MO Atty. General candidate scrutinized for funneling of campaign contributions

The Associated Press along with several other news outlets and news blogs are reporting that Sen. Chris Koster has violated campaign finance laws in the state of Missouri by funneling campaign contribtions through outside groups and committees. We have previously reported on the fundraising tactics of Sen. Chris Koster, candidate for MO Attorney General (AG), and his use of money from gambling special interests to fuel his “law and order” campaign for AG:

While at first glance this may seem like an insider-only story, the Turner Report explains that Sen. Koster has turned to gambling special interests dollars to fuel his quest to be the state’s next Attorney General. According to the Turner Report:

Among the other contributors who circumvented contribution limits by giving first to the Economic Growth Committee, which then laundered their cash through the legislative committees were:

-Ameristar Casinos, St. Charles and Kansas City, $17,450

The Associated Press account of Sen. Koster’s money-laudering operation is both eye-opening and shocking:

They met at an Italian restaurant in southwest Missouri. A campaign aide for Democratic attorney general candidate Chris Koster and the treasurer for a local Democratic committee. The purpose: a check exchange.

Koster’s aide handed the Democratic official a check from an innocuous-sounding group called the Economic Growth Council, along with a pair of letters she had created _ one from the Economic Growth Council accompanying its money, the other from Koster’s campaign soliciting money from the local political committee.

The letters were formalities. The Democratic official provided Koster’s aide a pair of checks similar in size to the amount she had received.

Just like that, Koster’s campaign channeled nearly $27,000 to itself _ part of the roughly $450,000 from big-time donors that got routed around campaign contribution limits to Koster in a three-month period.

E-mail communications obtained by The Associated Press show Koster’s campaign staff helped direct donors wishing to give more than the state limit to the Economic Growth Council, then coordinated the transfer of that money to local political party committees and onto Koster’s campaign _ a potential violation of an 8-year-old ruling against such orchestration.

Our last poltical contributions report shows that Sen. Koster has become accustomed to recieving donations from a variety of special interest groups, especially gambling special interests. As we compile the latest campaign contribution information from the casino industry, we will provide updates on this story.
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Story Links:

- Political Fix: UPDATED: Mo GOP, Hatfield jumps into the fray over Koster’s fundraising

- The Turner Report: AP confirms Koster money-laundering operation outlined three months ago in Turner Report

- Missouri Political News: Koster’s ‘close consultation’ with Ethics Commission questioned

- Missouri Political News Service: Koster Campaign Busted Laundering Money

MO Ethics Commission makes clarification on Lobbyist Gifts to Elected Officials

In an effort to expose the influx of gifts and political contributions from gambling special interest, we have posted documented stories of elected officials accepting concert tickets, cruises, meals and other monetary gifts. With that aim below is an interesting story from The Turner Report.

From Randy Turner at The Turner Report:

Though the names are carefully blacked out on the opinion, it appears an elected official who has been accepting tickets to entertainment events from lobbyists tried to get a ruling which would allow him or her to accept the tickets, keep one, report that one, and then spread the tickets around to others without having to count them as gifts.

That effort failed.

The opinion, issued June 5, indicates the person requesting the opinion asked the following question:

“If an elected official accepts more than one ticket to a sporting event or an entertainment performance, uses one ticket for his or her use and then give the remainder to another person, not related to him or her and not employed by him or her in an official capacity, does the lobbyist disclose only the value of the ticket used by the elected official or the total of all tickets received and accepted on behalf of the elected official?”

The opinion said that the lobbyist must report the value of all tickets.

Of course, the value of all the tickets must be reported. The whole idea of reporting gifts is so the public can know which lobbyists are lavishing gifts on which elected officials. If the lobbyists are giving the gifts to the elected officials and then those officials turn right around and provide them to others, it is still something that ultimately leaves the elected official feeling kindly toward the lobbyist and whatever special interests he or she represent.

When we see our elected officials trying to get around those reporting requirements, it becomes obvious why the requirements are necessary. Of course, banning all gifts from lobbyists would be the best solution. That would not keep them from exercising their constitutional right to petition the government, it would just allow the public’s business to be conducted in a more businesslike fashion.

