Earlier today, Karyn Polito delivered a letter to House Speaker Robert DeLeo urging that any decision to approve expanded gaming this year “be done transparently and in a manner that maximizes revenue to the Commonwealth.” She warns against the perception of “insider deals” for politically connected special interests.

In the letter, Polito specifically recommends that licenses to operate slot machines and casinos be awarded through a public auction, where all applicants are on “equal footing.” She writes that licenses should be awarded based on the merits of proposals and what is in the best interests of the state, not the best interests of racetrack owners only.

“We need to avoid the appearance of an insider deal that further erodes the confidence of the people in their government. Expanding gaming in the Commonwealth must be done in an open, transparent and competitive process in order to maximize returns for taxpayers. I'm concerned that certain special interest groups like racetracks appear to have the inside edge when instead they should be on the same level as any qualified bidder,” Polito wrote.

The full text of the letter is below:

March 18, 2010

The Honorable Robert A. DeLeo Speaker of the Massachusetts House of Representatives State House, Room 356 Boston, MA 02133

Dear Speaker DeLeo:

Published reports indicate that you are prepared to file legislation in the House of Representatives to expand gaming in Massachusetts. According to those reports, it appears your main intent is to place slot machines at the several racetracks across our state.

I have supported expanded gaming for Massachusetts in the past. Expanding gaming would create a new non-tax revenue stream for our Commonwealth and I believe it will also help to generate new job opportunities for our citizens. But, as with most other choices, the process behind the decision matters greatly.

If we are to approve expanded gaming legislatively this year, it should be done transparently and in a manner that maximizes revenue to the Commonwealth.

I strongly believe that licenses to operate slot machines and casinos should be awarded through an open and competitive process. We need to avoid the appearance of an insider deal that further erodes the confidence of the people in their government. Expanding gaming in the Commonwealth must be done in an open, transparent and competitive process in order to maximize returns for taxpayers. I'm concerned that certain special interest groups like racetracks appear to have the inside edge when instead they should be on the same level as any qualified bidder. Political connections should not influence the awarding of these licenses. Instead, we should rely on criteria that takes into account objective factors such as who is willing to pay the most for these licenses. This can only be determined through a public auction. Every interested applicant should be on equal footing, and licenses should be awarded based on the merits of proposals and what is in the best interest of the state, and not what is in the best interest of the racetrack owners only.

I intend to offer an amendment to this effect during House consideration of the bill and I hope that you will allow full and fair debate on it.

Second, once the licenses have been awarded, I believe one-time fees associated with their sale should be used to reduce debt and to help rebuild our state’s Rainy Day Fund, which has been depleted to dangerously-low levels in recent years. And there is no question in my mind that the percentage of downstream revenue we receive from gaming should be distributed to cities and towns as local aid through the Lottery formula, with special mitigation for host communities. This is the only fair way to ensure that people across our state all share in the financial benefits of expanded gaming.

Thank you for your consideration of my arguments and I look forward to working with you on this important issue.

Sincerely,

Karyn Polito

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