October 28, 2008
Feds Rule Against Lottery Privatization
In a stunning blow to gambling interests nationwide, the U.S. Department of Justice has ruled that privatizing state lotteries would violate federal law. ”I think the financial crisis slowed any momentum the privatization advocates may have had across the country, and this may completely kill it,” says Rob Kohler, lottery expert with the Christian Life Commission.
Federal law “requires that the State exercise actual control over all significant business decisions made by the lottery enterprise and retain all but a de minimis share of the equity interest in the profits and losses of the business, as well as the rights to the trademarks and other unique intellectual property or essential assets of the State’s lottery” according to the ruling.
The opinion, which is not binding, was announced publicly yesterday, was requested by the states of Indiana and New Jersey. According to the Associated Press, California, Illinois, Colorado, Florida, Michigan, Texas and New York also have been looking at long-term leases of their state lotteries. Link to the ruling:
October 20, 2008
Five States to Vote on Gambling Expansion
Supporters say economic downturn boosts chances for passage
On November 4, voters in Colorado, Maine, Maryland, Missouri and Ohio are being asked to allow gambling, or expand existing gambling, in their states. According to gambling analysts, the current economic downturn helps chances of passage of those ballot issues. Maryland voters are being asked to allow gambling in the state for the first time.
"When revenues decline, jurisdictions look to gaming as a new or additional funding source," says Bill Lerner, a Deutsche Bank gambling analyst quoted in a recent news article. "In tough economic times, gaming expansion often becomes much more probable."
Pro-gambling interests in Texas have expressed the same sentiment, and we will likely be hearing more about how gambling can help “save” state budgets during the next session.
October 7, 2008
Falling Lottery Sales Likely to Spur Calls for More Gambling
News this week that Texas lottery sales are down 2.7 percent are likely to spur calls for more, new and different types of gambling games in the state. A story by the San Antonio Express News reporting the decline caused Rep. Kino Flores, D-Palmview, to complain that gambling opponents keep thwarting his attempts to expand gambling in the state. And to that we say, good for you and good for us!
Still, you can expect to hear gambling interests decrying the loss to public education from low lottery sales. But the lottery's contribution to public education is so miniscule, even education officials say they aren't concerned.
The story did allow Rob Kohler, with the Christian Life Commission, to repeat findings that the lottery makes its money primarily from the poorest, least educated citizens in Texas. In the article Kohler sited a 2006 study commissioned by the state of Texas indicating that players with a high school education or less spent an average of $20 a month on Texas scratch-off games, twice what college graduates spent. Those earning $12,000 or less spent an average of $16 on scratch-off tickets a month, 45 percent more than players who earned between $75,000 and $100,000.t gambling opponents aren't swayed by the numbers. They say the state has no business expanding games that tend to appeal to those least able to afford them.
"It's a poor, unreliable revenue source for the state, period," said Kohler.
Read the full story in our news section.
September 30, 2008
October 07, 2008
Supreme Court won't review Eagle Pass Gambling Case
The U.S. Supreme Court on Monday refused to hear the long-running case of the Kickapoo Indian tribe, which has been trying get casino style gambling at its Eagle Pass casino in violation of Texas laws. For 13 years, the tribe has tried to expand its Eagle Pass casino, which offers bingo and poker, to include Las Vegas-style gambling. The state of Texas, however, refused to negotiate with the tribe and then objected when U.S. Interior officials seemed ready to expand the Kickapoo's gambling options. Despite Monday's setback, however, the tribe chairman, Juan Garza Jr., suggested that the tribe would continue to seek an expansion of games offered at its casino.
Houston Lawmaker Proposes Casinos To Pay for Ike
State lawmakers backed by gambling interests use any excuse to tout the spread of misery as the cure for financial ills. In a column last week, Houston Chronical reporter Clay Robison noted that Sen. Mario Gallegos, D-Houston, has suggested that the state should legalize casino gambling and use the proceeds for the state's disaster fund. Robison noted that while expanding gambing remains a long shot next session, that with much of the state's anticipated surplus now gone with Ike's wind and storm surge, gamblig advocates may find more lawmakers wlling to listen to their arguments. As noted in an article below, Sen. Gallegos this summer took $10,000 from horse racing interests.
September 30, 2008
Congress Adjourns Before Internet Gambling Vote; Stage Set to Lift Ban Next Year
Congress adjourned September 30, before it voted on approving legislation that would lift a ban on Internet gambling. When the House goes back into session in January, backers vow to push the law through. The legislation is expected to make it easier for th estimated 23 million Americans, many of them teens and young adults, who play poker on the Web. On-line poker is the fastest growing area of gambling on the Internet. The primary advocate for this law is Barney Frank, D.-Massachusetts, chairman of the House Committee on Financial Services.
19 Texas Senators Take Money from Race Track Interests
We've been telling you how gambling interests are preparing for the upcoming Legislative session by spreading money around to lawmakers. A little checking has revealed that the following 19 Texas State Senators each have accepted $10,000 from race track interests pushing to legalize video slot machines:
| Sen. Uresti |
Sen. Harris |
Sen. Patrick |
Sen. Lucio |
| Sen. Shapleigh |
Sen. Wentworth |
Sen. Hagar |
Sen. Carona |
| Sen. Whitmire |
Sen. Hinojosa |
Sen. Zaffirini |
Sen. Seliger |
| Sen. Averitt |
Sen. Watson |
Sen. Van de Putte |
Sen. Gallegos |
| Sen. Jackson |
Sen. Ellis |
Sen. West |
|
Big Gamling Trying to Influence Race Outcomes in Texas
A recent column in the Houston Chronicle by veteran capitol reporter Clay Robison says race track interests are planning to target six or seven House races in the fall. He said casino owners, who want to legalize full-blown gambling and build several resort-style facilities in Texas, have added Nancy Fisher, former chief of staff to powerful House Speaker Tom Craddick, to their lobbying team. Want to help stop them? Donate to TAG now and help us keep the public informed and involved in fighting gambling interests in Texas!