Vetoed by Governor Deval Patrick

Full Bill Text
Veto Letter

Vote Smart's Synopsis:

Vote to adopt a conference report that authorizes and regulates the operation of 3 gambling establishments ("casinos") and authorizes 2 existing simulcasting facilities ("racetracks") to operate slot machines.

Highlights:

-Establishes a Massachusetts Gaming Commission consist of 5 commissioners appointed in the following ways (Sec. 12):

-1 appointed by the governor; -1 with experience in criminal investigations and law enforcement appointed by the attorney general; -1 with experience in corporate finance and securities appointed by the treasurer and receiver general; and -2 appointed by the approval of 2 of the 3 appointing authorities, with 1 having experience in legal and policy issues related to gambling.

-Defines a "Category 1 license" as a license issued by the Commission that permits the licensee to operate a gambling establishment with table games and slot machines (Sec. 12). -Defines a "Category 2 license" as a license issued by the Commission to an existing simulcasting facility to operate slot machines at a gambling establishment (Sec. 12). -Authorizes the Commission to issue up to 3 Category 1 licenses, and imposes a limit of 1 license per region, consisting of the following areas (Sec. 12):

-Region 1: Suffolk, Middlesex, Essex and Worcester counties; -Region 2: Norfolk, Bristol, Plymouth, Nantucket, Dukes and Barnstable counties; and -Region 3: Hampshire, Hamden, Franklin and Berkshire counties.

-Authorizes the Commission to issue up to 2 Category 2 licenses, and up to 1250 slot machines per qualified establishment, or up to 1000 slot machines per establishment if the category 2 applicants are located in the same geographical region of the Commonwealth (Sec. 12). -Requires an applicant for any gambling licensee to maintain any existing racing facility on the premises (Sec. 12). -Exempts the following from being defined as illegal gambling (Sec. 1):

-A lottery game conducted by the state lottery commission; -Gambling regulated by the Commission pursuant to General Laws Ch. 23K; -Pari-mutuel wagering on horse races, whether live or simulcast, pursuant to General Laws Chs. 128A and 128C; -Bingo pursuant to General Laws Ch. 271; and -Charitable gambling pursuant to General Laws Ch. 271.

-Establishes a Division of Gaming Enforcement in the Department of the Attorney General with jurisdiction to do the following (Sec. 4):

-Investigate and prosecute allegations of criminal activity related to or impacting the operation of gambling establishments or games; -Receive and take appropriate action on referrals for criminal prosecution from the commission or any other law enforcement body; -Provide assistance, upon request, to the commission in the consideration and promulgation of rules and regulations; -Ensure that there is no duplication of duties and responsibilities between it and the Commission; and -Recommend persons to be placed on the list of excluded persons maintained by the Commission.

-Prohibits employees of the Division of Gambling Enforcement from gambling in establishments under their jurisdiction while employed by the division, except as part of the performance of official duties (Sec. 4). -Requires the Commission to deny an application for a gambling license, or any other license or registration if the applicant has done the following (Sec. 12):

-Been convicted of a felony or other convictions involving embezzlement, theft, fraud or perjury, provided, however that for convictions which occurred before the 10-year period immediately preceding application for licensure, an applicant may demonstrate, and the Commission shall consider, the applicant's rehabilitation and whether such conviction should not result in denial of the application; -Submitted an application for a license that contains false or misleading information; -Committed prior acts which have not been prosecuted or convicted but form a pattern of misconduct that makes the applicant unsuitable for a license; or -Has affiliates or close associates that would not qualify for a license or whose relationship with the applicant could pose an "injurious threat" to the interests of the commonwealth in awarding a gambling license to the applicant.

