes to game a political system and proctect monopolies.

First a quick recap: Baltimore developer David S. Cordish recently opened Maryland Live!, a $550 million casino in a mall in Anne Arundel County. Developer Milton V. Peterson wants to partner with MGM to build an $800 million casino down the road in Prince George’s County. One problem: Maryland lawmakers only authorized five slots-only casinos in the state. But now that all five are open, some lawmakers want to add a sixth casino and allow for table games, such as blackjack and roulette.

Now for the inherent contradictions from casino supporters who will say and do anything: Cordish opposes plans to add more casinos, arguing that the market is already saturated. Yet at the same time, Cordish wants his casino to be allowed to stay open longer to suck more money from gamblers. Meanwhile, the Washington Post reports that Cordish offered to drop his opposition to Peterson’s casino if he could operate it. So much for saturation, though Cordish denies making such an offer. Invoking The Godfather, Cordish says of his opposition to Peterson: “It’s just business.”

As for Peterson, he initially derided the idea of a casino at his upscale National Harbor development outside of Washington, D.C. But when the economy slowed and a Maryland lawmaker suggested lowering the state’s 67 percent tax rate on gambling revenues and allowing table games, all of a sudden casinos were perfect for Peterson’s development, which already has recieved hundreds of millions of dollars in taxpayer support.

In making the case for a bigger and fancier casino, Peterson called Maryland Live! a slots barn and said Cordish just wants to maintain a monopoly. That may be the first accurate statement said in this fight. Of course, the real game is getting played behind closed doors. That’s where Cordish and Peterson, along with their respective lobbyists, have been pressing Maryland lawmakers and Gov. Martin O’Malley.

Once the backroom fills with smoke, who knows how the cards are getting dealt and what promising are getting made.