Category Archives: gambling

We Weren’t Good Enough for Trump. Or Was It The Other Way Around? 

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Next year will mark the thirtieth anniversary of the opening of the first legal casinos in Missouri.

The industry has done well in those thirty years.  It has posted revenues of almost $42-Billion.

For a time, Donald Trump wanted to be part of that, making some deals that would add to his casino empire back east. Before he started sniffing around in Missouri he had bought a casino from Hilton Hotels in 1985 and opened the property as Trump’s Castle Hotel Casino (later Trump Marina) in Atlantic City.  In 1986, he bought out a Holiday Inn and opened it as the Trump Plaza Hotel and Casino.

Two years later he got involved in the Taj Mahal project in Atlantic City and, using junk bonds,   turned it into a billion-dollar construction project.

In 1993, a year after voters approved riverboat gambling, he showed up in Missouri, ready to deal.  St. Louis Mayor Freeman Bosley didn’t want to cut a deal unless riverfront gambling interests got behind downtown redevelopment, a condition that Trump didn’t seem to mind, telling reporters, “Depending  on what he wants, I would be interested in discussing possible linkage. I think St. Louis needs a convention center hotel very badly. St. Louis is certainly a good gaming market.”

Already displaying the modesty to which we are accustomed, he proclaimed in May of ’93, “I think I know as much about convention halls as anyone in the public of private sector.”

While he was casting eyes at Missouri, he was feuding with Native Americans who were opening their own casinos.  The same year he looked at St. Louis he was ripping the operators of the Foxwoods Casino operated by he Mashantucket Pequot Tribal Nation in New York, telling New York City radio host Don Imus, “I think I might have more Indian blood than a lot of the so-called Indians that are trying to open up reservations…I think if you’ve ever been up there,  you would truly say these are not Indians.”

(Just for the record, Donald Trump has zero Indian blood. His grandfather, came here as a 16-year old barber to escape three years of German military service. The legality of his entrance to the United States is questionable.)

American Indian Republic later reflected, “His discourteous rhetoric involving American Indians has often been used to both demean and frustrate those to which such speech was directed, with his early 1990’s tirades reflecting his discontent with the rapid and expansive rise of Indian gaming in particular. Much of the racially influenced remarks that had occurred during that period would later be conveyed once again during his 2016 presidential bid against his Republican opponents and Hillary Clinton, amongst other politicians.”

The year he was considering a Missouri casino, he filed a lawsuit against the Indian Gaming Regulatory Act of 1988 that allowed Indian nations to open casinos. His whine was a familiar one to us today. The suit claimed those casinos were providing unfair competition, that the act was discriminatory as well as being unconstitutional.

Interior Secretary Bruce Babbit, a defendant, reacted, “My initial reaction was, ‘Hey, wait a minute, I’ve never even met Marla Maples. How can he be suing me?’ It is really absurd to think that a self-proclaimed tycoon s threatened by a few bands of impoverished Indians. It’s the theatre of the absurd.”

(Marla Maples was Trump’s new hobby at the time.  They had met in 1984 and started carrying on while he was still married to Ivana, who finally split with him in 1990.  It was about the time he was fighting Indians that Marla was trying to convince him to marry her.  She said they’d set the date “about a dozen times” but he always had “a little freak out” the day before the grand event. She said she helped him get over “that fear monster,” but had started taking her wedding gown along on their travels because “you’ve got to be prepared.”  They married late in 1993, two months after the birth of their daughter, Tiffany. Three years later, Trump fired his bodyguard after police reported finding him under a lifeguard stand with Ivana on a deserted beach at 4 a.m. They divorced in June of 1999.  By then he was fooling around with a Yugoslavian-born model, Melanija Knavs, who was building a career in New York. They were married in 2005.)

Getting back to our story:

As usually seems to happen with Trump lawsuits, the one involving Bruce Babbit went nowhere.

Later that year, representatives of the Wyandotte Tribe of Oklahoma proposed building an 80,000 square foot casino/hotel/theatre/restaurant complex in the St. Louis suburb of Arnold.  One Arnold resident dismissed the idea, commenting, “Trump is in town talking about a deal on the riverfront. Who in the world is going to choose Arnold when downtown St. Louis is 20 minutes away?”  Governor Carnahan’s deputy chief of staff, Roy Temple, indicated Carnahan was cool to the idea of a casino in Arnold, generally opposed to casinos beyond those allowed by the riverboat gambling amendment added to the State Constitution in ’92.

Trump also was crosswise with Connecticut Governor Lowell Weicker, claiming he couldn’t build a casino in that state until Weiker left office because Weiker opposed casinos. Weiker responded, “My opposition to casinos isn’t just casinos. It’s opposition to Donald Trump,” who he referred to as a “dirt bag” and a “bigot.”  Trump displayed his now-familiar brand of logic when he fired back that Weiker “is a fat slob who couldn’t get elected dog catcher in Connecticut,” ignoring the fact that Weiker had gotten elected to an office of somewhat greater importance.

In November of ’93, Trump unveiled his plan for a $300 million floating casino and 20-acre development just north of Laclede’s Landing on the St. Louis riverfront.  Five other developers also were eyeing the area.

In February of 1994, he floated the idea of a $98 million casino project in St. Charles that included a golf course, aquarium, and a park. Six other companies were competing.

Trump wasn’t good enough for either project.

In August of ’95, he left some people shaking their heads when he filed a lawsuit in New York to stop the introduction of  new lottery game, Quick Draw. He described it as “video crack,” and argued, “When you add it all up, the social costs far outweigh the potential tax revenues” and would be harmful to gambling addicts and casual gamblers “who can lose far more than they can afford.”

