February 7, 1996 CONGRESSIONAL RECORD — SENATE S 1153 limited exemption will ensure that ners playoff excitement this fall, the self but is yet another step along the path to league officials can block franchise re- residents of Seattle and the citizens of coast-to-coast casinos that many states are locations they believe not to be in the Washington State were part of an reluctantly and uncertainly following. Not- withstanding the pressure from the Delaware best interests of their sport. The bill amazing roller-coaster ride that move, Maryland’s Joint Executive Legisla- also provides for a 180-day notice pe- reached beyond anything that could tive Task Force to Study Commercial Gam- riod before any team can move. During ever be expected from professional bling, on which we served as chair and execu- that time, public hearings must be sports. The great sense of community tive director, recommended against casinos held, at which time a home community pride and support toward a single last November. would have the opportunity to induce team, however, must be rewarded with One of the task force’s major conclusions the team to stay. Finally, the Fans’ loyalty from the team back to the has been largely ignored by the media— namely, that the problem of legal casino Rights Act would prohibit the out- community. The Seattle Mariners dis- gambling is a national one; Maryland cannot rageous practice of teams buying the played this loyalty in their final game deal with this on its own. The problem cries league’s approval of a proposed reloca- of the season, when all of the Mariner out for attention from the president and tion. Current practices allow the pay- players came out of the clubhouse 20 Congress. Unfortunately, the casino industry ing of relocation fees to the leagues minutes after game’s end, to applaud has mobilized cash and lobbyists to prevent and individual teams prior to the vote the 58,000-plus fans who had encouraged federal action on the issue. The Maryland Task Force, in its full re- by the individual team owners to ap- the team during the championship run. port, unhappily noted that, lacking a signifi- prove the move. The bill would require Mr. President, the Seahawks will not cant federally funded study, it has a very that the relocation fee be paid only move and, I believe, Cleveland will not limited basis for making projections of what after the vote of approval has taken be deserted by the NFL either. would happen if Maryland opened its doors place. The era of professional sports Mr. President, every fan deserves the to casinos, which nowadays get 70 percent of teams moving, only to leave behind opportunity to applaud his or her local their revenues from slot machines. Given the fans, businesses, and communities who sports team, and for loyalty from the limited statistical and economic analysis available, its opposition to casinos reflected have invested emotional and financial owners in return. I hope that passing a sensible caution. support must come to an end, and this the Fans’ Rights Act can begin to rec- Casinos do provide a credible promise of legislation attempts to do just that. ognize that fans are equal players in substantial financial gains to those states As chairman of the Consumer Sub- the world of sports.∑ that are the first in their region to introduce committee within the Commerce Com- f them. Foxwoods casino in Connecticut mittee, I intend to hold hearings on (owned by the Mashantucket Pequot tribe Fans’ Rights Act sometime in early THE NEED FOR A NATIONAL under 1988 federal legislation that allows In- March. I will seek testimony from COMMISSION ON GAMBLING dian tribes to operate casinos on certain tribal lands) now yields that state $115 mil- commissioners of all four professional ∑ Mr. SIMON. Mr. President, I would lion in tax revenues. Most of it comes from leagues, player representatives, team like to call to the attention of my col- residents of Massachusetts, Rhode Island and owners, and elected officials from leagues a recent column in the Wash- New York who come to play in the world’s cities impacted by franchise reloca- ington Post. Cowritten by our former largest casino. It employs more than 10,000 tion. workers, offering good wages and benefits to colleague from Maryland, Joseph many who would otherwise have more me- When this bill comes to the floor, it Tydings, the column cogently describes is also my intention to offer an amend- nial and unreliable jobs. the importance of a national study on Not surprisingly, the state of Massachu- ment to include a provision similar to the social and economic impacts of setts feels it must also allow slots to com- that that kept the Mariners in Seattle gambling. pete and is now negotiating with the in 1992. Essentially, this provision The impacts of gambling are re- Wampanoag Indians to let the tribe operate would require a team to be put up for gional, national, and international in a casino. The state of New York, which cre- sale to local owners for 120 days prior ated a long legislative and referendum proc- scope. Local and State governments ess to prevent a rash decision on casinos, has to any relocation at a price to be set by simply do not have access to the infor- arbitration. Fan loyalty and local sup- also responded to Connecticut by starting mation they need to make wise deci- down a path that could lead to their intro- port must be rewarded with local own- sions. Although local and State task duction in 1998. ership, not the removal of the team. forces and commissions continue to But the economic gains that entice states Unfortunately for the Seahawk fans, produce reports, these entities are not to open their doors to casinos are only sub- even if we could enact the Fans’ Rights stantial if neighboring states aren’t compet- equipped to deal with the regional and Act into law tomorrow, this legislation ing for the same customers. If Maryland national ramifications of local and will not reverse the clock in Seattle. were the only state in its region to allow ca- State policies and tend to focus only on The decision to relocate the team has sinos, it might be able to justify building ca- the