Wednesday, October 17, 2007

Massachusetts Governor to Unveil Casino Gambling Plan ( Update 1)

2007-10-11 11:03 (New York)

By Michael McDonald

Oct. 11 (Bloomberg) -- Massachusetts Governor Deval Patrickis to unveil legislation to license three casino resorts that promise more than $1 billion in new state revenue.

The Democratic governor, who has scheduled a news conference at 2:30 p.m., will ask lawmakers to pass a bill legalizing slot machines and table games such as poker at three proposed resorts, levying a tax on casino revenue.

``The support is fairly strong, so he's operating from aposition of strength,'' said Clyde Barrow, director of the center for policy analysis at the University of Massachusetts.

A University of Massachusetts poll released on Oct. 5 found 55 percent of the state's residents support a casino plan while 27 percent oppose it. The survey of 1,190 people has a margin of error of plus or minus 2.8 percent.

Salvatore DiMasi, speaker of the state House of Representatives, said he is ``skeptical'' about the benefits expanded gambling offers and doubts the Legislature will consider it until next year.

``I have concerns about every single aspect of theproposal,'' DiMasi said in remarks after a speech on Sept. 28 to the Associated Industries of Massachusetts. The Democrat fromBoston's north end opposed a bill permitting slot machines at the state's horse race tracks, which was defeated last year.

The governor announced his support for casinos on Sept. 17. Massachusetts already has a state lottery. Neighboring RhodeIsland permits video slot machines and voters defeated a referendum last November legalizing casinos. Connecticut has two casino resorts, Foxwoods and Mohegan Sun.

Three Licenses

Patrick's anticipated plan would generate as much as $900 million from the sale of three casino resort licenses. Massachusetts would also tax the casinos, generating about $450 million a year. Of that $200 million would be used for property tax relief and $200 million for transportation projects, Patrick has said.

One casino would be permitted in each of three regions of the state: metropolitan Boston, western Massachusetts and southeastern Massachusetts. The Mashpee Wampanoag this year purchased land near Cape Cod on the southeast coast and submitted a business plan to the federal government for a casino.

A hotel and casino workers union has launched a radio advertising campaign in support of Patrick's plan, saying it will create ``20,000 middle class jobs.''

--Editor: Weiss

To contact the reporter on this story:Michael McDonald in Boston at +1-617-210-4639 ormailto:ormmcdonald10@bloomberg.net.

To contact the editor responsible for this story:Beth Williams at +1-212-617-2307 orbewilliams@bloomberg.net.

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