Casino fever -- You're either for it or against it

Vermont Business Magazine, Feb 1995 by Bell, Mary Day

Last November, Pownal residents voted two to one in a non-binding referendum for a golden vision of employment opportunity and tax relief that developers say could bring new life and energy to the rural community of about 3,500 souls on Vermont's southwestern borders.

But Governor Howard Dean says the gambling casino proposed for the defunct Green Mountain Race Track in Pownal is a "crummy industry" and a "threat" to Vermont. Dean has promised to veto any enabling legislation, and Attorney General Jeffrey Amestoy, also adamantly opposed to an expansion of gambling in the state, says any chance the governor will change his mind is "non-existent."

For the legislature to pass a bill to legalize gaming is a "long shot" according to Senator Dick Sears, D-Bennington, who will introduce a Senate bill. A two-thirds majority, 20 votes in the Senate and 100 in the House, is necessary to approve a bill over Deans' veto.

Sears says he will introduce the bill so the issue will be debated on the floor, but he is still concerned with the overall quality of life in Pownal, the character of the Pownal valley and gaming in Vermont if the bill actually were to become law.

"But I lean toward the casino because of the jobs," he said January 6.

Now, the heavyweights are fighting to make casino gambling a legislative priority. Lobbyists Steve Kimbell, Robert Sherman and William Shouldice III, and former Speaker of the House cum consultant Ralph Wright, have been hired by Las Vegas developer Eric Nelson, half-owner of the race track, to steer a gaming bill through the legislative process. And in the administration's corner, lobbyists David Wilson and William Gilbert will marshall the anti-gaming forces pro bono -- low-income advocates and business representatives have recently allied to fight the casino.

At stake is a proposed year-around, 24-hour a day, destination resort at Green Mountain, complete with a horse racing track, casino, hotel, restaurant, on-site daycare, recreational vehicle park and entertainment facilities for concerts and boxing matches.

Nelson said the resort could provide up to 1,500 new jobs, 90 percent of them full time and up to 95 percent going to local people, with a salary range of $20,000 to $30,000 per year, up to $100,000 per year for top executives -- an annual payroll of $25 million to $30 million. The state would get 9 percent of the projected $80 million or more gross revenue or about $8 million annually plus a licensing fee of $1 million, and the town would get 3 percent or about $2.5 million annually plus a licensing fee of $250,000.

In a "good faith" gesture that may have backfired, Nelson offered the state $10 million up front-- the first year's tax paid in advance.

Bob Sherman of Kimbell & Sherman said that there was a need to show the people of Vermont that the developer was both serious and committed to the project. He said the idea for the pre-tax payment came from Nelson, and that Kimbell & Sherman, which was retained by Nelson around Christmas, discussed with him the pluses and minuses of such an offer. Sherman said Nelson knew the risks and went with it anyway.

"As far as it being a public relations gaff, I don't think that it is," Sherman said. "It says to people that we're serious and it makes a commitment to that and demonstrates that."

Dean wasn't tempted -- he refused to "sell Vermont down the river."

Why are Dean and Attorney General Jeffrey Amestoy so opposed to a project that would bring much-needed money into a state hard hit by the recession?

Dean has made his position clear from the moment the casino was proposed last fall. He restated it January 13:

"Casino gambling would do irreparable damage to Vermont. We only need to look at other states and cities to see the negative impact of legalized gambling: increases in crime and demand in social services, property devaluation and loss of whole communities. Tourism dollars that now go to ski areas, restaurants and specialty shops would instead go to Las Vegas developers. Casino gambling is a bad deal for our family-oriented, tourism economy. It's a bad deal for Vermont communities. It's a bad deal for Vermont."

And Amestoy said January 12 that allowing gaming in Pownal would be a mistake that would encourage additional legislation:

"The video gaming interests would push, the Abenakis would push, the Northeast Kingdom would seek gaming for economic benefit. Vermont would be swallowed up by gaming interests....It would undermine the fabric of Vermont and does not make economic sense -- the benefits are grossly overstated -- and it would be a bad decision in respect to law enforcement."

Asked if he feared the intrusion of organized crime in the state, Amestoy said, "That's a red flag, but other states that have expanded gaming have experienced an increase in crime."

COULD NELSON REVERSE A 30-YEAR DOWNSLIDE?

But perhaps Nelson, of Nelson Associates in Las Vegas, is the man with the vision, the dollars and the experience in operating other casino resorts to finally realize the potential of the 167-acre race track property.