A brief look at Gambling related Crime 6/22-6/28

Authorities say con man blew $400,000 in a day at casino

Authorities say a Park City con man who severed his ankle bracelet and fled Utah before he could be sentenced tried to fake his own suicide and gambled away at least $400,000 while on the run. Authorities say he had grown a full beard and undergone eye surgery so he wouldn’t have to wear glasses. Phelps said one person who spotted Geddes while he was on the lam said the fugitive lost $400,000 gambling in one day.

Former Elks treasurer admits stealing $475K in lodge money to pay off gambling debts

A former Elks club treasurer pleaded guilty today to stealing $475,000 from the fraternal lodge with a former tax board commissioner so the pair could pay off gambling debts in Atlantic City, authorities said. Konstantin Belenky, 42, of East Hanover, pleaded guilty in Superior Court in Morristown to third-degree theft from the Florham Park-Fairfield Elks Lodge 815. In entering the plea, Belenky agreed to continue cooperating with investigators against alleged co-conspirator Anthony Crecco, a former Morris County Tax Board commissioner, who was indicted in April on theft charges in the case.

Six years for stealing retired nun’s life savings

A former financial planner was sentenced Thursday to six years in prison for stealing a retired nun’s life savings.  William H. Lofthus looted $427,163.95 from the elderly woman and blew it at riverboat casinos. Bernice F. Laurins died penniless in November 2005 at the Château Living Center in Willowbrook. The retired nun was 92.

Woman stole from 90-year-old to fund online gambling

A former manager of a Yarmouth sheltered housing block stole £14,500 from a vulnerable 90-year-old woman to fund her addiction to on-line gambling …. Mrs House’s finances had started off as legitimate but her addiction to gambling and being made bankrupt had forced her to steal from the victim. “As she looses more and more money she turned then to taking money from the injured party.”

For more information on the dangers of gambling, please visit CASINO WATCH, & CASINO WATCH FOUNDATION

Turner Report: New Gaming Commission Director has long ties to gambling industry

Missouri Governor Jay Nixon appointed Jim Mathewson as the new Missouri Gaming Commission Director.  Mathewson, a Democrate, served in the State Senate from 1980 to 2006.  The Turner Report is explaining that Mathewson has ties to the gambling industry that go back to 2002, when pushed a bill to remove the $500 loss limit, on top of receiving more than two-thirds of his campaign contributions from gambling interest:

Mathewson’s 2002 reports filed with the Ethics Commission show he received $15,800 in contributions. Of that amount, $11,124 either came directly from casino interests or can be connected to a gambling industry lobbyist.

The October 2002 report shows Mathewson receiving $9,225 in contributions, with $5,475 coming from gambling interests. The contributions include

Isle of Capri $350
Isle of Capri-Boonville $575
Harrah’s Operating Company $575
Isle of Capri Casino-Kansas City $350
Ameristar Casino-Kansas City $1,000
Missouri Gaming Company, Argosy Casino $1,175
St. Joseph Riverboat Partners/Frontier Casino $587.50
Ameristar Casino-St. Charles $725
Mark Twain Casino LLC, $587.50
Aztar Missouri Riverboat Gaming Company, $500

To Read the Complete Turner Report Click Here

For more information on the dangers of gambling, please visit CASINO WATCH, & CASINO WATCH FOUNDATION

Kentucky House Passes Gambling Bill but Senate likely to vote no

Casino Watch Focus has reported numerous times on Ky Governor Steve Beshear’s attempt at expanding gambling by legalizing casinos.  Governor Beshear campaigned on the idea that he was going to make full scale casino gambling legal.  Of course, he faced opposition from the horse racing industry and countless pro-family, anti-gambling groups.  His attempt to pass legislation in the house failed last year when he fail to garner enough votes to get the bill out of the house.

