Category Archives: Gambling

A fierce debate over casino expansion in Connecticut spilled over into the legislature Thursday during a hearing on two bills that would take the state in different directions in establishing a third casino.

On the one side, supporters of a vision by the Mashantucket Pequots and Mohegans for a satellite casino in East Windsor. They stressed the tribes' deep roots in Connecticut and their longtime partnership with the state that has brought $7 billion in slot revenue to the state coffers from Foxwoods and Mohegan Sun.

But on the other side, there was an equally strong push for a new approach: cast a wider net for proposals and operators that might benefit Connecticut even more. Those proposals could be compared with what the Mashantucket Pequots and Mohegans the operators of Foxwoods and Mohegan Sun are offering.

Dozens packed a room at the Legislative Office Building for a hearing before the public safety and security committee, and each side came ready with a battery of experts. The consultants covered everything from where a third casino would generate the most revenue and jobs for the state to how the tribes' agreements with the state that provide a 25 percent cut of slot revenues would be affected by expansion.

So many numbers were thrown around Thursday that at one point state Rep. Daniel S. Rovero, D-Killingly, suggested the committee hire its own consultant for advice.

"We have no expert in the gaming industry to assist us," Rovero said. "None of us are experts in the gaming industry."

The committee also heard from another Native American tribe in addition to East Windsor officials and residents, and opponents to casino gambling.

The leaders of the tribes urged the committee to support its plan for East Windsor, a strategy to compete with the $950 million casino and entertainment complex now under construction in Springfield by MGM Resorts International Inc.

Rodney Butler, chairman of the Mashantucket Pequot Tribe, warned that delaying a response could cost the state $70 million in slot revenue and 9,000 jobs tied directly and indirectly to the state's gaming industry.

"We had no idea of the magnitude of the impact on the Connecticut gaming market," Butler said.

MGM, which has pushed aggressively for opening up the field of proposals, has challenged in court the 2015 law that allowed the tribes to search for a casino location. MGM argues since the casino would be off tribal lands, the deal unfairly excludes other potential operators.

"The key question for this committee and the General Assembly to consider is how can the state structure a competitive process in a way that maximizes the number of jobs created and the tax revenue for the state," Uri Clinton, senior vice president and legal counsel at MGM Resorts, said in testimony.

During Clinton's testimony, Sen. Timothy D. Larson, D-East Hartford and the committee's co-chair, ripped into MGM for circulating a "glossy" brochure in East Windsor that criticized how the town arrived at a casino development agreement.

One side of the brochure, which Larson held up, reads: East Windsor Casino Agreement: Negotiated in Secret Behind Closed Doors, Decided Without a Town-Wide Referendum.

Larson, a staunch supporter of the tribes' vision for casino expansion, said he was never approached by lobbyists or casino representatives in 2015. There was the belief that the expansion would never happen, said Larson, whose district includes East Windsor.

"And now, we're at the 5-yard line, and all of a sudden you are [harming] my residents' reputation and you don't even want to be in that community," Larson said to Clinton. "And I just want you to know how offended I am by that."

In an interview after the exchange, Clinton said he respected Larson's passion and commitment to his constituents.

"The city of East Windsor could actually do much better," Clinton said. "In a closed, no-bid process that is not open for competition, the deal they got is what they could get. In a competitive process, all the bids would be richer, the economic benefit to the state would be greater and the contribution to the state's infrastructure would be greater."

Clinton said MGM took the step of the brochure because it has been shut out from the process.

Robert Maynard, East Windsor's first selectman, told committee members that the selection of his town to host the casino would bring much-needed tax revenue to the community and boost economic development efforts.

He stood and held up a rendering of the casino.

"We have this vacant Showcase Cinema, vacant since 2008," Maynard said. "It's kind of an eyesore now. This is something we really like. This is something we would really like to see."

Large portions of Thursday's hearing focused on the tribes' agreements that bring the slot revenue payments to the state in exchange for the exclusive right to operate casinos in Connecticut. MGM's experts warned it could be in peril if the state pursues expansion, even if it is Mashantucket Pequots and Mohegans doing it.

