Archive for March, 2010

Tribes Not Losing Sleep in Minnesota

Wednesday, March 31st, 2010

Canterbury Park got one step closer to operating slot machines with the approval of a bill by the agricultural committee.  The park still has a long way to go before their dream comes true.  The bill would not just grant slot machines to Canterbury Park, but Running Aces in Columbus, Minnesota would also be permitted to operate slot machines.

Slot machines would do a lot for these tracks.  Like most tracks in the nation Canterbury Park and Running Aces have been forced to make serious cutbacks due to lack of interest in the sport.  Both venues employ thousands of residents.  If they are allowed to go under that would obviously create thousands of unemployed.

Native American casinos have held the monopoly on slot machines for the past few decades.  The tribes are not a fan of these parks emerging as competition.  Some believe however that the tribes have little to worry about.  They have been established for several years and have a faithful clientele.  Two new slots parlors will hardly make a negative impact on their gaming venues.

At the moment Canterbury Park has been forced to reduce the number of races held during their season.  They have also reduced the amount of their purses.  Without a competitive purse it is almost impossible for the track to draw the type of races that really bring money.  Slot machine revenue would of course go toward boosting purses.

Minnesota is hoping to follow the example of other states that have found slot machines to be a lucrative source of new and endless revenue.

Small Victory for Canterbury

Wednesday, March 31st, 2010

Canterbury Park in Minnesota has been trying for several years to get a piece of the states gambling action.  Recently that achieved a small victory when the state agricultural committee approved a bill that would install slot machines at the entertainment venue.  Canterbury Park is an entertainment staple in Minnesota.  Since its opening it has kept thousands of people in the state employed.  The park offers entertainment for people of all ages.

There are several obstacles in the way, however, of this bill ever becoming law.  The biggest obstacle are the Indian tribes of Minnesota.  Since the 1980s, tribal casinos have held a monopoly on slot machines and gaming in the state.  In those years, the tribes have really expanded gaming and are making a lot of revenue.  The Minnesota legislature may be interested in legalizing gaming at Canterbury so that some of that revenue can go into state coffers.

When ever it comes down to tribes or a state benefiting from gaming, I always find myself in support of tribes.  Tribal casinos are the only way that the United States has found a way to amend the atrocities committed against the natives of this country.  If states always get the opportunity to compete with tribes, it sort of throws that “peace treaty” in the garbage.

Canterbury Park has been seeking slot machines since they reopened in 1995.  If they achieve their goal most of the revenue will be returned to gamblers or residents in the form of tax revenues.

We’ve Got High Hopes… For Slot Machines

Wednesday, March 31st, 2010

Just like most states that decide to expand gambling, Massachusetts has high hopes for tax revenues from slot machines.  There is a lot of support for gambling expansion in Massachusetts, even if not every one agrees on how to go about it.  Governor Deval Patrick wants brand new free standing casinos in the state and House Speaker Robert A. DeLeo wants a mixture of two new casinos and slot machines at racing tracks.  Perhaps one more than the other, but both plan will generate a lot of tax revenue to help the state battle its budget deficits.

One thing that legislators in Massachusetts are understandably concerned about is the depletion of the state’s rainy day funds.  Over the past few years the government’s rainy day funds have dwindle down to almost nothing from attempts to balance the budget and fill budget gaps.  There are a lot of people that want the millions of dollars that operators must pay in licensing fees to go directly toward rebuilding the fund.  Licensing fee is upfront guaranteed money and most agree that replenishing the rainy day fund is a noble place to put that money.

The other great hope for slot machines is that thousands of jobs will come back to Massachusetts both temporary and permanent.  Construction and labor worker will have years of employment, especially if the Governor gets his way and brand new casinos must be built.  There will be thousands of new positions that will need to be filled in order to fully staff casinos and slots parlors.

Massachusetts On the Fast Track

Wednesday, March 31st, 2010

Nothing, particularly when it comes to gambling is a sure thing, but it looks promising that Massachusetts will soon be offering slot machines at the very least.  This is not the first push that Massachusetts has made for gambling, but it is one of the first time that it appears all the right people are on board for a bill to pass.

