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Report Released by Calif. Attorney General Documents
Negative Effects of Urban Indian Gaming

Publication: Business Wire
May 31, 2006

SACRAMENTO, Calif. -- A report released today by Attorney General Bill Lockyer provides a detailed account of the negative impacts that result from gaming in California, particularly in urban environments. Gambling in the Golden State: 1998 Forward examined both economic and social costs that urban Indian gaming places on California communities.

“This report confirms our greatest fears about urban casinos,” said Andres Soto, coalition member of Communities United to Stop Urban Casinos, a grassroots organization comprised of citizens concerned about the expansion of urban casinos in their local communities. “A casino that opens in the middle of our neighborhoods burdens the local community with multiple problems ranging from increases in crime to major traffic congestion. In addition, they cause a drain on the local economy by wiping out many small businesses.”

The report, compiled by the California Research Bureau, can be viewed at http://www.library.ca.gov/crb/06/04/06-004.pdf. Some key findings:

--The cost-benefit calculus for an urban casino is different from that of rural casinos. Negative economic impacts can result when gaming operations alter established retail spending or employment patterns, create more problem gambling, and increase costs for traffic, law enforcement and infrastructure. In part this is because more of the gamblers are local residents so the money they spend on gambling displaces other local expenditures. Gambling in rural areas tends to draw residents from other regions, bringing money into the local economy.

--An analysis prepared for opponents of a proposed 5,000 slot machine Indian casino in the city of San Pablo concluded that the casino would result in a regional economic loss of $138 million a year, not taking into consideration social, public health, or safety costs. Money lost to the local economy, which would otherwise have been spent on local goods and services, was estimated to have a multiplier effect on the regional economy resulting in 7,219 jobs lost (compared to an estimated 2,000 employed at the casino).

--From 2001-2004, tribal casinos earned roughly $17 billion in gross revenues. From 2000 through September 2005, the gaming tribes paid less than one percent of that total, or $156.4 million, into two state revenue-sharing funds.

--The tribes’ casino and retail operations provide economic and employment benefits to the surrounding communities in rural areas, where most casinos are located...The economic effect in urban areas is much different and potentially negative due to displacement of existing retail operations.

--Studies suggest that, four years to six years after casinos open, surrounding communities experience increases in rape, murder and other violent crimes, as well as property crimes such as burglary and auto theft.

--In California, the estimated annual societal cost of problem and pathological gamblers is just under $1 billion ($998.1 million). That figure includes costs associated with welfare benefits, arrest and incarceration, bankruptcy, and physical and mental health treatment. More than 75 percent of the calls seeking help from the California Council on Problem Gambling come from gamblers who prefer casinos.

“When voters passed Prop 1A and Prop 5 the intent was not to put casinos in our neighborhoods,” added Soto. “Our coalition applauds the efforts of elected officials, such as Senator Dianne Feinstein (D-California) and Senator John McCain (R-Arizona), that are working to fix the loopholes currently found in the Indian Gaming Regulatory Act. It is imperative that we take action now to protect our communities.”

Communities United to Stop Urban Casinos is working to shed light on the estimated 40 casino projects being proposed in California. For more information visit www.stopurbancasinos.org.

Communities United to Stop Urban Casinos is comprised of community leaders, small business owners, clergy members, and other residents concerned about the expansion of urban casinos in their local communities.

COPYRIGHT 2006 Business Wire Copyright 2006, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

Publication: Business Wire Date: May 31, 2006


Q&A: John J. LaFalce on Buffalo casino
Buffalo News, 12/24/2006


Retired Rep. John J. LaFalce recently took a leadership role with Citizens for a Better Buffalo, an anti-casino group. LaFalce, who along with fellow Rep. Amo Houghton authored the Seneca Nation Settlement Act, has criticized the federal government for using the law to grant a casino in Buffalo. He discussed his decision.


Q: What precluded you from imagining the Seneca Nation Settlement Act would be used to promote casino gambling in Buffalo?

A: The only two authors of the 1990 Seneca Nation Settlement Act were Amo Houghton and myself. We agree: Gambling in Niagara Falls or Buffalo was absolutely never intended, and a pre-existing law, the IGRA [Indian Gaming Regulatory Act] prohibited it, except under the most narrow of circumstances, none of which applies here. To make an analogy, we have been enjoined to "Love Thy Neighbor." Some might imagine that as a clear call to commit adultery. But there's another command: "Thou Shall Not Commit Adultery." Laws must be read as intended and in context.

Q: What realistic chance do you think Citizens for a Better Buffalo has to defeat a casino?

A: The anti-casino forces certainly should win their federal lawsuit. I'd be amazed if they did not. In the Seneca Nation Settlement Act, Amo and I intended only to give fair compensation for unfair leases on the Allegany reservation, not to create Indian country and permit Indian gambling over 60 miles from the City of Salamanca in the heart of the City of Buffalo. We would have opposed that strongly.

Further, the exceptions of the IGRA, which would permit Indian gambling on land acquired after 1988, simply do not apply. The Buffalo property is not "within or contiguous to the boundaries of" a Seneca Nation reservation; it's not land "taken into trust;" it wasn't acquired as "part of a settlement of a land claim," but over 15 years after the settlement of a lease dispute; it's not sovereign Indian land; it is, however, owned by the Senecas in "restricted fee," but they simply cannot legally conduct casino gambling there.

Most importantly, the secretary of the interior never made a decision on the legality of Seneca Nation gambling in Buffalo. By not deciding within 45 days of the application, the issue was deemed approved. Under those circumstances, I believe the courts owe the nondecision result little to no deference; since there was no explicit approval, it is as if the court has to make a de novo interpretation and decision.

Q: If successful, how would the outcome affect the casino in Niagara Falls?

A: The lawsuit involves only the City of Buffalo, not Niagara Falls, so it would have no immediate or automatic impact. Further, I am not aware of anyone who plans to mount a legal challenge against the Senecas' Niagara Falls casino, or who has the financial wherewithal to do so.

If, however, a case should somehow be brought against the Niagara Falls casino, there are a wide range of possibilities, from total cessation of gambling and taxation of other sales, to a legislative fix during the pendency of any potential lawsuit, to an application from the Senecas to continue Indian gambling by applying to the Department of the Interior to have the land taken into trust and also by complying with other requirements of the IGRA. That's what is happening at Turning Stone.


A Giant Step Forward
Joel Rose, 1/12/2007

The Anti-casino movement took a major step forward earlier today with a favorable ruling in Federal Court in Buffalo.

On our Motion for Summary Judgment (See Decision, PDF format), United States District Judge William M. Skretny ruled in favor of our claim that the determination of the sovereign status of the Buffalo Creek parcel by the National Indian Gaming Commission (NIGC) was a necessary precondition for Federal approval of the Senecas' tribal gaming ordinance. It never happened, and therefore the Judge vacated the ordinance and remanded the matter back to the NIGC.

So, as of the moment, casino gambling cannot be conducted in the Buffalo Creek parcel.

As I'm sure you realize, this does not end the matter. Right now, several things could happen. The government could appeal the Judge's ruling. Otherwise, the NIGC will need to make a determination as to the sovereign status of the land in question. But this time, they will do so in the full light of day, under intense legal and, one hopes, media scrutiny, and at a time when the national mood has turned against off-reservation casinos.

See Related Stories:

Federal Court May Slow Down Casino

No Deal on Buffalo Casino


Senecas dispute state report's findings
By MICHAEL BEEBE, News Staff Reporter 12/1/2006

New York has no independent way to ensure that it's getting its fair share of millions of dollars in slot revenues from Indian-owned casinos, including the two run by the Seneca Nation of Indians, a state comptroller's audit charged Thursday. A Seneca Gaming Corp. spokesman took issue with the charge and said all its revenues are verified by outside auditors and filed in public detail with the federal Securities and Exchange Commission.

Comptroller Alan G. Hevesi also criticized the lengthy review and background checks for issuing gambling licenses to casino employees, pointing out that more than half the state's 25,000 casino employees at four Indian casinos still are working under temporary licenses.

And Hevesi also said the state's Racing and Wagering Board, which oversees gambling regulation in the state, has no independent means of knowing that computerized slot machines are working as designed.

In a separate part of the audit regarding the horse-racing industry, Hevesi also criticized the racing board for failing to collect fines on a timely basis from owners, trainers and jockeys and failing to suspend those who do not pay on time.

He also said the board had no written policy on suspending those charged with multiple horse-racing violations but did note that Buffalo Raceway and Batavia Downs had increased their penalties for multiple violators.

The Racing and Waging Board took issue with Hevesi's findings and, in the case of the board's casino inspectors, criticized the comptroller for questioning their professionalism.

Hevesi pointed out that in 2004-2005, the two Seneca casinos paid $57.1 million to New York State, including $13 million to Niagara and Cattaraugus counties, in slot machine revenues. The money is paid under the Senecas' compact giving the nation the exclusive right to have slot machines in Western New York.

But the comptroller said the Racing and Wagering Board, charged with overseeing enforcement at the casinos, has no independent means to verify those figures.

Pantano, the Seneca Gaming spokesman, disputed that.

He said the Senecas' revenues are verified by an outside certified public accountant as well as an independent Seneca Gaming Authority. And he said because the Senecas borrowed $500 million for casino operations, all financial transactions are reported to the Securities and Exchange Commission.

"Obviously, we are very careful that everything we file with the SEC is accurate to the penny," Pantano said.

