Construction Begins on Wynn’s Boston Project

Wynn Boston Harbor last week welcomed construction workers to the site to begin building the $2.1 billion project. The start comes even as Joseph Curtatone (l.), the mayor of nearby Somerville, said his town is likely to appeal a state environmental ruling that allows the project to proceed.

The .1 billion Wynn Boston Harbor finally began construction last week as the last challenge to the property was put aside, at least for the time being. More than 150 of the eventual 4,000 construction workers arrived last week to start the remediation of the polluted ground at the site.

“There’s no stopping us now,” said Robert DeSalvio, the president of the property. “Onward and upward to the opening of Wynn Boston Harbor.”

Construction began even as the city of Somerville revealed it is considering an appeal of the state’s approval of an environmental waterfront permit that allows Wynn Resorts to go forward with its $2.1 billion casino resort along the Mystic River: The Wynn Boston Harbor.

The city has ruled against appealing the decision to the Department of Environmental Protection’s decision, but is strongly considering a court challenge to the decision.

Mayor Joseph Curtatone has until August 22 to decide whether to file an appeal in Superior Court. The mayor reiterated last week that he never wanted to stop the casino from being built, but only to mitigate its effects on his city.

His first action was to appeal the Department of Environmental Protection’s issuance of a permit earlier this year. Then two weeks ago DEP Commissioner Martin Suuberg gave final approval for the permit.

Once the permit is in hand Wynn is expected to reschedule a groundbreaking that it scheduled and then cancelled earlier this year. A court challenge would not prevent Wynn from reigniting the gigantic construction effort that is considered to be the largest private development ever begun in the Bay State.

A Regulatory Role Model?

Online Poker Report last week carried an article that Massachusetts may be setting the standard for gaming, a standard that other states may soon begin to emulate.

Although the Massachusetts Gaming Commission was at first criticized strongly for its glacial pace in approving new casinos, it was spoken of approvingly at the National Council of Legislators from Gambling States, which the Bay State hosted in Newton. Its innovative responsible gaming practices and exhaustive vetting process for casino applicants were both held up as something of a gold standard.

The legislature adopted the gaming expansion bill in 2011. But the first Las Vegas style casino resort isn’t likely to open before 2017, assuming that the First Light Casino in Taunton still opens now that it has been on the receiving end of a negative federal court ruling.

Meanwhile two resorts casinos have begun construction, the $1.3 billion MGM Springfield and $2.1 billion Wynn Boston Harbor in Everett.

During a panel discussion Massachusetts Gaming Commission Chairman Stephen Crosby said that his state has been “exporting the benefits of gaming revenue, jobs, and economic development and importing the negative social consequences” of casinos for a long time.

The new casinos will generate 8,000 jobs and an estimated $250 million annually in taxes to the state. Crosby noted that the state wanted the benefits of gaming, but also to mitigate the social problems created by it.

Because Massachusetts was one of the last states to introduce gaming, it was able to profit from the experiences of other states.

One innovation the state has employed is requiring developers to find get the support of local government, then pass muster by winning a referendum with voters of the host community—and only then go before the gaming commission.

Because the state limited itself to three regional licenses, and one slots parlor, it was able to guarantee exclusivity to its developers.

Without that guarantee Wynn Resorts would never have made the commitment to spend $2 billion in Everett, according to Bob DeSalvio, who also spoke at the gathering.

Jay Snowden of Penn National, which operates the Plainridge Park Casino, casino developers love predictability and as much certainty as possible. Particularly stable tax rates.

At the same time the state is conducting one of the most groundbreaking and exhaustive studies on the effects of gaming on society ever funded. The study will seek to find out if gaming increases crime, if it generates problem gaming and whether it drives out local merchants.

This data will continue to be collected as new casinos open in the state.

The state has also encouraged new responsible gaming standards, including the trial of two pilot programs, GameSense and PlayMyWay, which help players regulate themselves. Already 7 percent of players at Plainridge have signed up for PlayMyWay, which allows a player to give him or herself a budget, and to inform the player as the limit on the budget approaches.

The state’s self-exclusion process is already rated very high compared to other jurisdictions.

The state has also employed training that makes some casino employees into consumer advocates, who inform players about the mechanics of the game.

As Crosby explained “It’s not our job to cut them off.” But players can choose to cut themselves off as they reach a limit they chose for themselves.