The tribes say they have proposed amendments to keep the agreements known as the compact intact with an expansion to East Windsor. They point to a letter from the federal Bureau of Indian Affairs last year that didn't find a problem if the tribes did the expanding.

Gov. Dannel P. Malloy has asked the state attorney general for a legal opinion on the issue.

In addition to MGM, the Kent-based Schaghticoke tribal nation pushed for opening up the field of potential casino operators. The tribe has repeatedly expressed interest in establishing a casino in southwestern Connecticut.

"Southwestern Connecticut offers a growing opportunity that is five times the size of the market north of Hartford, a market that can only decline with high-end competition from Springfield," Richard Velky, the chief of the Schaghticoke tribal nation, said. "And because a commercial casino off tribal land does not require federal recognition, Connecticut citizens should demand a better deal so why not us?"

Those testifying Thursday also underscored that the committee should not ignore the potential social costs of more casino gambling.

"These include increased debt, bankruptcies, embezzlement, divorce, domestic violence, drunk driving and addiction," the Rev. Denise Terry, an East Windsor resident and senior pastor of the East Granby Congregational Church, said. "As a recovering impulsive gambler, I am particularly sensitive to this issue. I don't want to live less than 3 miles from a casino, and to pass it at least twice a day."

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Gambling Supporters Say Casino Expansion In Other States ... - Hartford Courant

It has been long promoted as a way to help improve Illinois' bottom line. Problem is, it has not been successful.

We're talking about legal gambling, whether it be done by playing the lottery, visiting the casino or another method. These various forms of wagering have been around for years now, and were made lawful in large part because they were seen as a sure-fire way to inject big revenue into the state's coffers.

For the record, the lottery was introduced in 1974, casino gambling was voted into law in 1990, and gaming in local bars and restaurants was legalized in 2012.

What's happened since? While the last measure mentioned has helped prop up local governments, the state has continued to sink into financial disrepair, and now finds itself in the worst shape ever.

It is unfair to blame the situation purely on gambling revenue, or a lack thereof, as many factors have contributed to the mess.

But gambling clearly has not been a cure all, and you have to wonder how a current proposal to introduce six new casinos, including one in Chicago, will make any difference.

As reported by The Associated Press this week, the massive gambling expansion is part of the wide-ranging "grand bargain" to end Illinois' two-year deadlock over an annual spending plan. Although the grand bargain was derailed last week, the casinos plan did get the endorsement of the Senate.

Those legislators can remain hopeful if they choose, but this strategy has yet to prove effective. This goose has not laid a golden egg. Why would it now?

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Get the drift, gambling not a cure all - Kankakee Daily Journal

WSPA.com

Deputies serve warrant at Piedmont Bingo; possible illegal gambling WSPA.com GREENViLLE CO., S.C. (WSPA) The Greenville County Vice and Narcotics Unit served a search warrant at Piedmont Bingo on Piedmont Highway, according to the Greenville County Sheriff's Office. They believe the warrant is in connection with possible ...

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Deputies serve warrant at Piedmont Bingo; possible illegal gambling - WSPA.com

Leeds City Council is taking steps to improve gambling support after new research found there could be over 10,000 'problem gamblers' in the city.

10,000

No. of people in Leeds that could be identified as 'problem gamblers'

Research conducted by Leeds Beckett University also concluded there could be a further 30,000 people who may be 'at risk of harm' from gambling.

Leeds City Council funded the research to find out the extent of problem gambling in the city and assess the availability of specialist support and referral services to help people experiencing problems resulting from gambling.

The research findings have led to the establishment of an expert project group bringing together key national organisations from the gambling industry to work with local third sector agencies and the city council to develop a co-ordinated approach to improve and strengthen the support available to those suffering from gambling-related harm.

The council's initial plans will be presented today at a national conference at Leeds Civic Hall.

Support services provide vital assistance to individuals with gambling-related problems. However, all acknowledged difficulties in supporting individuals due to the hidden nature of the problem and few were aware of specialist support in Leeds.

To address these issues, several stakeholders pointed to the comprehensive approach taken within Leeds to tackle addiction issues, poverty and homelessness as a good foundation on which to develop problem gambling support.

