Lawmakers: Casinos here for now

State lawmakers aren’t rushing to change the gambling law to help race tracks or state-owned casinos this year.

House and Senate leaders made it clear they don’t want to revisit the 2007 law that allowed the creation of four state-owned casinos and permitted the Kansas Lottery to negotiation contracts for slot machines at horse and dog tracks. The Lottery would own the gambling.

So far, only the Boot Hill Casino and Resort in Dodge City is being built and all of the race tracks have closed.

Bills meant to help casino developers and race track owners have stalled in the Senate and House.

Legislative leaders have not pushed for a gambling debate this year in part because they don’t want gambling to get in the way of other issues. Also, some are concerned such a debate could open the door to repealing the gambling law that barely passed the Legislature two years ago.

Legislators will return from their spring break the week of April 27 to wrap things up, including revisiting the state budget, armed with new revenue estimates due later this month.

Gambling debate comes to Texas

The odds may be in favor of legalized gambling in Texas.

Lawmakers and gambling advocates dealt out plans to build resort casinos and allow casinos at race tracks and on American Indian lands in Texas at the House Licensing & Administrative Procedures Committee hearing Wednesday.

The controversial discussion drew a large crowd.

One bill would allow the creation of resort-style casinos in metropolitan areas.

Sheldon Adelson, chairman and chief executive of the Las Vegas Sands Corp., told the committee that destination resorts are the best opportunities for casino building.

He said Texas is a prime attraction spot and that his company would be interested in purchasing casino licenses in Texas if the bill passed.

Don Hoyte, an economic consultant for the Texas Gaming Association, presented research showing that if resort casinos were legalized, they could ultimately generate $3.3 billion annually in state and local tax revenue by 2015.

The 12 states with legalized gambling pulled in $5.8 billion in combined taxes last year, according to the American Gaming Association, which represents casinos.

Opponents of the bills say Texas may be breaking into the casino industry at a bad time for gambling. Nationwide, industry revenue is declining. As least two major casinos, worth $33.5 billion, have shut down in Las Vegas.

Nevada Gaming Control Board analyst Frank Streshley said gambling industry revenues are down 9.7 percent since 2008 — the biggest decline in 50 years. The second-largest decline was seen in 2001, when gambling revenues fell 1.3 percent.

“Visitation is down from both visitors to the state and people that live in the state, and it is down substantially,” Streshley said.

Christian Life Commission attorney Stephen Reeves said his organization opposes the expansion of gambling in Texas. People throw their money away and become addicted to gambling, he said. He said the goal of the slot machine is no secret: to get people to play longer, faster and more intensely.

“A lot more people are paying for the win than are getting the win,” Reeves said.

State Rep. Edmund Kuempel, chairman of the committee, said he disagreed with Reeves’ claim.

“You can’t save everybody from themselves,” Kuempel said. “Some people drink beer; some people do dope, but we can’t stop them.”

Reeves said there is a difference between taxing a vice that already exists and legalizing something in order to tax it.

“The beer and alcohol business fails if you don’t have alcoholics,” he said. “The casino industry fails if there are no pathological gamblers supporting it.”

Several bills called for installation of video slot machines at horse- and dog-race tracks, which owners say will make Texas’ tracks more competitive with those in other states.

Stuart Slagle, race secretary for Manor Downs, a horse and dog track in Austin, said the business supports the initiatives to bring video slot machines to Texas.

He said the installation of the video slot machines is an additional source of revenue that will help in the short-term but that it is not something to depend on in the long run.

“From the business perspective, everyone else has done it, and we need to do it too,” Slagle said.

Slagle said that even though revenue is down between 10 and 20 percent, bringing slot machines to the tracks would transfer money to the state.

“Depending on how big or small the pie is, all the [video slot tables] are being served to other states,” he said.

In Austin, legal gambling already exists in the form of horse and dog tracks, but there is also an illegal underground poker scene.

A 29-year-old Austin resident said he participates in organized poker games and tournaments about twice a week in the Austin area, including Round Rock and Pflugerville.

He said certain people open their homes and convert their living rooms into casino-like spaces, complete with professional card dealers, “hot” cocktail waitresses and a certain amount of security.

“There is a game in Austin that is known as the ‘big high-roller game,’” he said. “That’s where you will regularly see four- or five-thousand dollar pots in the hand.”

He said the poker operation is underground in the sense that it is not building Web sites and distributing flyers but is not a seedy business.

“The people are good, good people,” he said. “Good fun and hot cocktail waitresses.”
He said he supports legalizing gambling and would visit casinos if they were built.

“I don’t see gambling to be different than other things the government allows,” he said. “Drinking alcohol and smoking cigarettes are legal, even though they can be hazardous, but for some reason we don’t open casinos.”

