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April 2, 2014

Boston Mayor Making Irish Stew Over State Casinos

Filed under: Casino — Tags: , — OCE News @ 8:34 am

In an apparent last minute attempt to block the awarding of casino licenses in Massachusetts, newly elected mayor Boston Mayor Martin Walsh is now interested in having some influence over the introduction of casinos to the Boston area.

Two cities close to Boston, Everett and Revere currently have proposals on the table to bring state approved casinos to their city. Though they are not a part of the city of Boston, Walsh is making the case that the introductions of casinos there would directly influence the quality of life in the city. How? Because travelers going to these nearby cities would use Boston’s Logan airport, Boston’s roads and general transportation network to access the proposed casino sites. That infrastructure, Walsh maintains, supports many restaurants and other Boston businesses that can be used to lure potential gamers to Everett and Revere.

”The potential impact of casinos goes to the core of the quality of life in our neighborhoods … The people of Boston deserve the Democratic process.” Walsh said before the Massachusetts Gaming Commission. The request is to have Boston designated as a host city, therefore allowing Boston’s citizens to have a direct vote as to whether the neighboring cities get final approval for casino construction. The casino interests, Wynn Resorts in Everett and Mohegan Sun in Revere, oppose this designation.

This is another obstacle created to add to the continued delay of casino construction throughout the state of Massachusetts. Though Massachusetts is the most educated state in the nation, the local powers that be do not seem to understand the economic windfall that awaits them by simply letting the process run its natural course.

Pennsylvania, which ranks 26th in education, saw the opportunity back in 2004 as they saw droves of its residents leave the state to go to Atlantic City. Now, residents of neighboring states come to Pennsylvania for gaming, which has prompted Ohio to begin construction of its own casinos. Other states have discovered the revenue potential and popularity of state run casinos and have knocked down barriers to advance their completion.

Massachusetts has virtually no competition in the New England area, with the only casinos operating in Rhode Island (1) and Connecticut (2). The largest of these casinos, Foxwoods, has consistently been reported to be in financial straits, having over-invested in its massive properties. That leaves Massachusetts primed for potentially making billions from state licensed casinos.

The gaming panel had set a June 30th deadline for awarding the casino license to one of the two cities, which has attached to it an $85 million licensing fee to be paid from the winner. The decision regarding designating Boston as a host city was planned to be made Wednesday. Now the entire timetable to award casino licenses in Massachusetts is in jeopardy as well as the $85 million.

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