States Attempt to Take Gamblers’ Winnings for Overdue Child Support

From Family News In Focus:

Colorado and West Virginia are putting children first.

At least two states have designed a unique way to go after parents who owe child support: They want to take their gambling winnings. Colorado will roll out its plan in July; West Virginia hopes to follow a few months later.

Evelio Silvera, executive director of Casino Watch, said the gambling industry is fighting back.

“The problem is they don’t want to share information that they can’t use to increase their own bottom line,” he said. “That’s the real shame.”

When a jackpot winner fills out the state tax form in Colorado, the casino will perform a background check to check on overdue child support.

West Virginia’s Department of Health and Human Resources (DHHR) hopes to work directly with casinos to get deadbeat parents to pay up.

Jeremy Dys, executive director of the Family Policy Council of West Virginia, said it’s a good step.

“We applaud the DHHR and those who are seeking to make sure that children who need it the most … get the money back,” he said. “We need to go a little bit further - to strengthen marriages to make sure social problems are treated at home first.”

NBA Finals should be about the game and not a wager

Basketball fans all over the country and the world are preparing for the start of the NBA Finals match-up between the Boston Celtics and the Los Angeles Lakers tonight. The NBA has focused the build-up to this finals match-up as a clash of two of the most storied and successful franchises in professional basketball, in the hope that casual fans will focus on the on-court action and not building off-court questions concerning gambling.

Since last summer the NBA has had to deal with a variety of questions concerning the integrity of the game when it was found that referee Tim Donaghy was betting on games he officiated and affecting the point spread of those games. According to Wikipedia:

Tim Donaghy is a former professional basketball referee who worked in the National Basketball Association (NBA) for 13 seasons from 1994 to 2007.^[4] During his career in the NBA, Donaghy officiated in 772 regular-season games and 20 playoff games.^[4] Donaghy resigned from the league on July 9, 2007^[5] prior to reports of an investigation by the Federal Bureau of Investigation (FBI) for allegations that he bet on games that he officiated during his last two seasons and that he made calls affecting the point spread in those games.^[6] On August 15, 2007, Donaghy pleaded guilty to two federal charges related to the investigation. However, he could face more charges at the state level if it is determined that he deliberately miscalled individual games.

While ESPN reports that Donaghy has cooperated with Federal officials investigating the matter, the NBA stills seems to have public opinion problem on their hands. Just a couple of weeks ago it was publicized that former NBA star and current TV basketball analyst Charles Barkely had not repaid gambling debts of approximately $400,000. Ken Berger of Newsday states:

Amid all this made-for-TV excitement, a pesky cloud continues to hang over David Stern and his league. The dark cloud of gambling.

A convicted felon named Tim Donaghy - and to a lesser degree, a gambler in arrears named Charles Barkley - continue to poison Stern’s otherwise happy vision of the NBA.

Barkley has since apologized on national television for the effect this gambling debt has had on him and his family, including a promise to not gamble anymore in the foreseeable future.

The hope for all basketball fans is that the NBA continue to deal with the Tim Donaghy situation in an open and cooperative manner to ensure that future problems of this nature don’t arise and that the integrity of the game is no longer called into question. The bottom line is that the NBA finals like any other basketball game should be enjoyed for the thrill and accomplishments of the athletes on the court and not the wagers made off the court.

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Family News In Focus report

Associated Press story on Charles Barkley

From the Blogosphere: Republican and Democrat Leaders have a night out at the casino

Missouri Political News Service is reporting that current Speaker of the House Rod Jetton (R) along with Sen. Chris Koster (D), Sen. Jason Crowell (R), and Sen. Jeff Smith (D) enjoyed a night of “clubbing” at the Ameristar Casino in St. Charles, MO supposedly at the expense of a campaign committee controlled by House Majority Floor Leader Leader Steve Tilley (R).

According to Missouri Political News Service:

Rod “Village Man” Jetton, Chris “The Imposter” Koster, and Jason “What Rod Said” Crowell were seen at the St. Charles Ameristar Casino this weekend, enjoying all the amenities the gaming giant has to offer. Oh, and Jeff Smith was also there, even though he apparently wasn’t being allowed onto the casino since his court date for breaking the law at the Isle of Capri in Boonville is just a month away. And let’s not forget that Jetton, Smith and others were spotted at the same club back in March to catch of glimpse of Paris Hilton.

