Caesars Entertainment Inc. has once again lost its lawsuit challenging the legality of the Massachusetts Gaming Commission’s decision last year that awarded the Boston Metro casino license to Wynn Resorts.
A federal appeals court upheld an earlier court ruling that the commission acted in accordance with the law and noted in its opinion that the panel has “highly discretionary” powers. Retired Supreme Court Justice David Souter wrote the opinion.
Among other accusations, Caesars had accused commission Chairman Stephen Crosby of being biased in favor of Wynn. Due to such accusations before the commission voted to award the license, Crosby chose to recuse himself from all decisions related to that license. The appeals court also held that Crosby did not act wrongfully.
Caesars partnered with Suffolk Downs racetrack to propose a casino resort in Revere. Caesars was forced by Suffolk Downs to withdraw when questions arose about the gaming giant’s ethical suitability during a vetting by the commission’s investigative arm.
Caesars had alleged that it wasn’t given enough time to appeal the commission’s ruling, which deprived it of a property right. The appeals court rejected this logic, saying that an application for a license is not a property right. It added, “Caesars has alleged no cognizable protected property interest said to have been infringed in violation of Fifth and Fourteenth Amendment due process.”
In a separate but related development, the Massachusetts Gaming Commission plans to adopt a problem gambling program used in British Columbia, Canada.
The program, funded by the Canadian government, is called GameSense. Mark Vander Linden, the commission’s director of research and responsible gaming, told the Republican that they searched for the most advanced program now used. He predicted it would “greatly enhance our overall efforts to promote responsible gaming and effectively communicate with our citizens.”
GameSense, operated since 2009 by the British Columbia Lottery Corporation, provides information to players on how to game responsibly, information on gambling addiction and where to look for help. The program is in all BC casinos.
Both Wynn Resorts and MGM Springfield have agreed to employ the program at their casinos.
MGM Springfield
The design firm responsible for MGM Springfield’s $800 million casino in the downtown area is negotiating with the Springfield Historical Commission over the fate of four buildings in the 14.5 acres where the casino will be located. The commission wants to save the historical structures.
One of the buildings was constructed in 1910 as offices of the United Electric Company. MGM has already promised to preserve its façade, but the commission is pressing for saving the marble-decorated lobby as well.
The design firm says it plans to recreate the octagonal lobby and stained-glass dome elsewhere on the 14.5 acres. It opposes preserving the entire lobby because that would interfere with the elevators, which will be placed there.
They are also talking about the former Union House hotel, a four-story brick building where some U.S. presidents have stayed. Once again MGM has committed to saving the façade while the commission is holding out for the entire building. MGM has the building’s severe structural damages arguing for its position.
Also on the table is an old YMCA building, whose distinctive porticos the commission wants to save, and the old Massachusetts state armory. Whose front turrets and stone face MGM plans to preserve. Once again the commission is hoping to save the entire building.
Wynn Everett
Last week representatives of Wynn Resorts met with about 75 residents of the Charlestown area of Boston to address their concerns that the $1.7 billion casino planned in Everett will exacerbate their already dense traffic in Sullivan Square.
The city of Boston contends that most of the casino’s patrons will drive through the square to reach the casino.
The meeting was uneventful, despite the fact that the city of Boston has sued the Gaming Commission to try to prevent Wynn from building in Everett. The lawsuit is asking that commission’s decision awarding the license be overturned and that Boston be designated as a host community, so that its citizens may take a binding vote on the casino.
Robert DeSalvio, president of Wynn Everett, took questions from the audience. He noted that his company has promised to pay $25 million towards a long-term solution to the square’s traffic gridlock. Another $10 million has been set aside for short-term solutions. All should be online by the time the casino is operating, he said.
DeSalvio said his company is paying for part of the traffic solution since the problem exists currently without a casino. “The long-term solution is not a Wynn Resorts project. It’s a city of Boston project,” he said. Wynn projects that the casino will add 15 percent to the existing situation.
Asked about the cleanup project at the old Monsanto chemical plant site where the casino is planned, DeSalvio said the company will foot the entire $30 million bill of cleaning up the hazardous wastes. This includes hauling contaminated soil away and capping other areas with cement.
Impact on Lottery
Some convenience stores, but especially municipalities, are wondering if the Massachusetts Lottery, which last week paid over $920 million to cities and towns, will be adversely impacted by the four casinos that will be come on line in the next few years.
There is actually no statistics to support the notion that the casinos will steal revenue from the lottery, In neighboring Connecticut for example, the lottery brought in its highest tally ever, $312 million, although two of the largest Indian casinos operate in the state.
Fans of the lottery point out that some of its most avid fans prefer it to casino gaming. Some players like both.
The gaming expansion law of 2012 requires that the three casino resorts and one slots parlor carry lottery products.