Grumbling about gambling

The Pennsylvania Gaming Control Board took it on the chin again: “Ask them a real question,” one heckler shouted as a group of Philadelphia casino officials finished delivering a status report at the agency’s regular meeting last week.

“Provide some real oversight!” another beseeched the six silent board members. Another questioned: “Are you going to do your job?”

Such criticism — in this case, from a Philadelphia group protesting construction of online casinos in what they describe as residential neighborhoods — is nothing new for the gaming board created by the Legislature in 2004 to be the warden of the state’s new slot-machine gambling industry.

Trying to correct the gaming board’s perceived flaws also is nothing new for state lawmakers. About three months into the Legislature’s new two-year session, lawmakers are again preparing a raft of bills, this time to address complaints that the gaming board is too secretive, political or cozy with industry.

The bills — most being written by Republicans, many of whom opposed the legalization of slot machines — would amend numerous aspects of the state’s casino regulation.

One would give the governor the power to nominate each gaming board member, subject to a Senate confirmation process that is customary for many other government positions.

Currently, each legislative caucus appoints a board member who has the power to veto most matters that come before the board — an unusual voting structure that has frustrated the agency’s top staff and sown suspicion that gaming board members trade votes.

A second proposal would double to two years the period that departing gaming board employees must wait before going to work for the industry.

Another would clarify which information submitted by casino applicants the gaming board may keep confidential — a provision motivated by Pittsburgh-area lawmakers who butted heads with the agency last year while it considered how to rescue the city’s then-troubled casino project.

Senate President Pro Tempore Joe Scarnati, R-Jefferson, agreed that fixes are needed for the five-year-old slots law.

Scarnati, who voted for it, but was not among the legislators who negotiated it, wants more public disclosure from the gaming board and to force the agency to pare back its expenses after five agency officials ran up a $32,438 tab to attend a six-day industry gathering in Rome last year.

In the House of Representatives, changes in the slots law will not be among the front-burner gambling issues as the majority Democrats work to advance legislation to legalize video poker, a priority of fellow Democrat Gov. Ed Rendell, to help defray the cost of college tuition.

The House Gaming Oversight Committee chairman, Rep. Dante Santoni Jr., D-Berks, said he is familiar with Republican complaints about the gaming board and is not unsympathetic.

“We hear them and we’ll take a look at it,” said Santoni, who also supported the legalization of slots casinos. However, he said some Republican efforts are less about addressing real problems and more an attempt by legislators who oppose gambling to wedge a monkey wrench into the gears.

Santoni, who attended part of the gaming board’s Wednesday meeting that descended into chaos as protesters heckled and shouted at gaming board members and Philadelphia casino officials, said he understands that casino opponents in Philadelphia are frustrated.

But he also said that, as the committee chairman, he wants the Philadelphia casinos to get up and running so they will contribute to the statewide tax cuts Rendell used as leverage to win legislative approval of slots casinos.

Although nothing the Legislature does may satisfy some Philadelphians who oppose casinos there or other die-hard anti-casino activists in the state, many say the current law does not inspire confidence.

“Why can’t the process be open and transparent? Not backroom deals,” protester Brendan Walsh of Philadelphia groused during the gaming board meeting Wednesday. “A blind man could see that this is shady.”

Mobile phone deal will bring more gambling games to thousands of players

A deal struck between two technology companies could see hundreds of thousands of mobile games made available to punters as the gambling market continues to boom.

UK-based mobile betting technology firm Mfuse, which is backed by Sportingbet founder Mark Blandford, has struck a deal with Aim-listed Probability that will see games developed by the company made available to hundreds of thousands of gamblers.

Probability, which has developed more than 30 mobile games, is the first company to make use of Mfuse’s mobile gambling platform, which links directly to betting firms including Betsson, Bet365, Gala Coral Group, Ladbrokes, Sky Bet, Sporting Index, Sportingbet, Paddy Power and William Hill.

In the past, mobile game developers had to spend months designing games and tailoring them to work with the billing and online systems of individual betting companies. But the Mfuse platform makes it much easier and faster to get to market once a developer has had its game accepted by a betting firm.

Mobile gambling is booming despite the recession and legal issues with the technology in some markets such as the US. Independent experts Juniper Research estimate that the global mobile gambling industry will be taking $16.6bn (£11.3bn) worth of bets – ranging from casino betting and lotteries to sports betting – by 2011, up from $1.35bn in 2006.

London-based Mfuse, founded in 2002, has spent years building its system, called NOVO Open API, and it is now open to any game developer who wants to pitch games to the company’s partners. Probability, for instance, recently signed a deal with TV production house Fremantle to develop slot machine games based on some of its programmes including the X Factor and the Price is Right. It markets its games direct to consumers through the Ladyluck brand, which has more than 400,000 UK users.

