06.04.2017 Views

Political Illusions of the Cajun Mafia

This book examines “robust” political corruption in Calcasieu Parish, Louisiana. The book scrutinizes the transparency, schemes and co-conspirators involved in political corruption. It discusses how top elected officials use their power and public resources funded by local sales and property taxes to improperly target, retaliate and even maliciously prosecute the most ridiculous matters to further their personal agenda. The book examines in detail the types of public infringements involving corruption as well as the vast network of political connections to other various public schemes. The book is further evidence that political corruption in Louisiana is not only profound but more like organized crime controlled by mob bosses. Louisiana no longer will turn a “blind eye” and now demands zero tolerance for corruption and nepotism of elected officials.

This book examines “robust” political corruption in Calcasieu Parish, Louisiana. The book scrutinizes the transparency, schemes and co-conspirators involved in political corruption. It discusses how top elected officials use their power and public resources funded by local sales and property taxes to improperly target, retaliate and even maliciously prosecute the most ridiculous matters to further their personal agenda.

The book examines in detail the types of public infringements involving corruption as well as the vast network of political connections to other various public schemes. The book is further evidence that political corruption in Louisiana is not only profound but more like organized crime controlled by mob bosses.

Louisiana no longer will turn a “blind eye” and now demands zero tolerance for corruption and nepotism of elected officials.

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A.<br />

St. Louis Area<br />

51. The Respondents’ own ordinary-course documents reveal that <strong>the</strong>y do not regard casinos<br />

outside <strong>of</strong> <strong>the</strong> St. Louis area as meaningful competitors. Instead, Respondents focus <strong>the</strong>ir<br />

competitive efforts on casinos in <strong>the</strong> St. Louis MSA, and especially on each o<strong>the</strong>r.<br />

52. Both Pinnacle and Ameristar analyze competitive landscapes and market shares consisting<br />

<strong>of</strong> only those casinos in <strong>the</strong> St. Louis area. Only St. Louis-area competitors are considered<br />

when Pinnacle and Ameristar make pricing decisions.<br />

53. A Pinnacle executive acknowledged in preparation for an investor call that “St. Louis is a<br />

very locals market with <strong>the</strong> majority <strong>of</strong> <strong>the</strong> population living in a 30 mile radius.” Data<br />

confirm <strong>the</strong> market is local in nature: St. Louis-area casinos generate approximately<br />

percent <strong>of</strong> <strong>the</strong>ir revenue from customers residing within <strong>the</strong> St. Louis MSA. As a result, <strong>the</strong><br />

Respondents only advertise for <strong>the</strong>ir St. Louis-area casinos within <strong>the</strong> St. Louis area.<br />

54. St. Louis-area gaming consumers will not travel outside <strong>of</strong> <strong>the</strong> St. Louis area for casino<br />

services in response to a small but significant and non-transitory increase in price<br />

(“SSNIP”). In 2012, when a new casino opened in Cape Girardeau, Missouri – 120 miles<br />

south <strong>of</strong> St. Louis – Pinnacle expected that it would put at risk only percent <strong>of</strong><br />

Pinnacle’s monthly St. Louis revenues.<br />

55. Industry participants also view <strong>the</strong> St. Louis area as a separate market. Third-party casino<br />

operators state that St. Louis-area casinos do not face meaningful competition from casinos<br />

outside <strong>the</strong> St. Louis MSA. The Missouri Gaming Commission has prepared studies and<br />

reports that analyze <strong>the</strong> St. Louis market separately from <strong>the</strong> Kansas City and o<strong>the</strong>r gaming<br />

markets in Missouri. The American Gaming Association recognizes St. Louis as its own<br />

gaming market, distinct from Kansas City and o<strong>the</strong>r gaming markets in <strong>the</strong> United States.<br />

56. Based on <strong>the</strong> foregoing, a hypo<strong>the</strong>tical monopolist <strong>of</strong> casino services in <strong>the</strong> St. Louis area<br />

could pr<strong>of</strong>itably raise prices by a small but significant amount. Therefore, <strong>the</strong> St. Louis<br />

area is a relevant geographic market.<br />

B.<br />

Lake Charles Area<br />

57. Similarly, <strong>the</strong> Respondents ordinary-course documents demonstrate that <strong>the</strong>y do not view<br />

casinos outside <strong>of</strong> <strong>the</strong> Lake Charles area as meaningful competitors to <strong>the</strong>ir Lake Charlesarea<br />

casinos. These documents show that Pinnacle does not consider casinos outside <strong>of</strong> <strong>the</strong><br />

Lake Charles area when calculating market shares. In strategic plans and investor<br />

presentations, Pinnacle limits references <strong>of</strong> L’Auberge’s competitors to those casinos in <strong>the</strong><br />

Lake Charles area.<br />

11<br />

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