I put together this site as a resource for others who are concerned about gambling in their communities. This has become an issue nationwide, as communities turn to gambling as a source of quick bucks without discussing the negative impacts it can have.
The commission is now complete. Traditionally, the chair selects an executive director who
may play a large role in determining how aggressive the investigation will
be.
Internet Gambling
New Casino Initiative in California
A new initiative in California to allow casino gambling at racetracks has been given approval by the Secretary of State's office to begin collecting signatures. The initiative would allow racetrack owners to establish casinos at the track. It would set up a commission to oversee casino gambling, appointed by the Governor. To qualify for the 1998 ballot, proponents need 693,230 signatures by May 16, 1997.
A previous California initiative failed to qualify for the ballot in 1996.
Expansion of Gambling
This article from the San Francisco Chronicle explores the recent expansion of gambling in the state.
Betting on a State Gaming Boom / Casino operators ready to roll into cash-hungry cities
Commission Members
Congress has established a Commission to study the effects of gambling.
The Commission has 9 members.
- Kay Coles James, Chair of the Commission, has served as Dean of the
Robertson School of Government at Regent University since 1996. She is a
member of the Virginia State Board of Education, and from 1994-96 was
Secretary of Health and Human Resources for the Commonwealth of Virginia.
Before that, Dean James was Senior Vice President of the Family Research
Council, Associate Director for the White House Office of National Drug
Control Policy, and Assistant Secretary for Public Affairs at the U.S.
Department of Health and Human Services. She was appointed by President
Reagan and reappointed by President Bush as Commissioner on the National
Commission on Children. She was named to the gambling commission by
Speaker Newt Gingrich.
- Bill Bible, Chairman of the Nevada Gaming Control Board for the
past eight years (and recently reappointed by Governor Miller), was
selected by President Clinton at the urging of Nevada's Democratic
leadership and the casino industry. Before serving on the Gaming Control
Board, Bible was Treasurer of the State of Nevada. His father was a U.S.
Senator representing Nevada. According to the Las Vegas Sun: "Though Bible
is considered a gaming ally, he is not a pushover for the industry. 'I've
opposed the industry in some areas', he said. 'I was outspoken against the
expansion of gaming outside Nevada.... Clearly, l feel that gaming is a
legitimate industry,' he said. 'Otherwise, I wouldn't be involved in the
profession I'm in.'"
- Dr. James Dobson, who heads the Christian conservative group Focus
on the Family, was appointed by Senator Dan Coats. Dobson has
editorialized against gambling on his syndicated radio show.
- Terri Lanni, Chairman and CEO of the MGM Grand casino company in
Las Vegas since 1995, was chosen by Las Vegas Congressman John Ensign.
Previously, Lanni was a senior executive in the Ceasars World, Inc
organization for 18 years. Lanni acknowledges that he will use his voice
and vote on the commission to defend the casino industry.
- Richard Leone, head of the Twentieth Century Fund, a think-tank in
New York, was selected by President Clinton. Leone was Chairman of the New
York-New Jersey Port Authority, and before that, Treasurer of the State of
New Jersey. According to the Atlantic City Press: "Leone was state
treasurer under Gov. Brendan Byrne, who championed casino gambling in
Atlantic City and signed the enabling legislation in 1977. Leone, however,
respectfully broke ranks with Byrne and has been a critic of gambling. 'I
was pretty strongly opposed to legalizing casinos in New Jersey and was
opposed to lotteries before that. It bothers me that governments urge
people to gamble, but I have to get current on the issue.' said Leone....
He added, 'I guess it's more intellectual opposition than moral
opposition.'"
- Robert Loescher, a Native American who is vice president of natural
resources management for the Alaska-based Sealaska Corp., was appointed by
President Clinton. Prior to his Sealaska position, Loescher worked to
provide housing for low- income Alaskan Indians. Sealaska is one of 13
corporations created by the federal government in the early 1970's to
oversee the allocation of natural resources controlled by Alaska's Native
Americans. Loescher is a member of the Tlingit Tribe of Alaska which runs
a bingo gambling establishment. According to the National Gaming Summary,
Loescher said: "I'm personally anti-gambling, but I support Indian tribes'
right to exercise sovereignty and determine whether they want to engage in
gaming. Right now, I really don't have a view where this is going to end
up.... I have a very open mind on every aspect of it."
