DeLeo to frame gambling debate with blue-collar jobs angle

Published on Thursday, March 04, 2010

STATE HOUSE NEWS SERVICE

House Speaker Robert DeLeo is expected to pitch casinos and slot machines Thursday morning as middle-class job incubators, working to shape the state’s looming policy fight over gambling as a matter of stanching employment losses.

DeLeo, long a proponent of racetrack slot machines who has recently added resort casinos to his wish list, will propose carving out a portion of the gambling licensing fees to help sustain the state’s struggling manufacturers, specifically targeting efforts to promote blue-collar jobs, said one official familiar with the plan.

In a breakfast speech to the Greater Boston Chamber of Commerce, DeLeo is expected to present parameters of a bill expected to emerge from a House-dominated committee in about two weeks, and could delve into details like how many full-scale casinos he thinks the state should sanction.

The closely guarded process through which DeLeo, Economic Development Committee House chair Brian Dempsey, and close aides have been writing the legislation has driven gambling policy stakeholders nearly to distraction. Senior aides to Gov. Deval Patrick, who watched the governor’s own casino bill die messily at the hands of the House almost exactly two years ago, said late Wednesday they were unsure of the speaker’s plans.

“Speaker DeLeo is going to highlight the importance of creating jobs in this very, very difficult economy,” said DeLeo spokesman Seth Gitell.

Pointing to the state’s gains in industries like life sciences, gifted by Beacon Hill in 2008 with a 10-year, $1 billion incentive package, Gitell said, “One new sector that can also create jobs is gaming. As part of his remarks, he’s going to pay special attention to blue-collar workers who have not always reaped the benefits of some of these other sectors.”

According to the official, who spoke only on condition of anonymity, DeLeo will look to create a special fund designed to help existing Bay State manufacturers remain here, and to encourage out-of-state manufacturers to invest in Massachusetts. The effort appears to dovetail with pro-casino arguments that opening the state’s doors to expanded gambling could prop up a flagging economy, with statewide unemployment resting above 9 percent.

Gambling critics say the industry will prey on less-affluent residents, wreak havoc with smaller businesses, and exacerbate gambling addictions and related problems.

The legislation has not reached its final form, the official said.

Large questions loom heading into DeLeo’s speech Thursday, including how many casinos would fit the market, how much the state should charge for licensing fees and its taxable share of revenue, what role local governments will play, the scope of a regulatory structure for the industry, and how the state will mitigate expected social ills.

Also unclear is whether the speaker has the votes to pass the bill, and whether the House, Senate, and Patrick can agree on a final version. The 108-44 vote that killed the governor’s bill in March 2008 included seven members of DeLeo’s senior leadership team and the speaker itself siding against the bill, a defeat orchestrated by then-Speaker Salvatore DiMasi.

While some opponents remain against gambling expansion, House members say they expect conversions to be framed as influenced by economic currents and the state’s worst-in-a-generation unemployment problem.

In a Burlington Union op-ed published last month, House budget chief Charles Murphy, a close DeLeo ally who voted against casinos two years ago, wrote, "[T]he House looks forward to a vigorous debate over the future of destination gaming in Massachusetts. While suffering a slow-down like other sectors, our tourism industry is already the envy of the region and continues to help drive our economy. Destination gaming could prove yet another premium attraction to those already drawn to Massachusetts' unique history, and its many cultural and entertainment offerings."

Murphy wrote, "In addition to providing much needed revenue for the state, destination gaming proponents tout the potential for thousands of good-paying, permanent jobs in construction, lodging, transportation, and food service, among other industries.”

DeLeo’s pitch to create blue-collar jobs could provide political cover for members queasy about switching their votes. It will likely also appeal to unions, who have been outspoken in support of gambling measures, arguing they will create thousands of construction and permanent jobs.

Manufacturing employed about 260,000 people during the second quarter of 2009, down from roughly 397,000 from the same period in 2001, according to state employment data.

The speaker’s bill’s lengthy gestation period has heightened speculation about its contents, as the Winthrop Democrat has long harbored hopes for slots at the state’s four racetracks, two of which, Suffolk Downs and Wonderland, are near his hometown.

Senate President Therese Murray has said she is reluctant to embrace “racinos,” saying they would likely not provide sufficient economic benefits.

Patrick will have a chance to respond publicly to DeLeo’s plan Thursday when he testifies to a legislative panel about an economic development package he filed last month.