The same concerns did not apply to his own casinos because, “The overwhelming number of people who go to casinos do so for limited periods of time and with set budgets.”

By now, by the way, the Palm Beach, Florida, town council had capitulated in the face of a lawsuit filed by Trump and approved his proposal to turn his historic Mar-a-Lago mansion into a private club. The council had refused to allow the change two years earlier and Trump had, well, you know.

Trump’s grandiose plans for St. Louis and St. Charles were stillborn but he wasn’t done with Missouri.

In 1995 he established Trump Hotels and Casino Resorts as a publicly-traded company.  Four years later THCR agreed to buy the troubled Flamingo Hilton Casino in Kansas City, reportedly for $15 million.  The city port authority approved the deal on Trump’s 53rd birthday. But the deal fell through when the Missouri Gaming Commission refused to approve the company’s gaming license, expressing concerns about the THCR’s $1.8 Billion in debts.

The summer before the deal, the Hilton had agreed to pay $665,000 in fines and penalties to the federal government instead of going to trial in federal court  for “providing financial incentives” to friends of the then-chairman of the Kansas City Port Authority in return for his political support to build the casino on city-owned land. The company always denied doing anything improper.  The gaming commission threatened to yank the Hilton’s gambling license unless it sold its property.  Hilton had spent more than $100 million to develop the site.

In September of ’99, Station Casinos bought the Flamingo Hilton at the fire-sale price of $22.5 million. A Trump spokesman said the deal was cancelled so the company could focus on operating its three casinos in Atlantic City and reduce its debt.

Anyone wanting to learn more about all of this little drama seems to be out of luck.  The Associated Press reported in 2016 that about 1,000 pages of documents are locked away in the gaming commission’s files and are secret under Missouri law because Trump’s company withdrew its application on November 17, 1999. The commission lawyer says they’re sealed because the state never took action on the license application.

So ends the story of Donald Trump’s efforts to expand his casino empire to Missouri.

Had he done so, his track record indicates those projects would have been just another part of the story of the great deal-maker’s business failures.

THCR filed for bankruptcy in 2004 and was renamed Trump Entertainment Resorts and declared bankruptcy in 2009.

The Harrah’s at Trump Plaza in Atlantic City filed Chapter 11 bankruptcy in 1992, closed in 2014 and was demolished in 2021.

Trump 29 Casino in Coachella, California is still open but Trump left the partnership in 2006.

Trump Casino in Gary, Indiana was sold in 2005.

Trump World’s Fair in Atlantic City closed in 1999 and was demolished a year later.

Trump Castle in Atlantic City filed for Chapter bankruptcy in 1992, was sold in 2011 and is now the Golden Nugget Atlantic City.

Trump Taj Mahal on the Atlantic City boardwalk filed for Chapter 11 bankruptcy in 1991,  closed in 2016 and is now the Hard Rock Hotel and Casino.

And those are just part of a list of failures that also include an airline, a university, a vodka and a meat business, a travel agency and a mortgage finance company. And Truth Social is weakening.

His last casino development effort was on the Caribbean Island of Canouan, described as “a place where billionaires go to escape millionaires,” when Swiss-Italian banker Antonio Saladino tried to turn his languishing resort into a successful enterprise. He hired Trump to build villas around his hotel and golf course. Trump agreed to run the golf course and put up his own casino. Saladino sold out in 2010 to an Irish billionaire who fired Trump and sold the resort in 2015.

So Missouri missed out on having Donald Trump running a casino here.  It’s probably for the best.

Missouri has thirteen casinos, none that have ever born the name “Trump.”  There are those who think we need a fourteenth one, or maybe move a license from one location to the next—-which presents another problem of what is a small town that loses its casino going to do for jobs and what’s it going to do with the boarded-up casino.  And we have another Indian Nation that is trying to open a casino .

We saw during those years the Donald Trump character that is no different today. The casino industry has moved beyond Donald Trump.  Some might think it’s because the industry is run by better people, which is a case of damning by faint praise.

Is there a lesson in this for our political system?

 

Legal?  Illegal?

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The legality of VLTs, Video Lottery Terminals, remains up in the air with a recent court ruling and because of the uncertainty of their legality and a powerful influence group at the Capitol that opposes them in their present state, we can already see the 2024 session of the General Assembly degenerating into another mud fight in the closing day that winds up killing many bills on which legislators have worked hard to put into position for final passage.

The casinos say VLTs are slot machines and casinos are the only places in Missouri that can operate slot machines.  VLT supporters say they’re some kind of different animal and, as such, are not covered by state law or regulation.

Neither side wants to talk to the other. Forget about compromise. As the clock winds down on the legislative session, both sides get more angry and more desperate and a filibuster in each of the last two years on this and some other tender issues has set lawmakers home frustrated and disappointed.

Whether VLTs are illegal is disputed not only in legislative halls, but in county prosecutors’ offices throughout the state. Only Platte County has declared them illegal and has fined a VLT operator $7,500 for promoting gambling.

The machines are not regulated by either the State Gaming Commission that regulates casinos or the State Lottery Commission that regulates lotteries. The machines generate no income for state programs and services that draw financing from gambling.

Last week, a federal judge decided seven plaintiffs who claimed they are problem gamblers (some of whom have put themselves on the state casino exclusion list) had no standing to file a lawsuit accusing Torch Electronics, a VLT operator, of violating the federal Racketeer influence and Corrupt Organizations Act with its machines. The judge held they had not shown a “tangible injury to business or property.”  He also said losing money in the machines was a voluntary act by the player—who could avoid losing money in VLTs by not playing them. He says he dismissed the part of the case dealing with the RICO act and that any further challenges belong in state court.