The story goes on to state:

What makes the latest Ameristar visit so intriguing besides the Village Law implications and Smith’s indiscretions is that the recent “boys night out” is that it was being paid for by the 106^th Campaign Committee controlled by Tilley.

As we previously reported, the House Republican Campaign Committee (HRCC) under the direction of Speaker Jetton did decide to refuse future campaign contributions from casinos. However, Sen. Koster and Sen. Smith have taken several campaign contributions from gambling special interests.

We will be sure to update this story if there are any statements issued by the elected officials involved.

Gov. Matt Blunt’s assesment of the MO General Assembly’s Legislative Session

Last Friday marked the end of the Missouri General Assembly’s 2008 legislative session. The last day of the session was marked by a blistering pace to pass and deal with bills on a variety of topics. According to Gov. Blunt’s press release, the task of reviewing those bills which did pass both the House and Senate is now underway:

The General Assembly completed the session after approving 139 bills, and today Gov. Matt Blunt and his office began the massive undertaking of reviewing the bills sent to his desk following another successful legislative session...

We will be providing our Casino Watch Legislative Review in the upcoming days.

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VIDEO: From Jason Rosenbaum of the Columbia Tribune, Gov. Matt Blunt addresses the media and provides his analysis of the 2008 legislative session

Starting the Last Week of the MO legislative session

As we enter the last week of the Missouri General Assembly’s legislative session, we wanted to take a moment and share some of our latest “Weekly Legislative Reports” from the main site.

We receive a great number of inquiries as to the status of a variety of gambling bills being considered by the General Assembly, so we have been diligent in educating our friends and supporters on the latest action from the halls of Jefferson City. Please take an opportunity to get caught up by reading some of our previous legislative reports.

We will be providing a detailed summary of this year’s legislative session next week.

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VIDEO UPDATE:  Jason Rosenbaum from the Columbia Tribune Politics Blog posted an interview with House Floor Leader Steve Tilley answering reporters questions about some of the legislation that may be brought up during this final week.

MO Gaming Commissioners Reappointed by Senate Committee

This morning in Jefferson City the Senate Committee on Gubernatorial Appointments meet to appoint and reappoint several individuals to state boards and commissions. Among those seeking the approval of the committee were two reappointments to the Missouri Gaming Commission. As stated in the hearing schedule for the committee the commissioners being reconsidered for a new term were:

Darryl T. Jones, Democrat, as a member of the Missouri Gaming Commission (Bray)

Noel J. Shull, Republican, as a member of the Missouri Gaming Commission (Ridgeway)

The committee moved to approve all the appointments and reappointments, including Commissioners Jones and Shull. MO Gaming Commissioners serve three-year terms.

downfall of lottery winners

From Family News in Focus by Karen Johnson:

When it comes to winning the lottery, be careful what you wish for. A Florida multimillion dollar lottery winner in 1990 has died, leaving a wretched financial legacy.

Alex Toth was broke from spending his winnings years ago on luxuries, his marriage had broken up, and he was charged with federal tax fraud.

Plopping down hard-earned cash for a chance at getting lucky in the lotto is a 17 billion dollar-a-year scam for the 48 states with legalized gambling. Chad Hills of Focus on the Family Action says Toth’s story is actually quite common.

“It’s not unusual to hear them say I wish I had never won at all because it’s been a curse in my life.”

Bill Pomery is a Certified Financial Planner in Baton Rouge, Louisiana. Three of his biggest clients are lottery winners. He’s seen how front end euphoria can cause financial forgetfulness.

“Most of them need additional liability insurance, additional life insurance.”

The winner will start hearing from aunts, uncles and third cousins he never knew he had.

“The family starts calling and they end up paying off their boats and their cars and their houses.”

Paul Golden of the National Endowment for Financial Education says the largess leads to one more percentage.

“We talking about 70% will lose their windfall within just a few years.”

The lottery preys on the poor, who have no idea how to handle that type of money.

“People who live at poverty or at lower income levels spend proportionately more of their income on lottery tickets than do people in the middle class or the upper class because the lottery is in the business of selling hope.”