- Leo McCarthy, was selected by Senator Tom Daschle. He retired as
Lt. Governor of California in 1995 after 12 years. Before that, he served
in the California Assembly for 14 years, six of those years as Speaker.
McCarthy is a liberal Democrat who has a reputation for honesty and
integrity. He reportedly opposed the creation of the California lottery.
By all accounts, McCarthy is currently unbiased and open- minded on the
issue of gambling.
- Paul Moore, a 69-year-old radiologist from Pascagoula, Mississippi
was named by Senator Trent Lott. Moore is a neighbor and long-time
campaign contributor to Lott. Moore says he has visited the Biloxi
casinos, just 20 miles east of Pascagoula, but is neither for nor against
gambling. According to the Associated Press: "'I don't have any axes to
grind either way, pro or con.... I think [the Mississippi casinos] have
helped the economy, and also I know that it is true that there are people
who are habitual gamblers,' he said."
- John Wilhelm, Secretary-Treasurer of the Hotel Employees and
Restaurant Employees International Union (HERE), was selected by
Congressman Richard Gephardt. HERE represents 75,000 casino employees,
more than any other union, including some 45,000 in Las Vegas and 12,500 in
Atlantic City. For the past ten years, Wilhelm has been the chief contract
negotiator for Culinary Workers Local Union 226, HERE's local in Las Vegas.
Ironically, he is currently negotiating a contract with Terri Lanni for
employees at the MGM Grand casino.
Washington Post Editorial -- October 18, 1996
AN INDEPENDENT LOOK AT GAMBLING
When it comes to shelling out lobbyists to work the halls of
Congress, the gambling industry bankrolls the best from both
political parties. So it was an event this year when Congress
managed to work a deal and pass acceptable legislation providing
for an investigation of the social and economic costs of gambling
in this country. But that doesn't mean the industry lobbyists
have folded. They are working the houses now to undermine the
effect of the measure. Their purpose is to stack the membership
of a commission that will conduct the investigation. While
industry representation on the nine-member commission might be
helpful, the selection process should not be used to produce a
membership that would render the panel useless.
The commission is charged with examining the broad social effects
of gambling of all kinds -- governmental, commercial,
philanthropic and charitable. The law calls for the president,
Senate majority leader and House speaker each to select three
members. That is where the gambling lobbyists are concentrating
now. They are pressing for members with ties to the industry, as
distinct from independent, professional and informed nominees who
could address the issues with open minds.
This, after all, was the intent of the bill's supporters, who
were responding to increased public apprehension over the rapid
expansion of legal gambling as well as over ties between gambling
and crime. Other aspects of the commission's study include a
look into gambling on Indian reservations and on the Internet.
If the commission investigation is to enjoy any public
confidence, its membership needs to be identifiably independent.
If the membership turns out to be excessively industry-oriented,
the whole purpose of the legislation will have been undercut and
its findings will be suspect.
"From a consumer standpoint, it's stupid to bet on these sites .. You have no idea you'll get any money. You have no idea what they'll do with you credit card number. Your odds of winning are so poor that you're better off flying to Vegas and doing it there. You'll get better odds from you're corner bookie." - Steve Telliano, spokesman for California Attorney General Dan Lungren.
How are you going to regulate gambling on the Internet, when it crosses state lines and national boundries with the click of a mouse?
Attorney General Dan Lungren has been trying to limit the slot machines on Indian reservations. There are currently 10,000 slot machines on reservations. Indians are allowed to have any gambling on the reservation that is legal in the state. Lungren has filed suit to force the tribes to get rid of their slots. He was helped by a recent California Supreme Court ruling that the State Lottery Keno game is illegal because players bet against the house instead of each other. Indian gambling interests claim that the ruling doesn't outlaw slot machines per se but simply requires that the payoffs be linked to the amount wagered. Progressive slots may therefore be allowable.
This article explains the ruling.
State Top Court Outlaws Lottery's Keno Game
Dan Lungren has also ordered the State Lottery to halt the sale of scratch off lottery tickets from machines, saying that the machines are actually slot machines. This will strengthen his case against Indian slot machines by making it very clear that any kind of machine that allows gambling against the house, rather than other players, is illegal in California and therefore on the reservations.
