State senator blasts hiring of firm with ties to casino industry
BOSTON — The Patrick administration has hired a New Jersey company to independently evaluate its claims that three resort casinos will bring jobs and money to Massachusetts, drawing criticism from casino foes who say the company has deep ties with the casino industry.
Spectrum Gaming Group LLC, which counts Harrah's Entertainment and Las Vegas Sands Corp. as clients, was awarded a $189,000 contract on Thursday to review the governor's plan. It was the only company that competed for the state contract.
The company, with offices in Atlantic City and Princeton, N.J., was hired in response to state lawmakers' criticisms during a Dec. 18 Statehouse hearing that the Patrick administration's projections were based on an internal study. At the hearing, Gov. Deval Patrick promised an independent look.
"He's making good on that promise," said Kofi Jones, a spokeswoman for the Department of Housing and Economic Development, which put together the administration's study.
But Sen. Susan Tucker, D-Andover, said she doesn't believe the company can impartially review the governor's claims.
Tucker, who opposes legalizing casino gambling, pointed out that Spectrum, on its Web site, touts its past work for casino companies beyond Harrah's and Sands, and that it hosts casino industry summits.
"They're deep in the casino industry and not just on the fringes," Tucker said. "No one can believe they can give a credible and impartial review of the governor's proposal."
Spectrum's hiring also was blasted by an anti-casino group, Casino Free Massachusetts. Citing Spectrum's work for the casino industry, Doug Bailey, the group's spokesman, said Spectrum is "unquestionably a pro-casino group."
"It's like Ameriquest examining Countrywide's mortgage lending," Bailey said.
Jones said Spectrum could be counted on for an unbiased, dependable analysis.
"Spectrum Gaming is an independent, third-party firm with specific expertise in the gaming industry," Jones said. "Most of their work is on behalf of government agencies around the world, where they have performed extensive economic impact and feasibility studies."
Michael Pollack, Spectrum's managing director, said the administration was satisfied with its disclosure of its casino clients and "deemed there was no conflict."
Pollack said Spectrum currently is not working with Harrah's, Sands or the Mashpee Wampanoag Indians, all of whom are interested in building a casino in Massachusetts.
Pollack said his company has a record of independent analysis.
"We've done economic impact studies throughout the U.S. and overseas," Pollack said.
Spectrum is charged with figuring out how much money casinos will bring in, how many jobs they will create, what salaries casino jobs will pay and how many casinos Massachusetts can support. It also will be asked to consider the cost of regulating the industry, the impact of casinos on the state lottery and the impact of casinos on nearby small businesses.
And it will be asked to figure out how much casinos will tax the state's public health and safety systems.
Based on its own study, the Patrick administration estimates casinos will produce $2 billion a year in economic activity, $800 million in casino license fees, and $600 million a year in tax revenue.
It also contends that licensing three resort casinos will create 20,000 permanent jobs that will pay on average $45,000 a year. It also believes another 30,000 construction jobs will be created.
The report is due within 60 to 90 days from Wednesday, when the contract was approved. Patrick has asked lawmakers to pass his casino plan this session, which effectively ends June 30.
Although the governor's casino bill has languished, the issue has heated up in recent days.
Mayors, whose cities have been promised a share of casino revenue, are lining up to support the governor's plan. Salem Mayor Kim Driscoll is taking a leading role in the newly formed Massachusetts Coalition for Jobs and Growth, a coalition of labor union leaders and city officials who will lobby lawmakers and the public to back the proposal. Gloucester Mayor Carolyn Kirk also has come out in favor of the casino plan.