Torch has a lawsuit in state court. It’s scheduled to be argued next month.  It, and Warrenton Oil, want an order banning the Highway Patrol from investigating Torch’s operations. Warrenton Oil operates 54 Fast Lane convenience stores with VLTs in them.

Some people have urged Attorney General Andrew Bailey to take action against the machines. He says the issue is “too complicated” for his office to get into.

The legislature seems unwilling to be the adult in the room, telling two feuding children to shut up and telling them, “This is how it’s going to be done.” Of course, it’s hard to take that initiative. when there are thousands of dollars in campaign donations from both sides floating around.

In an election year.

Somebody has to write a rule and the legislature needs to adopt it to keep the 2024 session from turning into the sessions of 2022 and 2023.  But it is our observation that our legislature has become passive, perhaps because of term limits—that legislators don’t propose alternatives to bills like these that put lawmakers, not casinos or VLT operators in a position of authority.

After watching this show for a couple of years and growing tired of it, this helpful citizen suggested a compromise late last year.  It was given to only a couple of people but is offered here for mass consideration.

First: On the effective date of this act, all VLTs will be illegal. The Missouri Lottery Commission is authorized to establish regulations that protect the interests of the state.  Upon approval of those regulations, VLTs can operate within the parameters of this act.

Second: The Missouri Gaming Commission is authorized to  VLT districts which shall consist of the home county of any casino and all surrounding counties. Revenue derived from VTLs in that district shall be distributed to the casinos on the basis of admission numbers. The casinos  (shall be responsible for paying all taxes and fees on VLT revenue established by state law.

In districts in which there are multiple casinos whose territories would overlap, a large district will be established that incudes home counties and surrounding counties (St. Louis, St. Louis County, and St. Charles County would comprise one such district.  Kansas City and St. Joseph casinos will be in a district together (they share Platte County) and their revenues also will be determined on an admission fee basis).

Third: The Lottery Commission will be free to establish additional districts as the constitution is amended to create new casinos.

Fourth: This policy will not be applied to any tribal casino unless it is included in a compact between the tribe and the state that is approved by both chamber of the Missouri General Assembly.

The plan protects the interests of casinos while leaving much of the state (the part not served by the present river-based casinos) open to independent VLT companies.

There’s no pride of authorship here. This is a result of being tired of the annual mud fight.

Of course, this stands no chance.  He who offers it has no Political Action Committees with fat checkbooks that are essential to establishing public policy that protects the interests of the constituents of those who set that policy.

But somebody has to start a conversation if the protagonists of our ongoing drama refuse to be part of it. It might be time to an otherwise passive legislature to become active before more lawmakers see their four months of work fall into the annual mid-May mud hole.

 

NOTES FROM A QUIET, HOT, HUMID STREET

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This series of observations began a long, long, time ago as “Notes from a Battered Royal,” which were notes sent out to Missourinet affiliate stations about what we were planning and what they had done to help us.

With the coming of the computer, then the internet, and then the requirement that the Missourinet have a blog, it became “Notes From the Front Lines.”  But the author is no longer on the front lines. He lives on a quiet street.  And its getting quieter.  The folks who used to live in the house across the street now are in an assisted care place in Columbia.  One of the houses next to us hasn’t been occupied for more than a  year because the man living there also is in assisted living. Three nuns who lived in a house just across the street and up one driveway have moved out.

It’s been a while since we made some observations that don’t qualify for fully blogness.  Let us proceed.

Saw a letter to the editor in the local paper the other day that said Missouri’s state motto, Salus Populi Suprema Lex Esto means “The will of the people is the Supreme Law.”  That’s wrong. And it’s dangerous.  Maybe we’ll go into in more depth later but for now, the correct interpretation is, “The welfare of the people is the Supreme Law.”  For now, just think of how different our freedoms would be if the word “will” actually was the philosophy of our government.  The quote, by the way, is from Marcus Tullius Cicero, who we know by his last name, the author of “On the Law.”

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Is there a more pitiful figure in American politics today than Rudi Giuliani?  Of all the people whose lives and reputations have been destroyed by their association with and defense of Mr. Trump, the wreckage that is Rudi is the most pitiful.

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I have a friend who lives in Tucson, Arizona who comes north for a couple of months every summer to find cooler weather (even 10-15 degrees cooler is significant).  I call her a Sunbird.

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There are certain words that have become so politicized that all of the honor has been crushed out of them.  I recall when words such as “liberal” and “conservative” were not said with a sneer and were not spoken as if they were scarlet letters.

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The latest word that falls into this category is “evangelicals.”  The people I heard described as such while I was growing up—-and the people who had the word on their churches—were perceived as fervent believers in God and Jesus, more fervent than us Disciples, Methodists, Presbyterians and my grandmother’s Baptists.  But then came those who discovered evangelical techniques could be applied to achieving political power, making it a third word that is being abused in “the politics of personal destruction.”

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We were talking recently with some friends about the totally trivial things we remember for decades.  I remarked that I still remembered the Army service number of a high school friend who joined the service shortly after we graduated—RA18541439.

Now there’s a new number that I’d like to remember sixty years later—P01135809.  It has a certain rhythm to it, too.

And to think this person was once known only as 45.

We’ve seen the official portrait of PO-1135809.  We are sure that Fulton County, Georgia prosecutor Fani Willis is soooooooo intimidated.

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This is about the most enthusiastic your correspondent has been for the start of the football season in decades. Maybe it’s because this year, it will bring relief from the near-daily disappointments of baseball.

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Can’t help it.  Everytime I see a major sports team or league sign a deal with a sports-betting company, I start thinking its time to cast Cooperstown plaques for Shoeless Jackson and Pete Rose.