He also disputed that there is no independent verification on slot machine accuracy and payouts. Each machine is licensed and continuously inspected by the Seneca Gaming Authority, the independent agency required under the state's compact with the Senecas.

Pantano did not dispute the lengthy process involved in the Racing and Wagering Board's licensing of casino employees.


Federal Court Ruling May Slow Down Buffalo Casino

James Fink, Business First, Buffalo, NY

January 13, 2007

A federal judge, in a ruling late Friday afternoon, threw a new speed bump in the Seneca Nation of Indians' already rocky road towards building a downtown Buffalo casino.

U.S. District Court Judge William Skretny decided that the National Indian Gaming Commission must determine if nine acres of land the Seneca Nation of Indians purchased along Fulton Street is truly sovereign territory - something critical towards allowing the opening of the Seneca Buffalo Creek Casino.

Anti-casino proponents, including Erie County Executive Joel Giambra, are calling Skretny's ruling a major victory while the Seneca Nation of Indians say they are confident federal officials in Washington will ultimately side with the 2002 compact that called for gaming venues to be built in Buffalo, Niagara Falls and Salamanca.

Buffalo is the last of three casinos to open.

"The law says that if the federal government is going to grant a permit to open a casino, the federal government must first determine that the land in question is actually on an Indian reservation," Giambra said during a press conference Friday evening. "The land on Fulton Street is not reservation land. No federal government can just ignore the law and call it reservation land."

The Seneca Nation of Indians are currently working on a 5,000-square-foot temporary casino that's slated to open this spring and are finalizing plans for a 100,000-square-foot permanent casino that's expected to employ more than 1,000 people and is considered by some to be a major linchpin in downtown development plans.

"Screwing local businesses is not economic development," Giambra countered.

Maurice John, Seneca Nation of Indians president, said even with Friday's ruling, the Seneca Gaming Corp. continues to move ahead with its Buffalo development plans.

"We understand further federal review is forthcoming and are confident the National Indian Gaming Commission will reach the same conclusion that the U.S. Department of Interior and the U.S. Department of Justice have already been judged as to how the land was acquired," John said. "The land in question is indeed sovereign land again. Fulton Street will not be impacted by this decision and we will continue to move forward on our construction."

Skretny took more than three months to make his ruling and it is expected federal officials will take that much time or longer.

The lawsuit was filed last year by the County of Erie and several other plaintiffs including the Citizens Against Casino Gaming in Erie County, Assemblyman Sam Hoyt and the Campaign for Buffalo. It was filed against the Department of Interior and the National Indian Gaming Commission.

"This is a victory for enlightened public policy," said Joseph Finnerty, lead attorney for the plaintiffs.


FULTON STREET VOTE:
A Bump in the Road

Public Officials and Control Board
Disregard Public Testimony


November, 2006

On October 31st, after the sale of Fulton Street passed the Buffalo Common Council vote, Council President Franczyk said "I think it's telling that downtown restaurateurs and other businesses didn't mount an all-out campaign against [the casino]. I didn't hear from one of them."

Franczyk's comments seemed to defy reality: The week before, Tom Golisano had spoken out as the keynote speaker of a regional anti-gambling conference in Adams Mark hotel. And at the Common Council public hearing on the Fulton Street issue, several downtown business persons spoke out against the sale, including even Carl Paladino. Dominic Carbone, who owns a pizza parlor in the Cobblestone District, is a plaintiff in CACGEC vs. Norton, which challenges the legal basis of the casino. Mark Goldman and Steve Calvaneso are among the restaurateurs who have publicly opposed the casino.

Of course, the negative impacts of the proposed casino deal extend beyond downtown businessmen and restaurateurs. This was borne out by the testimony at the public hearing, which was overwhelmingly opposed to the casino deal, despite the insistence of Mike Powers that it was a done deal.

Those who voted for the sale of Fulton street were motivated by political allegiance to the building trade-unions, and the the Governor. They are not concerned about a casino's impact on the community.

In approving the Fulton Street sale, the Control Board also failed to consider all of the economic burdens a downtown gambling casino would place on Buffalo. Prior to the board's decision, these factors were outlined by Mary Bartley in a letter (below) sent to each member of the board.


Letter Sent by CAGCEC member to
Each Member of the Control Board

November 8, 2006

Dear [Control Board Member],

As a member of the Buffalo Fiscal Stability Board you will soon be deciding whether to approve the sale of Fulton Street to the Seneca Gambling Corporation. The Gambling Corporation has stated that this will enable them to build a bigger casino, with more slot machines and amenities than would be included in a casino that did not encompass Fulton Street. Those who have studied the issue have presented ample evidence that a casino would do irreparable harm to Buffalo’s already fragile economy.

When you vote on this issue, I urge you to consider the following points:

  • A casino will drain discretionary income from private businesses

  • Casino “amenities” such as restaurants and hotels will unfairly compete with local restaurants and hotels

  • Retail sales of clothing, appliances, electronics, etc will also be hurt

  • The larger the casino, the more harm it will do

  • The Gambling Corporation repeatedly stated that if the city did not sell Fulton Street, the casino would be much less grand in scope.

  • When hundreds of casino opponents attended a public hearing and argued that a smaller casino would do less damage than a larger casino, casino proponents changed their story: Now they are saying that the casino will be have the same numbers of slot machines and the same amenities regardless of whether or not Fulton Street is included in the footprint.

  • An independent appraiser presented compelling proof that the real value is almost three times the price the City has agreed to. The other terms the city agreed to are non-binding and vague (the Gambling Corp will “work with” the city to achieve hiring targets, etc.)

  • The only winner in this situation appears to be the trade unions, who expect 300-400 construction jobs for one construction season.

  • Perhaps the Mayor and some Common Council members are also “winners” who expect to receive large campaign contributions or other economic advantages from the Gambling Corporation?

  • No environmental impact study has been done, and the need for such will soon be decided in New York State Supreme Court by Judge Makowski.

  • Likewise, the legality of the casino itself will soon be decided in federal court by Judge Skretny.

  • With two court cases pending, one must question the motivation for voting on the sale of Fulton Street prior to knowing the outcomes of these cases.

The flawed decision making process by both the mayor and the Common Council on an issue that has the potential to irreparably and permanently create the economic destruction of our community present a clear example of the reason the City of Buffalo requires a control board. They simply cannot govern in a fiscally responsible way.

I urge you to vote against the sale of Fulton Street.

Sincerely,

Mary Bartley


Parents Urged to Consider Dangers of Gambling Gifts for Kids

Jeff Marotta, 11/22/2006

Poker sets for kids? Think twice before anteing up

Has Santa's workshop moved to Las Vegas?

Get ready for what has become an annual marketing onslaught of gambling-related toys, books and paraphernalia as we approach the holiday shopping season. My current favorite example is the Pink Poker Night "It's A Chick Thing" Kit, where for $29.95 you can have "everything a chick needs to host a fabulous girls' night in."

So what's the fuss? I received this e-mail from a concerned mother of two:

"I want to know how much I should be worrying about gambling and the health of my kids. They watch poker tournaments on TV, their friends wear clothing with references to poker, and I heard my son talk about playing poker with friends.... What is a mother to do?"

She is not alone in wondering about the effects of ongoing exposure to gambling. Today's is the first generation to grow up in a society where gambling is widely accepted, advertising is ubiquitous and gambling activities are commonplace.

Research indicates that 60-90 percent of youth engage in gambling, and that youth problem gambling rates are 2-4 times higher than those of adults. Surveys of Oregon teens tell us drugs, alcohol and gambling often travel together, yet many parents see gambling as a relatively safe pastime and encourage it as an alternative activity.

I told the concerned mom that, although we don't know the ultimate effects of today's gambling popularity, we do know both children and adults can and do get caught up in gambling in a way that is harmful to themselves and others around them.

This is not to say that if your child is gambling you need to panic -- most kids engage in some form of gambling and most don't develop gambling problems. But you do need to recognize that gambling carries risk and approach it accordingly, as you would tobacco use, drug use or fastening your car's seatbelt.

What do you look for if you're concerned your child might have a problem? Watch for signs such as lying about gambling, gambling superseding other activities, using money to gamble that's supposed to be used for other things, borrowing money to gamble, or stealing and letting schoolwork suffer.

Another suggestion I gave the concerned mom was to talk to her kids about gambling using these simple guidelines:

· Notice opportunities to discuss gambling. Help children make sense out of what they see on television, in the news and in the community.

· Discuss rules and expectations for behavior, and follow through with consequences.

· Be specific. When you talk about gambling, mention examples such as buying a lottery ticket, betting on a sports event, playing bingo.

· Be clear about your own values but avoid sweeping statements (all gambling is bad) or threats ("if I ever catch you betting money..."). Kids feel immortal, so scaring them doesn't work; threats invite rebellion.

· Emphasize balance and choice. Facing choices about gambling and other risky behaviors can be a good way to practice making good decisions about many life issues.

As a parent, you play the most important role in preventing problem gambling behaviors in your children. You may want to think twice before buying your daughter a "Pink Poker Night" set or, for that matter, any one of the hundreds of gambling products that will adorn your newspaper's ad inserts.

A better gift is talking to your kids about the risks of gambling and helping them understand the best bets made in life aren't made in card games.

Jeff Marotta is problem gambling services manager in the Oregon Department of Human Services Addictions and Mental Health Division. For additional information on youth gambling [for residents of Oregon], visit the DHS Problem Gambling Services Web site: http://www.oregon.gov/DHS/addiction/gambling.shtml or call the Oregon Problem Gambling Help Line at 1-877-2-STOP-NOW.


