Gambling and Gambling and EducationEducation

StopSlotsMaryland is a coalition of faith StopSlotsMaryland is a coalition of faith organizations, civic groups, elected organizations, civic groups, elected

officials, business leaders, and officials, business leaders, and concerned citizens working together to concerned citizens working together to counter a massive corporate lobbying counter a massive corporate lobbying

effort intended to bring large-scale effort intended to bring large-scale commercial gambling to Maryland.commercial gambling to Maryland.

www.StopSlotsMaryland.com

Aaron MeisnerAaron Meisner(410) 963-7718(410) 963-7718

o Chairman, StopSlotsMarylandChairman, StopSlotsMarylando Involved Since 2001Involved Since 2001o Investment Advisor with a Investment Advisor with a

Nationally-known Wall Street FirmNationally-known Wall Street Firmo Married, with two boys who will Married, with two boys who will

both be attending Baltimore City both be attending Baltimore City Public Schools next yearPublic Schools next year

o Feel free to call me with questionsFeel free to call me with questions

Why Oppose Gambling?Why Oppose Gambling? State-sponsored gambling is corrosive to State-sponsored gambling is corrosive to

good government.good government. Gambling is an inherently regressive, Gambling is an inherently regressive,

dishonest, and undemocratic way to dishonest, and undemocratic way to fund essential services.fund essential services.

Gambling is predatory and addictive, Gambling is predatory and addictive, leaving destroyed lives and families in leaving destroyed lives and families in its wake.its wake.

Gambling brings more gambling.Gambling brings more gambling. Gambling promotes the idea that hard Gambling promotes the idea that hard

work is only for the foolhardy.work is only for the foolhardy.

A friend of mine, the Rev. Byron Brought, pastor of A friend of mine, the Rev. Byron Brought, pastor of Calvary United Methodist Church, tells the story of Calvary United Methodist Church, tells the story of one of his parishioners who was in line at a Rite Aid one of his parishioners who was in line at a Rite Aid drugstore, just a block from his church. The drugstore, just a block from his church. The gentleman was waiting to pay for a purchase. A gentleman was waiting to pay for a purchase. A woman in front of him put her intended purchase on woman in front of him put her intended purchase on the counter and ordered two lottery tickets. The the counter and ordered two lottery tickets. The clerk got the tickets, but the woman did not have clerk got the tickets, but the woman did not have enough money to pay for both the tickets and her enough money to pay for both the tickets and her intended purchase. So she bought the tickets, and intended purchase. So she bought the tickets, and scratched them off immediately, hoping for a win. scratched them off immediately, hoping for a win. She lost. She left the store with only the scratched She lost. She left the store with only the scratched off tickets in hand. Her other intended purchase was off tickets in hand. Her other intended purchase was left lying on the drugstore counter. The man behind left lying on the drugstore counter. The man behind her came to the counter and saw what the woman her came to the counter and saw what the woman intended to purchase: a bottle of children's cough intended to purchase: a bottle of children's cough medication.medication.

Alderman Sam ShropshireAlderman Sam Shropshire

March 31, 2008

OMAHA, Neb. (AP) — A Roman Catholic nun accused of stealing from the Omaha Archdiocese and gambling much of the money away has pleaded guilty to theft.An attorney says Sister Barbara Markey pleaded Monday to theft of more than $1,500. Defense attorney J. William Gallup says she also agreed to pay $125,000 in restitution.Markey faces up to 20 years in prison when she is sentenced in July.Markey is an internationally known speaker. She was fired in 2006 as director of the archdiocese's family life office after an audit found irregularities.The audit found that Markey spent $307,545 for her own use or without documentation. Prosecutors say Markey used the money to cover gambling forays, gifts and trips.

Nun Pleads to Stealing From Diocese

Sister Barbara Markey worked only 7.5 miles from the

local Harrah’s casino

Why Oppose the Why Oppose the Referendum?Referendum?

The proposed sites will NOT deliver the The proposed sites will NOT deliver the promised revenues. National experts have promised revenues. National experts have called these some of the worst slots called these some of the worst slots locations in the United States.locations in the United States.

Slots will NOT keep gambling money in Slots will NOT keep gambling money in Maryland. There is no location to counter Maryland. There is no location to counter Charles Town, and there are no destination Charles Town, and there are no destination locations. A huge slice of the money will locations. A huge slice of the money will leave Maryland for Canada and Nevada.leave Maryland for Canada and Nevada.

More Reasons to OpposeMore Reasons to Oppose

The referendum places slots language The referendum places slots language into our State Constitution, right along into our State Constitution, right along with our Right To Free Speech (article with our Right To Free Speech (article 10) and our Right To Petition 10) and our Right To Petition Grievances (article 13).Grievances (article 13).

Magna Entertainment has promised Magna Entertainment has promised 65% of the first five year’s profits to Joe 65% of the first five year’s profits to Joe DeFrancis and his partners. This deal DeFrancis and his partners. This deal gradually declines to 40% after ending gradually declines to 40% after ending after 20 years. There is no money left after 20 years. There is no money left to prop up the racetracks.to prop up the racetracks.