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The Capitol regains its heartbeat for a couple of days soon. The lawmakers will decide whether to override some of Governor Parson’s vetoes.  There’s a lot of money available to pay for the things he differs with the legislature about.

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But having a lot of money now means there’s a cushion for the bad days.

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Or we can forget about the bad days and just blow it all now.

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Or we can enact tax cuts so our tax base is even less able to deal with the eventual downturn.

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Anybody else have deer in the yard that just watch you come home and go in the house without ever getting up?  I think that in our case, they’re just resting while they digest  their latest serving of Hostas from Nancy’s garden a/k/a the deer buffet.

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A longtime friend of mine died a few days ago.  He didn’t want a memorial service.  He was a retired reporter who didn’t want his death reported in the newspaper.  Steve Forsythe, whose byline for United Press International read “A. Stevenson Forsythe” was a helluva reporter. Governor Teasdale blamed us, at least in part, for his failure to win a second term.

We could have thanked him for the compliment but we never did.

 

 

If you can’t trust the game—-

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The NFL announced last week that five players have been suspended for betting on sports contests.  Three are suspended for at least a year. Three can resume playing in game seven of the upcoming season.  Four of the players involved are with the Detroit Lions. The team has released two of them.

They aren’t the first.  Last year the NFL suspended Calvin Ridley of the Atlanta Falcons for gambling.

The Detroit Lions reportedly (ESPN) organization has fired several staff members from various departments who also might have been gambling.

A few days before that announcement, Ohio residents began wagering on sports.  The first bet was placed by former Cincinnati Reds baseball player Pete Rose, who has been banned from the Baseball Hall of Fame because of gambling.  As baseball and other sports crawl farther under the covers with gamblers, are they creeping closer to admitting people such as Rose and Shoeless Joe Jackson to Halls of Fame?  Will fans believe them as much as they once did that the answer is “no.”

One of those lobbying for sports wagering in Missouri has said it will enhance fan participation in the games.

Associated Press columnist Kyle Hightower, however, wonders if our pro sports teams are undermining public confidence in themselves, writing, “The incidents have driven a public conversation about the integrity of pro sports as legalized sports betting takes a greater hold in this country.”

He quotes Professor Declan Hill at the University of New Haven who says “Leagues are dancing with the devil. Here’s what happens.  There’ll be one play that’s kind of weird and dubious and sports fans will start to do, ‘Was that legitimate?’ And then there’ll be another one. And another one and another one. And after a few years, the sports leagues will have a problem because their fundamental credibility is being debated by their fans.”

Hightower sees players becoming “ambassadors for gambling companies” by appearing in sports gambling advertisements and promotions.

Huge money is involved here—more than $220 billion since the U. S. Supreme Court legalized sports betting in 2018.  Leagues already are providing official stats to the big gambling companies. Some fans already wonder how pure leagues can be when this kind of big money is involved. And the money is going to be even bigger.

Missouri is an island surrounded by states with sports betting. The industry is leaning hard on the Missouri legislature to end that status. So far, internal squabbling among gambling interests has frustrated sports wagering backers.  But it seems inevitable that our lawmakers eventually will buckle.

And what will happen to our trust in the games we watch when the fans’ “participation” in the games is “enhanced?”

Humans play these games and humans make mistakes and not always by accident.  In the future fans might ask if a mistake really is a mistake? Every suspension for gambling chips away at confidence in The Game, whatever game it might be.  What happens when we wonder if that error was accidental or that missed block was really just a miss; that the pass was not intentionally thrown an inch too high or too long or too short; that the goalie really did just miss that puck or that those two free throws that bounced off the rim could have gone in?

Our pro sports teams have spent decades emphasizing the integrity of their games. We worry that the lure of big money will erode the confidence we have as we watch from the games’ grandstand.  How can we know?

How can we trust what we see?

It appears to be too late for such concerns to be prohibitive of gambling involvement in sports.

Hightower’s article concludes with a comment from Karol Corcoran, the general manager of FanDuel, one of the biggest online gambling operators, who says, “We’re in an ecosystem with customers, we’re the operators, with the leagues with our data providers. It’s important for all of us that we build together a sustainable industry. And being very careful about integrity is part of that.”

The fox is in the hen house.   And it is talking about integrity.

We wish we could say we are comforted.

—-because the fox is always hungry.

We hope we can still love and trust our games five years, ten years, from now.

 

“1776” in 2023

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We still don’t have sports wagering in Missouri.  But we do have video lottery terminals—and that really aggravates the casino folks and the pro sports teams that have seen another year of huffing and puffing on their parts gone to waste.

Watching the annual efforts of the gaming industry to bully the legislature into giving it as sweet a sweetheart deal as possible on sports wagering while VLT advocates argue that they have a right to the gambling dollar, too, has become tiresome.  Casinos see VLTs as competition.  VLT people don’t disagree but say the idea that casinos should have a monopoly on emptying the pockets of gullible Missourians is, well, unfair.

There is, of course, nothing fair about commercial gambling regardless of whether it is conducted in noisy, gaudily decorated casinos or whether it’s conducted next to the pork rinds rack or the beer cooler at the convenience store.

Neither side is interested in compromise.  And the result has been for several years the same: a deadlock at the end of a legislative session that runs the session off the rails and kills a lot of legislation that has the possibility of a greater positive impact on the lives of Missourians.  Or maybe negative impact.  But those points haven’t gotten argued.

We are reminded of John Adams’ rant early in the musical “1776,” as he rails against Congress’s inability to decide whether to declare independence from Britain:

You see, we piddle, twiddle, and resolve
Not one damn thing do we solve
Piddle, twiddle, and resolve
Nothing’s ever solved in
Foul, fetid, fuming, foggy, filthy
Philadephia!

