The opening night of Massachusetts’s first casino under the 2011 gaming expansion law, Plainridge Park Casino, attracted nearly 10,000.
The $250 million slots parlor deploys 1,250 slot machines, and is open 24/7 all year round. The first week of operation resulted in gross gaming revenues of $6.1 million, of which $2.4 million will go to the state and almost $600,000 to the state’s racing industry.
The afternoon brought in seniors, while the later part of the day attracted younger people.
The new casino was inaugurated with a ribbon cutting, with the ribbon held by two Las Vegas style showgirls, facilitated by state officials, sports celebrities and officials from Penn National Gaming, which operates the casino, or rather, racino, since the facility includes a racetrack.
It’s show time!” declared Gaming Commission Chairman Stephen Crosby as the ribbon was cut. “Take a look at this facility. Take a look at 500 quality, high-paying jobs.”
The Bay State became the 40th in the union to allow gaming. State Secretary of Housing and Urban Development Jay Ash, voiced one of the main reasons the casinos were authorized: “We want to keep our gambling money home.”
If projections are accurate, Plainridge will keep home about $200 million during its first year, with almost half being paid to the state in taxes. The city of Plainville will be paid at least $2.3 million plus additional property taxes.
MGM Springfield
Now that MGM Springfield has formally requested a year’s delay in the opening of the $800 million casino in the city’s South End, until September 2018, the Massachusetts Gaming Commission says it plans “due diligence” on the request. The delay would mean an estimated loss of $125 million.
The commission is expected to make a decision at its July meeting.
Last week MGM Springfield CEO and President Michael Mathis told commissioners that the state Department of Transportation’s work on the Interstate 91 viaduct was the culprit in requesting the delay and conceded that the company will lose tens of millions of dollars in additional interest and other expenditures.
To sweeten the deal for the city of Springfield, MGM has promised to pay an additional $1 million in 2017. The city council has voted to support the request.
The work on the viaduct makes opening on schedule “not feasible,” before it is completed. The roadwork will create traffic congestion by cutting down on the number of lanes. The viaduct will not be finished before August 2018.
When the original completion date was announced, the viaduct and casino were in sync. However, complications that arose due to the transition between outgoing Governor Deval Patrick and incoming Governor Charlie Baker have delayed the I-91 project by about a year.
The I-91construction will now start before the end of this year.
Chairman Crosby signaled that the commission is likely to sign off on the request. “If this is what it appears to be, which is a reasonable, cautious, accurate assessment of the likelihood of serious traffic problems, then I think we would be predisposed to go along with it,” he said. “But we are going to do our own research. Just because they say this is a problem doesn’t mean it necessarily is.”
Another source of delays for the casino has been requests by both the Springfield and Massachusetts Historical Commission that the casino save more historical structures than it had planned.
Another meeting will happen this week between state commissioners and MGM officials. The purpose of the meeting is to discuss “project alternatives which could eliminate, minimize or mitigate the adverse effect on State Register properties” according to the agenda.
The commission is pressuring MGM to save the entire State Armory building, rather than just the façade, and to set up an historical preservation fund for other historic structures in the city.
According to MGM spokesman Carole Brennan, “MGM Springfield feels a strong responsibility to provide a unique design that pays homage to Springfield’s rich history while also capitalizing on the broad economic opportunities that will move this Gateway City into the future.”
Wynn Resorts, which was issued the license to build a casino resort in Everett, could end up opening its casino around the same time as MGM.
The delay could be a good thing for Plainridge, giving it a full year without competition—at least in Massachusetts. Plainridge’s main competition right now is Rhode Island’s Twin River Casino.
The neighboring state of Connecticut, which is trying to ramp up to build at least one satellite casino on the border, could benefit from the year’s delay.
Chairman Kevin Brown of the Mohegan tribe predicted that the delay would allow his tribe and their partner in this venture, the Mashantucket Pequots, to “get a shovel in the ground before they do.”
The tribes plan to issue a request for proposals for communities interested in being host cities soon.
Southeastern Casino Zone
The Bay State’s one remaining casino license is in play, with New Bedford and Brockton the rivals for the prize.
Last week Brockton proponents noted that their casino would be more likely to draw players from Boston than New Bedford would, for the simple fact that it’s closer, 21 miles away, compared to 59 miles for New Bedford.
The Brockton proposal would put the $650 million casino resort in the middle of the Brockton fairgrounds. This would be another factor in generating more revenue, according to former Brockton mayor Jack Yunits, who is an attorney for George Carney, who owns the fairgrounds. Rush Street Gaming affiliate Mass Gaming & Entertainment will be developing and operating the casino, if it is approved.
KG Urban Enterprises, in partnership with Foxwoods, would be the developer for the $650 million New Bedford proposal.
The commission has said it would like to award the final license this fall. Each bidder has until September 30 to submit their applications with a complete vision of the proposed casino resort.
Those plans will be graded by five criteria, general overview, finances, contribution to economic development, design and mitigation efforts.