short term. As the authors suggest, been made, although a lawsuit is pend- sinos that relied heavily on spending by Vir- a national commission would help ginians, Pennsylvanians, Washingtonians ing against the organization is a King States a great deal. and West Virginians. However, just as the County Superior Court, an action I be- Although the column is focused on Foxwoods’ success had caused Connecticut’s lieve likely to succeed. I have been in- Maryland, States and municipalities neighbors to move toward casinos, so would vited by King County Executive Gary Maryland’s advantage, if any, be short-lived. across the country are facing the same Locke to serve on a small task force of The case for casinos has an element of choices. Strapped for cash, many turn business and community leaders who vodoo economics—namely, the claim that to casinos, riverboats, and lotteries. providing a new form of entertainment will will work together to ensure that pro- Gambling should not be the only increase the economic base of the commu- fessional football in Seattle does not choice. Identifying alternative sources nity or state by increasing local spending. become part of Seattle’s fading history. of revenue will be prominent among Casino expenditures by Maryland citizens I would also like to take this oppor- would come entirely through reductions in tunity to commend King County Exec- the issues considered by a national other leisure spending or even in spending on utive Gary Locke, King County Pros- commission. food, shelter and education. Casinos can pro- ecutor Norm Maleng, and members of I urge my colleagues to read the col- vide economic development only by attract- the King County Council for all of their umn and to work with me and the bi- ing spending from other states. Moreover, if partisan group supporting S. 704, the casinos lead to greater consumer spending efforts thus far to save the Seahawks. nationally, then clearly it has to come from In closing Mr. President, I would like Gambling Impact Study Commission Act. reductions in people’s savings—scarcely a de- to send a message to sports fans in sirable change for a country that chronically Washington State and around the I ask that the Washington Post col- undersaves. country. While we are in the midst of umn be printed in the RECORD. There are also important social costs to troubling times with sports teams com- The column follows: having casinos readily accessible. Many peo- ing and sports teams leaving, I would [From the Washington Post, Feb. 6, 1996] ple have difficulty controlling their gam- bling, particularly in the artificial environ- CASINO GAMBLING: BRING IN THE FEDS like to assure each of you that your ment of a casino where liquor is freely of- loyalty to professional sports fran- (By Joseph Tydings and Peter Reuter) fered and the game is available at all hours. chises will not go unrewarded. The recent opening of slot machines at two Big gambling losses and the obsessive pur- Throughout the 8 weeks of the Mari- Delaware race tracks is a small event in it- suit of gambling opportunities may lead to S 1154 CONGRESSIONAL RECORD — SENATE February 7, 1996 family breakdown and loss of productivity Mr. President, these accusations all of this information is to have open and community involvement. Embezzlement made by Dr. Wigand are extremely se- hearings in the Senate—so that we can would probably rise. Casino patrons might rious and I believe that Congress and secure for the record as much informa- also make attractive victims for criminal of- fenses. But whether this is a major problem the American people should fully un- tion as possible. or just a modest incidental to the simple derstand the real dangers of tobacco On the House side, unfortunately, pleasures of millions is still a matter of de- products and all of the recent allega- there is little chance of hearings. Con- bate and in need of serious research. tions involving the tobacco industry. gressman BLILEY, from Richmond, VA, The opponents of casinos often weaken Mr. President, there is so much ac- chairman of the Commerce Committee, their case by making exaggerated claims tivity and confusion about tobacco has indicated that his committee will about the social consequences of gambling. these days. not permit these issues to be aired. Typical is the claim that ‘‘40 percent of all Let me tell my colleagues about white-collar crimes come from pathological I hope that things will be different in gambling,’’ a hardy perennial that appears in some of the legal matters that are cur- the Senate. I hope that both Democrats all anti-casino writings. It is supposedly the rently pending: and Republicans will see the value in product of the American Insurance Institute. Five States are actively suing the to- holding hearings on this critical issue. In fact, no such organization exists, and no bacco companies for Medicaid costs as- Only then, will the Congress and the one has ever been able to locate a copy of a sociated with tobacco related illnesses public be fully informed about the dan- report documenting the claim. Nor is there of their residents. Other States are se- gers of a product that takes over 400,000 much more basis for the frequent claim that riously considering similar action, in- lives per year. each problem gambler costs society $30,000 cluding my home State. annually. Mr. President, we cannot sit idly by An authoritative and independent assess- On the Federal level, I have intro- and listen to these types of allegations ment of the economic and social con- duced legislation to recoup all Medi- and do nothing. sequences of casinos would help states a care and Medicaid costs spent on to- The material follows: great deal. A federal commission needs to do bacco related illnesses, some $20 billion TRANSCRIPT FROM 60 MINUTES, FEBRUARY 4, systematic analysis of the kind that state a year, directly from the tobacco com- 1966 task forces, with their short time horizons panies. and minuscule budgets (ours had six months MIKE WALLACE. A story we set out to re- There is a multibillion-dollar class port six months ago has now turned into two and a total of $50,000 for its