Now it appears, Governor Beshear is still trying to expand gambling in Ky.  This time he is starting small and simply seeking to expand gambling at the racetracks.  An online article explains that the bill has passed the house, but has almost no chance and making out of the senate:

Governor Steve Beshear put on his acting face on Friday and applauded legislation passed in the state House that would expand gambling at racetracks in Kentucky. Then, he turned his attention to a little posturing to the state Senate. “An issue that is this important deserves the deliberation and vote of everyone,” said Beshear, “Now the question is will the Senate give everyone in its chamber the same privilege-an up-or-down vote on an issue of such importance to our Commonwealth.”

The answer to Beshear’s question will most likely be no. Senate President David Williams believes the gambling Bill has no chance of approval from the Senate. They have maintained that there is alternative ways of increasing revenue.

The legislators have been debating expanded gambling after Beshear added the issue to a special session this past week to help finalize the state budget. The governor’s main concern for months has been helping state racetracks increase their purses to stay competitive on a national level.

For more information on the dangers of gambling, please visit CASINO WATCH, & CASINO WATCH FOUNDATION

600 Million dollars embezzled from bank then laundered through an Australian Casino

Casino Watch Focus has reported on just how important loss limits were to preventing money laundering and keeping criminal elements out of our state.  Now a story from Australia shows us just how much damage can be done when no gambling limits are imposed.  An online article explains the story:

Chinese criminals convicted of embezzling over $605 million from the Bank of China say Crown and other Australian casinos were their venues of choice to launder the stolen money. Despite transactions involving huge amounts of cash, no red flags were observed by warning systems built into the gambling industry Down Under.

The Herald-Sun reported that at least $23.6 million was washed at Crown casinos by the ringleaders and their henchmen. One of the gang leaders, Yu Zhendong, told US authorities upon apprehension that Australia was the favored spot for laundering stolen money.

As much as $7.5 million was moved to Crown casinos in a single transaction, but detection systems designed to prevent money laundering failed to alert casino officials. Crown executives declined comment while they ran internal investigations to determine how the embezzlers were able to avoid detection.

For more information on the dangers of gambling, please visit CASINO WATCH, & CASINO WATCH FOUNDATION

Economic Outlook not so hopeful for casinos

Many have regarded the casino industry as recession proof.  But casinos all over the country, including key gambling centers like Las Vegas and Atlantic City, have been “down on their luck” because of the recession.  Now it looks like the market trends that began in 2008 will continue for the next 18 months.  The Las Vegas Review Journal turns to Moody for market analysis:

In a report on the American gaming industry, [Moody}the bond rating service told clients it had a negative outlook for the casino business over the next 12 to 18 months.  Moody’s Senior Vice President Keith Foley said trends that began in 2008 have not shown any “tangible signs” of stabilization.

“Our outlook for the U.S. gaming industry remains negative amid uncertainty about the timing and degree of a recovery,” Foley wrote in a report updating December’s market research.  The bonds from 72 percent of U.S. gaming companies have been given a negative outlook by Moody’s or face a possible downgrade.  Foley said gaming’s biggest risk is the possibility consumers will further reduce discretionary spending over the next 18 months.

Some of the biggest areas hit are the two main gambling centers, Vegas and Atlantic City.  Such negative trends are putting serious pressure on current casino companies.  The Review Journal continues:

He was especially harsh on casino companies operating on the Strip and Atlantic City. Both markets have seen double-digit gaming revenue declines in the first four months of 2009. Foley isn’t predicting a quick recovery.

“We do not assume that because gaming demand declined along with the economy, it will return to pre-recession levels once the economy improves,” he said.  Las Vegas was hit harder by the recession than any American gaming market. Negative trends have put significant pressure on the major casino companies.

For more information on the dangers of gambling, please visit CASINO WATCH, & CASINO WATCH FOUNDATION

Pro family groups take a stand against online gambling

Casino Watch Focus explained that in 2006 Congress passed the Unlawful Internet Gambling Enforcement Act.  UIGEA made it illegal for online gambling companies to accept money for unlawful Internet gambling transactions and it called for regulations on the banking and payment processing industry.  There have been a few examples of the government going after companies for their financial involvement with internet gambling.  However, there have been virtually no examples of true financial enforcement of UIGEA until this week.  Focus on the Family reports why so many pro-family groups are praising the enforcement:

This week, the government finally started enforcing the Unlawful Internet Gambling Enforcement Act (UIGEA) — by freezing more than $30 million in potential winnings. The 2006 law requires financial institutions to block payments to off-shore Internet gambling operations that are not licensed to operate within the U.S.

