Jan 31 2007

AG WARNS AGAINST EXPANDED GAMBLING

Published by mafia-news.com at 9:42 am under USA

Police costs could cut revenue gains

Attorney General Martha Coakley warned yesterday that the expansion of gambling in the Commonwealth would bring with it a risk of organized crime, creating a potentially expensive state law enforcement obligation that could eat into any new state revenue from slot machines and casinos.

The new attorney general, speaking to the Greater Boston Chamber of Commerce, said that she does not have a position on gambling, but she cautioned state officials to tread carefully as they consider a “very seductive” way to bring in new revenue.

“It’s a cash business . . . it’s going to be subject to infiltration by — and I use the term ‘organized crime’ very loosely — some sort of money laundering, organized crime costs,” she said. “I understand the attractiveness of it, but be very careful, I think, before we do it.”

With her comments, Coakley injected concern about crime into a debate that has recently focused on whether the promise of jobs and revenue is worth the potential human costs, such as gambling addiction.

Coakley said she has not discussed the subject with Governor Deval Patrick, who said Monday that he plans to carefully consider the expansion of gambling, perhaps with the help of a study group. The attorney general said yesterday that she and her staff plan to discuss the issue with Patrick soon.

“I have no moral compunction against it,” she told reporters. “I just think that people always see it as the pot of gold at the end of the rainbow. And I’m here to say, as someone who’s been a prosecutor . . . the pot doesn’t have as much gold in it as people think.”

State Representative Kathi-Anne Reinstein, a Democrat from Revere who has filed legislation that would put state-owned slot machines at the state’s four racetracks, said Coakley’s “blanket statement” about organized crime was unfounded.

“There are strict regulations in my bill,” she said. “The machines are owned and operated by the state, and there’s even an audit system. I respect the attorney general very much, but I think if we pass something like my bill, that’s highly unlikely to happen.”

Coakley also said yesterday that she wants to take on controversial stem cell regulations issued by the Romney administration last year.

“Stem cell research and other biotechnical initiatives should be encouraged and not discouraged by regulations promulgated that contradict the spirit of recent, progressive legislation,” Coakley said.

The Romney-controlled Public Health Council passed the regulations in August, over the vehement objections of Harvard University and other leading scientific research institutions, which said a portion of the rules could subject scientists to criminal penalties if they engaged in certain embryonic research activities. Critics said this contradicted 2005 legislation meant to foster stem cell research in Massachusetts.

Patrick appointees will gain control of the Public Health Council this spring.

In an interview yesterday afternoon, Coakley said she did not have an “immediate or obvious” way to change regulations promulgated by an executive branch agency, but added that she could choose not to defend a rule if it is challenged in court. She said she raised the stem cell regulations as an example of the kind of roadblock in the administrative rules that she wants to call attention to and eliminate.

“I think this is a positive development and would encourage the attorney general to take a hard look at this issue,” said Diane Lopez, a lawyer in Harvard’s Office of the General Counsel.

By Lisa Wangsness, Globe Staff | January 31, 2007 http://www.boston.com/news/local/articles/2007/01/31/ag_warns_against_expanded_gambling/

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