Golisano Primes Anti-Casino Push

Brian Meyer, Buffalo News, 10/7/2006

Billionaire businessman B. Thomas Golisano plans to spend more than a million dollars on an anti-casino marketing blitz, an announcement that kicked off a two-day forum against legalized gambling. Conference participants applauded when Golisano also announced that his hockey team - the Buffalo Sabres - will not sign any new contracts with the New York State Lottery for advertising during games in HSBC Arena.

The regional conference, which wraps up this afternoon at the Adam's Mark Hotel, was held the same week Mayor Byron W. Brown announced an agreement with the Seneca Nation of Indians on plans for a $125 million casino in the Cobblestone District.

Golisano accused pro-casino forces of creating a "monopoly of vice between government and gambling." The Rochester entrepreneur said he recently spent hundreds of thousands of dollars on newspaper ads detailing the economic downsides of casinos.

Participants previewed the next phase of the marketing campaign.

Radio commercials will hit local airwaves soon. They tell casino patrons "the odds are stacked against you" and that they're showered with free food and other casino perks because "they pegged you as a big loser." Even if lawsuits fail to block construction of the casino, Golisano said the ad campaign will continue with messages that casinos fuel crime and personal bankruptcies, and hurt other businesses.

"The train has got to stop. I think this is a great place to stop it," he told reporters at a news conference.

One woman later asked Golisano what people who don't have money to bankroll an ad campaign could do to help. He encouraged them to write letters to newspapers and to call elected officials, including Brown.

"Bug the hell out of them," he said.

Some prominent lawyers attending the conference, sponsored by the National Coalition Against Legalized Gambling, said they're hopeful that lawsuits pending in state and federal courts will block construction of Seneca Buffalo Creek Casino. Former city Comptroller Robert E. Whelan, who also served as a State Supreme Court judge, described the legal papers as "absolutely brilliant."

The casino pact announced Thursday still requires approval from the Senecas' Tribal Council and the Common Council.

On Friday, Brown clarified what he called some reporters' misinterpretation of comments he made a day earlier. Brown said Friday the agreement would provide the city with "legally binding" assurances involving goals for casino work force hiring, marketing commitments and other key elements that caused talks to break down this summer. He said he never meant to imply that terms in the agreement would be nonbinding.

When asked about Golisano's sharp criticism of the casino pact, Brown stood firm. "I respect his opinion and have spoken to him on this issue many times. But we feel strongly that we've taken steps to protect and safeguard the interests of people in the city of Buffalo," Brown said.

Joseph Finnerty, an attorney representing casino opponents, disputed Brown's claims.

"Now it's clear that our politicians in City Hall are not going to protect us, and they're not going to move forward with enlightened public policy," he said.

County Executive Joel A. Giambra said the county will aggressively move forward with a lawsuit aimed at blocking the casino. "We will not back off because of some politicians who think that we're in a state of desperation and that [the casino] is going to solve the problems," Giambra said.

Golisano also expressed a view that he said he doesn't often publicly share for fear of offending people. He doesn't think members of the Seneca Nation should receive checks from casino revenues, saying all nationalities have either been "overrun" by foreign interests or taken advantage of in other ways.

"My family came from Italy, and I don't know how many times Italy was overrun by foreign countries. You know what? I don't get a check. I don't understand why members of the Seneca Nation should be getting checks for casino earnings."

National experts have been taking part in the conference, armed with evidence indicating that casinos create $3 in added costs for every $1 of benefit derived by a community. Some city officials have argued that if a casino is going to be built, it would be better to have a large "destination" facility as opposed to a scaled-down casino like the one the Senecas once threatened to erect. Golisano disagreed.

"I would rather have the cracker box [casino], because I think the impact on the community is going to be far less," he said.

e-mail: bmeyer@buffnews.com


City Hall Ends Fulton St. Talks with Senecas

Mark Leitner, WNED Buffalo, 8/2/2006

BUFFALO 2006-08-02 Mayor Brown said his staff and Seneca negotiators have been going round and round for some six months on the one block stretch of Fulton Street that the Tribe wants to incorporate in the design of its proposed Buffalo Creek Casino.

The Senecas have said the dispute over Fulton Street could result in a less ambitious casino complex.

City Hall's blessing was contingent upon the Senecas agreeing to 24-negotiating points as part of a legally - binding document on the purchase of Fulton. The city wanted to make sure half the employees of the $125 million casino would be Buffalo residents. The city also wanted the Senecas to promise not to acquire additional land in Buffalo.

The Senecas rejected the conditions.

"I have today informed the Seneca Nation of Indians that the City of Buffalo has officially discontinued all negotiations regarding the abandonment and sale of Fulton Street," Brown said.

Seneca President Barry Snyder said late Wednesday that the tribe will build a "temporary" casino in Buffalo while it works to finalize plans for a permanent facility.

The temporary casino would be about 5,000 square feet and would contain about 100 slot machines.

© Copyright 2006, wned


Casinos and Crime: The Luck Runs Out

Richard Morin, Washington Post, 5/11/2006

When it comes to crime, legalized casino gambling seemed to be a surprisingly good bet: Local unemployment went down, tax revenue went up and crime didn't increase when a casino opened. Some researchers even found that crime declined immediately after casinos came to town.

Well, the casino cure for crime proved to be just as delusional as gamblers' luck, says University of Georgia economist David B. Mustard.

Mustard and Earl L. Grinols of Baylor University analyzed crime data collected from all 3,165 U.S. counties in the United States from 1977 to 1996 and looked at local crime rates before and after casinos opened.

They found that crime didn't budge when a casino began operating -- at least at first. Crime began to rise after the first year, slowly at first and then more quickly, until it had far surpassed what it would have been if the casino had never opened. By the fifth year of operation, robberies were up 136 percent; aggravated assaults, 91 percent; auto theft, 78 percent; burglary, 50 percent; larceny, 38 percent; and rape, 21 percent. Controlling for other factors, 8.6 percent of property crimes and 12.6 percent of violent crimes were attributed to casinos, he said.

But what about all those casino jobs and newly minted police? Mustard said the positive effects of casinos are fleeting -- payrolls and tax collections quickly plateau, and municipalities don't keep adding cops after the first wave of casino tax revenue rolls in.

What's more, Mustard said, crime rates didn't rise in neighboring counties while they soared in casino counties -- evidence that casinos create crime locally and don't merely attract it from somewhere else.

And here's sobering news for those in the District and Maryland who think casinos would jump-start the local economies: "Even using conservative estimates of costs and generous estimates of benefits, we still find the costs exceed the benefits," Mustard said.


MAYOR BROWN: A PUZZLEMENT

Dick Hirsch, Business First of Buffalo, 6/9/2006

I’m still trying to make up my mind about Mayor Byron Brown. People are wondering whether Brown will support or oppose the proposed Seneca Casino, but after five months in office, we don’t know. I have a few fuzzy ideas about him, nothing very conclusive.

The casino issue aside for a moment, I can report a couple of conclusions. First, he really looks good in a suit. He has great ties, too, probably selected by his wife, and he looks good in photo ops at City Hall or at civic events.

As far as suits go, the last mayors who really looked good in a suit were Chester Kowal, Frank Sedita and Steve Pankow. They often appeared as though they had just stepped out of the show window at Kleinhans, at Main and Court. Kleinhans has been gone for years and now it’s hard to buy a tie downtown, which may explain the downward drift of more recent mayors.

Stanley Makowski, who did his internship unloading freight cars, always looked uncomfortable in a suit and, as for Jimmy Griffin, a lot of adjectives have been used to describe him, but debonair was never among them. Anthony Masiello made a concerted effort at fashion, but basketball players pose a problem that requires the services of a talented tailor. Masiello clearly never located one.

The other quality of the Brown incumbency that has captured my attention is his speaking style. He reads a good speech and he seems poised, if not too informative, when ad-libbing. He also has a tendency to speak in complete sentences, a notable trait. His natural speaking patterns don’t have some of the familiar Buffalo neighborhood accents and rhythms, which is all to the good. I don’t intend to dwell on the elocution standards of our past mayors except to say that they all managed to get their points across. The last mayor to perfect a polished style was Sedita, although he sometimes insisted on using big words when smaller ones would have done fine.

We can’t forget about Grover Cleveland. No, I wasn’t covering City Hall during Cleveland’s brief term. He was elected in 1882 and served just a year before being elected governor. Cleveland couldn’t match Brown in the suit department because his weight hovered close to 300 pounds, and even with a vest it was difficult to conceal the paunch. The historians have noted that Cleveland was a compelling speaker.

So Brown scores very well on the podium, right there with Cleveland and Sedita. Or, as some of the guys at the Longbranch might observe, “he talks good.” But what is he saying? This is where it has become difficult for me to assess Brown any further than his sartorial splendor and his declamatory talents.

He is dancing around the biggest issue to confront Buffalo politicians in years, the threat, and I emphasize the term THREAT, of the construction of a casino near downtown. I know I’ve complained about the casino before, but this is a horse worth flogging. I have not seen any objective opinion saying it will provide an important benefit to the city. This is a poor city and the target audience of the promoters is our people, many of whom are needy and ever hopeful of the big hit. The casino will pillage households that are unable to resist the lure. Few tourists will be attracted to Buffalo by the chance to gamble.

Sure, there are local people who enjoy gambling and they seem more than satisfied with the opportunities in Niagara Falls, on both sides of the border. (Incidentally, for a primer on the economic impact of a casino, take a drive around the downtown area of Niagara Falls, New York. Stimulate local business? Phooey!)

