Post-election spinning

No, it's not the bike aerobics thing that was trendy for a while, it's both the pros and the antis trying to massage the results of the 2003 elections to produce a beneficial public image. Predictably, both sides are claiming victory. From reviewjournal.com:

Despite being dealt setbacks in four out of five states where casinos became an issue, gaming opponents and backers both found reasons for solace in Tuesday's election results.

"(Whenever) voters reject gambling by margins of 67-33 (as they did in Maine) and 81-19 (Colorado), it's clear the public has problems with the product," the Rev. Tom Grey, executive director of the National Coalition Against Legalized Gambling said Wednesday.

"If the industry wants to be treated like shopping centers and movie theaters, they can't stand to have voters reject them by these margins. The burden of proof is on the casinos. This was not a good year for gambling," he said.

The only positive gaming votes came out of Indiana, where local voters approved a new casino, and Maine, where a statewide vote legalized slots at one of the state's tracks despite stomping out plans for a proposed casino, UBS analyst Robin Farley said Wednesday.

Frank Fahrenkopf, president of the American Gaming Association, said racino initiatives fared better with voters than full-fledged casino issues.

"When you're talking about racinos, states already have made commitments to the industry. With casinos, you run into NIMBY -- not in my backyard -- problems," he said.

FULL STORY

The overall picture for gaming expansion appears the same: as long as states face budget shortfalls and certain areas have unemployment, state officials, rather than raise taxes, will often seek out casinos or gaming as a solution to these two problems. It's simply a variant of smokestack chasing, where states and cities offer a variety of benefits to lure industries for precisely the same reasons. Casinos and slot machines just make better headlines than chewing gum factories or an office park.
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posted by Dave at 9:03 AM

Maine goes both ways

The people of Maine have spoken, and they don't want a casino, at least an Indian casino. Voters overwhelmingly voted against a proposal by two tribes to build a huge Las Vegas-style casino resort in their state. From the Boston Globe:

By 11 last night, with 68 percent of Maine's precincts counted, the plan by two Indian tribes to build a $650 million casino resort was being overwhelmingly rejected, 64 percent to 36 percent. Supporters of the proposal conceded by midevening. "It's the greatest opportunity that the state has ever seen, that has been stolen by a conglomerate of low-wage employers," said Rich Pelletier, political director for the procasino group Think About It. He referred to corporations such as L.L. Bean and the credit card company MBNA, which opposed the proposal.

The plan was trounced by voters in southern Maine, near this former textile town where the casino would have been built, and by smaller margins in central Maine cities such as Bangor, where support had been considered relatively strong.

Governor John Baldacci, who campaigned hard to defeat the binding referendum question, claimed victory shortly after polls closed at 8 p.m. "People in Maine see through all the money that came in" to campaign for the casino, "and recognized that that was not what they wanted," he said.

FULL STORY

This probably takes some of the wind out of the sails of proposals to legalize Indian or racetrack casinos is Massachusetts, but I don't think the question of gaming expansion in New England will go away any time soon.

As a matter of fact, Maine voters approved a racino, at least in theory, for Scarborough Downs:

The measure allows the tracks to add video-slot machines to boost revenues and increase purses for races. Part of the revenue would also be allocated to prescription drug relief and education.

In order for the tracks to add slot machines, local approval was needed in Bangor and Scarborough. Bangor residents approved the proposal in June, and the city recently negotiated a deal with a developer to run the racino.

FULL STORY

So it seems that Maine citizens want the benefits that gaming can bring, but not the full-scale casino experience, at least as proposed by the Penobscot Nation and Passamaquoddy Tribe.
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No Rocky Mountain racinos

Having the biggest proponent of a proposition be indicted for conspiracy to bribe state officials may be a great way to see that proposition go down in defeat. Following the early Septmeber of Wembley USA, which owns 4 of Colorado's 5 racetracks, the defeat of a proposition that would have legalized slots at tracks seemed a foregone conclusion. Indeed, Amendment 33's supporters conceded defeat a scant 30 minutes after polls closed. From the Denver Post:

Amendment 33 promised that 500 gambling terminals at each of the racetracks would generate $25 million each for tourism and open-space protection. It will be remembered as the most expensive initiative campaign in Colorado history. It could also be remembered for its resounding defeat.