In May last year Mfuse received £2.55m of funding from existing backer Bestport Ventures as well as new investors including Blandford, who became a non-executive director of the firm.

“The sports betting market is growing very rapidly and shows no signs of stopping,” said Marcus Wareham, chief executive of Mfuse. “As a result, we know the appetite is there for mobile gaming products. Opening up our platform allows us to rapidly deploy already successful mobile content to a huge client base.

“The partnership with Probability provides us with a strong base from which to start due to their large portfolio of original and branded content.”

Sportingbet Founder Mark Blanford Wins Again With Mobile Gambling

He founded one of the most successful online gambling sites, Sportingbet, and now he’s looking to make an impact on the mobile gambling market.

Mark “Gorby” Blansford is they key backer in MFuse. That company has struck a deal with Aim-listed Probability that will see games developed by the company made available to hundreds of thousands of gamblers.

MFuse links directly to some of the UK’s biggest online gambling firms including Betsson, Bet365, Gala Coral Group, Ladbrokes, Sky Bet, Sporting Index, Sportingbet, Paddy Power and William Hill.

From the Guardian:

“In the past, mobile game developers had to spend months designing games and tailoring them to work with the billing and online systems of individual betting companies. But the Mfuse platform makes it much easier and faster to get to market once a developer has had its game accepted by a betting firm.

“Mobile gambling is booming despite the recession and legal issues with the technology in some markets such as the US. Independent experts Juniper Research estimate that the global mobile gambling industry will be taking $16.6bn (£11.3bn) worth of bets - ranging from casino betting and lotteries to sports betting - by 2011, up from $1.35bn in 2006.”

MFuse is making such an impact on the sector that this year it won the gold award in the Mobile Gambling category in this year’s Future Mobile awards.

“The sports betting market is growing very rapidly and shows no signs of stopping,” said Marcus Wareham, chief executive of Mfuse. “As a result, we know the appetite is there for mobile gaming products. Opening up our platform allows us to rapidly deploy already successful mobile content to a huge client base.

“The partnership with Probability provides us with a strong base from which to start due to their large portfolio of original and branded content.”

“Everything Mark touches turns to gold,” says Gambling911.com Senior International Correspondent, Jenny Woo. “Prior to Mark (Blanford) leaving Sportingbet to pursue other ventures, the company had a market capitalization in excess of UK£ 750m.”

Sportingbet has been profiled on the popular CBS News Magazine, 60 Minutes.

Mike Meets Meyer

At a certain point in a one-man play currently running at an off-Broadway theater in New York, the charming character’s genial, joking monologue turns to the impossibility of finding a good pastrami sandwich in Tel Aviv. Holding up a plate with a suspect sandwich, the actor all but holds his nose. How can it be, he demands, that the Jewish state can’t produce acceptable Jewish deli meat?

The audience chuckles. The actor then breaks through the theatrical fourth wall, steps off the tiny stage and offers the plate to an audience member sitting in the first row.
“Taste it,” the actor says. “See if I’m telling the truth.”

The theater-goer shyly demurs. But the actor will have none of that. “Taste the sandwich,” he insists, his voice rising. Then, in a sudden burst of fury, he commands: “I SAID TASTE THE SANDWICH!”

Startled and shaken, the man in the audience complies.

The actor’s furious outburst is an inspired coup de theatre, at once unexpected, disconcerting and chilling. The performer after all is Mike Burstyn, long renowned on stage and screen as a sweet-tempered, even cuddly comedian and song-and-dance man. But his real-life character is Meyer Lansky, a notorious American Jewish gangster believed by many to be the original organizer of organized crime, the mastermind behind such Mafia institutions as the Syndicate and Murder, Inc.

The 80-minute play, entitled simply “Lansky,” was written by Richard Krevolin and Joseph Bologna and directed by Bologna. A Hebrew version of the play was mounted at Tel Aviv’s Cameri Theater a few years ago, and when Burstyn was in Israel in 2006 for a celebration marking the 40th anniversary of his first “Kuni Leml” film (a comedy series now viewed as something of a landmark in Israeli cinema), director Yoel Zilberg suggested to the American-Israeli actor that he consider doing an English-language version of the play.

“It was a surprising and, of course, intriguing suggestion,” Burstyn told The Report in a recent phone interview. “I mean, for me to play such a controversial character. But we went to work on it, myself and the writers. I did a lot of research. I really became fascinated by Lansky. After about a year, we had ourselves a script.”

Burstyn previewed “Lansky” last year in Los Angeles, where it had an extended run of 13 weeks, then transferred it this year to Manhattan’s St. Luke’s Theater on West 46th Street, where it opened to good reviews. The actor says plans for a national tour are in the works, with Chicago, Detroit and Miami as likely venues.

