MA Senate to vote to save a dying Racetrack Industry by granting slot machine licenses
October 6, 2005
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Joseph Gillis Jr
October 6, MA Senate to vote to save a dying Racetrack Industry by granting slot machine licenses

  As I have read through the various proposals, one thing that keeps coming to the forefront is the fact that not only are the various proposals aimed at allowing slot machines in the Commonwealth, but more assiduously are a blatant give-away to a dying (or many would say dead) business.  Only in Massachusetts, where lobbyists rule the Statehouse, would such an ill-conceived plan be seriously discussed.
   Hey Senate President Travaglini – recently a number of restaurants in East Bridgewater had to close their doors because they could not make a financial success with rules about waste-water treatment.  You see, East Bridgewater does not have sewers, so the restaurants were on their own to either come up with a financial plan to afford the mandated improvements, or shut down.  I do not recall Senator Travaglini concerned for those businesses.  Perhaps, if he offered them slot machines and the extra income they would provide, these businesses would not have shut down and sent many everyday people to the unemployment lines.
   So, a couple of track owners will have their businesses saved.  Yes, a few thousand people may be effected if the tracks shutdown.  Then again, how many were effected when the East Bridgewater restaurants closed?  And, who will be the real winner in slots going to the racetracks?  Could it be the racetrack owners?
   One of the proposals on this give-away is for 2% of revenues to go to host communities; but also another 5% to promote the state’s racing industry and 7% to augment the prize money at the tracks.  That first 2% seems reasonable enough, but to kiss off the other 12% is a give-away to try to keep a nearly dead business afloat.
   If the residents of Massachusetts want slot machines, then it is incumbent upon the Legislature to maximize the benefit to the State.  That starts with putting the licenses to operate up for bid.  No business would target only a couple of locations and customers.  The availability of the licenses for slots could reap significant up-front cash and better than the estimated 60% of revenues.  But, will we ever know how much the State could have received?  Probably not, especially since Senate President Travaligni’s hometown also happens to be where a couple of tracks are coincidentally located.
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