Still More Reasons…Still More Reasons… Gambling diverts spending from other Gambling diverts spending from other

legitimate economic activities like dining legitimate economic activities like dining out, going to the movies, even saving for out, going to the movies, even saving for retirement.retirement.

Employers hesitate to relocate to locations Employers hesitate to relocate to locations near gambling facilities. Embezzlement near gambling facilities. Embezzlement and lost productivity are real. and lost productivity are real.

Laurel Park, with 4,750 addictive slot Laurel Park, with 4,750 addictive slot machines, would be only six miles from machines, would be only six miles from the National Security Agency. Is this a the National Security Agency. Is this a good idea?good idea?

Gambling has no natural constituency. It exists only as a Special Interest Lobby.

There is no policy rationale for gambling.

If all of this is true, If all of this is true, why are even having why are even having

this discussion?this discussion?

LOBBYINGLOBBYINGMONEY.MONEY.

According to Common Cause Maryland, the gambling lobby has been spending over a million dollars every year on lobbying and campaign cash in Maryland alone—for years!

In states where gambling is passed, the gambling industry establishes lobbying dominance within a few years, crowding out opposing voices entirely.

A brief history of gambling A brief history of gambling in Maryland…in Maryland…

Southern Maryland SlotsSouthern Maryland Slots1949-19681949-1968

5,000 slot machines were legally operated in 5,000 slot machines were legally operated in a handful of Southern Maryland counties.a handful of Southern Maryland counties.

Crime and Corruption became rampant.Crime and Corruption became rampant. Grand Jury hears testimony regarding vote Grand Jury hears testimony regarding vote

buying in the House of Delegates.buying in the House of Delegates. Slots were finally repealed by Governor Slots were finally repealed by Governor

Tawes in 1963 under pressure from citizens.Tawes in 1963 under pressure from citizens. ““Destroying the fabric of family and Destroying the fabric of family and

economic life in our county.”*economic life in our county.”* Are we doomed to repeat history?Are we doomed to repeat history?

*Source: City Paper 12/1/2004*Source: City Paper 12/1/2004

Budgets and Economic Budgets and Economic CyclesCycles

How do Governors deal with normal cyclical How do Governors deal with normal cyclical economic declines in state revenues? economic declines in state revenues?

LOTTERY

KENOSLOTS

Governor Marvin MandelGovernor Marvin Mandel

Economic Malaise of the Early ’70sEconomic Malaise of the Early ’70sLotteryLottery

One Drawing Per WeekOne Drawing Per Week Proceeds to Benefit EDUCATIONProceeds to Benefit EDUCATION Within Ten Years we had Pick 3, Pick 4, Within Ten Years we had Pick 3, Pick 4,

Lotto, and Scratch Off games. Lotto, and Scratch Off games. Proceeds go to General Fund and Proceeds go to General Fund and

Stadium AuthorityStadium Authority Economy RecoversEconomy Recovers

Governor Wm. Donald Governor Wm. Donald SchaeferSchaefer

Recession of the Early ’90sRecession of the Early ’90s

KenoKeno Threatens to veto any bill that doesn’t Threatens to veto any bill that doesn’t

include Keno or $100 million to include Keno or $100 million to replace it.replace it.

Keno falls far short of promised Keno falls far short of promised revenues, and lottery sales fall as well.revenues, and lottery sales fall as well.

Economy RecoversEconomy Recovers

Governor Robert EhrlichGovernor Robert Ehrlich

Recession and Market Downturn Recession and Market Downturn of ’01-’02of ’01-’02

Governor Ehrlich Pushes Slots BillsGovernor Ehrlich Pushes Slots Bills Senate President Mike Miller Builds Senate President Mike Miller Builds

Budget PressureBudget Pressure Laying the Groundwork for CrisisLaying the Groundwork for Crisis Economy RecoversEconomy Recovers

What have we learned?What have we learned?

1)1) Gambling expansion is ALWAYS Gambling expansion is ALWAYS sold as the ONLY way to meet our sold as the ONLY way to meet our education funding responsibilities.education funding responsibilities.

2)2) Gambling solutions have NEVER Gambling solutions have NEVER met expectations.met expectations.

3)3) Non-gambling money that would Non-gambling money that would have gone to education gets have gone to education gets diverted. “We gave at the office.”diverted. “We gave at the office.”

The Myth of Recession-The Myth of Recession-Proof IncomeProof Income

Years ago, studies showed that gambling was Years ago, studies showed that gambling was amazingly economically resilient.amazingly economically resilient.

"It's an old idea that has very little relevance "It's an old idea that has very little relevance and maybe no relevance to the United States and maybe no relevance to the United States today” today” Eugene Eugene ChristiansonChristianson

This was due to scarcity of gambling This was due to scarcity of gambling opportunities.opportunities.