Utah and Hawaii are the only two states where gambling is illegal.

shameless…Rep. Shannon Cooper never met a casino lobbying gift he didn’t take!

Several media outlets, watchdog groups, bloggers, reporters, etc… spend a good amount of time educating the public on particular campaign contributions and lobbyist gifts and there effect on elected officials and the type of legislation they support and pass. Even when confronted with the details of a recent gift or contribution many elected officials simply give the standard answer of their judgement not being affected and continue to happily take the gifts from special interests.

However, there is one state representative who not only flaunts the contributions and gifts from gambling special interests, he fully expects to receive what he wants, when he wants it. After all, he is working hard to keep the casino industry happy. This elected official is none other than Rep. Shannon Cooper. He is among one of the largest recipeints of campaign contributions from the casino industry and has a social calendar filled with gambling special interest funded trips, hotel stays, concerts and more.

He is so proud of doing the casino industry’s bidding that he is now displaying a poster for Ameristar casino on the door to his legislative office in the State Capital building. That’s right…while other legislators display pictures and posters from their district, their alma-mater, or their family, Rep. Cooper proudly displays the source of campaign dollars and several lavish gifts. Don’t take our word for it…see for yourself (taken the morning of Tuesday, April 29, 2008):

The latest casino gift that Rep. Cooper enjoyed came last week with a complimentary hotel stay at Ameristar following a Jimmy Buffet concert in St. Louis. Virginia Young of the St. Louis Post-Dispatch reported

Rep. Shannon Cooper is among those headed to St. Louis tonight for the sold-out Jimmy Buffet concert at the Verizon Wireless Amphitheater.

Cooper, R-Clinton, said he got a complimentary room for the night at the nearby Ameristar Casino hotel.

“Of course they got me a room,” he said.

The story was later updated:

Cooper said his ticket was free but he can’t remember who gave it to him.

It seems when you take so many lobbyist gifts it might be hard to keep track of the source. In Kit Wager’s report for the Kansas City Star, Rep. Cooper states:

If Ameristar wants to give me a room, I’ll take it. If someone wants to buy me tickets to a concert, I’ll let them. I don’t ask that often.

It seems that the frequency of gifts received by Rep. Cooper put him in a situation where he really never has to ask for them, he just does the work to make the gambling special interest happy and they make sure he doesn’t have to wait to receive a gift. As Randy Turner of the Turner Report highlights:

From the Feb. 10 Turner Report:

By all accounts, the performance given by country music legend George Jones June 10, 2007, at the Ameristar Casino in Kansas City was a rousing success and Rep. Shannon Cooper, R-Clinton, had eight tickets to that event, worth $440, courtesy of lobbyist Betsy Morgan.

From the Oct. 6, 2007 Turner Report:

May 9 was a big night for freebies for Shannon Cooper. He accepted five Kenny Chesney tickets worth $345 from Stephen Knorr, University of Missouri lobbyist, and $343 in travel and lodging from Ameristar Casinos lobbyist Jorgen Schlemeier, though Schlemeier only attributed a part of the cost to Ameristar, since it was the last day of the legislative session, it appears Cooper did quite a bit of celebrating.

Cooper also took a cruise provided by Ameristar Casinos lobbyist Sarah Topp during the National Conference of State Legislators in August.

Wager does note in his article that, ” Cooper, a Clinton Republican, insisted that the free room had nothing to do with his legislation.”

However, this would certainly not be the first time that gifts and contributions have coincided with legislative action from Rep. Cooper. Randy Turner at the Turner Report notes:

From the March 31 Turner Report:

Two days before Rep. Shannon Cooper, R-Clinton, submitted a bill to remove the loss limits for Missouri casinos, he may have been conducting some in-person research at one of those facilities.
Documents posted minutes ago on the Missouri Ethics Commission website indicate Cooper, whose bill would also limit the opening of new casinos in the state, thus lessening competition for those already here, had $771.17 for “hotel accommodations” paid for by Matthew Clark, lobbyist for Ameristar Hotel and Casino in Kansas City.

