The Latest on the Fight for the Boston-Area Casino License - Business news

Print
The Latest on the Fight for the Boston-Area Casino License - Business news

By Adam Vaccaro

Boston.com Staff

September 10, 2014 11:18 AM

The Massachusetts Gaming Commission has met for three days this week to talk about competing casino proposals in Everett and Revere, from Wynn Resorts and Mohegan Sun respectively.

A vote could come early next week, as the commission will resume meetings Monday. Tuesday and Wednesday have also been blocked out for meetings if necessary.

This is the big one. This casino is expected to serve as the most lucrative in the state and will be the only one in striking distance of Greater Boston, and the pursuit of the license has created the most drama over the course of the process.

Advertisement - Continue Reading Below

In preparation for this week’s meetings, individual commissioners were tasked with analyzing different elements of the two plans (with the help of experts), and reporting back on to the entire board. Those presentations were given on Monday and Tuesday.

The commissioners’ findings provide a cursory look at where the two bids stand in the eyes of the board. Discussions moving forward will focus on the board’s attempts to reach a consensus about which proposal will ultimately serve as Greater Boston’s only casino.

Here’s a look at how things have played out so far:

(The categories, detailed below, are being judged on a four-point scale: “Insufficient,” “Sufficient,” “Very good,” and “Outstanding.”)

BUILDING AND SITE DESIGN

Presented by: Commissioner James McHugh

Entails: Physical building design, how it fits in with its surroundings, parking and transportation, landscaping, more

Wynn rating: Sufficient

Mohegan Sun rating: Sufficient/Very good

FINANCES

Presented by: Commissioner Enrique Zuniga

Entails: Available money, how money will be spent, view of casino market, more

Wynn rating: Very good/Outstanding

Mohegan Sun rating: Sufficient

MITIGATION

Presented by: Commissioner Gayle Cameron

Entails: Traffic, agreements with host and nearby cities, efforts to fight problem gambling, more

Wynn rating: Insufficient/Sufficient

Mohegan Sun rating: Sufficient/Very good

ECONOMIC DEVELOPMENT

Presented by: Commissioner Bruce Stebbins

Entails: Job creation, effect on nearby businesses, efforts to grow regional tourism, more

Wynn rating: Very good

Mohegan Sun rating: Sufficient/Very good

OVERVIEW

Commission members also had a list of eight questions that touched on all of the above areas. Their research into the questions found Wynn and Mohegan Sun to be tied on three of them and for Wynn to have the lead in five.

Scoreboard

Based on the presentations, Wynn looks to be in better shape on the financial, economic development, and overview fronts. Mohegan has the advantage in terms of design and mitigation.

Sticking points

A couple of issues have come up multiple times throughout the proceedings.

Traffic: The traffic issues at Sullivan Square, which would likely be further affected by a Wynn casino, have been a continued topic of discussion. It is likely that if Wynn were to receive the license, it would have to agree to conditions that it invest further in that issue.

Vision: For Mohegan Sun, the board has repeatedly contrasted Mohegan Sun’s view of the marketplace with Wynn’s. Mohegan Sun, the board says, sees Eastern Massachusetts and New Hampshire as the crux of its patrons. Wynn employs more of a ‘destination’ mindset, with the intention to leverage its brand name to attract gamblers from outside New England and overseas to the resort while still offering locals a place to gamble.

Money: Mohegan’s financing is also at issue, and the board could consider a condition that requires the company find more equity should it be awarded the license.

So, what next?

The board gave the two companies conditions for a license on Wednesday. The companies have until Friday at 5 p.m. to respond. The conditions do indeed involve Mohegan Sun’s finances, Mohegan’s marketing plans, and Sullivan Square traffic mitigation for Wynn, as well as Wynn’s planned building design.

Full deliberations would be next, starting at 11 a.m. Monday, and then, a vote.

Oh, and by the way, looming in the background is the possibility that voters could choose to up and do away with the expanded gambling law in November’s election, rendering the entire process moot. That would also do away with the MGM casino planned for Springfield and the slots parlor already underway in Plainville. So far, that doesn’t look particularly likely—but we’ll see how things develop as election season advances.

Read more http://news.google.com/news/url?sa=t&fd=R&ct2=us&usg=AFQjCNGRvuR9qDY1eOuUg6zilJdi1RY8nA&clid=c3a7d30bb8a4878e06b80cf16b898331&cid=52778605988066&ei=AscRVKGPL63O8gHY_4DgBw&url=http://www.boston.com/business/news/2014/09/10/the-latest-the-fight-for-the-boston-area-casino-license/ARLCP7oytDaT8HvTW6QVzN/story.html