Now, to be honest, Jefferson City is none of those things. Well, mostly. It’s not foul or fetid or fuming and filthy, although at times in the spring and the fall when the water temperature of the Missouri River is several degrees different from the air temperature, there’s plenty of fog. One almost has to get out and lead their car across the bridge, the fog is so thick.

Casino gambling is legal. Sports wagering is not.  VLTs are legal as far as their advocates are concerned but there is no law allowing them or regulating them. One county has a court ruling that says VLTs are illegal in that county.

The future?  The people who can step in and solve the problem won’t do it.  There are no grownups in the room on this one.

One person is position to provide some leadership is Attorney General Andrew Bailey.  But the Post-Dispatch reported the other day that the issue is too “complex” for him to say whether VLTs are or are not legal or to take action to find out.

He apparently is not interested in determining what machines are legal and which ones are not—or to offer suggestions to legislators who might want to put the definition in the statute books.  The article quotes Bailey saying on St. Louis radio station KTRS, “It’s impossible to make a blanket determination that everything that looks like an illegal gaming machine must therefore by definition be an illegal gambling machine.”

Others, however, say a duck is a duck.

It’s a local issue, he says, not something for the state to determine.

So, does that mean that the legislature should just butt out of the VLT discussion?

Should the state butt out of the discussion of sports wagering, too?  Should that be a local issue?

Just imagine how much fun it would be to be able to place a sports bet while standing next to a gas hose attached to your car in Callaway County but not be able to try your luck at a VLT when you go inside to get some fake bacon to snack on while you drive to Boone County, where you can spend a few minutes risking the family fortune on a VLT but not be able to bet on a sporting event when you get a beer to wash down the fake bacon.

Then you go to Cooper County to empty your pockets at the blackjack table in a legal casino.

It wouldn’t hurt if the state’s top legal officer, instead of just brushing off the issue, offered to be a mediator.  It’s not one of his constitutional duties but our attorneys general of late have set a precedent, regrettable though it might be, of straying far beyond their constitutional duties—all the way to the southern border or into the elections held in selected states.

But that’s not going to happen.  The Post-Dispatch also reported that money is fueling the Piddling and the Twiddling.

It seems that two VLT companies have taken the state to court charging it is harassing them by trying to remove their machines from convenience stores although there’s no proven law making them illegal.  Normally the Attorney General is the defense attorney for the state when it is sued. Not Bailey.  The newspaper reports he took a $25,000 campaign donation from a political action committee with ties to former House Speaker Steve Tilley, now a lobbyist for a gambling company. The story also says Bailey had taken “tens of thousands of dollars” from the two VLT companies involved in the lawsuit.

Boy oh boy.  These folks certainly know how to cultivate the public’s confidence in government, don’t they?

Will the issue of sports wagering versus video lottery terminals be resolved by the 2024 legislature?

We consulted the most reliable predictor of future events, the Magic 8 Ball.  “Don’t count on it,” the ball said.   “My sources say no,” was another response. But there were three versions of “yes” when I kept asking.

Will there be more piddling and twiddling? “Sources point to yes,” said the ball.

So—there’s your definitive answer to this matter where the issues are so clear-cut and the participants are so vitally interested in what’s in the best public interest.

 

And Down the Stretch They Come

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It’s like the Kentucky Derby this past weekend.  The big group of horses rounds the last turn, accelerating, bumping, jostling, looking for an opening, straining for the finishing line.

And then, it’s over.  Suddenly.  Done.  In the record books. The exhausted competitors head back to their barns.

The last week of this year’s regular legislative session begins today.  All of the work, the hopes, the politicking, the lobbying, the deals and compromises, the conflicts and the consensus-building comes to a merciful end at 6 p.m. Friday.

The public has no concept of what their elected representatives go through on their behalf—or at the behest of those with power to force decisions—between early January and mid-May, especially in the weeks after Easter break when the clock begins to tick more loudly and the calendar pages fall more quickly.

The greatest responsibility the legislature has each year is passage of a state budget.  This year it is $51 billion, huge, the largest budget in state history.  The state is flush with money and sometimes there’s more fighting about state spending when there’s a lot than there is when there’s a little.  With the little, lawmakers have to cover the basic services. With a lot, there are more pet projects, more promises to be fulfilled, more conflicts about what constitutes responsible fiscal policy.

Time of plenty tend to breed unnecessary discussions of policies that ultimately will make times of little even worse.  It becomes harder to defend a system that allows consistent fiscal responsibility in good times as well as bad.

This is the week when bills become Christmas Trees, as they’re called in legislative circles—bills that begin as simple measures suddenly exploding in size as lawmakers who see their bills doomed for failure find bills with better prospects on which they can hang their issues.

Sometimes it works.  Sometimes the bills finish up violating a constitutional standard that a bill can contain only one subject. Sometimes an effort to piggyback a controversial issue onto a relatively non-controversial bill kills both.

Perhaps the biggest issue involving the above scenario involves sports wagering.  Hallway talk is that gambling interests will make one last push to finally get sports wagering by tacking the bill onto a Senate-passed tax bill during House debate and sending it back to the Senate for approval with no time for negotiations. The Senate must take sports wagering, which would face certain death on its own, if it wants to finally approve a more general bill that it has already passed.

If you have trouble following that description, you are not alone.  Bills can become sacrificial lambs as well as becoming Christmas trees.  Believe it or not, the process as a certain fascination the more you watch it.  We will not try to influence your judgment about how moral or ethical that process is.