work), cannot action suit against the tobacco compa- muster. There seems to be strong congres- stories: how cigarettes can destroy people’s sional support for such a commission, not- nies going on in New Orleans. It is lives; and how one cigarette company is try- withstanding aggressive lobbying against it commonly referred to as the Castano ing to destroy the reputation of a man who by the casino industry. case. The plaintiffs are former smokers refused to keep quiet about what he says he The national commission would also have and survivors who claim that the to- learned when he worked for them. The Com- to focus on the very troubling issue of Indian bacco companies knew that nicotine pany is Brown & Williamson, America’s third-largest tobacco company. The man tribal gambling. Providing Indian tribes with was addictive and dangerous but never better economic opportunities is clearly an they’ve set out to destroy is Dr. Jeffrey important and legitimate goal, but when told their customers. Wigand, their former $300,000 a year director those opportunities result in large costs There is a Justice Department probe of research. being borne by the entire nation, then the underway to investigate whether the They employed prestigious law firms to issue needs to be revisited. seven tobacco companies’ CEO’s per- sue him, a high-powered investigation firm In the meantime, states like Maryland will jured themselves before Congressman to probe every nook and cranny of his life. feel a constant pressure from their neighbors WAXMAN’s subcommittee when they And they hired a big-time public relations to avoid having good Maryland money turn testified they did not believe nicotine consultant to help them plant damaging sto- into Delaware gambling revenues. The grow- ries about him in The Washington Post, The ing burden of social services on state fi- was addictive. Because of all of these current legal Wall Street Journal and others. But the nances as the federal government cuts back Journal reported the story for what they its support will increase that pressure, so activities, there have been numerous though it was. ‘‘Scant evidence’’ was just that in the next downturn many states may leaks about the dangers of tobacco in one of their comments. reluctantly, but irreversibly, become casino the print and television media. How- CBS management wouldn’t let us broad- states as well. A federal commission and ever, Congress and the American peo- cast our original story and our interview some sensible national policy are needed, as ple are only getting bits and pieces of with Jeffrey Wigand because they were wor- soon.∑ the entire story because of the intense ried about the possibility of a multibillion f legal climate surrounding this entire dollar lawsuit against us for ‘‘tortions’’ in- terference—that is, interfering with OPEN TOBACCO HEARINGS ARE issue. This is why I wrote a letter to Sen- Wigand’s confidentiality agreement with NEEDED Brown & Williamson. But now things have ators KASSEBAUM and KENNEDY asking Mr. LAUTENBERG. Mr. President, I changed. Last week The Wall Street Journal them to hold hearings in the Labor and rise to make a few comments about got hold of and published a confidential dep- Human Resources Committee about Sunday’s ‘‘60 Minutes’’ program on Dr. osition Wigand gave in a Mississippi case, a the entire tobacco issue. I have spoken November deposition that repeated many of Jeffrey Wigand and his statements personally to Senator KASSEBAUM and the charges he made to us last August. And about what went on inside the Brown & while a lawsuit is still a possibility, not put- Williamson Tobacco Co. she assured me that she would seri- ously consider this request. I also ting Jeffrey Wigand’s story on 60 minutes no Mr. President, for those who did not longer is. see this interview, Dr. Wigand told the spoke with Senator KENNEDY who is [Footage of Wigand; Brown & Williamson Nation that Brown & Williamson ac- deeply interested in all health issues Tower; cigarettes on machine; of tobacco on knowledged that cigarettes are a ‘‘nic- including the health effects of tobacco conveyor belt; tobacco executives testifying otine delivery’’ device and that senior and would like to set up hearings on before Congress.] management rejected his efforts to this subject. WALLACE (Voiceover). What Dr. Wigand make their tobacco products safer. Mr. President, I ask that a copy of told us in that original interview was that Dr. Wigand also claimed that Brown this letter be printed in the RECORD his former colleagues, executives of Brown & Williamson tobacco, knew all along that & Williamson knowingly used carcino- following my remarks. Mr. President, the Congress, on be- their tobacco products, their cigarettes and gens in their tobacco products. pipe tobacco, contained additives that in- Mr. President, if these allegations half of the American people, needs to creased the danger of disease; and further, were found to be true—if Brown & find out the truth about the addictive that they had long known that the nicotine Williamson knew that nicotine was ad- nature of nicotine, the health effects of in tobacco is an addictive drug, despite their dictive, if the company knew that its tobacco use and all of the recent alle- public statement to the countrary, like the products contained carcinogens, if it gations involving the tobacco industry. testimony before Congress of Dr. Wigand’s withheld this information from the We need this information so that we former boss, B&W chief executive officer public and this resulted in unnecessary can evaluate the need for legislation Thomas Sandefur. regulating the tobacco industry and Mr. THOMAS SANDEFUR (Chief Executive Of- death and disease—it would be abso- ficer, Brown & Williamson). I believe that lutely unconscionable. trying to recoup the cost of tobacco re- nicotine is not addictive. Mr. President, I ask that a transcript lated illnesses. Dr. JEFFREY WIGAND (Testifying Against of this interview be printed in the It is clear that the only way for Con- Brown & Williamson). I believe he perjured RECORD following my remarks. gress and the American people to get himself because——