Stop Predatory Gambling New Mexico

Thom Cole at the Santa Fe New Mexican wrote a good piece today on the failure of the state to protect its citizens from gambling addiction. I'm also quoted a couple of times. The article is posted below:

New Mexico doing little to fight gambling addiction State government is the big winner when it comes to gambling in New Mexico. But when it comes to preventing and treating problem gambling, the Legislature and governor have been

CHILD CARE CENTER OWNER'S $400K GAMBLING SPREE ON STOLEN MONEY
A Capitan woman, Gina McPherson, embezzled $400,000 in federal money meant to fund the day care center she managed at the Inn of the Mountain Gods resort and casino. McPherson enrolled the resort day care center with the NM Children Youth and Families Department and had the money sent there. She then orchestrated the transfer of the money from the resort facility to a day care center she owned in Clovis.

From 2011 to 2016 she had the monthly checks sent to her off-site center and cashed the checks and deposits, rather than spending them on child care at the resort center.

Interviewed by the FBI, she admitted to spending the money on gambling. In her FBI statement, she excused her theft by saying, "‘I felt like I gave them back everything I took from them … gambling it back." She failed to mention that it was federal money that she stole, and that she was robbing the children in the day-care center. We can hope that the judge takes her complete lack of remorse into consideration in passing sentencing on her.

An article on this story in the August 20 Albuquerque Journal can be read by clicking below.

McPherson is the tip of the gambling-related-embezzlement iceberg in New Mexico. There are thousands of businesses in the state that have had employees and employers (think withholding taxes) embezzle company money to fund their gambling addiction. The only ones that seem to get mentioned are cases involving state or federal money, or are carried out by government workers or celebrities. This is just another reason that government sanctioned gambling is one of the main causes for our state's economic stagnation.

It is time for the government (state and tribal) to get out of the predatory gambling racket.

https://www.abqjournal.com/1050876/nm-woman-pleads-guilty-to-stealing-400k.html

NM woman pleads guilty to stealing $400K By Maggie Shepard / Journal Staff Writer • Funds were meant for day care center at Apache-owned resort

10TH CIRCUIT COURT RULES AGAINST POJOAQUE VENDORS

Vendors to the Pojoaque tribal casino are now prevented by law from supplying the casino. The newest twist in the battle between the Pueblo of Pojoaque and the State of New Mexico is that the 10th Circuit Federal Court in Denver threw out the lawsuit filed by Pojoaque restraining the state from prohibiting vendors from supplying goods and services to the tribal casino.

The state had won in the first case decided by the local Federal District Court, which prompted the lawsuit filed by Pojoaque. The result is that many of the casino games had been shut down, and the tribe complained that this further action could shut down their operations.

The state acted on the basis that the pueblo had let their state/tribal compact expire in July of 2015, so that the casino was in violation of federal and state law. The previous federal administration took the position of protecting the tribe from being closed and had been working on a compact without state involvement. The Pojoaque Pueblo also has a lawsuit challenging the state and accusing it of "bad faith" in their negotiations.

Pojoaque will most likely appeal the decision to the U.S. Supreme Court

An article in the Santa Fe New Mexican about the federal court decision can be read by clicking below.

It is distressing to see how the gambling industry can violate state and federal law with little being done over such a protracted period of time. It has been two years since Pojoaque violated the terms of their contract. Most all other businesses that violate federal law would have locks slapped on their doors immediately.

As with all state regulated gambling, tribal casinos are exempt from truth-in-advertising laws and "duty of care" protections that all productive businesses are required to obey.

It's time for the government (state and tribal) to get out of the predatory gambling racket.

http://www.santafenewmexican.com/news/briefs/appeals-court-rules-state-can-target-pojoaque-casino-s-vendors/article_a834f408-56dc-59d5-ae47-4d5650b3c8a9.html

Appeals court rules state can target Pojoaque casino’s vendors A federal appeals court has lifted a ban on state regulators interfering with gambling equipment and service companies doing business with the Pueblo of Pojoaque’s casinos after the tribe’s gambling

ATLANTIC MONTHLY ARTICLE REVEALS HOW CASINOS ENABLE GAMBLING ADDICTS

The Atlantic Monthly published an article (link below) last month titled, "How Casinos Enable Gambling Addicts." It does a good job of revealing how casinos and slot machines intentionally deceive and addict their patrons.

This is a long read in the Atlantic, but it is the best article by a major media source on the intentional exploitation of gamblers by casino owners. One of the best quotes in the article is by Richard Daynard, president of the Public Health Advocacy Institute, and the godfather of the anti-tobacco litigation in the 80's. He is quoted as saying:

“The business plan for casinos is not based on the occasional gambler. The business plan for casinos is based on the addicted gambler.”

Read this and think of the possible duty of care and consumer protection violations that are occurring in New Mexico.

legislators and the New Mexico public may think that casino legislation is a thing of the past in the state, but efforts of the lottery to legalize gambling on mobile devices, and the effort to legalize Daily Fantasy Sports constitute introductory efforts that would eventually lead to legalized online casino gambling. This is the ultimate goal of the big players in the gambling "industry." We need to make sure that the legislature does not get either of these two gambling expansions legalized in our state.

We will be supplying you with information on how to take action against the gambling expansion bills as the legislative session progresses. It's time for the government to get out of the predatory gambling business.

https://www.theatlantic.com/magazine/archive/2016/12/losing-it-all/505814/

How Casinos Enable Gambling Addicts Modern slot machines develop an unbreakable hold on many players—some of whom wind up losing their jobs, their families, and even, as in the case of Scott Stevens, their lives.

POJOAQUE CASINO SLAMMED BY U.S. DISTRICT COURT

U.S. District Federal Judge James Browning issued a ruling on September 30 that threw out a complaint by the Pojoaque Pueblo against Governor Martinez. Martinez was threatening to prosecute vendors that supply the Pojoaque casino because the pueblo is violating federal law in operating a casino without a state/tribal compact. Their compact expired in June of 2015, with the tribe
rejecting the requirement to pay revenue sharing to the state. The pueblo filed a lawsuit against the state in the 10th Circuit Court last year to allow them to continue gambling without the new compacts.

In the new ruling, Judge Browning overruled an injunction against the state from prosecuting vendors supplying an illegal gambling operation. The pueblo responded by sending an appeal to the 10th Circuit Court in an attempt to reverse the new ruling against vendors supplying the casino.

Judge Browning commented that his ruling does not stop the gambling operation of the casino, nor is it targeting the casino, but is directed at private vendors. No one seems sure what impact this new ruling will have on the casino operations.
The tribe has been required to set aside what would have been the amount of revenue sharing owed the state in an escrow account, although the state has virtually no ability to insure that those payments are accurately made.

The Legislative Finance Committee investigation two years ago determined that the state has no access to live data from the gambling operations, but has to rely on a sort of "honor system" that allows the casino to "self report."

Based on the illegal activity of the Pueblo, and their circuitous efforts to avoid the consequences of the law, the appropriate action by the 10th Circuit Court would be to declare the tribe in violation of federal law and instruct the U.S. Attorney to close their operations.
It's time for the government to get out of the predatory gambling business.

An article on Judge Browning's action in the Santa Fe New Mexican can be seen below.

http://www.santafenewmexican.com/news/local_news/pojoaque-appeals-judge-s-decision-to-drop-pueblo-s-complaint/article_4087698e-c270-5682-8c77-dbccf9486d1b.html

Pojoaque appeals judge’s decision to drop pueblo’s complaint