-Requires the Commission, when determining whether an applicant should receive a gambling license, to evaluate factors including, but not limited to, the following (Sec. 12):

-Protecting the lottery from any adverse impacts due to expanded gambling; -Promoting local businesses in host and surrounding communities, including developing cross- marketing strategies with local restaurants, hotels, retail outlets and performing arts organizations; -Implementing a workforce development plan to utilize the existing labor force in the commonwealth; -Taking additional measures to address problem gambling; -Providing a market analysis detailing the benefits of the site location of the gambling establishment and the estimated recapture rate of gambling-related spending by residents traveling to out-of-state gambling establishments; -Maximizing revenues received by the commonwealth; -Providing a high number of quality jobs in the proposed gambling establishment; -Offering the highest and best value creating a "secure and robust" gambling market in the region and the commonwealth; and -Mitigating potential impacts on host and surrounding communities which might result from the development or operation of the gambling establishment.

-Establishes in the State Police a Gaming Enforcement Unit to investigate criminal gambling violations (Sec. 10). -Authorizes the Commission to have all powers necessary or convenient to carry out and effectuate its purposes, including, but not limited to, powers to do the following (Sec. 12):

-Assure that licenses shall not be issued to nor held by, nor shall there be any material involvement, directly or indirectly, with a gambling operation or the ownership thereof, by unqualified, disqualified, or "unsuitable" persons; -Develop criteria to assess which applications for gambling licenses will provide the "highest and best" value to the commonwealth and the region in which a gambling establishment is to be located; -Determine which applicants shall be awarded gambling licenses; -Gather facts and information applicable to the Commission's obligation to issue, suspend or revoke licenses, work permits, or registrations; -Be present through its inspectors and agents at all times in gambling establishments for the following purposes: -Certifying the revenue thereof; -Receiving complaints from the public relating to the conduct of gambling and wagering operations; -Examining records of revenues and procedures, inspecting and auditing all books, documents, and records of any licensee; and -Conducting periodic reviews of operations and facilities; -Inspect and have access to all equipment and supplies in any licensed gambling establishment or in any premises where gambling equipment is manufactured, sold or distributed; Deny any application or limit, condition, restrict, revoke or suspend a license, registration, finding of suitability or approval or fine a person licensed, registered, found suitable of approved for any cause the commission deems reasonable; and -Restrict, suspend or revoke gambling licenses.

-Establishes within the Commission an Investigations and Enforcement Bureau, which shall be the primary enforcement agent for regulatory matters (Sec. 12). -Specifies the criteria for applicants to be eligible to receive a gambling license, including, but not limited to, requirements that the applicant commit to do the following (Sec. 12):

-Agree to be a state lottery reseller for the purpose of lottery, multi-jurisdictional lottery and keno games, and demonstrate that state lottery and keno games would be readily accessible to the guests of the gambling establishment; -Own or acquire within 60 days after a license has been awarded, the land where the gambling establishment is proposed to be constructed; -Meet the licensee deposit requirement; -Demonstrate ability to pay and commit to paying the gambling licensing fee; -Demonstrate the proposed manner of addressing lottery mitigation, compulsive gambling problems, workforce development, community development, and host and surrounding community mitigation issues; -Provide a signed agreement between the host community and the applicant setting forth the conditions to have a gambling establishment located in the community; -In the case of an application for a category 1 license, have received a certified and binding vote on a ballot question at an election in the host community, in favor of such license; -In the case of a category 2 license, a binding vote in the host community where the gambling establishment will be located by a majority of members of the town council, or in a city having a Plan D or Plan E charter, the city manager and the city council and in any other city the mayor and city council and in towns a majority vote of those present and voting at a town meeting and approval by the board of selectmen; and -Provide a community impact fee to the host community.

-Prohibits a person from being employed or conducting business with a gambling licensee unless such person has been licensed by or registered with the commission (Sec. 12). -Authorizes a gambling licensee to issue credit to a patron of a gambling establishment in accordance with the following regulations (Sec. 12):

-Procedures for confirming that a patron has an established credit history and is in good standing; -Whether the patron has a good credit history with the gambling establishment; -Authorization of any credit instrument; -Methods for acknowledging a credit instrument and payment of debt; and -Information to be provided by the patron to the gambling establishment to be shared with the Board for auditing purposes.

-The bill number was H 4591 when introduced, H 4619 after House amendments were incorporated, H 4619 after Senate amendments were incorporated (Senate amendments are printed in S 2495), and H 5000 after Conference Committee amendments were incorporated.