The play is set in a Tel Aviv restaurant in 1971. At that point in his career, Lansky was nearing 70 (Burstyn is 54) and was seeking to settle permanently in Israeli and to acquire Israeli citizenship under the Law of Return.
Lansky’s application for citizenship became a matter of inflamed national debate that continued for over two years. One side held the view that every Jew has the right to become an Israeli. The other side maintained that Lansky was merely trying to avoid federal prosecution in the United States on charges of income tax evasion, racketeering, money-laundering and possibly worse, and that the Jewish state had no business being a haven for fugitives from justice. Israel, it was said, was also concerned that admitting Lansky might jeopardize its political and military aid from the United States
Despite Lansky’s arguments that he was merely a “retired businessman” and, in fact, had given much material aid to the nascent State of Israel, the Israeli Supreme Court ultimately ruled that Lansky’s presence in Israel constituted a danger to the public and he was ordered out of the country. Meanwhile, the United States had withdrawn Lansky’s passport, with the result that Lansky’s efforts to seek refuge in Paraguay, Argentina, Panama, Switzerland and elsewhere were in vain. Lansky reportedly offered bribes of up to $1 million to numerous immigration authorities but found no takers.

Defeated, the wandering Jew and his wife reluctantly returned to their condo in Miami. He was immediately arrested and then released on $250,000 bond, which the mobster handed over in cash. Lansky was tried on various charges but the jury failed to convict, largely because of the unreliability of the chief prosecution witness, a former Mafia figure. Other charges were dropped because of extended legal wrangling and because of Lansky’s poor health. Lansky died in 1983 at the age of 81.

Mike is sympathetic to Meyer. “First of all,” he said, “I can’t play a character I don’t care about. I once played the villainous lawyer Roy Cohn in a Broadway play called ‘Inquest.’ It was about the Rosenbergs, and Cohn was a truly nasty individual. But he was a human being, with human failings, and that’s the same way I feel about Lansky. I never met Lansky, but I did see him from time to time when he was holding court at the Café Dan in Tel Aviv. He was a weary old Jew, in poor health. He wanted to be buried in Israel, for heaven’s sake. I think Israel should have allowed him to stay. Whatever his past, he was retired. Besides, there’s little evidence that he ever had any blood on his hands.”

Yet some observers maintain that lack of evidence is simply testimony to a highly circumspect operator who was careful never to leave fingerprints at the scene of his crimes. Indeed, one of the few things that Lansky biographers and others agree on is that Meyer Lansky was exceedingly shrewd and smart. Born in Grodno, Byelorussia, as Maier Suchowljansky, Lansky was taken to the United States in 1911 by his impoverished parents, who settled in New York’s Lower East Side. In his youth, the feisty, undersized Lansky formed lifelong friendships with future underworld lords like Benjamin “Bugsy” Siegel and Charles “Lucky” Luciano. He soon attracted the attention - and the all-important endorsement - of Arnold Rothstein, a New York crime kingpin widely reputed to be the man who had fixed the 1919 World Series.

Little Meyer immediately dazzled everyone with his considerable mathematical skills, which he used to beat the odds in neighborhood crap games. He would later apply such talents to other forms of gambling and ultimately to his casino interests, both legal and not, in Saratoga Springs, New Orleans, Las Vegas, Miami, the Bahamas and Cuba. (Lansky reportedly lost some $14 million in gambling interests in 1959 when Fidel Castro overthrew the eminently corrupt Fulgencio Batista and shut all the gambling dens. Lansky’s brother Jake managed Havana’s notorious Nacional Casino Hotel.)

Over the years Lansky would be suspected
of, among other things, skimming casino profits, loan-sharking, conspiracy, bankrolling prostitution and drug dealing, bootlegging, illegal involvement in union funds, stock manipulation, money laundering via legitimate businesses and shell companies and, not least, the contract killings of such mob figures as Sal Marazano, Giuseppe Masseria, Albert Anastasia and, reportedly with deep regret, his boyhood pal Bugsy Siegel. U.S. Senate investigators believed that at the very least, Lansky was the overall chief accountant for the mob. According to whose version you choose to believe, at the time of his death, he was either broke (Lansky’s claim) or in possession of some $300 million squirreled away in secret Swiss accounts. At least one biographer believed Lansky had so much swag to stash that he even established his own Swiss bank.

To bolster his efforts at winning Israeli citizenship, Lansky simultaneously played down his unsavory reputation (in truth he had only a single gambling conviction against him, for which he had served a two-month sentence) and played up what he insisted was his clandestine service to the cause of Jewish independence. He claimed it was the pogroms he had witnessed as a child in Grodno and the unremitting anti-Semitism in the United States that had made him a fighter - and an admirer of other Jews who stood up for themselves.