Dr Neil Ormerod, Leeds Beckett University

Leeds City Council is now taking steps to improve the support offered to gamblers in Leeds.

They will work with services across the city to increase knowledge and awareness of the support available.

The researchers found that the biggest impacts on the health and wellbeing of gamblers were debt, relationship breakdowns and mental health issues.

Our findings showed that many people enjoy gambling as a fun and sociable activity. But for some that is not the case. Some gamblers told me they hid their gambling habits from family and friends, lied about their whereabouts, borrowed money or spent grocery money on gambling and sometimes gamble away their wages to 'chase the big win'.

Dr Alexandra Kenyon

The findings of the study not only raise our understanding and awareness of the issue in the city but; crucially, we intend that it will be the catalyst for action to better support those suffering from gambling-related harm.

As a council we place great emphasis on early support for people with a whole range of issues who may otherwise fall through the cracks and find themselves in even greater difficulty.

Councillor Debra Coupar, Executive Member for Communities

Last updated Fri 10 Mar 2017

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Leeds City Council to step up gambling support - ITV News

New report on gambling available

A new report providing key information about non-casino pokie gambling is now available on the Departments website.

Gambling Compliance Director Gareth Bostock says the Class 4 Gambling Report provides further transparency about what happens to gaming machine proceeds raised in pubs and clubs.

This first report, in an easily accessible format, covers 2015-2016 and is intended as a base line report to be updated annually, he said. Over the next year, we will work with the gambling sector and other interested groups evaluating feedback to help shape future reports.

The report includes sections on:

Grant recipients and beneficiaries

Grant distribution

Venues, gaming machines and operators

Gaming machine proceeds

Class 4 societies.

The C4 report provides additional context alongside two other Department publications Pokie Proceeds: Building Stronger Communities and Pokies in New Zealand: a guide to how the system works

END.

Scoop Media

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New report on gambling available - Scoop.co.nz (press release)

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Fannie Mae (OTCQB:FNMA) and Freddie Mac (OTCQB:FMCC) are low-probability binary bets, and the market's steep discounts to the stocks reflects the tiny likelihood of a shareholder favorable outcome.

Regarding the bullish coverage of Fannie and Freddie, one would be justified assuming the long thesis a slam dunk before the recent court decision proved it otherwise. For almost two years, a narrative suggesting the U.S government 'unfairly' stole private property prevailed. And while the analysis has been sound - it has been undeniably colored by bias.

Free market efficiency exists in everything, and when counterbalance is impeded, securities (or any other variable affected by dissenting factors) become mispriced. In the case of the GSEs, there is a lack of bearish voices to counterbalance the bullish thesis that has mislead investors for so long - not because it was a bad thesis, but because it was allowed to run without opposition.

The GSE court case argument to go long Frannie was based on a biased interpretation of a binary event just as the current bullish thesis rests on an even more unlikely binary event.

The Weak Case for Government Intervention

The bullish legal case for the GSEs has failed, and now investors turn to the Trump administration's Steve Mnuchin for salvation - analyzing every word he says for clues about his intentions. Regardless of the speculation, there is quantifiable evidence that the likelihood of a shareholder-favorable outcome to the GSE situation is a low-probability binary event.

As per the efficient markets theory, the likelihood of GSE privatization can be estimated by the valuations of the stocks themselves. For this example, we can use Fannie Mae:

Fannie Mae posts TTM revenue of almost $20 billion on a market cap of $3.38 billion. This translates to a P/S ratio of 0.16. The average industry P/S ratio is around 3-5, and if Fannie Mae were valued at its 2005 P/S of 3.75, the market cap would be around $75 billion - over 2000% upside from the current price.

FNMA Market Cap data by YCharts

We could say the market is discounting the stocks by 95.5% due to doubts about the possibility of privatization and other concerns - put another way, their risk-adjusted value is only 4.5% of fair value. This suggest the market assigns an extremely low probability of privatization in the GSEs. If the efficient market believed there was a substantial chance of GSE cash eventually going to investors, it would afford the GSEs a higher multiple on sales.