Full Bill Text

Vote Smart's Synopsis:

Vote to adopt a conference report that authorizes and regulates the operation of 3 gambling establishments ("casinos") and authorizes 2 existing simulcasting facilities ("racetracks") to operate slot machines.

Highlights:

-Establishes a Massachusetts Gaming Commission consist of 5 commissioners appointed in the following ways (Sec. 12):

-1 appointed by the governor; -1 with experience in criminal investigations and law enforcement appointed by the attorney general; -1 with experience in corporate finance and securities appointed by the treasurer and receiver general; and -2 appointed by the approval of 2 of the 3 appointing authorities, with 1 having experience in legal and policy issues related to gambling.

-Defines a "Category 1 license" as a license issued by the Commission that permits the licensee to operate a gambling establishment with table games and slot machines (Sec. 12). -Defines a "Category 2 license" as a license issued by the Commission to an existing simulcasting facility to operate slot machines at a gambling establishment (Sec. 12). -Authorizes the Commission to issue up to 3 Category 1 licenses, and imposes a limit of 1 license per region, consisting of the following areas (Sec. 12):

-Region 1: Suffolk, Middlesex, Essex and Worcester counties; -Region 2: Norfolk, Bristol, Plymouth, Nantucket, Dukes and Barnstable counties; and -Region 3: Hampshire, Hamden, Franklin and Berkshire counties.

-Authorizes the Commission to issue up to 2 Category 2 licenses, and up to 1250 slot machines per qualified establishment, or up to 1000 slot machines per establishment if the category 2 applicants are located in the same geographical region of the Commonwealth (Sec. 12). -Requires an applicant for any gambling licensee to maintain any existing racing facility on the premises (Sec. 12). -Exempts the following from being defined as illegal gambling (Sec. 1):

-A lottery game conducted by the state lottery commission; -Gambling regulated by the Commission pursuant to General Laws Ch. 23K; -Pari-mutuel wagering on horse races, whether live or simulcast, pursuant to General Laws Chs. 128A and 128C; -Bingo pursuant to General Laws Ch. 271; and -Charitable gambling pursuant to General Laws Ch. 271.

-Establishes a Division of Gaming Enforcement in the Department of the Attorney General with jurisdiction to do the following (Sec. 4):

-Investigate and prosecute allegations of criminal activity related to or impacting the operation of gambling establishments or games; -Receive and take appropriate action on referrals for criminal prosecution from the commission or any other law enforcement body; -Provide assistance, upon request, to the commission in the consideration and promulgation of rules and regulations; -Ensure that there is no duplication of duties and responsibilities between it and the Commission; and -Recommend persons to be placed on the list of excluded persons maintained by the Commission.

-Prohibits employees of the Division of Gambling Enforcement from gambling in establishments under their jurisdiction while employed by the division, except as part of the performance of official duties (Sec. 4). -Requires the Commission to deny an application for a gambling license, or any other license or registration if the applicant has done the following (Sec. 12):

-Been convicted of a felony or other convictions involving embezzlement, theft, fraud or perjury, provided, however that for convictions which occurred before the 10-year period immediately preceding application for licensure, an applicant may demonstrate, and the Commission shall consider, the applicant's rehabilitation and whether such conviction should not result in denial of the application; -Submitted an application for a license that contains false or misleading information; -Committed prior acts which have not been prosecuted or convicted but form a pattern of misconduct that makes the applicant unsuitable for a license; or -Has affiliates or close associates that would not qualify for a license or whose relationship with the applicant could pose an "injurious threat" to the interests of the commonwealth in awarding a gambling license to the applicant.

-Requires the Commission, when determining whether an applicant should receive a gambling license, to evaluate factors including, but not limited to, the following (Sec. 12):

-Protecting the lottery from any adverse impacts due to expanded gambling; -Promoting local businesses in host and surrounding communities, including developing cross- marketing strategies with local restaurants, hotels, retail outlets and performing arts organizations; -Implementing a workforce development plan to utilize the existing labor force in the commonwealth; -Taking additional measures to address problem gambling; -Providing a market analysis detailing the benefits of the site location of the gambling establishment and the estimated recapture rate of gambling-related spending by residents traveling to out-of-state gambling establishments; -Maximizing revenues received by the commonwealth; -Providing a high number of quality jobs in the proposed gambling establishment; -Offering the highest and best value creating a "secure and robust" gambling market in the region and the commonwealth; and -Mitigating potential impacts on host and surrounding communities which might result from the development or operation of the gambling establishment.