The casino promoters released renderings of the design last week, and, in a city noted for its architectural heritage, this appears to be a monstrosity. That is an additional reason to marshal the forces and kill this project.

Mayor Brown is in a position to do that, but he must stop tiptoeing and dancing around the issue, he must take a dose of spine stiffener and get the backing of the Common Council.

How would Grover Cleveland have handled the issue? He was a populist, a man who measured public opinion and considered the impact of his actions. He paid little heed to special interests and is remembered today for a famous veto message he wrote as mayor, in which he declared “A public office is a public trust.”

Reprinted from Business First of Buffalo, June 9, 2006


HOYT CALLS ON GOVERNOR AND DOI TO RESCIND BUFFALO PORTION OF CASINO COMPACT

Press Release, 4/21/2006

Because of the consistent pattern of deceit and misleading information by the Seneca Nation along with documents recently filed with the Securities and Exchange Commission that show a deliberate intent to mislead elected officials at all levels of government Assemblymember Sam Hoyt (D-Buffalo, Grand Island) announced today that he will soon introduce legislation to negate Buffalo as a potential casino site.

hoyt press conf 04/21/06
Assemblymember Sam Hoyt with Casino Opponents, 4/21/06

Hoyt has always been a vigorous opponent of a casino in downtown Buffalo and has voted against the proposal at every opportunity. The legislature passed a bill in 2001 which authorized the Seneca Nation/New York State compact, which Hoyt voted against. Hoyt’s legislation will revoke the legislature’s approval of the Buffalo related portions of the compact and direct the Governor to rescind his approval for same.

Hoyt has twice recently written to Department of the Interior Acting Secretary Lynn Scarlett – once asking her to investigate the Senecas’ shady land transactions used to purchase the proposed casino site and again asking her to rescind the DOI’s approval of the compact based on the information contained in the Senecas’ recent filings with the Securities and Exchange Commission. In addition, Hoyt recently sent a letter to Governor Pataki asking him to rescind the Buffalo related portions of the compact on the grounds that the deal was reached based on a false set of expectations.

Hoyt said, “For anyone who ever doubted the impact this casino will have, the facts have now become crystal clear – this casino will primarily target Western New York residents, and will cannibalize existing jobs and discretionary income that would otherwise be supporting local businesses and entertainment venues.”

The Senecas’ SEC filings clearly describe the Senecas’ intent for the Buffalo casino is to “target the local Buffalo market and its suburbs.” This same report refers to Buffalo as an “underserved local market” and clearly expresses the Nation’s intent to exploit this “underserved” market of Buffalo and the surrounding areas. Their analysis of this population as “underserved” recognizes that despite the proliferation of casinos in nearby localities, there is potential to increase rather than simply redirect gambling. Joseph Finnerty, attorney and secretary of Citizens for a Better Buffalo said "The Seneca Buffalo Creek casino is not a development project. It is an anti-development project. It will suck jobs and money out of the city and it will do the most harm in Buffalo's poorest neighborhoods."

Hoyt concluded, “The intent of those who supported the casino was always to draw new dollars and new jobs to the region, not cannibalize existing ones as this casino will clearly and certainly do. Fortunately, there is time to rectify this great injustice now that the ominous truth is known and before ground is broken for the economically ruinous casino.”

Edit note: for a copy of each of the letters, please call 852-2795.

Sam Hoyt represents the 144th Assembly District.


Seneca Plan for Casino Aims Locally
SEC filing contrasts "world class" billing

Matthew Spina, Buffalo News, 4/9/2006

The Seneca Gaming Corp. confirms in documents filed with the Securities and Exchange Commission that its emerging Buffalo casino will cater primarily to Buffalo and its suburbs, raising worries that it will drain assets already here without pulling significant outside dollars into the local economy.

The disclosure kicked up these events Saturday:

After conferring with Mayor Byron W. Brown, City Hall's development commissioner called the news "very troubling" and said it "speaks strongly" against the city providing $6 million in water, sewer and road improvements the Senecas want for the casino.

County Executive Joel A. Giambra urged the County Legislature to join him in filing a "friend of the court" brief on behalf of the forces trying to block the casino in state and federal courts.

An Assembly Democrat said he would write to the U.S. Department of the Interior to say the public rhetoric from the Seneca Gaming Corp. had not jibed with their less-visible filings with government regulators.

A Seneca corporation spokesman responded that the Buffalo casino, to be built near the Cobblestone District, will significantly benefit Buffalo.

"We believe that Seneca Buffalo Creek Casino will provide tangible economic benefits to the community, most notably in the share of slot revenues," responded Seneca Gaming spokesman Phil Pantano. "It is a $125 million investment in an area that hasn't seen that kind of investment in some time, if ever."

Meanwhile, he said the casino could retake some of the $60 million to $80 million a year that leaves the Buffalo area to be wagered at the Fort Erie race track.

"We would certainly like to capture as much of that as possible and support local jobs," Pantano said.

The Seneca Buffalo Creek Casino's 1,900 to 2,200 slot machines, 30 to 50 gaming tables, plus its restaurants and stores are expected to "cater primarily to the local market," the corporation said in a February filing with the SEC, explaining that Buffalo Creek would "complement" Seneca Nation's casino to the north, Seneca Niagara, and its casino to the south, Seneca Allegany.

That disclosure, not the first of its kind from Seneca Gaming, provides fodder for Buffalo's anti-casino forces. While the corporation's SEC filings have been frank, its officials have publicly spoken in grander terms, saying they want to build a "signature destination" and a "world-class" facility in Buffalo.

"The public pronouncements in the press releases differ greatly from the written pronouncements in the official Securities and Exchange documents," Giambra said. "It appears that we might have a situation of fraud here."

He has said the casino ought to be a resort-style, tourist destination, not a downtown development, and he wants lawmakers to join him in filing an amicus curiae brief on behalf of anti-casino forces, or join their lawsuits.

Legislature Chairwoman Lynn M. Marinelli, D-Town of Tonawanda, without knowing the wishes of the full Legislature on Saturday, said a court brief could be signed by those legislators who agree with the statement, regardless of whether they form a Legislature majority.

Assemblyman Sam Hoyt, longtime critic of a Buffalo casino, plans to write the Interior Department about the inconsistency. "The official documents submitted to regulators say one thing," the Buffalo Democrat said. "The public rhetoric and the sales pitch to people who have a decision-making role in granting them a license, were something entirely different.

"I have said for years this is going to be just picking our own pockets. I am anti-casino, not for religious or moral reasons but for economic reasons."

The Senecas' recent disclosure raised serious issues within the city, which would gain a share of casino revenue and a projected 1,000 permanent casino jobs, not to mention construction jobs. "The primary economic justification for a casino in Buffalo has been that more tourist dollars will come to and stay here than will leave the host community," said Richard M. Tobe, the city's commissioner of development, permits and inspections.

He said information in the SEC document "raises the strong possibility that the Buffalo Creek Casino will have negative impacts on our local economy" and "speaks strongly against the city providing any support for the infrastructure improvements requested by the Seneca Nation around the Buffalo Creek Casino site."

Seneca Nation President Barry E. Snyder Sr. in March requested that the city provide $6 million in road, sewer, water and traffic signal improvements. Pantano did not respond specifically to Tobe's statement Saturday.

e-mail: mspina@buffnews.com


A newly-revealed letter from Sam Hoyt to Sec. Norton, raising serious questions about Seneca land deals. ==> Note: a PDF version of this file is available for printing.

February 28, 2006    

The Honorable Gale Norton, Secretary
Department of the Interior
1849 C Street, NW
Washington, DC 20240

Dear Secretary Norton:

I write regarding a matter of grave concern to me, my constituents, and the residents of Western New York: the purchase of land in the cities of Buffalo and Niagara Falls by the Seneca Nation of Indians.

The method by which these purchases have been made raises questions about the legal effect of these purchases and the status of the land so acquired. I would appreciate your opinion on this matter, as well as any course of action we may expect you to take to correct this apparent subterfuge and prevent future similar transactions.

Recently, it has been brought to light that the Seneca Nation has utilized a questionable two-step method to acquire parcels of land in Buffalo and Niagara Falls. The Seneca Gaming Corporation (SGC) first purchases the parcel at a purchase price that would be deemed market-rate, and then re-sells the parcel to the Seneca Nation for a nominal amount. For example, a parcel in Buffalo was purchased by the SGC for $4.6 million dollars and resold for $4.00. Considering that the SGC is a wholly owned, tribally chartered corporation of the Seneca Nation, these two-step procedures between essentially the same functional “entity” amount to no more than an Enron-esque shellgame designed to confuse and to shield these transactions from scrutiny. Clearly these spurious transactions are an attempt to subvert established Department of Interior (DOI) review processes and constraints imposed by law and/or regulation.

As you know, the Indian Gaming Regulatory Act (IGRA) prohibits gaming on offreservation lands acquired after October 17, 1988 without DOI approval, which is contingent upon a full environmental review, including a review of the impacts such a facility would have on the community and other tribes. However, if the land is acquired through the settlement of a land claim, an expedited approval process applies which may not require the same level of review.

The Seneca Nation received thirty million dollars in 1990 as part of the Seneca Nation Settlement Act (SSA) {25 U.S.C.A. 1774} to resolve long-standing lease disputes in New York State. These funds were not designated by the SSA for gaming purposes, and the local Congressional sponsors of the SSA have consistently voiced their concern that facilitating gaming was not their intent when the Act was passed.