The slot machine issue is liable to remain the focus of the gambling fight here for a while.
One of the major forces pushing the expansion of gambling nationwide has been gambling on Indian reservations. The passage of the Indian Gambling Regulatory Act of 1988 (IGRA) allowed tribes to operate any gambling games permitted in their state. Many tribes have seen this as an opportunity to develop an industry capable of infusing large amounts of cash into tribal economies. Most reservations lack a solid economic base, with resulting high unemployment and poverty.
Since 1988, many tribes, especially those located near metropolitan areas, have set up gambling operations ranging from high stakes Bingo to full scale casinos, a la Las Vegas or Atlantic City. These casinos do bring in money. Many also assert that gambling is an expression of tribal sovereignty. They want the right to decide the issue for themselves. There are still questions, however, about whether the decision to rely heavily on gambling is in the best long term interests of any community. Traditionalists may object that they are losing essential parts of their culture. Some tribes, including the Navajo and Hopi, have rejected gambling for this reason. Others fear that with increased competition, reservation gambling will lose its appeal and will eventually go bust, leaving the same underdeveloped economy they started with. And, as with any community, some are concerned with gambling addiction, which hits the poor hardest, crime and corruption. On some reservations fights, even gunfights, have erupted between different factions over gambling money. Allegations of mismanagement and corruption by those in charge of overseeing gambling operations cannot be ignored. Conditions are very different on the many reservations. Problems some places shouldn't taint all Indian gambling. However, there is no overall system of regulation, since the reservations cannot be regulated by the state governments, which opens the door to problems.
However, it is true that the loudest opponents of Indian gambling are competing gambling interests. When Donald Trump, owner of Atlantic City casinos, says that organized crime is deeply involved in Indian gambling, it is hard to determine where the facts leave off and the self serving begins. Whenever there is a public discussion of one particular form of gambling, competing gambling interests jump in, often overshadowing the community groups, and sometimes embarrassing them with shady tactics and tons of money.
For the time being, Indian gambling is well established. If gambling money is going to be the engine that gets reservation economies going, it is to be hoped that the profits will be invested in other industries, with the hope of producing a strong diversified economy.
Pros and Cons of Indian Gaming
Card clubs are the largest form of legal gambling in California. Casino gambling is not allowed in the state but is easily available next door in Nevada. In card clubs, unlike casinos, gamblers bet against each other, not the house. The club takes a commission out of the pot.
The issue of card clubs in California has been subject to considerable political debate. Currently card clubs are primarily taxed and regulated by the local government. A public vote is required before a city can permit card clubs but no vote is required in order to open new clubs or expand existing ones in a city that already has approved them. There have been various proposals in the State Legislature to regulate card clubs. Attorney General Dan Lungren, among others, has supported more control at the State level. He maintains that local governments are ill equipped to regulate what has become a large, sophisticated gambling industry. Large scale gambling in other states, such as Nevada, is tightly controlled by the state government. Individual cities are vulnerable to political pressures caused by having a large proportion of city revenues come from one source. There is also the danger of large cash rich organizations influencing elections, even succumbing on occasion to bribery.
Of, course various gambling interests also have considerable clout at the state level. The bill to regulate card clubs has been amended to grant special favors to some racetrack and card club owners, at the expense of others. The bill has now been so loaded down with favors that it may sink.
Dan Lungren's political ambitions may have led him to reach an agreement with the gambling interests. He doesn't want opposition from big money gambling interests during his campaign for Governor in a couple of years. The current bill appears to regulate gambling while allowing its expansion. Lungren looks like he was fighting expansion of gambling, but actually nothing happens. Everybody is happy.
The real battle, many feel, will be over allowing casino gambling in the state. Some people think that the state regulations are actually intended to set up a framework for regulating casinos. They could also be cited as evidence that gambling is under control and therefore should be allowed to expand.
A moratorium on new card clubs became effective January 1, 1996. This set the stage for a rash of elections in communities throughout the state in late 1995 as card club operators tried to get approval for new clubs before the moratorium.