Sports wagering has at least one strong opponent in the Senate who is prepared to filibuster if the issue returns in some form from the House—and filibustering means there won’t be time for several other bills to be considered as the clock winds down.

So will the sports wagering advocates, desperate to get the issue approved after five years of previous failures, cause the death of other issues because they cannot take “no” for an answer? Again?

This is a nervous time for majority leadership in both chambers because they know every deck contains 52 wild cards at this time of year.   To their credit, they’ve run the place pretty well in 2023, particularly compared the debacle of 2022. But they know their leadership legacy might rest on what happens by 6 p.m. Friday.

Everybody is excited to be coming to Jefferson City each January.  But speed limits will become  just roadside advisories for a lot of people after the gavel falls Friday evening.

The VLT Problem

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One of the biggest hurdles that casino gambling has not been able to clear in Missouri as it tries to legitimize sports wagering is the VLT.

That’s not a sandwich. It’s one of those gambling machines that are proliferating throughout the convenience stores of Missouri.  Video Lottery Terminals. Are they slot machines or something else. Are they legal or illegal? Is there an age limit for using them?  Should they be hidden from general public view or should they be right next to the door, on the aisles next to the snacks.

Is Missouri starting to look like Las Vegas, at least in our convenience stores?

Your correspondent likes to say that he has been to Las Vegas about twenty times, which is about 19½ times more than he ever wanted to go.  If the gambling industry could figure out how to put slot machines on those accordion-like jetways between the terminal and the front hatch of the plane, they would.  But you can hear the slot machines in the gate areas almost as soon as ou get off the plane.

Several people have opined they will not buy gas at a convenience store that has these infernal machines.

The casino industry trying to get sports wagering approved by the legislature has found itself in the clutches of the video lottery terminal people. And vice-versa. A sports wagering bill hits the floor for debate and somebody tries to amend a VLT-licensing bill onto it.  It’s especially frustrating to the sports wagering folks in the Senate where an attempt to attach a VLT bill to a sports wagering bill can generate a filibuster at the drop of a chip—by a VLT Senator who wants it to be added or a sports wagering Senator who doesn’t want it be adopted.

Now there’s another question fogging the discussion.  Should the legislature be discussing legalizing VLTs while a class action lawsuit accuses the company that supplies many of those machines with violations of state consumer protection and federal racketeering laws (the federal Racketeer Influenced and Corrupt Organizations, or RICO, Act).

Our former colleague in the press corps, Rudi Keller of Missouri Independent, reports the federal court lawsuit accuses Torch Electronics of putting hundreds of machines—the lawsuit says they’re illegal gambling devices—in locations all over the state. Critics of VLTs also say there are no protections that will keep children from using the machines, and to rid Missouri of machines that the suit says entice people who already have gambling problems to play them.

Torch, in previous criminal and civil cases has claimed the machines don’t violate state gambling laws.  And it claims they’re not gambling machines because players are offered a chance to know the outcome before they put in their money.

If you want to know the difference between slot machines and VLTs (the casino people say they’re the same animal but dressed differently. The VLT people say they’re  more like lottery machines), you might to go to VLTs vs Slots (The Different between VLT and Slot Machine 2023) (slotsguy.com)

The casino industry sees them as competition for their slot machines, particularly because these machines are anywhere in the state and the casinos are restricted to just 13 locations on our two great rivers.

The casinos are under the Missouri Gaming Commission. The VLTs would be regulated by these state lottery.

We’ve already seen an early dustup on this issue in the Senate where Senator Denny Hoskins of Warrensburg, a longtime supporter of VLTs, saw his bill combining both issues killed in committee while a stand-alone sports wagering bill was voted out for debate. He locked down the senate for a couple of hours a week before spring break and he had friends helping him.

While that fight will continue at the capitol, another fight is shaping up in the courts.

Rudi recalls that Torch put its first machines in Missouri five years ago. Complaints led the Highway Patrol to investigate them and recommend to prosecutors about 200 cases complaining the VLTs violate state gaming laws.

But only one prosecutor has gone after VLTs.  Machines in a convenience store in Platte County were destroyed after a judge found they violated the law. Other prosecutors seem to think they have bigger fish to fry than prosecuting people who run convenience stores with these machines in them.

One interesting issue in the class action lawsuit claims that Torch and a co-defendant, Warrenton Oil have combined to make more than $955 thousand in political donations in the last five years.  We haven’t checked to see how much the casinos have made in political donations but they do stand to make hundreds of millions of dollars in sports wagering and they have invested a lot of time and manpower in the effort for about six years.

But so far all of the various pressure campaigns and campaign finance issues, neither sports wagering nor legal VLTs has passed the legislature.

The legislature returns from its spring break in a few days. The sports wagering legislation is waiting for debate in both the House and the Senate.  The discussions are likely to be lengthy, even in the House where there are rules against interminable talking by members.  But in the Senate there are no debate limits.

Another factor enters in.  Last year, the six major sports teams in Missouri started making noises about a petition campaign to put sports wagering on a 2024 ballot if the legislature did not enact it.  That has raised the stakes on the issue in the legislature this year.

Officials with the sports teams have testified this year that they are “agnostic” about VLTs, an indication the devices won’t be part of a ballot issue as far as they’re concerned.

The last time we ran some traps at the capitol, the sentiment was that sports wagering might not make it to the governor for his signature this year, again. But nothing is dead until the gavel drops at 6 p.m. May 12.

Wanna bet how this mess turns out?

 

Gambling Addiction? Don’t Blame Us

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The big push is underway in the legislature to let Missourians bet on sports.  A House committee has held a perfunctory hearing on two bills that have a tax structure in which the state will LOSE money.  An industry that profits from tilting the tables against its customers is about to tilt the tables against the state. And it’s likely the legislature will let them get away with it.