The Seneca Nation/New York State Compact contained provisions that stipulated that the Seneca Nation would use all but $5 million of these SSA dollars to purchase the land for the casinos, with the remaining funds dedicated for meeting housing needs (“Compact” at paragraph 11(b)(4) ).

In your November 12, 2002 letter to Governor Pataki you cited the SSA as the reason for allowing the Seneca Nation/New York State Compact to take effect without secretarial action, indicating that the parcels to be acquired for the casinos would actually be purchased with SSA funds.

I have been advised that the Governor’s Office believes that the Seneca Nation/New York State compact may be read as superseding certain provisions of federal law (SSA). That is, the compact appears to compel the expenditure of all SSA (except $5M for housing) on Niagara Falls and Buffalo gaming sites. However, no gaming site is specified by the Compact in the City of Buffalo so there is significant legal uncertainty concerning the effect of the SSA “sham transactions.” Based on the actual purchase cost paid for these parcels by SGC, acting as a “straw man,” and not the artificial re-sale price, the Nation would indeed appear to be close to exhausting these funds.

The reasons for this shell-game may be uncovered by an investigation of the fund with an eye to the Seneca Nation’s intentions. It would seem logical that the reason for this evasive and misleading strategy is to preserve these dollars for future land acquisitions – or at least to stretch them as thin as possible to acquire far more land than might have ever been intended.

Was it your understanding when you approved the compact by default that the accounting of the SSA funds would be based on the true value of the land purchases, or the significantly depreciated “symbolic” value? Additionally, to the extent you have been apprised, we would appreciate information on how much of the fund has been expended on land purchases thus far.

The SGC’s quarterly report for the period ending December 31, 2005 indicates that the SGC intends to acquire the remaining 24 acres of a 50 acre gaming site in Niagara Falls. The report states that the Nation is required to fund the acquisition of property, and as initial security for site acquisition costs and in furtherance of ongoing condemnation proceedings, the Nation delivered to the Empire State Development Corporation a letter of credit in the amount of $33.5 million. SGC claims that this letter of credit is 100% collateralized by a cash deposit in an interest-bearing restricted account. As of December 31, 2005, the Corporation’s long term debt consisted of $3 million in 2004 senior notes and $200 million in 2005 senior notes. One of the stated use of proceeds for the 2005 senior notes is “to fund certain costs associated with the expansion of our operations.” It does not state whether those proceeds will be used for purchase of additional property.

Furthermore the Corporation’s quarterly report states: “(I)n consolidation, all intercompany balances and transactions have been eliminated.” The SGC is a publiclytraded company and yet it did not disclose the several million dollar land transaction in its quarterly report, nor does the report reveal the financials related to the purchase of the Buffalo acquisition, nor does it disclose the financials of the land transfer to the Nation. This would seem to be an egregious omission, though whether of intent or neglect is unclear.

Finally, if the Seneca Nation did not purchase these lands with SSA funds, then it is in violation of both the Compact and the IGRA and these purchases have no legal effect concerning the establishment of new “Indian country” within the City of Buffalo and must be voided. As such, it would appear that the very language of the compact was deficient as it relied upon a faulty premise regarding the nature of the transaction.

I look forward to your timely response to these most important questions.

    Sincerely,     SAM HOYT
    MEMBER OF ASSEMBLY

SH:sjmk
cc: WNY Congressional Delegation, WNY State Delegation


In this letter to Gale Norton, Rep. Higgins questions the legality of Seneca land deals and asks for a review of the Casino Gambling Compact:



February 15, 2006

The Honorable Gale Norton, Secretary
Department of the Interior
1849 C Street, NW
Washington, DC 20240

Dear Secretary Norton:

I am writing to request your immediate review of recent developments concerning the construction of a casino in the Buffalo, New York.

In 2002 after good faith negotiations tho State of New York and the Seneca Nation of Indians entered into a compact to permit the construction of three casinos, including one in Buffalo. The compact anticipated tho use of the $30 million provided to the Nation pursuant to the Seneca Nation Settlement Act of 1990 for the purposes of developing the casinos. The compact specifies that these funds should be used to support the development of the casinos themse1ves, not for auxiliary uses such as restaurants and hotels._ However, recent published reports indicate that the Seneca Nation may be acquiring land in Buffalo that is speculative in nature, and that would not be a part of the proposed casino facility. Such action would seem to violate the spirit and the letter of the 2002 compact.

In the last year the City of Buffalo has seen unprecedented and sorely needed momentum toward economic developrnent, which wil1 soon begin at Buffalo's waterfront. This exciting momentum promises not only to improve the quality of life for residents of Western New York, but to rebui1d the decimated tax bases of the City of BuffaIo and Erie County that is the root cause of both the City's and County's persistent financial distress.

If the Seneca Nation is seeking to the the $30 million for land acquisition at other than site specific casino development, then I believe the compact needs to be re-opened, and the distribution of revenues reconfigured so that a greater share of revenues will be dedicated to the City of Buffalo. Such action seems appropriate in order to mitigate the negative impact of the removal ofthe acquired land from the local tax rolls.

Therefore I respectfully request that the Department of Interior conduct a review of the compact and the reported land acquisition as soon as possible, in order to determine whether the compact has in fact been violated.

Thank you for your attention to this matter. I look forward to your response.

Sincerely,

Brian Higgins,
Member of Congress


Vast land purchase possible for tribe

Jerry Zremski, Buffalo News, 02/12/2006

WASHINGTON - The Seneca Nation of Indians paid $4 for the Cobblestone District property where it intends to build a Buffalo casino.

Of course, the land is worth more than that: $4.6 million, to be precise.

Protestors at the Cobblestone Site, 12/08/05

That's what the tribe's gambling corporation paid for the nine-acre property last year - before turning around and selling the land to the tribe for $4.

Seneca Nation leaders structured similar two-step deals in Niagara Falls. Public records show the tribe's gambling corporation spent at least $8.07 million on Niagara Falls land since 2003 and later sold the same property to the tribe for $14.

Why?

The tribe won't say.

But it could be because the tribe has a congressionally designated $30 million pot that it can use to buy land thereby sidestepping what's usually a cumbersome federal review process for tribes that want to build off-reservation casinos.

And by buying properties for $4 or less, the Seneca Nation could theoretically make that $30 million, or whatever is left of it, go a very long way.

Related: Letter from Rep. Higgins to Gale Norton questions the legality of Seneca land deals and asks for a review of the compact.

"Oh, man, they could buy the whole city," said Joseph Finnerty, a lawyer for a Buffalo citizens group that is suing the U.S. government, charging that the congressionally designated fund was not intended to make it easier for the tribe to build casinos.

The Senecas are not likely to try to buy all of Buffalo. The tribe's purchases so far are tied to casino developments. And under the tribe's casino deal with the state, it appears that future acquisitions probably would have to either be part of the casino developments or for tribal housing projects adjacent to them, or adjacent to the tribe's Southern Tier reservations.

Neither Seneca Nation President Barry E. Snyder Sr. nor tribal lawyer Robert Odawi Porter would comment. And that leaves some questions unanswered.

It's unclear how much of that $30 million is left.

It's unclear how much land the Senecas might want to buy, and for what purpose.

Silos may not be the only site
(photo, D. Enser, News)

"It smells" -- ------

And it's also unclear how the U.S. Department of the Interior which can stop such land deals within 30 days of their submission - views the Seneca land transactions. Nedra Darling, a spokesman for the department's Bureau of Indian Affairs, did not respond to an inquiry about the matter.

But it is clear that, in cases where the land had been privately owned, it comes off the tax rolls when the Senecas buy it. And it becomes sovereign Indian territory, where Seneca laws apply.

The two-step land deals came as a shock to local casino critics and supporters, and even to one of the investors who sold the tribe some of its Buffalo land.

"At the very least, it smells," said Finnerty, who represents an anti-casino group called Citizens for a Better Buffalo.

Former Buffalo Mayor Anthony M. Masiello, who wrote a letter to Interior Secretary Gale Norton last fall in support of the Seneca land acquisition, said he was unaware the tribe's gambling corporations were reselling land to the tribe at a pittance.

"This is the first I've heard of it," Masiello said. "I'm not familiar with the issue. Until I am, I'd rather not comment."

Casino critics said it appears the Senecas are doing the two-step land purchases for one of two reasons.

Perhaps the tribe wants its Buffalo casino development to grow dramatically.

"Our suspicion is that this nine acres is merely a foothold, and that there's a much larger, and in our view, more ominous plan yet to be revealed," Finnerty said.

Then again, it's also possible the Senecas have used up a vast portion of their $30 million pot and needed a creative way to use whatever is left to buy additional properties, said Richard Lippes, another Buffalo attorney involved in litigation trying to stop the Buffalo casino.

Congress gave the Senecas that $30 million in the Seneca Nation Settlement Act of 1990, which ended a long-standing lease dispute regarding Seneca-owned land in Salamanca.

That act of Congress included language allowing the Seneca Nation to use the $30 million to buy "land within its aboriginal area in the state or situated within or near proximity to former reservation land."

Interior Secretary Norton wrote in 2002 that Niagara Falls and Buffalo meet that criteria.

And for that reason, the Senecas were able to build their Niagara Falls casino without going through the arduous community impact review called for under the federal Indian Gaming Regulatory Act.

Lawsuits filed -------- -----

The Senecas hope to do the same in Buffalo. And to try to prevent that, Citizens for a Better Buffalo has filed a lawsuit in federal court, contending the Seneca Nation Settlement Act was intended to rectify the Salamanca property dispute and not to give the Senecas a quick and easy way to build off-reservation casinos.

