Although forced by Governor Charlie Baker to close down March 15 because of Covid-19, Massachusetts’s three casinos—Encore Boston Harbor, MGM Springfield and Plainridge Park—must continue to pay their host cities and the state due to contractual obligations. So says the city of Springfield, host to the MGM Springfield, and the Massachusetts Gaming Commission (MGC).
The MGC voted to allow the casinos to make monthly payments to the state, rather than a lump quarterly payment. It also voted to take the $2.15 surplus in the Gaming Control Fund as a credit on funding the gaming companies owe the Bay State.
Springfield Mayor Domenic Sarno, who led the charge to bring a casino to his city because of its potential economic benefits, wasn’t about to give up the casino’s payments—while pointing out that the MGC has provided the casinos some relief.
The mayor told the city solicitor to notify MGM “that we will work with them while they remain closed as a result of the governor’s and Gaming Commission’s order, but we need to protect our rights to assure MGM meets its obligations under our agreements.”
He added, “While the casino may be closed, the city needs to maintain the revenue collected from MGM in order to provide essential city services.”
Springfield council member Michael Fenton added, “These are unprecedented times that have necessitated adjustments to all facets of life. I will continue to monitor the situation and will advocate for adjustments to timing and payments only where absolutely necessary. We all look forward to the time when this pandemic is behind us and our economy is once again open for businesses, including MGM Springfield.”
On April 1, MGM made a partial payment of $5.5 million of the total $7.78 million it owes the city; its payments amount to some $25 million annually.
MGM Springfield President and COO Chris Kelley insisted last week that the company would meet its commitments. “MGM Springfield values its relationship with the city and appreciates the mayor’s cooperation and understanding during this unprecedented worldwide health emergency,” he said. “MGM Springfield will continue to work collaboratively with city officials to satisfy its legal obligations to the city.”
The casinos will stay closed at least until May 4 under an extension of the original executive order.