While demand was un-even, each venue was While demand was un-even, each venue was drawing against the whole economy, not just drawing against the whole economy, not just one region or economic sector.one region or economic sector.

The Competitive Reality The Competitive Reality TodayToday

Gambling is available in 48 statesGambling is available in 48 states The Mid-Atlantic is approaching The Mid-Atlantic is approaching

saturation with gambling encroaching saturation with gambling encroaching from every direction.from every direction.

Gambling has been transformed from a Gambling has been transformed from a destination activity to an ordinary destination activity to an ordinary discretionary spending item.discretionary spending item.

In a recession, discretionary spending In a recession, discretionary spending is extremely vulnerable.is extremely vulnerable.

Lottery Revenues are Lottery Revenues are UnreliableUnreliable

Schools require Schools require funding that grows funding that grows with populationwith population

Lottery revenues Lottery revenues have seen long have seen long periods of periods of stagnationstagnation

Can we expect slots Can we expect slots revenue to be safe revenue to be safe from competition from competition and other factors?and other factors?

Source: Maryland Lottery 2007 Annual Report

Are we marketing to Are we marketing to children?children?

The Myth of “Good Jobs”The Myth of “Good Jobs”

Slots are highly profitable for Slots are highly profitable for operators in part because they require operators in part because they require very little labor.very little labor.

While there are a handful of While there are a handful of management jobs, the vast majority of management jobs, the vast majority of jobs are low-level, low-wage positions. jobs are low-level, low-wage positions.

Job and wage estimates are routinely Job and wage estimates are routinely over-stated in the lobbying frenzy.over-stated in the lobbying frenzy.

Casino construction jobs don’t last, but Casino construction jobs don’t last, but slots victimize the workers forever.slots victimize the workers forever.

Mountaineer Labor Mountaineer Labor DisputeDispute

West Virginia’s Mountaineer Casino & Racetrack West Virginia’s Mountaineer Casino & Racetrack pays average wages and benefits of only $9.34 an pays average wages and benefits of only $9.34 an hour.hour.

Workers have the option of buying health benefits Workers have the option of buying health benefits for $109 per week.for $109 per week.

A 40-hour worker who wants health care is paid A 40-hour worker who wants health care is paid $264.60 per week—BEFORE taxes.$264.60 per week—BEFORE taxes.

Children of these workers are eligible for WV’s Children of these workers are eligible for WV’s Children’s Health Insurance Program (CHIP). Children’s Health Insurance Program (CHIP).

So the state of West Virginia subsidizes the casino, So the state of West Virginia subsidizes the casino, not the other way around.not the other way around.

This is supposed to be good economic policy?This is supposed to be good economic policy?Source: Associated Press 3/27/08Source: Associated Press 3/27/08

Things to Cut Before Things to Cut Before EducationEducation

March 28, 2008March 28, 2008Governor O’Malley and pro-Governor O’Malley and pro-

slots campaign chief Fred slots campaign chief Fred Puddester unveil a new Puddester unveil a new right field scoreboard at right field scoreboard at

Oriole Park.Oriole Park.

COST TO TAXPAYERS:COST TO TAXPAYERS:

$5.2 MILLION$5.2 MILLION

COST TO PETER COST TO PETER ANGELOS:ANGELOS:

$0.00$0.00

“It was done in a tasteful way.”

Martin O’Malley

Things to Cut Before Things to Cut Before EducationEducation

March 28, 2008March 28, 2008Governor O’Malley Governor O’Malley proposes $4.3 million proposes $4.3 million

for mental health for mental health programs for programs for

returning troops.returning troops.

Federal WarFederal War Federal TroopsFederal Troops

Federal Federal ResponsibilityResponsibility

“As the state of Maryland, we need to step up.”

Martin O’Malley

Things to Cut Before Things to Cut Before EducationEducation

March 28, 2008March 28, 2008One DayOne Day Total: $9.5 Million Total: $9.5 Million

Slots Will Not Solve the Slots Will Not Solve the Pension ProblemPension Problem

Gambling has never met the Gambling has never met the education funding goals set in the education funding goals set in the past.past.

Would you want to teach in West Would you want to teach in West Virginia, Louisiana, or Nevada?Virginia, Louisiana, or Nevada?

Slots are not a reliable revenue source Slots are not a reliable revenue source in the contemporary economy.in the contemporary economy.

This will be an excuse for Annapolis to This will be an excuse for Annapolis to abandon education in years to come.abandon education in years to come.

Take ActionTake Action

Vote AGAINST supporting the MSTA Vote AGAINST supporting the MSTA pro-gambling position.pro-gambling position.

Talk to your colleagues and friends Talk to your colleagues and friends about the realities of gambling about the realities of gambling revenues.revenues.

Write a Letter to the Editor.Write a Letter to the Editor. Get involved at Get involved at

StopSlotsMaryland.com.StopSlotsMaryland.com.

www.StopSlotsMaryland.com