Second Racino Petition Faces Tough Odds in Massachusetts

Senate President Stan Rosenberg (l.) is just one of many Massachusetts officials who opposes adding a second racino to the mix of state gaming choices. He says the existing approved three casinos and one racino is “right on track.”

Its seems to the residents of East Boston like they just finished fighting an election campaign to defeat a casino proposed for their town. In 2013 they successfully defeat a casino proposed for Suffolk Downs by a 53 percent no vote. Now, three years later, they must do it all over again.

The proposed casino is not actually in their city, but just across the city boundary, in the town of Revere, which is also the home of Suffolk Downs Racetrack. That fact is not a coincidence, as Question 1, a citizens initiative, specifies that a slots parlor be authorized adjacent to a racetrack. Since the only other racetrack in the Bay State already has a slots parlor that leaves Suffolk Downs.

Note: the owners of Suffolk Downs are not connected to the initiative. Chip Tuttle, the track’s chief executive officer, confirmed that the racetrack has had to deny accusations that it was colluding with the effort.

He told WBUR, “At first, when it came to light, we had to sort of fend off accusations that it was us—that we were somehow secretly trying to use this ballot question as a back door to gaming development here on the property’” He added, “We made it very clear it wasn’t us.”

Developer Eugene McCain paid to gather the signatures that put Question 1 on the November ballot. The city of Revere will vote on the proposal in a special election on October 18. McCain must win both votes for his project to move forward. Even then nothing would guarantee that the Massachusetts Gaming Commission would give a license to McCain.

The city government of Revere opposes Question 1, although McCain made a presentation to the city council in May. Mayor Brian Arrigo later called the project a “fly by night.”

At that time McCain told the council, “We thought there might be some openness among the citizens of Massachusetts to reinstate that second license and help the horse racing industry. We thought as an applicant in Revere, that we might have a good shot at getting that license awarded to a project here in Revere.”

Arrigo is not convinced. He told WBUR, “We have some great potential in the city of Revere and I want to make sure that folks know that we have a higher standard than a slot parlor. And what we’re going to be able to bring to the city is a much higher, a higher and better use for that property.”

MGM Chairman Stephen Crosby has stated publicly that it would be unfair to award another license when those who previously won licenses played fairly by the rules.

Celeste Ribeiro Myers, a veteran of fighting casinos, who most recently led an effort in 2014 to repeal the 2011 gaming expansion act, is part of the organized opposition this time, as well.

Although she opposed that law, she concedes that it at least limited the number of casinos in the state to three casino resorts and one slots parlor. She told the Boston Globe, “Don’t undo what’s already been done.”

One again her group will be underfunded compared to the developer, who has so far raised in excess of $400,000, compared to the $50 that Myers says her side started with.

A member of the opposition is pretty cynical about the process, pointing out that when one proposal was defeated in East Boston that a very similar project was proposed for the city of Revere, just across the line.

“The other side kept saying during the campaign that, ‘We will respect the will of the people after the votes are counted,’ ” said the resident. “But as soon as they lost, that went right out the window.”

The proposal he was talking about was the proposal flown by the Mohegan Sun for a casino resort in Revere. That project was passed over by the Massachusetts Gaming Commission in favor of Wynn’s $2.1 billion Boston Harbor.

Senate President Stan Rosenberg, who help craft the 2011 law, said the lawmakers very carefully considered how many casinos the state could support when they approved it. It relied on studies that showed that more than three casino resorts and one slots parlor might saturate the Bay State market.

“We have two resort casinos that are under construction, and we have the third—with the Mashpee Wampanoag having received federal recognition and land in trust, planning and preparing to construct theirs in southeastern Massachusetts,” said the senator. ”The law said up to three casinos and one slot parlor, and it’s right on track.”

MGM Springfield Moving Forward Briskly

The $950 million MGM Springfield is moving forward at a brisk pace, and is so far under budget, according to the developer, which gave a report to the Massachusetts Gaming Commission last week.

The seven level parking lot at the MGM Springfield in Massachusetts is rising on schedule, with three levels already placed and two heavy duty cranes ready to place the beams for other levels.

The structure will accommodate 3,400 cars.

The foundation for the 125,000 square foot gaming floor was put down over the last three months. The footprint for the project, due to open in September 2018 takes up 14.5 acres in the city’s South End.