Focus on the Family and Concerned Women for America (CWA) are among 20 pro-family groups calling on Congress to continue the enforcement of UIGEA and oppose the legalization of online gambling.  “We need to step up enforcement,” said Shari Rendall, director of legislation and public policy at CWA. “The effects of gambling are pervasive, and they need to be stopped.”

These groups are asking the U.S. House to oppose current bills that seek to undermine UIGEA by making online gambling legal:

Pro-family groups are asking the U.S. House to oppose two bills from Rep. Barney Frank, D-Mass.: H.R. 2266, which would give banks more time to comply with UIGEA; and H.R. 2267, which would legalize Internet gambling in the U.S.

Ken Darnell, co-founder of Gambling Exposed, said it’s time for the Justice Department to take a stand against online gambling.  “They should do everything they can within their power to curb it,” he said.

The 2006 Gross Annual Wager Report shows Americans lost nearly $91 billion on all forms of gambling. According to the National Gambling Impact Study Commission and addiction counselors, 15 million to 20 million U.S. adults and adolescents have either problem or pathological gambling addictions.  Darnell asked: “Why would our government support any type of activity that’s going to do this to its citizens?”

For more information on the dangers of gambling, please visit CASINO WATCH, & CASINO WATCH FOUNDATION

Gambler endangers life of infant and toddler

Unfortunately, this is not the first time Casino Watch Focus has reported acts of parents leaving children in the car while they gamble, and sadly, this may not be the last time either.  The Las Vegas Sun is reporting that a father has left his infant and toddler in the car while he gambled:

Police found a 3-month-old and a 2-year-old, both boys, belted into their car seats inside an SUV parked near a business. The windows were down, the keys were in the ignition and the radio was on, police said.

Officers found the children’s father, 35-year-old Willie Culvert of Las Vegas, in a nearby bar where he had been gambling for about two hours, police said.  Culvert was arrested for two counts of child endangerment and will be booked into the Clark County Detention Center, police said.  Leaving children unattended in vehicles can have tragic, often fatal results, police said.

For more information on the dangers of gambling, please visit CASINO WATCH, & CASINO WATCH FOUNDATION

Rep Barney Frank said freedom to gamble online outweighs dangers to children

Casino Watch Focus reported that Rep Barney Frank introduced a bill to legalize internet gambling despite an overwhelming amount of opposition.  Now, in a radio interview on Nevada Public Radio, Frank is claiming that personal freedom to gamble online should outweigh the need to protect children.  Frank believes that because the Internet has other dangers to children, the government should simply disregard the impact to our children:

When asked about claims from Spencer Bachus and others that online gambling puts children at risk, Frank deftly defended his regulatory bill.  Frank said it is “insensible to say the only danger on the Internet is gambling.” The Massachusetts Representative pointed out that many products online are guarded by age restrictions.

For more information on the dangers of gambling, please visit CASINO WATCH, & CASINO WATCH FOUNDATION

Representative Jim McDermott introduces Internet Gambling Tax Act as complement to Rep. Franks bill

Casino Watch Focus reported that Rep. Franks introduced a bill to legalize internet gaming.  Now, an online gambling source is reporting that a complementary bill has been introduced:

Shortly after Congressman Barney Frank (D-MA) introduced comprehensive internet gambling legislation on Wednesday, Congressman Jim McDermott (D-WA) introduced the Internet Gambling Regulation and Tax Enforcement Act, HR 2268.

The companion legislation to Frank’s bill will allow the United States Government to extract tax revenue from the internet gambling industry… Individuals are expected to pay income tax on any internet gambling winnings.