Although there were many reasons to oppose gambling in our communities, the most effective in the campaigns was the connection between card clubs and crime. The Police Chief in San Jose, which has the largest card clubs in the area, has been especially outspoken in his opposition to expansion of the clubs. He has pointed to increases in crimes associated with gambling in San Jose, including violent crime and even murder. The Pacifica Police Chief also pointed out that crimes such as skimming, loan sharking and extortion are always difficult to control in the card clubs.
These articles explain how the clubs work and some of the crimes associated with them.
Win, Lose or Draw -- Card Rooms, Loan Sharks Take Their Cut
Cops Praise Plan to Curb Card Rooms
Received via E-Mail from Residents Against Gambling Expansion in Palm Springs:
On November 7, 1995, the citizens of Palm Springs voted to approve three large scale card rooms within the city limits.
Currently in the Palm Springs area (25 mile radius) there, are four Indian
casinos, one non-Indian wardroom and four more card rooms approved to open (3 in Palm Springs, 1 in Coachella) and one off-track horse racing establishment.
They have one of the heaviest concentrations of Indian gambling in the nation. Palm Springs is also where the Indian Tribe the Cabazon won their landmark case in 1988 creating the Indian Gambling Regulatory Act of 1988, which started the gambling expansion craze across the U.S.
News from Palm Springs
For more information E-Mail: NoSLOTS@aol.com
I will update this page as more information becomes available.
From Placer County activists:
We are the Placer Citizens for Property Rights formed to fight establishment
of an Indian casino in our tiny foothill community of Penryn, 25 miles NE of
Sacramento. The tribe has backed off due to a huge grass roots effort.
For further information e-mail John
DuPriest: dupriest@quiknet.com
In December 1995, Pacifica voters rejected a card club by a 4-1 margin. This was the last in a series of elections on the issue on the San Francisco Peninsula. Previous elections in South San Francisco and San Mateo rejected new card clubs. The major argument in favor of these proposals was that the clubs would provide much needed revenue for local governments. Most cities and counties in California have experienced severe budget problems in the past few years. There has been strong political pressure to cut taxes. The state has dipped into local revenue sources. Local governments are scrambling to make ends meet.
Pacifica is located just south of San Francisco, on the San Mateo County coast. Opposition to the club centered around the negative effects of gambling on communities as well as the location of the proposed club on an environmentally sensitive site. The environmental issue was important in Pacifica as this was felt by many to be an inappropriate use for this spectacular headlands.
In Pacifica, the Card Club promised to increase city revenues by $5 million a year, compared to a current city budget of about $11 million. Others questioned these figures. They also pointed out the substantial costs that would be needed to oversee and police the clubs. Pacifica's City Manager recommended that Card Club revenues not be used for General Fund Expenditures. He didn't want to see Pacifica become dependent on the club for revenue. The city should be able to close it down if necessary to insure compliance with regulations. This policy, of course limits the usefulness of the added revenues, since the General Fund is where most cities need the money.
From Walter Abbott in Louisiana:
There is a vote upcoming Sept. 21 on a constitutional
amendment we believe is flawed. The proponents (Gov. and some
Legislators) say it is a start to ridding Louisiana from gambling. We
don't believe them, as they have betrayed us this past spring by dodging
repeal when the had the votes to do so. We think the state and local
governments are now hooked on the money and will do whatever it takes to
keep it legal. We strongly oppose the amendment, since we think it tends
to legally recognize "gambling" in our constitution. It is now
prohibited by that document. The state Legislature and Supreme Court got
around that minor distraction several years ago by defining "gambling" as
"gaming." I'm not kidding.
Nov. 5 there will be local option votes in each parish (county) to vote up
or down in that location only. Since we can't beat Organized Gambling
everywhere, we will still have some boats and video poker in some
locations.
For More information E-Mail Walter Abbott: wabbott@linknet.net
An article from NOcasiNO: Maryland's Religious Community Opposed to Casino Gambling
Why Maryland doesn't need slots at the track
NoCasiNO in Cecil Co. Home Page This page is loaded with information.
Articles on the negative effects of gambling on communities.
For more current newspaper articles:
Search The SF Chronicle and Examiner
Use Keywords: Card Clubs or casino
Search the San Mateo Times
Use Keywords: Card AND Clubs
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