Investigative Journalism

Investigation shows property tax relief for PA homeowners is a “charade”

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An Associated Press analysis of state Pennsylvania Education Department data shows that, despite the meteoric rise of Pennsylvania’s gambling industry, the casinos haven’t delivered enough revenue to put a significant dent in most homeowners’ tax bills. If anything, homeowners are feeling even more of a pinch now, 10 years after gambling proponents predicted that casinos would in the words of one lawmaker -“remove the stifling
saddle of high property taxes from the backs of Pennsylvania homeowners.”

2014 Slots cash a mixed bag for PA property owners

LesInvestigation shows property tax relief for PA homeowners is a “charade”
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DE casinos launch online operations

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The three casinos in the state of Delaware are about to put in motion the first phase of their online gambling operations, which will be run through Facebook. The first phase will include only free games but within months, these casinos hope to have up and running full-fledged casino games online, running through Facebook. Delaware is now the first state in the nation to have legal casino games online. These two articles, from the USA Today and Delaware Online, describe this development, which will allow problem gamblers to throw their money away from the comfort of their own couch and allow America’s kids to get sucked in through Facebook.

Delaware’s 3 casinos launch free online gaming

Delaware casinos’ online gambling will be run through Facebook

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Casinos get strong warning for perpetrating financial crimes

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According to this story from the Las Vegas Review-Journal, “Casinos have long reaped profits from what can politely be described as plausible deniability when it comes to identifying the source of their large cash customers’ income.” Jennifer Shasky Calvery, director of the Financial Crimes Enforcement Network (FinCEN), wants to put a stop to that. In a speech at the annual gambling trade show, G2E, Shaky Calvery called for a cultural change inside the casino business to root out and stop financial crimes, such as money laundering. This comes as an ominous warning for casinos, who often benefit from some shady deals.

Reluctant casinos get clear warning on money laundering

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Slots used to launder money from drug sales

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This article from The Topeka Capital-Journal details the arrest of five Kansas residents after they used slot machines in Kansas City, Kansas to launder $200,000 from marijuana sales. According to the article, “The office of U.S. Attorney for Kansas Barry Grissom said Wednesday that investigations showed some members of the group would deposit large sums of money in small denominations into casino slots, cash out without playing and receive a voucher for the money deposited, then cash the voucher at ATM machines throughout the casino, getting their cash back in large denominations.” These residents have been indicted on 12 counts including money laundering and conspiracy to distribute marijuana.

Feds- slots used to launder money from drug sales

LesSlots used to launder money from drug sales
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New Ohio Lottery ad promotes the “fun” of scratch tickets

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A recent $4.3 million ad campaign from the Ohio Lottery aims to show players how fun and exciting it is to play scratch tickets, even while making no implication as to whether the people in the commercial won anything. Scratch ticket sales in the US totaled $37.5 billion last year, disproportionately from poorer Americans who are playing these instant scratch tickets as a path to wealth. The fact is, even the Lottery realizes that these games are a poor and almost impossible way to achieve wealth, so these ad campaigns are looking to get players to play just for the instantaneous  “buzz” or “high” people can get from these games, which, along with their money, is gone in seconds.

Ohio Lottery Trades the Promise of Riches for the Joy of Instant Gratification

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Despite casinos’ poor economic record, Philadelphia pushes forward with second casino

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Philadelphia is hoping to buoy the economic prospects of its Center City area with a second casino, despite the fact that the state’s first casino has failed to produce economic growth and despite the fact that time and again, casinos hurt, not help, urban economies. This opinion piece from Next City explains why more casinos won’t make their economic effects any less harmful. Philadelphia’s Center City needs a breath of new life but casinos will not and cannot provide it.

Architectural Gimmicks Can’t Make Casinos Safe Economic Bets

LesDespite casinos’ poor economic record, Philadelphia pushes forward with second casino
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System to allow citizens to set spending and time limits on gambling machines abandoned

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This article from the CBC News explains the Nova Scotian government’s recent decision to abandon its “My-Play system” where players, using a card to activate the machine, would be able to set spending and time limits on a VLT (video lottery terminal) and see their spending habits. Gambling interests argued that this system wasn’t working because people would use multiple cards- even despite a 2011 study that found that this system is effective. Gambling critics argue that this is the work of gambling interests upset about their bottom lines being hurt. The My-Play system has already been adopted and has been working quite effectively in places like Norway but now, just two years after the system as made mandatory, the system is gone and Nova Scotian gambling interests can continue to profit more and more from problem gamblers.

VLT cards that track gambling habits abandoned in Nova Scotia

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The lower your income, the more likely you are to play the Lottery

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This article from the Maryland Reporter details why the lower-income communities in Maryland play the Lottery disproportionately. For example, Park Heights, one of Maryland’s poorest neighborhoods with a median income of $35,000, gave the most money to the Lottery in the entire state- a whopping $34 million. A truck driver from Park Heights told the Reporter that, “We play to make some extra money… I want some extra money. We all do.”  Lower-income communities disproportionately believe the path to wealth is the Lottery, not responsible saving and spending. However, with every Lottery ticket, as this article explains, residents only fall deeper and deeper into poverty.

Low-income players drive lottery sales as a big source of state revenues

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Florida Lottery shuts down more stores after fraud allegations

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This article by the Palm Beach Post documents the Lottery’s scramble in Florida to shut down certain stores after a previous investigation by the paper revealed fraud going on between store owners and Lottery players, allowing some players to win an incredible amount of times against all odds. The total of stores that the Lottery has closed down now totals 14 and some of those involved could face criminal charges if these allegations are true.

Florida Lottery suspends sales at 11 more stores after newspaper investigation

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Study finds that disadvantaged youth may be more likely to become problem gamblers

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This article from The Baltimore Sun summarizes the findings of a new study from Johns Hopkins University that concluded that disadvantaged youth have a higher propensity to become problem gamblers, due in part to their increased level of participation in betting on dice in the streets or betting on sports games, which serves as a gateway to more serious, problem gambling when they are allowed in a casino. These discoveries come on the heels of an increased casino and gambling presence in Maryland, where the study took place.

Disadvantaged urban youth may be more likely to be problem gamblers

LesStudy finds that disadvantaged youth may be more likely to become problem gamblers
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