Politics & Government

Melrose's State Legislators Weigh In On Revived Casino Bill

Sen. Katherine Clark and Rep. Paul Brodeur both expressed tentative support for the new bill that would bring three casinos and one slot parlor to the state.

Two of Melrose's state legislators tentatively support a revived casino bill that Massachusetts lawmakers are expected to debate as they return from summer break this week, but are still reviewing how any gambling revenues would be distributed.

A joint committee of the Legislature has crafted a bill that would permit three casinos in three regions of the state, and a single slot parlor with 1,250 machines.

Sen. Katherine Clark, D-Melrose, who represents Melrose Wards 1-5, told Melrose Patch that she's leaning in favor of the bill.

Find out what's happening in Melrosewith free, real-time updates from Patch.

"I think we have never needed jobs and revenue for the state more than we do now," Clark said. "I am, however, still reviewing the 155-page bill with a real focus on how the different revenue streams are being designated and trying to get the back up dollar amounts for those."

Rep. Paul Brodeur, D-Melrose, also expressed initial support for the bill, albeit with the same caveat as Clark: reviewing how gambling revenues would be distributed via the bill.

Find out what's happening in Melrosewith free, real-time updates from Patch.

"I think that there are some significant improvements to this version over what was in play, what the House basically passed last session," Brodeur said, pointing specifically to competitive bidding of the slot parlor license and more significant resources devoted to problems from gambling, such as gambling addictions. "I’m still eyeballing a little bit some of the cultural issues, like what’s set aside for the Mass. Cultural Council. Overall, I think it’s a good bill."

Through the bill, all state revenue from the slot parlor would be transferred to a local aid fund, while a quarter of the revenue realized from the three casinos would be reserved for local aid.

The remaining casino revenue would be distributed to various funds and organizations. For example: 2 percent would go to the Massachusetts Cultural Council; 10 percent to the state's rainy day fund; and 10 percent to debt reduction.

Maintaining local aid levels

Brodeur said that protecting local aid "was one of the significant check-off boxes that everyone was looking for," particularly due to concerns that expanded gambling in Massachusetts could impact state lottery sales, one of the main sources of local aid. In fiscal 2012, Melrose is slated to received $4 million in "unrestricted general government aid," a category mainly comprised of state lottery revenues.

"To the extent that there might be impact on overall lottery revenues, there’s not going to be a net decrease in total revenues and everyone is very interested in making sure the cities and towns get a great benefit from this," said Brodeur, who previously while running for state representative.

In one of her first votes as a state representative in 2008, Clark voted against a casino bill. Last year, as a member of the House, , citing the addition of an amendment that required any new gambling revenue used for local aid to be in addition—not supplanting—current local aid spending on education.

However, Clark spread across four racetracks included in last year's bill, saying she did not believe they were job creators. Are the 1,250 slot machines at a single location more palatable to her?

"It is more palatable," she said. "I think they’ve come up with a better bill this time. The slots now are guaranteed to also be competitively bid, which is a concern that I heard from a lot of my constituents."

What about crime, gambling addictions, impacts on local businesses?

While opposition to Massachusetts casinos has thinned according to the Boston Globe, the arguments are still there: a feared rise in crime; possible impacts on the poor and working class, such as gambling addictions; and business drawn away from local businesses, such as theaters or restaurants.

Asked how he has allayed those concerns enough to support casinos, Brodeur said his number one issue given the current economy is job creation.

"There’s no question we’re talking about thousands of jobs," he said. "For those who’ve expressed a concern they aren’t good jobs, I think that’s a hard thing to tell someone who doesn’t have a job … when you don’t have a job, a job is a wonderful thing."

However, Brodeur acknowledged that expanded gambling in Massachusetts will likely also bring some negative impacts and said that legislators are "doing our best" to mitigate those impacts.

"I think there is some effort to have some local control around siting that will let them (local officials) have some control over impacts," he said. "That is something we definitely have to keep an eye on."

Clark noted that the Massachusetts Council on Compulsive Gambling gave a favorable review of the bill.

"We know that expanded gaming in Massachusetts will create more problems for addicted gamblers and compulsive gamblers," she said. "So that I felt was a very positive sign about this bill."

In a press release, the Council "commended the Massachusetts State Legislature for including key provisions to address the serious issue of problem gambling in its latest bill that would expand gambling in the Commonwealth."

The bill establishes a state subcommittee on addiction services that will include one representative from the Council. It also establishes a Public Health Trust Fund that will receive 5 percent of the state's casino revenues. The state Secretary of Health and Human Service would spend those funds, with the state gambling commission's advice and approval, to combat problems related to gambling, among other related social health initiatives.

With regard to increased crime from casinos, Clark said that "we also have to be frank and acknowledge there will be more crime. When you build any big public entertainment area, it is going to draw crime." She cited her co-sponsoring of a bill filed by Attorney General Martha Coakley that she said intends to give law enforcement agencies more tools to combat organized and enterprise crime "that often comes with casinos and gambling."

Clark also acknowledged "there may be some effect on restaurants and some of the smaller theaters," but added that the bill looks to put funds towards smaller theaters to give them the ability to attract "some of the more major headline acts that they’re afraid the casinos will monopolize."

Will casinos stem tide of state budget cuts?

The debate over expanded gambling in Massachusetts came about due in large part to a sluggish economy and eventual recession that depressed state revenues and, according to the Massachusetts Budget and Policy Center, led to over $3 billion in budget cuts and savings.

So with the introduction of casinos to the Bay State seemingly inevitable, can the state make enough money off casinos to halt or reverse the cuts seen in the state budget every year for the past couple of years?

Brodeur doesn't think so—but does think expanded gambling is a part of the solution.

"Folks that look to this as some kind of panacea or the goose that lays the golden egg are making a mistake," he said. "The way I look at it, quite frankly, is that this is a piece of an overall economic development strategy. The way you best build out your economy, the way you best plan, is you have diversification. It’s not something that is going to save the day, but it’s going to be an important, new revenue stream and it mixes things up."

Clark said that "it remains to be seen" whether expanded gambling revenues will slow the state budget cuts seen in recent year, echoing Brodeur in saying that she doesn't believe casinos to be a panacea for jobs or restoring cuts.

"What I’m really looking for in my review of this bill is after we have funded the regulatory bureaucracy that is going to be necessary, if we bring expanded gaming in, will we have a significant enough revenue on all projections to make it worthwhile?" she said. "I believe the answer to that is going to be yes ... I think it’s something that’s time has come, that has great support on Beacon Hill, and I want to do what I can do to ensure the bill is in the best position to create jobs and make sure our local communities are well-funded."


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