There are several elected officials that take the time to educate themselves on the issues, and are diligent in their reponsibilites to their constituents. Many of these legislators deal with a great amount of pressure from opposing sides on a variety of issues. And while the practice of lobbying gifts and special interest contributions doesn’t seem to be going away anytime soon, we must continue to stay vigilant and educated in order to keep our elected officials accountable. Hopefully, by examining contributions and lobbyist gifts we can weed out those legislators who will bend at the whim of a special interest gift from those who carry themselves with true character and remember that, “The Welfare of the People Shall be the Supreme Law.”

Past Stories:

- MO State Rep. Cooper accepts casino lobbyist gift then files legislation to remove loss limits

- Legislator who proposes loss limit removal received nearly $1,700 in casino lobbyists’ gifts in 2007

taking aim at the illegal gambling that fuels dog fighting

State Representative Jane Cunningham introduced legislation (HB 2416) which would change the laws regarding dog fighting in Missouri. While dog fighting is already illegal in the state of Missouri, many lawmakers across the country have re-visited the issue in response to the attention brought last summer by former NFL star Michael Vick. The steps taken in HB 2416 are a practical and responsible approach to not only keeping more animals from being endangered, but cutting back the financial motivation that fuels these dog fights, which comes in the form of illegal gambling by spectators.

This week members of the House Special Committee on General Laws heard testimony regarding HB 2416. A variety of speakers representing the Humane Society and Animal Control testified in favor of the bill. Casino Watch also took the opportunity to speak and persuade members of the committee to pass this bill because of the influence it will have on curbing the illegal gambling involved with these fights. Rep. Cunningham’s legislation specifies that any person who is found guilty of a second or subsequent dog fighting offense will be guilty of a class D felony. This change directly impacts the spectators of these fights by raising a misdemeanor offense to a felony with more serious penalties.

According to the Humane Society of the United States:

Spectators provide much of the profit associated with dogfighting. The money generated by admission fees and gambling helps keep this “sport” alive. Because dogfights are illegal and therefore not widely publicized, spectators do not merely happen upon a fight; they seek it out. They are willing participants who support a criminal activity through their paid admission and attendance.

Because dogfighting yields such large profits for participants, the minor penalties associated with misdemeanor convictions are not a sufficient deterrent. Dogfighters merely absorb these fines as part of the cost of doing business

It is important for lawmakers to understand that in order to prevent the cruel activity of dog fighting, we must look at the root cause motivation for conducting these fights, and that is simply the money generated by illegal gambling. HB 2416 is a good step in the right direction of curbing this illegal activity.

Below are thoughts and comments from the bill sponsor Rep. Jane Cunningham, concerning HB 2416 and the testimony provided by Casino Watch.

Internet Gambling Push

From Family News in Focus by Josh Montez:

Congressmen Ron Paul of Texas and Barney Frank of Massachusetts have introduced legislation that would legalize computer gambling.

The Unlawful Internet Gambling Enforcement Act gives financial institutions a government-go-ahead to block payments to off-shore internet gambling interests.  The Frank-Paul bill would cancel that blockade.  Tom McClusky is with the Family Research Council.
“It makes you question a number of things about why they would try to pass this type of legislation and also the whole mysteriousness around the biggest supporters of this legislation – the Poker Player’s Alliance, and what exactly their ties are to the sponsors.”

Offshore Internet Gambling may be funding terrorists, and it certainly siphons money out of the US economy. Valerie Lorenz with the Forensic Center on Compulsive Gambling  says it’s being fed by anonymous gamblers.

“It is so readily available—in anyone’s home, at school at work—without any kind of limitations or constraints.  You can gamble in the middle of the night at home when your family thinks you’re sleeping.”

Proponents of the Frank-Paul bill say the current ban doesn’t provide protection, but Lorenz says that’s based on who is being protected.

“Government is established to protect citizens.  And here in the case with gambling it is protecting a profitable, greedy, private industry.  It is not protecting the citizens.”

And since the Gambling Enforcement Act was signed into law, under-age gambling, including kids away in college, is down.

MO Attorney General candidate rakes in casino contributions

For many political observers this week was of great excitement and importance as every candidate’s fund-raising reports were made available by the Missouri Ethics Commissions. Several stories have been written concerning the financial status of a variety of candidate’s as they look to build their campaign war-chests for the upcoming months.