While Masiello and Gov. George E. Pataki wrote letters to Norton backing the Buffalo land purchases, Erie County Attorney Laurence K. Rubin wrote to her to complain about the impact the Buffalo casino deal could have on property and sales tax revenue.

Told about the Senecas' two-step property transactions, Rubin said: "I think it shows the problems the Seneca Nation Settlement Act, though it perhaps had well-intentioned goals, is now being used to foist casino gaming on a community that doesn't necessarily want it."

Anti-casino lawyers who also are suing in state court to try to stop the Buffalo gambling hall think the courts wouldn't easily swallow the Senecas' apparent argument that they're buying land for as little as $1 per property.

"I don't think there's any question that, for all legal purposes, the gaming corporation and the nation are the same entity," Lippes said.

And Carl P. Paladino, part of a group of investors who sold the Seneca Erie Gaming Corp. more than half of its Buffalo property, said the public would likely object to additional Seneca land deals.

"I don't think that's in the cards," Paladino said.

If the Senecas tried to stretch their $30 million pot to buy huge amounts of property, "we'd all be suing them," Paladino added.

e-mail: jzremski@buffnews.com

Copyright 1999 - 2006 - The Buffalo News


Rep. Wolf (Va.) Writes Letter to President Bush

Here is a message that Representative Wolf is sending to religious organizations, together with an attached copy of a letter to Bush (facsimile below).

"Everyone knows what's been going on with lobbyist Jack Abramoff and his ties to tribal casinos. I have again asked President Bush to issue a moratorium on the opening of any new tribal casinos and to halt the federal recognition process of tribes until Congress can review the Indian Gaming Regulatory Act of 1988 and consider a reform package. My letter is attached.

"We all understand gambling's exploitation of the poor and the crime and corruption it brings. I am asking that you call or write the president today to urge him to quickly act to halt the explosion of tribal gambling. You can make a difference.

"Best wishes.

/s/

Frank Wolf"

Facsimile of Rep. Wolf's Letter to President Bush Follows
PDF version of this letter downloadable here


Suit Readied to Halt Casino in Buffalo

Mark Sommer, Buffalo News, 12/30/2005

A team of Buffalo attorneys backed by a prominent foundation will file a lawsuit in federal court Tuesday to stop the proposed Seneca Buffalo Creek Casino. The lawsuit will charge that the federal government did not properly apply three laws that govern the approval process for gambling activities on Indian lands and its responsibility to consider a casino's impact on the community.

Gale Norton, a Defendant

"The casino is not a done thing. It's illegal in the City of Buffalo, and we're prepared to get a judge to rule to that effect," said Robert J. Kresse, a trustee with the Wendt Foundation, which will largely finance the effort that also includes significant contributions from other foundations and individuals.

"I think it will suck all the life out of Buffalo, and it just appalls me," said Diane Bennett, a former managing partner of Hodgson Russ. Bennett is one of a number of prominent Buffalonians backing the lawsuit as a member of the newly formed Citizens for a Better Buffalo. Members met with The Buffalo News' editorial board Thursday.

Several religious leaders are expected to confirm their opposition to the casino at a news conference at 11 a.m. Tuesday in the law offices of Stenger & Finnerty.

The lawsuit will name various federal officials and agencies as defendants, including the U.S. Department of the Interior, Interior Secretary Gail Norton and the U.S. National Indian Gaming Commission.

Plaintiffs in the lawsuit include Citizens Against Casino Gambling in Erie County, Assemblyman Sam Hoyt and preservation organizations.

Joseph M. Finnerty of Stenger & Finnerty said more lawsuits may be filed.

Seneca Nation of Indians officials could not be reached to comment Thursday.

The Senecas had a groundbreaking on their 9-acre downtown site near the Cobblestone District on Dec. 8. Seneca leaders said they wanted to begin construction this spring and open a 100,000-square-foot casino complex on New Year's Eve 2006.

The Senecas claim the Seneca Nation Settlement Act offers legal justification for building a casino in Buffalo. The act was cited by Norton when she allowed the Niagara Falls and Buffalo casinos to go forward.

The lawsuit will argue the act does not apply to Buffalo, and that the Indian Gaming Regulatory Act should have been implemented instead. That act requires an examination of the possible effects of a casino on a community.

Former Rep. John J. LaFalce, a co-sponsor of the Settlement Act, has written Norton claiming it was never intended to be used for purchasing casinos.

The lawsuit will also charge an environmental assessment required by the National Environmental Policy Act, which was conducted in Niagara Falls before the Seneca Niagara Casino opened there, should have been conducted in Buffalo.

And it will claim the federal government failed to follow the Historic Preservation Act, which requires consultation between federal and state preservation officials for properties on or eligible for placement on the National Register of Historic Places.

The site's H-O Oats grain elevator is eligible for inclusion in the historic register, and there are other historic sites in the district that could be affected by the casino.

"Anyone of these [violations], we think, would void the action of [Norton] to allow the casino to be built," said attorney Richard Lippes. "The issues we are raising are very important and solid issues, which I think the court has to consider very seriously."

Finnerty said a lawsuit wasn't filed earlier because of the uncertainty over whether the Senecas would choose land in Buffalo for a casino, and where it would be. He said a restraining order will be sought to prevent construction while the lawsuit winds through the courts.

e-mail: msommer@buffnews.com


Letter to the NFTA from Buffalo Niagara Riverkeeper

Riverkeeper Letterhead

November 17, 2005

Lawrence Meckler, Executive Director
Niagara Frontier Transportation Authority
181 Ellicott Street, Buffalo, New York 14203

Dear Mr. Meckler:

As expressed in our comments at the NFTA’s December 2004 Outer Harbor meeting, Buffalo Niagara RIVERKEEPER (formerly Friends of the Buffalo Niagara Rivers, Inc.) strongly opposes the sale of public waterfront land to private interests. The Outer Harbor is public trust property and must remain in public ownership. New development and waterfront vibrancy can be accommodated through the use of long-term (50 year) leases.

If the NFTA no longer wishes to serve as the steward of the Outer Harbor parcel, another suitable public or not for profit entity should be identified to manage the revitalization of the site. Driven first and foremost the desire to amass private financial gain, a private real estate developer is not an appropriate steward of the public’s right to access the region’s rich waterfront recreation resources. The waterfront belongs to the entire community and must remain in public ownership.

We look forward to your prompt reply regarding the NFTA’s regarding this matter. Please provide your response in writing to Buffalo Niagara RIVERKEEPER, 617 Main Street, M108, Buffalo, NY 14203.

Sincerely,

Julie Barrett O’Neill
Buffalo Niagara RIVERKEEPER

Cc: Clinton, Schumer, Higgins, Pataki, Brown, Schroeder, Hoyt, Giambra, Masiello


We Can't Control a Casino, But We Can Prevent It

News Analysis: Mary Bartley, October 30, 2005

Now that the Seneca Nation has begun the process to convert part of the City of Buffalo into sovereign Indian territory, our elected officials are finally saying what opponents of casino gambling have known for years: the deal that New York State cut with the Seneca Nation is a very bad deal for Buffalo. The Seneca compact is an attempt by the state to balance its budget on the backs of the state’s poorest economy. It will irreparably harm our region.

The current mantra of many of our elected officials is, “We can’t stop it, but we will control it.” Just the opposite is true! Once a casino comes to Buffalo the people of Buffalo will have no control over the casino – not over the jobs, not over how the local share is distributed, and not over what other businesses the Seneca Nation chooses to start on its newest reservation. But we can stop it! Secretary of the Interior Gale Norton could disapprove the land transfer if she hears from enough of us, especially elected officials. Lawsuits could stop it as well, and there are ample grounds for challenging this illegal land transfer and illegal casino proposal.

Wake up, Buffalo. Don’t leave our children and grandchildren a legacy of a gambling casino and a permanently broken economy.


Shameless Propaganda Masquerading as News

In today’s fast-paced media, with its focus on a short attention-span, it is easy for a distorted or false piece of information to creep into the news. Sometimes this is premeditated, as in the case of an advertisement masquerading as a “report”, or promotional material in the guise of a press-release or “study”. A newspaper under deadline might not check all of its sources all the time.

Unfortunately, misinformation, published as news, promotes ignorance and reinforces prejudice.

How does the public decide what is true and what is not? There are ways. But sometimes by the time the truth comes out it is too late.

Recently, the USA Niagara Development Corporation released a study of the Seneca Niagara Casino’s impact on the city of Niagara Falls over the past two years. The study’s project director, Kent Gardner, said that none of the business owners he interviewed reported a loss of business because of the casino. “No one said they lost business,” he said. “They just didn't gain any.”

Was Gardner relying solely on interviews to reach this conclusion? In any case, the facts in Niagara Falls don’t support it. Since the casino opened, two hotels have been foreclosed and another is for sale. One large restaurant has closed and many others are struggling. The ice skating rink on Lackey Plaza is gone. Did Gardner not interview the owners of any of these businesses?

coverpage of casino study

If you get a copy of this study, you will notice something right away. The title page proclaims that the study was prepared by CGR (Center for Governmental Research) “In Partnership with Gaming & Resort and Development Inc.” (italics mine) GRD is an arm of the gambling industry. On its website, the Seneca Nation is listed as one of its clients.

To bolster some of its claims, the CGR-GRD study quotes a finding from a Harvard study: that counties in the United States with casinos grew slightly faster than non-casino counties. Ironically, Harvard itself is currently under fire for producing bogus research funded by the gambling industry.