Two years ago Governor Deval Patrick had the goal of licensing three resort casinos in the state.  That goal was cut short due to opposition from former House Speaker Salvatore F. DiMasi.  DiMasi was very much against what he called a “casino culture” in Massachusetts.  Since that time DiMasi has been replaced by House Speaker Robert A. DeLeo.  DeLeo is very much in support of gambling in Massachusetts.  He and Governor Patrick have some disagreements about how gambling should be implanted in the state, but both are in favor of gambling.

Labor unions are also very much in support of new casinos and slots parlors in Massachusetts.  The construction of new gaming venues could generate tens of thousands of new jobs.  DeLeo is calling for two new casinos and licensing the state’s four racing venues with the option of building slots parlors.  Governor Patrick is in favor of creating new free standing casinos and not giving the slot machines to racing venues.  Either way there will still be thousands of new jobs created, but free standing casinos are likely to generate more tax revenue than attaching slots parlors to racing venues.

Slot Machine Transparency

Wednesday, March 31st, 2010

Representative Karyn E. Polito is wisely advising her colleagues in the Congress to open up the process of how slot machines are to be licensed in the state.  Polito is calling for transparency on a process that runs serious risk as appearing to be insider deal making.  She is probably right.  Slot machines are a racetrack usually does not come about because racetracks are the perfect venue for slot machines, they are not.   That is usually a result of the well connected horse racing industry demanding slot machines so they can keep their dying venues afloat.

At the moment the Houe Committee on Economic Development and Emerging Technology is crafting a bill without leaking any secrets to the public.  Polito is worried that if the process is not made public it will injure pubic confidence.  At the moment all is known is that the bill is proposing the construction of two free standing casinos and the installation of thousands of slot machines at the state’s four racetracks.

Representative Polito has no interest in playing favorites to the racetrack owners.  She does not see a legitimate reason why the tracks “appear to have an inside edge when instead they should be on the same level as any qualified bidder” for slot machine licenses.

“Political connections should not influence the awarding of these licenses,” said Polito.
I have to agree with Polito.  Racetracks have seen their glory days; there is no reason that these businesses should be guaranteed slot machines.  Slot machines that are not burdened with subsidizing racing will make more money for the state.

Many Corners To One Side

Wednesday, March 31st, 2010

The saying is that there are two sides to every argument.  But that is not true in politics, there are always far more than two sides.  Massachusetts is hashing out the best plan for legalizing slot machines.  The primary plan that people are looking at has been sponsored by House Speaker Robert A. DeLeo.  DeLeo’s plan would create two casinos in the state and then license the state’s racetracks to expand their operations with slot machines.

Representative Karyn E. Polito is not remotely against gambling expansion in Massachusetts, but she is not a fan of Speaker DeLeo’s planned approach.  It is the opinion of Representative Polito, who also happens to be a candidate for state treasurer, that it is a bad idea to automatically give the slots licenses to the state racetracks.  Polito fears that the whole exchange will come across as insider deal making.  Such deal making, Polito believes, will injure the faith of residents in their government.
“We need to avoid the appearance of an insider deal that further erodes the confidence of the people in their government,” stated Polito in the letter.

Polito would like to see Massachusetts create a slot machine program that is done in “an open, transparent and competitive process to maximize returns for taxpayers.”

Polito clearly wants to open up the bidding process to other casino operators.  That may be the best thing for the state as far as generating more revenue.  However, typically when politicians suggest slot machines at racetracks it is to save the horse industry in that state.

O Malfunctions!

Wednesday, March 31st, 2010

It is not likely that casinos will ever change their policy on slot machine malfunctions, but it does not mean I cannot continue to protest it.  When a person experience the often once in a life time joy of hitting a jackpot on slot machines, they should not be forced to walk out empty handed because the casino equipment is faulty.  These malfunctions do not happen often enough for honoring them to bankrupt the casino.

Louise Chavez was under the impression that her penny slot machine had paid her $42 million.  However the Colorado Gaming Department said that the game was not programmed to pay out that much for a jackpot and that there must be a flaw in the slot machine’s computer board.  According to the department the make the game should have paid was $250,000.