For more information on the dangers of gambling, please visit CASINO WATCH, & CASINO WATCH FOUNDATION

US Representative Barney Frank introduces bill to legalize internet gambling despite opposition from National Football League and others

An online news magazine is reporting that Representative Frank introduced the bill earlier this month, and it would require online gambling sites to obtain a license from the Treasury Department.  Of course Rep. Frank claims the games would be fair and children wouldn’t be allowed to gamble, but the he faces serious opposition.  The online news magazine reports:

Opponents are not about to give up, They include the National Football League, which says Internet gambling threatens the integrity of its games. Family groups are also taking up the fight. “Research finds that problem gambling is three to four times higher with Internet gamblers than non-Internet gamblers,” said Chad Hills, analyst for gambling research and policy at Focus on the Family Action. “But Barney Frank doesn’t care. He continues to push policy legalizing the most predatory, addictive and exploitive form of gambling to invade 91 million U.S. homes using the Internet.”

Even if the bill passes in the House, it faces a major obstacle in the Senate. A similar bill has not been introduced there, and Majority Leader Harry Reid says he is against Internet gambling.

For more information on the dangers of gambling, please visit CASINO WATCH, & CASINO WATCH FOUNDATION

M.I.T. expert explains the “zone” and how gambling machines are designed to exploit gamblers for casino and state profit.

Casino Watch Focus has reported on the importance and qualifications of Natasha Shull’s research and commented on how problem gamblers are often the focus, not the the problem machines.  In the same MIT article, Natasha comments on the flawed rational of local governments who seek to exploit people for budgetary gain:

In an effort to pull in revenue for state coffers, Massachusetts, along with several other states, including Kentucky, Illinois, and Maryland, recently had plans to license casinos, she says. “If you actually do the math, it’s not really a viable economic solution to the woes of state finance. What it offers, though, is a very tempting immediate injection of cash.”

She goes on to explain the “zone” these machines create and how they exploit gamblers:

Schull herself is not a gambler, but says she can relate to gamblers when they talk about the repetitive, absorbed relationship they enter into with the technology. “I think many of us understand what it’s like to zone out on machines.

“The experience they describe is not unlike the sense of flow people experience when they dance, paint, or write. It’s sometimes a glorious thing to be swept away by something for hours. Sometimes you come out with a wonderful product. But the gamblers don’t have a product. They emerge from the zone totally depleted — physically, mentally, and financially. They feel drained and empty. In effect, these machines exploit the very human desire to become absorbed.”

For more information on the dangers of gambling, please visit CASINO WATCH, & CASINO WATCH FOUNDATION

Why do we focus on problem gamblers but not problem machines?

Natasha Shull, a cultural anthropologist and assistant professor in MIT’s Program on Science, Technology and Society, has spent the last 15 years researching and studding the gambling industry and more specifically, the machines they develop to make big profits.  Natasha has written a book, Machine Zone: Technology and Compulsion in Las Vegas, and created a documentary film, BUFFET: All You Can Eat Las Vegas, which has aired on PBS.  In a recent MIT article, Natasha makes several key observations that are often lost in the debate about gambling’s true impact on our society and families:

“What they’re trying to do is maximize profit. But when you mix maximizing profit with the design of a human-machine interface, and then you add people who are looking for escape, it’s a perfect storm of elements to produce a situation of dependency.” Schull thinks it’s telling that we speak about problem gamblers but not problem machines, problem environments, or problem business practices.

“Since addiction is a relationship between a person and an object or activity, it makes sense to take a close look at the gambling technology — not just the gamblers.”

She goes on to explain that these machines are designed in every possible way to make people losers not winner:

As Schull explains, today’s machines are much different from ones of the past. Visual graphics are now calibrated so the gamblers’ eyes won’t get tired so quickly. Sound is manipulated as well, to reduce the stress of cacophony in cavernous spaces. To facilitate faster play, today’s machines have buttons and touch-screens instead of handles and mechanical reels.

Instead of coins, they accept player credit cards. Instead of a few games per minute, it is now possible to play hundreds. Inside the machines, complicated algorithms control the odds.