Who commissioned the Niagara Impact Study in the first place? In a press-release of August, 2004, Charles Gargano, chairman of Empire State Development, announced the selection of a Rochester firm (CGR) to study the economic impact of Seneca Niagara Casino on the city.

Charles Gargano has been a promoter of gambling expansion for many years: In 1993 he served on the board of Alpha Hospitality, which was attempting a casino venture with the St. Regis Mohawks. As commentary on his reputation, Gargano has been the subject of many criminal investigation probes. I leave it as an imaginary assignment for the reader to check further into Mr. Gargano’s background and credentials, and how they could have a bearing on the impartiality of the study.

Recently, the Seneca Nation issued its own “report”, which president Snyder said shows that the casinos have had a “clear and positive impact on the local economy.” The report stated that the Seneca casinos generated $100 million in revenue to New York State, and $72 million in payroll during 2004. Omitted was the fact that at the same time over $300 million in gambling losses came out of the pockets of local residents. Some news media printed the report without raising any questions.

I rely on mainstream news for much of my information. Some of the local reporting on the casino issue has been informative and responsible. For example, many area newspapers dispelled the myth that casinos drove the economic growth in Niagara Falls, Canada, explaining that the casinos came later for a slice of the pie.

Too often, though, hype invades news pages. A recent caption under a picture of the Seneca Niagara hotel construction said it was “visible spinoff of the gambling site's 2 years in operation.” The hotel is on the 57 acres deeded to the Senecas in the casino deal. It is on reservation land. Like the casino and other businesses on this urban reservation, the hotel will not provide any tax revenue to the city and has an unfair tax-advantage over existing hotels. Also, a number of specialty shops are being planned within the hotel that will be guaranteed to wipe out additional businesses in the local area. This is called “spinoff”?

The casino interests can pay for propaganda, and sometimes it gets reported as news. They can also pay for extended litigation. The return on these investments is billions of dollars in personal enrichment. On the other side are the casino opponents, working on limited budgets: People like Dr. John Kindt, of Illinois, Dr. Earl Grinols, of Texas, and Tom Grey, Director of the National Coalition Against Legalized Gambling. These people do not reap any monetary reward for their efforts.

Reminiscent of the battle against Big Tobacco, the casino controversy is a David-and-Goliath struggle for truth against big-money deception. There is much at stake. As Dr. Guy C. Clark, Chairman of NCALG says: “Gambling has always been among the most selfish of human activities – people seeking to take other people’s money with nothing of value exchanged. State governments have become so egocentric that they are willing to sacrifice the health and welfare of their citizens. Across the nation, legislators trade health and hope for the future in exchange for this year’s budget. America is falling victim to false hopes and empty lies advanced by greed, compromised academics and corrupt politics.”

-- John Bartley, August 27, 2005


There's no positive spin on Buffalo casino

Mary Bartley, September 2, 2005

Of all the mistakes that have been made in Buffalo, none would be as devastating to our downtown core as the proposed downtown casino. It would permanently remove a prime piece of downtown from the tax rolls, and it would deal a death blow to the downtown and surrounding business areas. And, unlike the Skyway and the above-ground section of the rapid transit system, turning a piece of our city into a Seneca reservation is a decision which could never be undone.

The Seneca Nation recently issued a report offering "proof" that its Niagara Falls and Cattauraugus casinos are a huge success for their host communities. The report shows nothing of the kind.

The Seneca Gaming Corp. brags that it is second only to Delphi among Niagara County employers. But the vast majority of casino jobs are minimum wage, and many are part time -- hardly comparable to Delphi jobs in salary or benefits. Economists studying the effect of casinos on employment have shown in numerous studies that, for every casino job gained, localities lose two jobs, due to cannibalization of the local economy.

Particularly disingenuous is the portrayal of the new Seneca hotel as a spinoff. It is simply a way of shifting the Falls hospitality industry from the hotels that are currently there to this new (non tax-paying) hotel on Indian territory. Another spinoff is the transfer by eminent domain of the water park from private ownership to ownership by the Seneca Nation.

So, what does this mean for the City of Buffalo?

A Buffalo casino would be a "convenience casino," deriving its revenue almost entirely from local residents. At best, locals will gamble with money that would otherwise be spent at restaurants and theaters, or to buy consumer goods. At worst, it they will gamble with the grocery and rent money.

Casino advocates tell us it takes three to five years for the casinos to do their economic development magic. (How convenient, since Buffalo is being asked to establish its casino just shy of three years from the opening of the Seneca Niagara casino). But, outside of Las Vegas, there is not one area where casinos have fulfilled this promise. What we see in cities like Detroit and Atlantic City is urban blight and increased crime, bankruptcy and gambling addiction. What we don't see is economic prosperity.

Past generations of Buffalonians left us a legacy of outstanding cultural institutions, world famous architecture and beautiful parks. Will our legacy to our children and grandchildren be that we sacrificed our city for the empty promise of a gambling casino? We can and must refuse to let this happen.

Mary Bartley is co-chairperson of Citizens Against Casino Gambling in Erie County.


Letter to Mayor Masiello from Bishop Edward U. Kmiec

Bishop's Letterhead

July 29, 2005

Anthony M. Masiello, Mayor
City of Buffalo
65 Niagara Square
Buffalo, New York 14202

Dear Mayor Masiello,

I am most concerned about the possibility of a gambling casino in the City of Buffalo. I urge you to discourage the Seneca Nation from establishing a casino.

The casino in the city will only draw the already disadvantaged population, making the poor, poorer and causing gambling addiction problems, bankruptcies, family violence, and crime, such as embezzlements. All of this has occurred in cities where casinos were built. The poorest section of our own city has been known to purchase the largest number of lottery tickets on a per capita basis.

The amount of money to come to Buffalo is a pittance compared to police and other costs incurred. Area restaurants and other entertainment venues will be hurt. Our real claim to fame, our architectural heritage, the waterfront, museums, our important place in history, and our family-oriented community, will be sacrificed for this “quick fix” which in the long run can only hurt us, as evidenced by so many other cities.

Your concern for the City of Buffalo is very well known. Please do everything possible to leave a legacy of your work that will enhance the human spirit, not demean it.

Sincerely,

Bishop's Signature

Most Rev. Edward U. Kmiec
Bishop of Buffalo

EUK:mh


Letter to Mayor Masiello from CACGEC Chairperson Joel Rose



Joel Rose August 2, 2005

Mayor Anthony Masiello
201 City Hall
Buffalo, New York 14202

Dear Mayor Masiello,

As your term draws to a close, I am sure you are thinking about what your legacy will be. I'm hoping that you will choose to use your considerable influence to lead Buffalo to build its future on its strengths -- its wonderful geography, its architectural and historical heritage, its outstanding cultural institutions.

Please rethink your support for casino gambling -- a tawdry, sleazy, exploitative industry that would only suck the lifeblood out of our community.

There is more to this decision than a few jobs and a paltry stream of revenue. The costs would be horrendous, and they will be paid by all of us, whether we gamble or not.

Because this issue has been so thoroughly studied, we know that a casino in Buffalo would mean thousands of people newly addicted to gambling. In turn, these addicts would affect and in many cases destroy the lives of tens of thousands of family, friends, and co-workers. We know that some of these people will experience bankruptcy or family dissolution. Many of them will commit crimes. A few of them will commit suicide.

It doesn't have to happen.

What you do about this issue in the coming weeks and months will be with us long after you and I have passed from the scene. Please, think long and hard about how your name will be remembered. In this City of Good Neighbors, don't let exploitation be your legacy.

Sincerely,

Joel Rose, co-Chairperson, CACGEC
716-837-7175, 716-491-0305


Harvard yields to 'The Dark Side':
Federal gambling 'Superfund' study needed

News Release/ National Coalition Against
Legalized Gambling

July, 2005

"The pool of information is getting so poisoned it's going to take a superfund to clean it up," says Dr. Guy C. Clark.

Clark, who chairs the National Coalition Against Legalized Gambling, charged the leading gambling research facility at Harvard University has been "co-opted" by the gambling industry and is flooding the nation with "politically irrelevant pabulum" deliberately intended to confuse the real costs of legalized gambling.

Clark charges Harvard has "joined The Dark Side," shifting from neutrality on gambling questions to a position of outright advocacy.

"They've become the academic apologists of the industry. The gambling industry funds them, and the gambling industry is getting its money's worth. But it's time for that to stop," Clark said.

"The American Gaming Association and its minions have trotted across the country citing 'peer reviewed' propaganda they claim proves they don't cause addiction, bankruptcy and crime. Most people know better, but politicians use industry-funded disinformation to justify gambling expansion," Clark said.

Clark says there is one way to settle the question, and that is to re-commission the work of the National Gambling Impact Study Commission. That commission, funded during the Clinton Administration, issued its final report in 1999. "They called for a pause in gambling until more research could be done," Clark said. "NCAGE has already challenged President Bush and Congress to place a moratorium on gambling expansion, and today we're asking for a significant, unbiased and honest research to help government and citizens make better decisions. We're asking Congress to finish the work their own commission said was necessary.

"There has been no pause in expansion other than moments won by dedicated anti-gambling activists. There has been some significant research showing the impacts of gambling, but the gambling industry has paid for its own studies. The AGA even set up its own front organization, the National Center for Responsible Gaming, which in turn funnels money to Harvard, to generate self-serving studies and make it look like knowledge is increasing. What they've really done is increased confusion.