"I think the results of (Tuesday's) election have really illustrated that Colorado citizens do not want gambling expanded," said Lois Rice, president of the Colorado Gaming Association, which fought the proposed amendment.

"This is discouraging to anybody who thinks they can expand gambling beyond the three historic towns" of Central City, Black Hawk and Cripple Creek, where voters approved limited gaming in 1990.

Amendment 33 pitted the state's casinos against Wembley USA, the Commerce City-based owner of four of the state's five racetracks. The casinos poured $3.4 million into the campaign and Wembley another $6 million.

Wembley argued gambling would boost the racetracks while providing needed money for open space and tourism. The casinos saw urban gambling as a threat to their business in the mountain towns.

The Wembley-funded campaign, carried by the group Support Colorado's Economy & Environment, rarely mentioned video gambling, focusing instead on the benefits the gambling proceeds could provide. The casino-funded campaign, carried by the group Don't Turn Colorado Racetracks Into Casinos, essentially blasted the Wembley campaign.

FULL STORY

While Colorado voters were eager to approve "limited gaming" in 1990, they have balked at no less than seven times. It didn't hurt opponents of Amendment 33 that Wembley has been accused of conspiring to bribe Rhode Island officials in an effort to expand the number of machines at its racetrack in that state.
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The ambivalent Midwest

Voters in Orange County, Indiana, approved a casino there, mostly to create jobs. From the Miami Herald:

News of the 5,127-to-2,642 vote brought Norma Cox to tears.

"It's too big of a victory to even understand -- the change, the hope," said Cox, of French Lick. "We have kids and grandkids and we have nowhere for them to work. It's no fun to grow up poor, and no one should have to."

Cox is a leader of the Orange Shirts, a group of about 300 citizen-lobbyists who have fought for a casino since the General Assembly approved riverboat gambling in Indiana in 1993.

FULL STORY

At the same time, voters in Linn County, Iowa rejected a referendum that would have made a riverboat casino on the Cedar River possible. If there are any lessons to be learned from this election day, it is that gaming expansion campaigns are not automatic slam dunks, nor are they doomed to failure. Each jurisdiction grapples with its own unique situation before voting yes or no.
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Expansion in Moscow?

And in news from Russia, it looks like another casino may be opening in Moscow soon. From the Moscow Times:

Sindica, a holding company that operates a number of markets around the city, has bought the Moskvichka shopping center on Novy Arbat, one of Moscow's oldest and most famous retail complexes.

Experts say it may be converted into a casino, as the Novy Arbat area is acquiring a reputation as an entertainment district.
Sindica will not make a final decision on Moskvichka's future until a board meeting scheduled for spring 2004, the company's general director Vladimir Konchits told Vedomosti.

But although Sindica declined to comment on its plans and Moskvichka continues to operate as usual, there are reasons to suggest it may cease to exist in its current form, experts say.

"Considering that Novy Arbat with its clubs, casinos and slot machine halls is becoming something more of an entertainment destination, rather than a retail street, we can assume that Moskvichka's profile will change," Gipsh said.

Moskvichka is next door to the Korona casino and just 100 meters away from the Metelitsa entertainment center, one of the largest in Moscow, which includes a nightclub, casino and a sports bar that accepts bets.

FULL STORY

This is all well and good, but reading this article I learned that there is apparently an IKEA in Moscow. I'm the last person to begrudge anyone anything, but I couldn't help but be a little envious, since Las Vegas has yet to get its own IKEA. It's nice to know that if for some reason I found myself relocating to the Moscow area, I could set myself up a nice place, complete with "BILLY" bookcases and "POANG" chairs.
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That's all for today. I'm heading down to New York-New York to swap out the materials at the tribute, and tomorrow I'm heading up to Lake Tahoe to address the Nevada Library Association and the Mountain Plains Library Association. I may discuss this very weblog. If I don't find the time to add anything on what is shaping up as a very busy Friday, have a great weekend.

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posted by Dave at 9:01 AM

Post-election spinning

Maine goes both ways

No Rocky Mountain racinos

The ambivalent Midwest

Expansion in Moscow?

Big site update