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All those smiling faces you saw in the movie The Art of
the Steal are wearing a grim countenance today now that White Knight Steve Wynn has folded on the Foxwoods Casino deal. The list of interested parties included the usual suspects of politicians and investment groups, along with several
charitable trusts, and an Indian Tribe (more about that below); even the mayor himself seemed surprised at the disconnect
between Mr. Wynn's optimistic demeanor and the denouement. Huh? There are so many interesting facets to
this botched transaction, let's explore some of the more obvious ones. A Band of Brothers We
understand politicians and developers are likely partners in a quest for cash, but an Indian Tribe as an investor?
Well who would know more about the realities of gaming in today's world and have access to ready money? But, in
my view Native Americans get a pass here because We The People grabbed their land and herded them into reservations,
where they're surely having the last laugh. However, I was unaware that the charitable trust community
was brokering deals of this nature. I always associated them with benevolent giving - to education, medical research,
social programs and the like. And even when they strayed into outright seizure of an art collection such as that
involving the Barnes Foundation, it was at least a cultural legacy they were pursuing. But gambling and casinos were
a new one for me (I'll have to get out more!). I quickly Googled on key terms to find out if these trusts were
the ones that paved the way for The Barnes Deal. Apparently not (at least it's not obvious. The groups represented
include families with controlling interest in a professional basketball franchise, a Center City real estate developer,
and Comcast. How's that for a strange crew? All the groups, and their lobbyists, gave impressive
sums of money to the governor's political war chest, but that's a story for another time. It Was in the Cards When they sat down to play a version of Philly Hold 'Em with Steve Wynn, Mr. Las Vegas, what did they expect:
that he was going to play a friendly game with the boys? Mr. Wynn, who can calculate the odds to his advantage to several
decimal points over the next 100 years, has seen much further than the locals who are not looking beyond the next election
or sports season. With his access to data, not to mention cutting edge security, it was an easy hand to throw in,
even if the economic climate and neighborhood opposition were not so obvious. Would Mr. Wynn be so "deceitful"
as to show a positive side of his nature when he was feeling quite differently; would he bluff? Are you kidding?!
Only a politician or developer living in dreamland would have failed to see the obvious. The boys are holding a big
note, which the Wynn operations - with not a charitable trust in sight - have no interest in assuming.
Slippery Slope Cash-strapped governments looking to balance their budgets are seeking creative ways
to make up the deficits, some in areas in which they have no expertise and others which are morally and ethically ambiguous
(to say the least). The latest fiasco in Gaming and the Hijacking of the Barnes point out two recent stumbles, but
the benevolent hand of government has been (and will be) felt by many - with the entertainment and convention centers, stadiums,
and dubious building projects, where conflicts of interest are rampant and risks outweigh the benefits - for years, if not
decades, to come. © John F. Glass
April 10, 2010
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