"They pay one group to verify the work of another paid group and call that 'peer review.' In reality, they have gambling lackeys vouching for gambling apologists.

For more information, open the
June NCALG Bulletin (a .PDF file) and turn to page 4


Anti-gambling crusader depicts casino as
no sure bet for economy

GENE WARNER News Staff Reporter
July 12, 2005

The Rev. Tom Grey says casinos fail to meet expectations for improving the economy of their communities.

The back of Tom Grey's business card shows five gambling images, including a weak poker hand, an unmatched trio of slot-machine symbols and a lousy pair of blackjack cards.

"They're all losers," Grey explained.

That's what the Rev. Tom Grey, executive director of the National Coalition Against Legalized Gambling, thinks about casino gambling.

Grey has come to Buffalo for a couple of days to preach his anti-gambling gospel and meet with business, religious and community leaders.

"We hold a winning hand - the people who say gambling's not good economics and not good public policy," Grey told the editorial board of The Buffalo News on Monday.

Grey didn't dwell on the moral issue of casino gambling. His message dealt more with the failed economic promise of casinos and the effect on the local population.

"No one's going to get on a plane to gamble in Buffalo," he said. "Can we agree on that? So it's just local (use)."

It doesn't take long for Grey to recite the ills and broken promises of casino gambling.

"After a decade of this, gambling ought to be able to show where it's delivered its economic promises," he said. "And they haven't been able to hide the bodies."

Casinos provide relatively few jobs, he said. No city has experienced a significant rebirth as a result of a gambling casino. And the biggest effect is on the local people who flock to the casinos, as measured by bankruptcy, homelessness and suicide statistics.

Grey, of Rockford, Ill., cited national public-opinion polls and a recent "Your Turn" forum in The Buffalo News in which 13 of 16 letters opposed a proposed Seneca Nation of Indians casino on the city's waterfront.

"How did we win the hearts and minds of people?" he asked. "Not because we put billboards up. It's because citizens kept raising legitimate issues."

Grey was well aware of the Dec. 9 deadline for the Seneca Nation to begin construction of its third local casino, to follow ones in Niagara Falls and Salamanca. Uncertainties include the identity of Buffalo's next mayor and a possible federal moratorium on nonreservation casinos.

"It's almost a guessing game," said Robert Heffern, secretary of Citizens Against Casino Gambling in Erie County. "I don't know if (Mayor) Tony Masiello has a bombshell to drop before he finishes his term. . . . I don't know if anything is brewing now."

On the radio Monday, Masiello said he understood that the Senecas were looking at downtown and waterfront sites. Grey doesn't think much of a waterfront casino.

"Anywhere near any water runs counter to what you want water to be, a gathering place," he said. "I'd keep it off the water, away from your city and as far away as possible."

Grey was scheduled to meet with local business owners at 8:30 a.m. today and with clergy at 10 a.m., both in the Catholic Center on Main Street.

lake erie: our waterfront
Lake Erie: our waterfront

Artvoice Interview with
John Kindt


Tom Grey Attends 1000 Islands Event

Gambling is focus of program
Laurie Petersen -- Thousand Islands Sun
July 13, 2005

Alexandria Bay – A community that ushers a casino in at the front door will usher its economic health out the back door, according to gambling opponents.

That was the repeated message at Thursday’s informational sessions held in the Reformed Church of the Thousand Islands community room.

Sponsored by the Clayton-centered NoCasino group, the event drew close to 80 attendees, estimates NoCasino organizer Charlotte Wellins.

Built around a local visit by a nationally-recognized gambling expert, the Rev. Tom Grey, the program was comprised of two sessions: a morning "Call to Clergy," and an afternoon "Call to Community Leaders."

The Rev. Mr. Grey, who is executive director of the National Coalition Against Legalized Gambling, began a state speaking tour with his Alexandria Bay appearance.

The tour is scheduled to end in Sullivan County, where Gov. Pataki has supported the opening of five casinos.

Speaking of the Alexandria Bay event, Ms. Wellins assessed, "I think it’s the most successful one we’ve ever had."

Besides her involvement in NoCasino, she is also an officer in a statewide coalition whose members arranged the Rev. Mr. Grey’s tour.

Economic factors

It is not only casinos that draw out addictive gambling behavior, emphasized program participants.

Scratch-off lottery tickets and games like Quick Draw can bankrupt problem gamblers in a hurry, they said.

Studies have put the percentage of adult problem gamblers in Jefferson County at 5.9 percent, with $43 million plus spent in the county annually on gambling.

"I think the message there," said Ms. Wellins, "is it’s not spent on local goods and services."

The Rev. Mr. Grey illustrated this contention by citing New Mexico, where the advent of casino gambling brought decreased revenues to 12 of 16 areas of business.

He interpreted this as revealing that when casinos open up, people spend money on casinos rather than in the places where they had been spending money.

A specific example, he said, was in Council Bluffs, Iowa, where grocery stores lost 15 percent of their food sales after a casino opened nearby. This suggests, he said, that people were spending their money on gambling rather than on food.

Yet, he added, states are buying into the idea that gambling establishments will help their economies.

He calls this concept "the modern equivalent of snake oil." The bottom line, he holds, is that gambling is bad economics, and it sucks money out of a community.

He characterized the prolifertion of state-legalized gambling as "the metastasizing of a cancer," and said New York State itself is "a pathological gambler" if it is looking at legalized gambling as a means to economic development.

Within a fifty-mile radius of a casino, he said, pathological gambling doubles; the bankruptcy rate goes up by 14 percent; and the crime rate goes up by 8 percent, including embezzlement and fraud.

Tom Spaulding, who is executive director of Watertown’s Northern New York Council on Problem Gambling, agrees.

New York State’s estimated three million pathological gamblers, he said, rack up "perhaps a $3 billion revenue loss."

Conference presenters said Gov. George Pataki, formerly supportive of the state’s preexisting constitutional gambling ban, now advocates legalized gambling.

Gov. Pataki could not get casinos into the state before the Sept. 11, 2001 air attacks on the country, said Rev. Grey.

But New York’s constitutional (Article 1, Section 8) anti-gambling provisions -- formerly the strongest in the country -— were tossed out after the attacks, with the argument that casinos would encourage economic development to offset the 9/11 losses.

One example of the change in attitude, said Rev. Grey, is that part of the funding for the state university budget has been tied to the opening of casinos.

Multipartisan issue

Because of such scenarios, said the Rev. Mr. Grey, the gambling problem is "a winnable battle" because it’s an issue that unites liberals and conservatives.

For example, he said, liberal former presidential candidate Ralph Nader and conservative James Dobson of the Coalition for the Family have met to find ways to work together on the issue, based on their joint opposition to predatory corporate gambling interests.

The Rev. Mr. Grey cited Tom DeLay and Ralph Reed as two public figures who have already gotten into trouble because of their connections with the same corporate gambling interests.

Thursday’s program was rounded out with Native American speakers who also oppose the expansion of legalized gambling.

One of them, Aroniakons (Angus), a Mohawk from the Ganienkeh Territory on the St. Lawrence River, sees casino expansion and Seaway expansion as joined issues.

Both casinos and land-claims issues, he contends, are "smoke-screens" for the further exploitation of native lands and resources.

The Native American community, he said, is still suffering from the results of community members presenting themselves as spokespeople of the community will.

This had fed into justifications to support what he describes as President Bush’s current process of removing environmental laws that have prohibited Seaway expansion.

Expansion has never been a positive concept for Native Americans, he said.

Native peoples, he explained, were removed by force from their ancestral lands not only for the sake of the Seaway, but also for the expansion of Canadian Routes 401 and 20, which coincided with the Seaway expansion.

Some of the land turned over to the Seaway, he said, was used for toxic dumping, which has resulted in higher diabetes and cancer rates for those who live nearby.

"They only way they could gain control," he said, "was to denationalize us, to give up our claim to the land."

Alexandria Bay native and former Theresa and Syracuse resident James David Audlin—now the Rev. Distant Eagle, pastor of two Kingston, N.Y. Reformed Churches—concurs.

He is most troubled by the way county governments can override the will of the people in keeping casinos out.

"Home rule has gone out the window," he said, citing the cases of Sullivan and Ulster Counties, where local referenda opposed the introduction of casinos, yet the counties ignored those referenda.

He believes that casinos create a considerable public debt, because he views casino gambling as "a form of regressive taxation" where the lower-income players tend to spend the most money.

Most casino workers are not hired from the local community, he said -- and not only is the infrastructure supporting the casino costly to the community, but casino development also contributes to a loss in environmental quality.

He praised the locally-elected public officials who attended the meeting —- the mayors of Clayton and Black River, and Alexandria’s town supervisor -— saying that local officials are much more trustworthy on gambling issues, "because they live among us."

The higher up in politics one goes, he said, the more he is likely "to get the big lie." He said he is troubled by the fact that the son of state Senate majority leader Joseph Bruno is a lobbyist for the Wisconsin-Oneida gambling interest.

"Afterwaves"

Speaking after the conference, Ms. Wellins remarked, "The after-waves are incredible. I think there’s going to be a council of local clergy because of it."

One local Presbyterian pastor, she said, is planning a Bible study around the gambling issue. Another told her he had had no idea gambling addiction could be the unspoken complication behind some of the problems he has counseled.

Ms. Wellins said she told him, "You have some of them in your congregation," based on what she knows about statistical distribution. She said she remarked to the clergy members who attended Thursday’s morning session, "You guys have to learn the right questions to ask."

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