Crosby chosen to lead gaming commission

BOSTON (State House News Service) - Stephen Crosby, a former state official in Republican administrations, was named Tuesday by Democratic Gov. Deval Patrick to head a powerful gaming commission that will implement and oversee the state's new casino law.

Crosby served as Secretary of Administration and Finance under Gov. Paul Cellucci and as chief of staff to acting Gov. Jane Swift, both Republicans. He is dean of the McCormack Graduate School of Policy and Global Studies at the University of Massachusetts-Boston.

"Steve Crosby possesses the integrity and strong management skills we need to lead the new Gaming Commission," Patrick said in a statement Tuesday. "I trust Steve to build an organization that meets the public's high expectations and my own for integrity and professionalism."

The two have worked together before. After winning the governor's office in 2006, Patrick named Crosby to co-chair a transition committee on budget and finance. In 2009, Patrick tapped Crosby to head a review of salaries for top managers of semi-independent public agencies.

Crosby will serve as chairman of the five-member gambling panel, which has sweeping powers to decide which companies will win the three coveted casino licenses and the single slots parlor license authorized by the new law.

The commission will also regulate and oversee the gambling facilities.

"It will be up to me and the commission to assure both the public and the participants in the gaming industry that the process for developing expanding gaming in Massachusetts is honest, transparent and fair," said Crosby.

He added that the state has a lot to gain from the casinos, especially new jobs.

Attorney General Martha Coakley and state Treasurer Steven Grossman, both Democrats, will also each name one member to the commission. The remaining two members will be appointed by a majority vote of Patrick, Coakley and Grossman. The three have announced they plan to name an independent search firm to help them identify candidates for the two jointly appointed positions.

The law, signed by Patrick on Nov. 22, gives the three 120 days to name all five commission members.

Top lawmakers said they deliberately set out to isolate the commission from political pressures and give it as much leeway as possible to regulate the new industry.

The commission can approve or deny casino licenses, inspect financial reports, hire and fire commission employees and act as trustees for gambling-related trust funds.

The commission also has sweeping policing powers over the casinos including the authority to conduct investigations, impound slot machines and other gambling equipment, issue subpoenas and refer cases to the attorney general for possible prosecution.

The commission can also levy and collect assessments, fees and fines associated with the casinos and provide assistance to the governor in negotiating a compact with a federally recognized Indian tribe.

In return, the full-time commissioners will receive six-figure salaries. Crosby will earn $150,000 a year, and the rest will receive $112,500 each, or three-quarters his salary.

Members of the commission will serve five-year terms and can be appointed to a second term. No more than three can be from the same political party. The governor can remove a member only for specific reasons including malfeasance, conviction of a felony or neglect of duty.

Casino critics have said the law stacks too much clout in the hands of the commission.

To cover the costs of the commission, the new law establishes the Massachusetts Gaming Control Fund. The commission is named the trustee of the fund and is empowered to use the money to pay for the operational expenses of the commission.

The money for the fund comes in part from certain fees levied on the industry, including an annual license fee of $600 for each slot machine and a nonrefundable application fee of $400,000 for each casino proposal.