As we did last summer, we will once again encourage candidate’s to take our Casino Watch pledge, promising voters that they will no longer accept contributions from gambling special interests. But as we review all the latest contributions and lobbyist gifts in an effort to educate the public on which candidates are being persuaded by gambling special interest dollars, we want to share with you some candidates who are already drawing interest over the source of their campaign funds.

Current MO State Senator Chris Koster, a candidate for Attorney General, who raised eyebrows a few months ago by switching political parties is now drawing scrutiny for the sources of his campaign donations.

According to Missouri Political News:

Tuesday Koster filed a report with the Missouri Ethics Commission that claimed he amassed $593,674 during the first quarter of 2008. A closer examination reveals that 90 percent of his contributions originated with political committees, $226,500 of which was funneled through legislative committees under the guise of in-kind contributions…

While at first glance this may seem like an insider-only story, the Turner Report explains that Sen. Koster has turned to gambling special interests dollars to fuel his quest to be the state’s next Attorney General. According to the Turner Report:

Among the other contributors who circumvented contribution limits by giving first to the Economic Growth Committee, which then laundered their cash through the legislative committees were:

-Ameristar Casinos, St. Charles and Kansas City, $17,450

We will continue to track and report casino contributions and lobbyist gifts as the information becomes available. In the meantime, check back often for updates on our Casino Watch pledge signers.

Highlights from Today’s Missouri Gaming Commission Meeting

This month’s meeting of the Missouri Gaming Commission took place in Jefferson City at the Missouri State Trooper Association.

The meeting’s agenda was quite routine with a handful of Hearing Officer recommendations on past disciplinary actions, the consideration of new disciplinary actions, fine settlement agreements, and a special presentation from Pinnacle Entertainment Inc. concerning their South St. Louis County casino project.

Highlights from the meeting include two disciplinary actions taken against casinos. First, during the consideration of new disciplinary actions, Harrah’s North Kansas City was given a $5,000.00 fine for the use of a bad deck during a poker tournament which was not caught by internal controls. Second, during the consideration of settlement agreements, Ameristar Casino St. Charles was originally fined $100,000.00 by the Gaming Commission last year for allowing a patron to act as and assume the role of a gaming official by letting the patron operate and run the stick at a craps table. Ameristar did take the case before a hearing officer but then chose to forgo further hearings by taking responsibility for the violation and settling the matter for $90,000.00.

An examination of Gaming Commission meeting minutes over the past year, while the commission has been under the direction of Executive Director Gene McNary, shows an increase in the number of settlement agreements that have been considered by the commission. While there has been an increase in the amount of discussion concerning the procedure for issuing and appealing fines from the Gaming Commission, there is little to no evidence that the Commissioners themselves have been abusive or out-of-line with the fines that have been recently levied.

However prudent and justified a fine from the Commissioners may be, it seems that Mr. McNary is more than happy to offer a discount in the form of a settlement agreement to the casino industry. How effective then is a fine if the casino knows it can always count on a discount. Has Mr. McNary created an environment where these fines, instead of being punitive and correcting a violation, become watered-down to the point where it simply has become the cost of doing business in Missouri?

The next Missouri Gaming Commission will be on May 26, 2008.

Casino Industry on Losing Streak

From Family News in Focus by Josh Montez:

Last month, lawmakers in two states, Massachusetts and Kentucky, said no to proposals to expand gambling. Is it a trend?

Lotteries and casinos promise the moon. Those in the industry, such as Holly Thomsen with the American Gaming Association, claim they deliver.

“Casino resorts and the gaming industry do bring in the capitol investment, they bring in tax revenue, they generate jobs and improve the communities where they are located.”

But Tom Gray with the National Coalition Against Gambling Expansion says the trend indicates people don’t buy it.

“Since 2004 there have been 10 states that have gone to the ballot box in state-wide referendums and voted ‘no’ to either bringing casinos in, or expanding the number of casinos within their communities.”

Gray says people are doing their math.

“When you say who plays and who pays, we wind up with you pay whether you gamble or not because you pay for the people who are brought down by gambling.”

Evelio Silvera with CasiNO Watch says gambling may feed local economies, but…

“For every dollar of tax revenue the state receives, they are spending up to three dollars in new social costs.”

Gray says casinos are in the business of separating people from their money. Nationwide gambling revenues totaled $32 billion dollars in 2006.