“Every feature of the machines is geared to keep people playing until they’re broke.”

For more information on the dangers of gambling, please visit CASINO WATCH, & CASINO WATCH FOUNDATION

Local gambling expert explains the cost of gambling far out weighs any benefits

Casino Watch Focus reported that local experts point to easy casino access as a key reason why the Joplin area is experiencing an increase in problem gambling.  The same Joplin Globe article addressed why the costs of casinos far out weights their benefits:

There are four “steps” or levels by which a person becomes addicted.

In the first phase, gambling is treated as an occasional, recreational activity. From there, the gambling becomes more preoccupying and more frequent. The third phase is where gamblers experience some sort of “impact” in their lives, says McDonald. The impact could be financial, such as using household money to gamble, or social, such as arguing with a spouse. In the final phase, the gambling becomes an obsession. McDonald describes this phase as one of desperation.

“People can’t get it off their mind, the idea that ‘I’ve got to get this fixed,’” he said.  McDonald believes the problems casinos bring outweigh the benefits.

Help is available, as the Globe concludes:

Problem gamblers use the Voluntary Exclusion Program provided by the Missouri Gaming Commission. The program is a way for problem gamblers to acknowledge they have a problem and to take personal responsibility for it by agreeing to stop visiting casinos.

Help is also available by calling (888) BETSOFF to learn about free counseling services or Gamblers Anonymous meetings in the local area.

For more information on the dangers of gambling, please visit CASINO WATCH, & CASINO WATCH FOUNDATION

Local experts say Problem gambling growing in Joplin due to easy access of Casinos

Casino Watch Focus previously reported that a new Oklahoma casino, which is located on the boarder of Oklahoma and Missouri, would be aggressively targeting the Joplin market for employees and would be gamblers.  Now, The Joplin Globe interviewed local gambling experts to determine the impact of the new casino and local experts are explaining that the proximity of the casino is causing an increase in problem gambling:

There are a number of casinos or gambling locations within a 30-mile radius of Joplin. [Mark McDonald, a compulsive-gambling counselor at Ozark Center] says there’s been an increase in problem gambling in the area because of easy access to casinos.

“It used to be the closest place people had to go to was in Kansas City on the river boats,” he said. “The availability of the casinos is going to cause its own criminal activity and damage to the community.”

The Globe goes on to report that those who suffer from gambling problems experience a “high” similar to drugs and families often suffer the consequences:

Problem gambling doesn’t discriminate. McDonald says it crosses all social and racial lines. What problem gamblers have in common is the “high” they get from gambling. McDonald says it’s similar to the high an alcoholic or drug addict gets.

Nora Bock, clinical director for the Division of Alcohol and Drug Abuse at the Missouri Department of Mental Health, says gambling becomes a problem when a person begins to experience “adverse consequences” as a direct result of gambling.

“Because of their preoccupation with gambling, they start to let other aspects of their lives suffer, like family, friends, career, school,” Bock said. “These things are ‘replaced’ by the person’s gambling.”

For more information on the dangers of gambling, please visit CASINO WATCH, & CASINO WATCH FOUNDATION

Florida Update: Seminole tribe allowed to expand gambling

A local Florida paper provided the summary of what deal the legislature passed to allow gambling expansion in the state:

[T]he House and Senate voted to let Gov. Crist negotiate a gambling agreement with the Seminole Tribe.  Crist had tried to negotiate his own deal but his proposal was overturned by the state Supreme Court, which ruled the governor needed legislative approval.

Under the agreement, which would bring the state a minimum of $150 million a year, the Seminoles would be allowed to have blackjack and other card games at their three Broward County casinos and the Hard Rock in Tampa. They would be able to install Las Vegas-style slot machines at all seven of their casinos, which also include locations in Big Cypress, Immokalee and Brighton.

Governor Crist has until August to come to the exact terms of the gambling expansion pact with the Seminoles.

For more information on the dangers of gambling, please visit CASINO WATCH, & CASINO WATCH FOUNDATION