State faces risky bet for third casino license

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State faces risky bet for third casino license

BOSTON (AP) - The state’s first casino, a slot parlor in Plainville less than a half-hour away from a full-scale casino in Rhode Island, is off to a slow start. Another casino in Tiverton, R.I., just a few hundred yards from the Massachusetts border, is on the horizon.

In Massachusetts, two other proposed casinos, less than 20 miles apart in Brockton and Taunton, are vying for a stake in this crowded gambling landscape. And the choice between them, which the state Gaming Commission is expected to announce in April, is getting more difficult by the day.

The decision rests on a thorny issue the state has grappled with for years - how to handle the aspirations of the Mashpee Wampanoag, a Native American tribe that is seeking to build a $500 million casino in Taunton.

Last month, a group of Taunton landowners, backed by the Brockton developers, sued to block the casino, raising the prospect that the project could be held up for years. Developers who want to build a $677 million casino-and-hotel complex in Brockton have seized on the opportunity, saying their plan would bring a faster payoff of jobs and tax revenue.

But if the Gaming Commission approves the Brockton proposal, the 1,300-member Mashpee tribe has the right to open a casino without the state’s blessing, depriving the state of untold millions and creating a scenario where three casinos - Brockton, Taunton, and Plainville - do battle in a small swath of Southeastern Massachusetts.

“It’s an incredibly difficult choice the commission faces,” said Richard McGowan, a Boston College professor who specializes in gambling issues. “If the commission denies the Brockton license and the Mashpee can’t get a casino built, that region goes without a casino. If the commission approves the Brockton license and the tribe goes ahead and builds, then there’s two casinos within 20 miles, and that’s not good either.”

Approving Brockton also means the Mashpee would not have to pay the 25 percent tax required of state-licensed casinos, conferring a massive competitive advantage that would allow the gambling emporium to spend on advertising and perks, such as free slot play, hotel rooms, and tickets to shows.

In a gambling market that may not be able to handle three resort casinos, let alone four, that advantage might prove decisive, specialists said.

Awarding the state’s third and final casino license may represent the Gaming Commission’s biggest decision since 2014, when it chose Wynn Resorts’ plan for a casino in Everett over a competing proposal for a plan in Revere at the Suffolk Downs racetrack.

Stephen P. Crosby, chairman of the Gaming Commission, acknowledged the dilemma the panel faces, and the stakes involved.

“The Commission is keenly aware that the Commonwealth’s expanded gaming legislation contemplated only one casino in Southeastern Massachusetts,” he said in a previously released statement. “But it is equally true that the legislation did not contemplate” that region “being left in a state of extended uncertainty” while plans for casinos in the other regions move forward.

“Reconciling these two competing public policy goals fairly is the challenge the Commission is now trying to meet,” he said.

In many ways, the Brockton proposal appears well-qualified for approval. It comes from an experienced and well-financed casino developer, and would be built a short distance from a major highway on a wide swath of land long-targeted for development.

It would bring hundreds of jobs to a city plagued by unemployment, poverty, and crime, and would provide millions for education and public safety, supporters say.

Yet it would also undermine the carefully considered strategy, devised by former governor Deval Patrick and lawmakers, for maximizing revenue from casinos.

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