-Establishes in the State Police a Gaming Enforcement Unit to investigate criminal gambling violations (Sec. 10). -Authorizes the Commission to have all powers necessary or convenient to carry out and effectuate its purposes, including, but not limited to, powers to do the following (Sec. 12):

-Assure that licenses shall not be issued to nor held by, nor shall there be any material involvement, directly or indirectly, with a gambling operation or the ownership thereof, by unqualified, disqualified, or "unsuitable" persons; -Develop criteria to assess which applications for gambling licenses will provide the "highest and best" value to the commonwealth and the region in which a gambling establishment is to be located; -Determine which applicants shall be awarded gambling licenses; -Gather facts and information applicable to the Commission's obligation to issue, suspend or revoke licenses, work permits, or registrations; -Be present through its inspectors and agents at all times in gambling establishments for the following purposes: -Certifying the revenue thereof; -Receiving complaints from the public relating to the conduct of gambling and wagering operations; -Examining records of revenues and procedures, inspecting and auditing all books, documents, and records of any licensee; and -Conducting periodic reviews of operations and facilities; -Inspect and have access to all equipment and supplies in any licensed gambling establishment or in any premises where gambling equipment is manufactured, sold or distributed; Deny any application or limit, condition, restrict, revoke or suspend a license, registration, finding of suitability or approval or fine a person licensed, registered, found suitable of approved for any cause the commission deems reasonable; and -Restrict, suspend or revoke gambling licenses.

-Establishes within the Commission an Investigations and Enforcement Bureau, which shall be the primary enforcement agent for regulatory matters (Sec. 12). -Specifies the criteria for applicants to be eligible to receive a gambling license, including, but not limited to, requirements that the applicant commit to do the following (Sec. 12):

-Agree to be a state lottery reseller for the purpose of lottery, multi-jurisdictional lottery and keno games, and demonstrate that state lottery and keno games would be readily accessible to the guests of the gambling establishment; -Own or acquire within 60 days after a license has been awarded, the land where the gambling establishment is proposed to be constructed; -Meet the licensee deposit requirement; -Demonstrate ability to pay and commit to paying the gambling licensing fee; -Demonstrate the proposed manner of addressing lottery mitigation, compulsive gambling problems, workforce development, community development, and host and surrounding community mitigation issues; -Provide a signed agreement between the host community and the applicant setting forth the conditions to have a gambling establishment located in the community; -In the case of an application for a category 1 license, have received a certified and binding vote on a ballot question at an election in the host community, in favor of such license; -In the case of a category 2 license, a binding vote in the host community where the gambling establishment will be located by a majority of members of the town council, or in a city having a Plan D or Plan E charter, the city manager and the city council and in any other city the mayor and city council and in towns a majority vote of those present and voting at a town meeting and approval by the board of selectmen; and -Provide a community impact fee to the host community.

-Prohibits a person from being employed or conducting business with a gambling licensee unless such person has been licensed by or registered with the commission (Sec. 12). -Authorizes a gambling licensee to issue credit to a patron of a gambling establishment in accordance with the following regulations (Sec. 12):

-Procedures for confirming that a patron has an established credit history and is in good standing; -Whether the patron has a good credit history with the gambling establishment; -Authorization of any credit instrument; -Methods for acknowledging a credit instrument and payment of debt; and -Information to be provided by the patron to the gambling establishment to be shared with the Board for auditing purposes.

-The bill number was H 4591 when introduced, H 4619 after House amendments were incorporated, H 4619 after Senate amendments were incorporated (Senate amendments are printed in S 2495), and H 5000 after Conference Committee amendments were incorporated.

Full Bill Text