How We Love To Gamble With Our Hard Earned Money

The Governor of Massachusetts, Deval Patrick has signed a bill legalizing casinos in the state. Supporters say this will create thousands of jobs while generating hundreds of millions in revenues. Patrick said that it would not be the solution to all of the state’s economic problems, nor would it be the cause of all social ills.

 

The bill allows for three resort-style casinos and one slots parlor in the state. It gives reference for granting the license earmarked for Southeastern Massachusetts to a federally recognized Indian tribe. The governor said he hoped to appoint someone to chair a five-member gambling commission that is created by new law within the next couple of weeks, but it could be years before the first casino opens in Massachusetts.

 

The ink was barely dry on Gov. Deval Patrick’s signature before the state’s new casino law was embroiled in a legal challenge. KG Urban Enterprises, which hopes to develop a casino in New Bedford, immediately filed suit in U.S. District Court in Boston claiming the legislation gives an unfair advantage to any federally recognized Indian tribe seeking to secure the casino license set aside for Southeastern Massachusetts. “The playing field isn’t level. The act is riddled with explicit, race-based set-asides that give federally recognized Indian tribes a categorical advantage over all other applicants in seeking a gaming license in Southeastern Massachusetts,” the complaint says.

 

In addition, because the law prohibits any consideration of an application for the Southeastern license by any non-Indian before July 31, 2012, the complaint argues that the area will be at a competitive disadvantage to Western Massachusetts and the Boston area, where bidding could begin sooner. KG seeks an immediate injunction to block any action from being taken under the legislation.

 

“The casino gaming law signed by the governor denies us the opportunity to compete for the Southeast license in a fair, open and competitive licensing application process,” said Andrew Stern, managing director and principal of KG. “More importantly, the law illegally denies the people of New Bedford and southeastern Massachusetts an opportunity equal to the one afforded citizens living in western Massachusetts and in the Greater Boston region. Accordingly, we have been left with no choice but to challenge the legality of the law’s tribal carve-out provisions in federal court.” The complaint lists Patrick and members of the Massachusetts Gaming Commission as defendants. The commission was set up by the new law and none of the five members has been named.

 

It seems that most casinos are born in pain and with many problems and it may be fair to say that these continue through the life of the casino. On the other hand, gambling is a major international commercial activity, with the legal gambling market totaling an estimated $335 billion in 2009. Since the advent of the Internet much of what used to be casino gambling has moved to online gambling, also fraught with problems and now the home to serious gambling addiction.