An article last week in The Hill, a D.C. publication that reports on government, says gambling addiction is going to be “the next opioid crisis.”

And the casino industry does not seem to care. At least not in Missouri.

Nationwide legal sports wagering will be five years old this year.  The Supreme Court threw out the national ban on it in 2018.  The growth of this betting has been nothing short of explosive. Missouri legislative fiscal experts say profits from sports wagering will exceed profits from all table games in all of our thirteen casinos in just three years.

The gambling industry has spent, and is spending, huge amounts of money wooing state legislatures. Last year The New York Times investigation detailed how it was done in Kansas. The newspaper also had a reporter in Missouri but when the issue died in a completely dysfunctional Senate, the investigation focused elsewhere.

It’s coming to Missouri—on the gaming industry’s terms.  A bill in the House that would allow sports wagering on the state’s terms will get a hearing this year but will go nowhere. That’s the official word.

The industry-backed bills set aside up to one-half million dollars for dealing with people who are affected by gambling addictions. If you think the casinos are being noble and responsible in doing this, you are wrong. They want nothing to do with that funding.

The money, instead, will come from the fund underwritten by fees the casinos pay for each person who enters the gambling area—fees that have been rendered woefully inadequate because of inflation since they were put in place n 1993.  The industry has fought, successfully, every attempt to bring the two dollars up to contemporary values.

One result of that resistance is that funding for our veterans homes is about one-third what it was a decade ago and it’s going to get worse.  Even the host cities of our casinos have seen their casino payments decline by about half, a circumstance their association doesn’t seem to think is worth discussing.

The bills in the House that set aside that half million dollars take it from the programs that draw support from that admission fee fund, meaning taking funding away from the veterans homes, the host cities, a state college scholarship program and a National Guard funeral escort program.

The industry doesn’t care. It accepts no financial responsibility for those who develop problems by over-participation in its offerings.

The Hill article says, “Most Americans ignored the opioid crisis, a staggering increase in overdose deaths in the 1990s and 2000s, until the government and news media processed the data and tendered a response.”  Timothy Fong, a clinical professor of psychiatry at UCLA, told the publication, “We have a movement toward expanding what was once considered a sin, what was once considered a vice, and embedding it at every level of American culture, down to kindergarten.”

“You have exactly the same players you had with opioids. You have government. You have industry. You have civilians, a lot of whom will benefit from this. And then you have a population who will develop an addiction, let’s say one [to] one-point-five percent of the population.  It’s a hidden addiction. You can’t see it, you can’t smell it, you can’t taste it.”

We’ve looked at a lot of studies in this country and others of gambling addiction.  All of them point to gambling addiction at least tripling with the advent of sports wagering.

Lia Nower, the director of the Center for Gambling Studies at Rutgers University, told The Hill, “Gambling is a very different addition from drugs or alcohol. If I’m drunk or high, at some point my family is going to figure it out. With gambling, I can be sitting with my kids, watching cartoons, and gambling away my house, my car, everything I own, on my mobile phone. How would you know?”

Nower says New Jersey, the first state to have newly-legal sports wagering studied the issue of problem gambling BEFORE it allowed sports wagering. But she says most states “are just legalizing this stuff without any idea of the effects.” Missouri seems to be in that category.

We have yet to hear anybody outside of those with special interests in the topic, even so much as mention this coming potential public health crisis. Passing a bill with a pick-a-number amount set aside—subject to appropriation by the legislature—is not addressing the problem.  And having the industry that causes the problem directly take responsibility for it seems to be out of the question.

The Missouri Gaming Association once proclaimed, “As good corporate citizens, casinos do more than a fair share for military veterans…We honor and support our military veterans and will continue to do so…”

Just don’t trouble us to adjust outdated admission fees to stop the financial bleeding of Missouri’s nursing homes for veterans. And certainly don’t expect us to have any financial responsibility for veterans or anyone else who become the victims of our enterprise.

Just remember, we’re good corporate citizens. And we expect the people you elected to represent you and to protect your citizens’ interests to do what we want.

“I do think there are watershed moments in all public health crises. Unfortunately, it usually takes some kind of crisis or tragedy to turn the tide,” says Nower.

The “next opioid crisis” and accompanying tragedies is developing at the state capitol. Does your legislator care?

 

“The Casinos Will Never Buy That”

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My Representative, Dave Griffith, has filed a third bill in the House that allows sports wagering.  But this bill is different because it gives the legislature an important choice—it can vote for casino industry legislation that does nothing for the state or it can vote for Rep. Griffith’s bill that says sports wagering will be permitted, but only on the state’s terms.

It’s House Bill 953 if you want to look it up on the House web page.

It says sports wagering is no different from any other kind of casino gambling, despite the industry claiming that it is some kind of special system with low returns (it’s not) and will be taxed at the same rate, 21% of adjusted revenues (what’s left after all bets are paid) instead of the 10% the casinos want.  Based on the fiscal note for the industry’s bill that passed the House but died in the Senate, the industry bill would let casinos keep more than $30 million in tax breaks while paying the state less than $13 million.  And that’s just the first of the problematic parts of the bill.

Rep. Griffith’s bill also would force the casinos to pay for the expected tripling of problem gambling that comes with sports wagering, instead of taking money away from programs and services the state committed long ago to finance with gambling revenue.

The bill also would increase the admission fee that casinos pay to the state, set in 1993 at two dollars and unchanged since.  The contemporary equivalent of two 1993 dollars is $4.10, meaning the casinos are keeping more than they are paying the state in contemporary dollars.

