Monday, November 12, 2007

Lobbying for Slots

The Baltimore Sun reports that lobbyists spent millions pushing slots during the past several years. Perhaps the most unseemly aspect of the cash bonanza involves attempts to influence the selection of sites:

At least $800,000 flowed into candidate campaign coffers from track operators since 2003, The Sun's analysis found. And nearly half of that came from interests controlled by Rickman, a Montgomery County developer who owns Ocean Downs racetrack, one of the five sites singled out in the Senate-approved slots referendum bill.

"In my view, there is an undeniable connection between the history of political donations and the allocation of sites, and the potential allocation of sites," said Del. Luiz R.S. Simmons, a Montgomery County Democrat who has proposed outlawing contributions from gambling interests.

Officials with the Maryland Jockey Club and affiliated entities gave $267,000, records show. About $30,000 of that amount came from former Jockey Club CEO Joseph A. De Francis and family members; he stands to benefit should slots go to Laurel Park. Horse farmers, breeders and leaders of associations that represent them donated $252,000.

Rickman, his family and his companies provided by far the largest sum, giving $382,000 - more than four times as much in the period as any other pro-slots or pro-gambling interest.

State campaign finance law allows single donors or corporations to give only $4,000 during an election cycle to individual candidates. But Rickman reached this goal, now as in the past, using a variety of limited liability corporations that operate out of his Rockville offices in a practice that watchdog group Common Cause has said gives donors too much influence.
It's hardly a surprise as the right to operate slots is like a license to print money. The Sun also printed a nice graphic showing lobbying fees paid and campaign contributions made to produce slots--a truly bipartisan source of cash.

One slots advocate didn't have to be paid off. The Washington Post reports on how Secretary of Labor Tom Perez has become one of the most passionate advocates for slots in the State.

"I certainly hear from many friends in the progressive community who say, 'Tom, how can you support slots?' " Perez said in a recent interview. "I give them a simple answer.

"I'm motivated in large part because I want to address the problems of the uninsured. I want to address the undereducated, and I want to address the challenges confronting people who are living in the shadows of our communities. The reality is we need a funding source to address these challenges."

The Post explained how Perez had a "road to Charleston Races" conversion and Delegate Ana Sol Gutierrez (D-18) defended Perez's actions:

Prior to studying the issue for O'Malley, Perez said he had never been to a gambling parlor. "This is not how I'd choose to spend my entertainment dollars," he said.

But after visiting slots venues in West Virginia and Delaware, Perez said he found that using a portion of slots proceeds to subsidize racing purses has revitalized the horse-racing and breeding industries in those states. He said he is convinced that Maryland can mitigate the potential social costs associated with gambling by being selective on locations.

Del. Ana Sol Gutierrez (D-Montgomery), who worked with Perez in the Clinton administration, said she doesn't consider her friend's support of slots to be a "philosophical transformation."

"I think Tom is being a good soldier," Gutierrez said. "He's joined the administration, and the administration has put out this proposal, and it's the role of the Cabinet to support this proposal."