Insight MASSACHUSETTS
THE GREAT AMERICAN LICENCE GRAB
Massachusetts is the centre of an intense licence race as casino operators forward their
US$400,000 applications and development plans
Although they will set off in slightly different directions once under starter’s orders, the runners and riders for casino licenses in eastern and western Massachusetts lined up in mid-January creating quite a field with eleven companies submitting Phase 1 applications.
JOE WEINBERG,
Applications went in from some famous gaming names including MGM Resorts, Mohegan Sun, Hard Rock International, Penn National, Wynn Resorts and Caesar’s Entertainment along with the non-refundable US$400,000 application fee demanded by the state gaming commission. On deadline day Rush Street Gaming, the owners of the Sugarhouse Casino in Philadelphia, added its name to the list. It joined Cordish Company, owner of Maryland Live!, in placing an application with few specifics. Two racetracks; Plainridge Racecourse and Raynham Park, who is partnering with the Pennsylvania gaming house Parx Casino & Racing, will compete for the slot licence.
PENN'S PLAN The state’s 2011 casino legislation will see up to three resort casinos and one slot hall introduced to separate regions of the state. The battle for the western Massachusetts casino license will be fiercely competitive with a four horse race between MGM Resorts, Mohegan Sun, Hard Rock International and Penn National. The competition over in the East will pitch another two giants head to head with Wynn Resorts looking to take on Caesar’s Entertainment in partnership with Suffolk Downs for a licence in East Boston. They have been joined by Rush Street Gaming, which operates the Sugarhouse in Philadelphia, as well as casinos in Pittsburgh and suburban Chicago. Masaschusetts Gaming Commission chairman Steve Crosby said, even though the deadline had passed, more applicants could still be welcomed to the race: “Our deadlines can be waived, and if anybody applies to us formally for a waiver, under that regulation, we will look at it and talk about it in a public meeting, but
February 2013 PAGE 44
Managing Partner of The Cordish Companies “We are very
enthusiastic about
the Massachusetts market and look
forward to working with the State and
the Massachusetts Gaming
Commission on our application.”
Rush Street Gaming also said it was evaluating ‘a select number of sites’ in the Boston area and would make an announcement at a later date. It also omitted whether it planned to bid for the eastern Massachusetts resort casino license or for a slots hall.
Greg Carlin, chief executive of Mass Gaming & Entertainment, the entity formed by Rush Street, said: “When developing our properties, we pride ourselves on customizing each project to the surrounding area and collaborating with the host community and other interested parties to build unique entertainment destinations.”
PETER CARLINO, Chairman and Chief Executive Officer of Penn
National Gaming, “Our proposed
$807m destination casino resort will be the centrepiece
of a revitalisation of the City and bring
thousands of new permanent jobs, significant union construction jobs,
and millions of tax dollars to the region.”
In western Massachusetts, the race could have had even more runners. Ameristar Casinos surprised competitors in early December when it decided to pull out of the bid for a $910m resort casino in Springfield, after paying $16m for a 40- acre site just one year before. The decision though coincided with an announcement that it had agreed a deal to be acquired by Pinnacle Entertainment.
AN INTERESTING RACE Penn National wants to build a US$807m destination casino with up to 3,500 slots in the downtown area of, along with a planned mixed-use development along Springfield’s waterfront.
Working in partnership with Peter Picknelly, Chief Executive Officer of Springfield-based Peter Pan Bus Lines, it would relocate the Springfield Republican to a newly renovated downtown location
fundamentally we’re adhering to the schedule. This is what we’ve been doing for the last nine months, is trying to get a really competitive environment where we will have robust competition for every license.”
Joe Weinberg, Managing Partner of The Cordish Companies, said the group was still evaluating several excellent sites within the State and deciding between the Category 1 and 2 licenses.
“We are very enthusiastic about the Massachusetts market and look forward to working with the State and the Massachusetts Gaming Commission on our application,” he commented.
featuring a state-of-the-art ‘village square’ in the heart of the city and build a new printing plant in Springfield that will act as a catalyst for further industrial park development for the city. Penn National would also work to attract a large retailer to the former Westinghouse property currently held by another applicant for Massachusetts’ western region gaming license. Along with 3,500 slots; the venue would have 80 to 100 live table games; a 20 to 30 table poker room; a hotel with 300 to 500 guestrooms and a spa; a variety of food and beverage options including fine dining, casual dining, a buffet, sports bar and food court; a nightclub and 30,000-45,000 sq. ft. of meeting and convention space.
Peter Carlino, Chairman and Chief Executive Officer of Penn National Gaming, said: “Our proposed $807m destination casino resort will be the centrepiece of a revitalisation of the City and bring thousands of new permanent jobs, significant union construction jobs, and millions of tax dollars to the region. Hollywood Casino Springfield will offer City residents unparalleled dining and entertainment options, including potential
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