Fifty cents of the new admission fee will go to the casinos own host cities that have lost half of their admission fee funding as casino patronage has fallen to a decade. Fifty cents would go to the state gaming commission with the largest share of those proceeds going to alleviate some of the funding crunch at veterans nursing homes—which last year received about one-third as much as they did a decade ago.  The third fifty cents will provide funding to keep the Steamboat Arabia Museum from being bought by  Pennsylvania museum and moved to Pittsburgh.

The casinos can keep the remaining fifty cents.

The gaming commission will adjust the admission fees for inflation each year so that we don’t see the casinos getting richer and richer off of admission fees while host cities and counties and state programs grow poorer and poorer.

More times than I want to think of, members of the legislature have told me after discussing some of these ideas, “The casinos will never buy that.”

Indeed, they haven’t and we expect tooth-and-toenails opposition to the Griffith bill this year.

I wonder, however, if those lawmakers who have told me, “The casinos will never buy that” have ever considered how demeaning to the General Assembly that comment is, almost to the point of a self-indictment.

Who’s in charge here?   The legislature or the casinos?   The answer appears quite clear based on what legislation has been moved—although, thankfully, not finally passed.

What does that statement say about the integrity of the individual legislator or of the General Assembly as a whole?

And for those thinking of seeking higher office, what will sell better with the voters: letting them bet on tonight’s game, or standing with the state’s veterans, educators, and even the casinos’ host cities?

We think we know what the general public’s answers would be to these questions—and that answer does not bespeak confidence in those that public presumes will watch out for its interests. Why, then, are lawmakers who have said that willing to accept the premise?  What is it that they are lacking in making that statement?  And how are they fueling a political climate in which their constituents consider themselves victims of government instead of partners in it?

The casino industry has an incredible amount of influence in the capitol.  One representative told me in the first year of efforts to update casino laws and to protect the museum that the industry would be interested in what was being proposed. “I’ve already gotten two checks from them this year,” he told me.

But this year’s different.  The Griffith bill gives lawmakers a choice. Who’s more important: the people lawmakers know back home or the people who want something from them in the capitol hallways?

Is there a place for courage? Integrity?  Service in the name of the people?  Or will it be business as usual?

We’ll find out this year, maybe.   And maybe voters will remember the answer in the campaign year that comes next.

 

Notes from a Quiet Street (post-January celebration)

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We saw something a few days ago at the Capitol that I don’t think we’ve ever seen—generally bipartisan reaction to a governor’s State of the State message. Applause from both sides of the aisle and complimentary assessments from the minority party that exceeded such positive comments we’ve seen in the past regardless of who the governor has been.

We’ll watch in the next four months to see if the good feelings last.

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Our State Representative has filed a sports wagering bill that gives the legislature a choice for the first time in the five years the gambling industry has tried to push the legislature into passing what the industry is demanding.  The new bill also allows sports wagering, but says it will be done on the state’s terms, not the indutry’s terms.  Our lawmakers now have a choice of whether the people are at home are more important than the people in the hallways of the Capitol.

We’ll probably revisit that topic later.

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Both political parties are looking for viable national candidates or tickets for 2024.  We have one for the GOP that will be hard to beat.

Kinsinger and Cheney.

Or

Cheney and Kinsinger

The party is unlikely to nominate either one, let alone both.  But it would seem that both would be attractive to non-Trumpist GOPers and to independents alike and likely would even draw some interest from Democrats, especially if the Democrats nominate a ticket that has weaknesses—and as we write this, there are plenty of questions within the Democratic Party about whether a renomination of Joseph Biden would be the most solid choice, particularly if somebody not named Trump runs on the other side.

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The Hill recently published a list of eight Republicans who could challenge Donald Trump in 2024.  You know Yogi’s old saying about deju vu.  One of the ways The Donald got the nomination in 2016 was because several candidates split the 65% of the primary vote he didn’t get primary after primary, enabling him to get all of the delegates at one-third the price.

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Some think he won’t be a factor by then—that his concern about a new four-year term should be replaced by concern about a 10-15 year term.

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Joe Biden will turn 82 a few weeks after the 2024 election.  Donald Trump will be that old when he finishes a second term, if——

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We are only about 17 or 18 months away from national conventions, a year away from the first primaries.  That’s a long time in politics.  Plenty of time for something good to happen.

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And Lord knows we need something good to happen in our politics.

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We are grateful it is February.  We have weathered the worst month of the year. Cold and snow do not seem so permanent after we have left January.  February is a short month and by the end of it men are playing baseball again and racing engines are running hot. And it stays daylight longer.  And soon there will be a little green haze in the trees.

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Update:  As of this writing, the Mediacom cable that the company laid across our street instead of re-burying it at the end of last September has been ripped out only twice by the snowplow. It quit working a third time, perhaps because regular traffic dislodged it from its attachment post in our neighbor’s yard. But a technician hustled right out and got it hooked back up.

But it’s only February. Plenty of time for snowplows to roam the streets again.

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Super Bowl is next weekend.  That will end the NFL Season and set the stage for the new XFL season that will carry us until the Canadian Football League starts, filling the gap until the next NFL season.

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And speaking of the NFL—It has found a way to make an irrelevant football game even more irrelevant.  The All-Star game was flag football. Made-for-TV entertainment.

Watch next year for one-hand below the waist games.

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An article in the local paper about this year’s efforts to get sports wagering approved mentioned Rep. Dave Griffith’s bill but missed an important point.  It’s the first time the legislature has been given a clear altenrative to the casino industry’s demands.  This is the first time the lawmakers will have a chance to decide if sports wagering should be done on the casino industry’s terms….or in the best interests of the people who sent those lawmakers here.

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