Mass Gaming Commission Asked to Obey Law

Two residents of New Bedford, Massachusetts fear that the state Gaming Commission is getting set to pass their region by for a casino license. The residents, both attorneys, have sent the panel a letter reminding members that state law is clear that all three state regions will get a casino.

Two attorneys based in New Bedford, Massachusetts, apparently fearful that the Massachusetts Gaming Commission is readying itself to ignore the letter of the 2011 gaming expansion law, have written a letter to the commission admonishing its five members as to the law’s intent regarding the siting and licensing of a casino in the state’s Region C, the southeastern part of the state.

The attorneys, George J. Leontire and Philip N. Beauregard, fearing that some members have a “significant misunderstanding of the Commission’s statutory obligations,” based on some statements they have made, helpfully providing long quotations from the law as well as citing a transcript of a March meeting.

That meeting included discussions of two license applications and a discussion of whether to grant their requests for a 45-day extension of the period for submitting an application.

They attorneys fear that delays in granting a license after two licenses have already been granted for the Boston Metro and Western part of the state could cause a “left behind” effect on the southeastern part of the state.

Noting that the purpose of the 2011 legislation was economic development, they point to a section of the law that, they say, mandates that a license will be granted for the area.

They write, “We have prepared an abstract of the meeting discussion that indicates that the Commission may be on a course of straying from its statutory mandate.”

They add, “Comments by the two members who voted no to the extension are disturbing. The sub-text of their comments is that a Region C license will inevitably be denied and that by voting yes, the commission was simply prolonging the process. We urge those commission members to reconsider their position and to keep an open mind on the Region’s applications.”

The writers argue that the intent of the law was to place all three regions on “equal footing,” insofar as casinos are concerned. “However, some commissioners’ comments at the hearing suggested that the commission should be looking to the potential effect that a Region C casino license might have on the already granted licenses in Regions A and B; and the impact of a future potential license that might or might not be operated by Native American Indian ownership.”

Showing favoritism to one region over the other would be a misreading of the law, they write. They call on the commission not to look at how a casino in New Bedford or other parts of the region would affect the casinos they have already licensed in Everett and Springfield.

They also criticize the commission for speculating that possible equity partners may be afraid to invest in the region as creating a “self-fulfilling prophecy.” They add, “Region C deserves the same treatment afforded Regions A and B. This is the clear intent and language of the enabling statute” and call on the commission to “make a clear and unambiguous statement that a Region C applicant who shows it has the wherewithal to build a casino in accordance with the criteria of the Act will be granted a license.”

They note the Commissioner James McHugh voiced similar concerns at the March 19 meeting and urge the entire panel to follow his advice.

KG Urban, which seeks to build a casino resort on waterfront of New Bedford, asked for the 45-day extension at the March 19 meeting. It said it would use the extra time to allow potential equity partners to review revisions to the project that resulted from the recently signed host community agreement with the city.

Crossroads Massachusetts and Somerset on the Move, who recently combined their efforts for a casino resort in Somerset, asked for a similar 45-day extension. A previous January 30 deadline had been extended to March 19.

The third bidder in the licensing process, Mass Gaming and Entertainment, a subsidiary of Rush Street Gaming, previously fulfilled the phase one application for a $650 million casino resort at the Brockton fairgrounds. It has scheduled a May 12 election when voters in this city of 94,000 will rule on the host community agreement.

That election campaign is already well underway, with one side headquartered in a former state Department of Developmental Services office owned by the Carney family—which owns the fairgrounds— and the other is based in several churches throughout the city.

Rush Street Gaming, controlled by billionaire Neil Bluhm, is paying for the pro group’s effort under the umbrella YES for Brockton, while the anti-group, which calls itself Stand UP for Brockton, is mainly volunteers. One of its leaders, the Rev. Jill Wiley, told the Enterprise, “We’re a grassroots effort,” and said they plan to stress the societal ills caused by gambling and get that information out to as many voters as possible.”

Although the mayor of the city, Bill Carpenter, supports the casino, he has not yet said what if any his role in the election campaign will be.

Always waiting in the wings of the Southeastern zone is the Mashpee Wampanoag Tribe, which is anticipating a ruling from the Bureau of Indian Affairs on its application to put land into trust in Taunton for a $500 million casino resort.