The Efficient Market

(Source)

Remember, the market is more rational than any specific investor or analyst, and so 5% should be assumed to be the likelihood of privatization in light of all the available evidence. Investors who are still not convinced should take a look at the financial situations of Fanny and Freddie: Giving these firms to private investors represents a serious economic risk because of their capital structure.

Fannie Mae, for example, is expected to pay $5.5 billion to the treasury this month. The size of this dividend is determined by taking the company's net worth (total assets less liabilities) of $6.1 billion and subtracting this number by the capital reserve of $600 million. This will be done for every quarter of 2017, and in 2018 the capital reserve will drop to zero as per the requirements stipulated in the amended conservatorship agreement.

With a capital reserve requirement of $600 million, Fannie is already very risky (without government support) considering the fact that it provided $635 billion in mortgages financing in 2016 and is the largest risk holder in the sector. Now, and especially when the capital reserve drops to zero, the viability of giving the GSEs to private investors represents a serious risk to the American economy. The firms still need government support because their capital reserves are too small to survive serious economic challenges without tax payer money.

What is the Trump administrations incentive to give the GSEs to private investors? Altruism?

Conclusion

The investing community has an incorrect perception about the nature of investing in the GSEs. Fannie and Freddie are not traditional investments but rather low-probability binary speculations that will likely end in disappointment. Investing in Fannie and Freddie is like gambling.

The low probability of success is reflected in the market's pessimistic valuation of these stocks. With a RAV of only 4.5% fair value - as determined by a P/S multiple of 3.75 - this is much like betting; the lower the probability of success, the greater the potential payout. Frannie's deep discount is not a bullish factor; it should be seen as a grave warning. Investors should only invest in Fannie and Freddie with money they are willing to lose.

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Editor's Note: This article discusses one or more securities that do not trade on a major U.S. exchange. Please be aware of the risks associated with these stocks.

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Fannie And Freddie: Low-Probability, Speculative Gambling - Seeking Alpha

PUTNAM COUNTY, N.Y. -- The National Council on Alcoholism and Other Drug Dependencies/Putnam (NCADD) has joined forces with the New York Council on Problem Gambling to carry out the YOU(th) Decide Program in Putnam County.

2017 marks the sixth year that the New York Council on Problem Gambling has worked with local providers in an effort to prevent underage and problem gambling.

YOU(th) Decide Program is designed to be a multi-dimensional prevention effort aimed at reducing underage gambling. Local providers participating in the YOU(th) Decide Project will educate youth, work with local community leaders to decrease the availability of gambling at family and youth-focused events, and will conduct media and outreach campaigns, according to a release from NCADD.

The most recent research indicates that among United States youth between the ages of 14 and 21, 68 percent have gambled in the past year, and 11 percent have gambled twice a week or more. Of those youth, 6.5 percent are at-risk for or have already developed a gambling problem (Welte, 2007).

Underage gambling brings with it a number of negative consequences, many of which are serious, and can be devastating to the youth as well as his/her family and friends. The younger an adolescent begins gambling, the more likely he/she is to develop a gambling addiction. Underage gamblers are at an increased risk of delinquency and crime, damaged relationships and poor academic performance (Wynne et al., 1996).

There is not just one person, nor just one group of people, affected by underage gambling; and there is not just one risk factor or protective factor that plays a role in underage gambling, according to the release.

Additionally, there is not just one strategy that will, alone, prevent underage gambling. A variety of strategies targeted at all levels of impact is the only effective way to prevent and de-normalize underage gambling, the release said.

Parents or their children who would like to learn more about YOU(th) Decide, or would like to get involved can contact Juliette Doyle at (845) 225-4646.

The New York Council on Problem Gambling is a not-for-profit independent corporation dedicated to increasing public awareness about problem and compulsive gambling and advocating for support services and treatment for persons adversely affected by gambling.

The Council maintains a neutral stance on gambling and is governed by a Board of Directors.

Find out more about the program at YOUthDecideNY.org.

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Program Aims To Reduce Underage Gambling At Family/Youth Events - Putnam Daily Voice

ATLANTIC CITY The Casino Control Commission approved a resolution Wednesday recognizing March as Problem Gambling Awareness Month.