There is no question that $250,000 pales in comparison to $42 million, but Chavez should at least get that as a consolation prize.  It is highly unlikely that the casino will pay her anything at all.  It just seems wrong.  Just because the machine advertised the wrong amount of prize money does not mean the Chavez did not legitimately hit a jackpot.  The experience of course has left Chavez very bitter and the casino has likely lost a customers forever.

“I will never go back to that casino. I can’t say right now if I’ll ever go back to any of the casinos only because now I don’t have trust in any casino because of what happened,” said Chavez.

Not Again

Wednesday, March 31st, 2010

Not again.  A woman decides she would like to spend a night out at a casino.  She plays the slot machines for a few minutes or hours and suddenly, bells and lights.  She has won the jackpot.  The machine alerts here that she has won millions of dollars.  After a few more moments the casino staff comes over to he machine, only to tell her that the machine was malfunctioning and not only does she not get the millions of dollars promised her, but she will not get one cent.  This story happens a lot at casinos and I am not sure if it breaks my heart or makes me want to break a chair.  The whole thing reeks of injustice.

The latest victim of such a heart breaking scenario is a woman named Louise Chavez from Colorado.  She was playing slot machines at a casino in Central City.  She hit the jackpot on the penny slot machine she was playing and the machine alerted her that she was the winner of $42 million.  Needless to say, Chavez was very excited until she received the bad news.

According to the Colorado Gaming Department the penny slot machine Chavez was playing should not be programmed to pay out that big a jackpot.  The highest jackpot that should have been made available to Chaves was $250,000.

“I was shocked. I was like, ‘I don’t buy this and I’m not going to buy this,’” said Chavez.

“I just felt like, you know, I was being cheated. I was being cheated out of the money that I won.”

Silver Streak Stikes

Wednesday, March 31st, 2010

Excluding Miami-Dade and Broward Counties, the slot machine market in Florida is pretty much cornered by tribal casinos.  However that does not mean some people are not trying desperately to get a slice of the slots action; whether legally or illegally.  Silver Streak is and arcade venue geared toward adults.  They have two operations in Largo and Clearwater.

Silver Streak is perhaps very similar to a Dave and Busters, a place where adults can play arcade games like Chuck E. Cheese’s, but there is also a bar available so they can drink while playing games.  It is an all around blast.  However, Silver Streak may have crossed a line with their game offerings.  According to the Pinellas County Sheriff’s Office, detectives seized 53 coin operated slot machines from the arcade.

This raid was not along the lines of the outrageous Alabama raids that were recently conducted by the Governor’s Task Force on Illegal Gambling.  The Pinellas County Sheriff hade warrants.  They also appeared to have good reason to raid the venue.  The games were Cherry Master style slot machines.  They were not electronic bingo machines that officers had a sneaking suspicion were slot machines in disguise.

David H. Meunier owns the Silver Streak business.  Detectives have apparently been investigating the games at Silver Streak starting last fall.  They machines were not seized until just this week.  All 53 slot machines were taken by the officers as evidence while the investigation continues.  There is no word yet as to what type of charges Meunier could be facing.

Slots Worth the Gamble

Wednesday, March 31st, 2010

Apparently slot machines are worth the gamble.  This not just true for gamblers but it is also true for venue owners.  Again and again there are stories in the news about bars, clubs, and arcades being busted for possession of illegal slot machines.  In many of these situation the owners are fully aware of the fact that the games are illegal, but slot machines have the ability to generate so much money, no matter where they are, that owners convince themselves that the risk is worth it.

Illegal slot machines come in many forms.  Sometimes bars will simply acquire a standard Las Vegas style slot machine and store it in the corner of their venue allowing customers to play it.  Sometimes bar owners are a little cleverer and acquire some skill based game and rig it to operate more like traditional slot machines.  Rules vary from state to state.  Non casino venues are sometimes allowed to operate electronic betting games as long as there are no cash payouts.  However, these venues are well aware of the fact that offering cash prizes makes the games more attractive to patrons and thereby make the games more lucrative.

But it always seems that inevitably these venues are busted for illegal possession.  Having an illegal slot machines can bare charges that range from hefty fines to prison sentences.  Law enforcement usually sends undercover officers into these bars to witness the illegal machines.  Then, once enough evidence is gathered it usually leads to a raid where the machines are confiscated.