Matthew B. Levinson, chairman and CEO of the commission, presented Neva Pryor, executive director of the Council on Compulsive Gambling, with the resolution following its approval.

We are neither for nor against gambling, Pryor said, adding she wants people to know the group is there for anyone having problems with gambling.

According to the council, one in 20 American adults will have some type of difficulty with gambling in their lifetime.

For 13 years, the National Council on Problem Gambling has designated March Problem Gambling Awareness Month. The NCPG is a nonprofit advocate for programs to help problem gamblers and their families.

ATLANTIC CITY When Trump Taj Mahal Casino Resort closed in October, the future of the Sout

Problem Gambling Awareness Month is a grassroots effort that brings together public-health organizations, advocacy groups and gambling operators who work to let people know hope and help exist.

Problem gambling is a disease that affects over 7 million Americans, yet few talk about it, said Keith Whyte, executive director of the National Council on Problem Gambling. Thats why we created the Have The Conversation campaign, to raise awareness of prevention, treatment and recovery services available for those adversely affected by gambling.

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Casino Control Commission recognizes Problem Gambling Awareness Month - Press of Atlantic City

Many who live in the Sauk Valley area might have read the column written by Austin Berg. Austinpointed out how our real estate taxesare spent oops, er, wasted.

Austin informs us of lavish salaries paid to some local government employees, courtesy of real estate taxes being assessed property owners. (The tax is also paid by those who rent, with property assessments passed on.)

Some workers, depending on thejob description, are earning as much as 60 percent more (often six figures) than those who are paying the taxes.

Other news: Lawmakers bank on bets to break a deadlock and help bail out the budget. Gambling? Soundcrazy? I agree with Anita Bedell, the director of Illinois Church Action on Alcohol and Addiction Problems; gambling will create more problems than it will solve.

Chicagosactionsusually have an effect on those of us living outside the city. So when Mayor Emanual comments that President Trumps stand on immigration is un-American and doesnt represent Americasvalues, well, having a bankrupt city and state is also un-American!

And, to make matters worse, the mayor and others of like mind are fine with having the city designated as a sanctuary city for illegals. That ought to helpeveryones bottom line!

Im attempting to figure this all out. The city of Chicago and the state are underwater financially, real estate taxes are near unsustainable, and now, more gambling? The questionable horses of gambling and property taxes arent going to cross the line as the winner or to place, unless, of course, its a race to the bottom; Illinois has already won that race.

Illinois would be a good state to be from. Would the last person to leave please turn out the lights?

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Gambling will not fix state's many problems - SaukValley.com

LAS VEGAS (KSNV NEWS3LV)

The casino industry is calling on lawmakers to retain treatment coverage for gambling addicts as Congress considers repealing and replacing Obamacare.

According to some studies, roughly six percent of Nevadans suffer some sort of gambling addiction.

Las Vegas attorney Doug Crawford is a recovering addict of almost 10 years.

I burned through $2.5 million of my money in the last year and a half before I lost my law license ... then started in my trust account which of course is a felony that's illegal that money belonged to them and I took it and gambled it away, recalled Crawford.

It was a life of drugs and gambling binges, some of which lasted 40 hours. Eventually, Crawford hit rock bottom.

So I took my shotgun out of my closet and laid it down on my living room floor and I was going to end it, said Crawford.

Crawford credits life-saving treatment for his comeback to the courtroom. Its the same type of weekly treatment that was covered for the first time under Obamacare but as Congress looks to make cuts to the current health care law, the casino industry is calling on lawmakers to keep gambling treatment intact.

The nations top casino lobbies sending a letter to Congress saying, in part: "We urge you to ensure that any ACA replacement policy continues to recognize gambling disorders as a public health issue and is included as an essential benefit."

While Crawford has a new lease on life and has paid back his clients, hes now worried about the number of lives at stake if treatment for gambling addiction disappears.

The moment that this goes away I'm predicting half of the treatment facilities in Las Vegas will go belly up, said Crawford.

Nevada Council on Problem Gambling

Knowing the Signs of Problem Gambling

24-Hour Problem Gamblers Helpline: 1-800-522-4700

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Casino industry calls on Congress to keep coverage for gambling addiction treatment - News3LV