Wynn Resorts is predicting that its Everett casino will be very profitable.
Ian Coughlan, president of Wynn Resorts-Macau told investors recently, “We are going to be responsible for $50 million a month in revenue for this state, probably another $50 million in related revenues to all the surrounding communities.”
He talked up the four million metropolitan market that Wynn will be able to tap, and called the prospect, “scintillating.” One reason the Wynn organization is so confident is that they will have a basic monopoly in that greater Boston area.
Some gaming experts say that Wynn’s projections are ambitious, but nobody faults his abilities to often make good his boasts. In Wynn’s application to the Massachusetts Gaming Commission he predicted that the Wynn Resort Everett would be in the largest grossing non-Indian casino outside of Nevada.
Southeastern Casino
Foxwoods Gambling Company last week shared its plans for a casino resort in New Bedford with the commission, on the site of a now defunct power plant.
David Stern, an adviser to KB Urban Enterprises, which also wants to build in New Bedford, told the commission that it needs to complete negotiations for a land purchase before it can present a complete plan. KG said that it is talking to two other casino firms to acquire a management partner and equity funding.
The commission gave applicants until March 16 to file information about their proposals.
Mass Gaming & Entertainment objected to the extension, saying that it had abided by the original rules and was ready to proceed. The company is an affiliate of Rush Street Gaming, an Illinois firm that wants to operate a casino at the Brockton Fairgrounds.
Two applicants, Somerset On the Move and Crossroads Massachusetts, indicated that they are working on a joint proposal.
Originally there were five applicants, but Seafan Trust, which had proposed a $4 billion casino, failed to meet the deadline.
MGM Springfield
MGM Resorts International last week assured the people of Springfield that 3,000 permanent and 2,000 temporary jobs from the $800 million MGM Springfield are on the way, along with the economic shot in the arm that the casino resort will bring to this economically challenged city.
Michael Mathis, MGM Springfield president and chief operating officer, predicted that the casino will lead a renaissance of the downtown.
“This year the real work begins. The license itself was never the prize for our company. We will not truly celebrate until we have opened our doors and welcomed the renaissance of downtown Springfield,” said Mathis.
Mathis, a native of the area, said that his team knows the region and are committed to carrying out MGM’s promises to the community and especially to renovate the city’s Sound End.
MGM plans to work with local colleges and universities to train workers; including helping them to apply for grant writing and funding applications.
He also promised assistance to local vendors and contractors in navigating “the regulations and certifications of the Massachusetts gaming industry.”
Meanwhile the Springfield Redevelopment Authority hired two consultants to devote to the casino construction. This is the first action in creating a Casino Liaison Office in the city to coordinate the casino among the city’s several departments, and expedite permitting, licensing and regulatory approvals.
The goal is to fund the consultants from casino-related funds.
Meanwhile the Hampden County Sheriff Michael Ashe last week appealed to the Massachusetts Gaming Commission to save the Western Massachusetts Correctional Alcohol Center, whose operation is currently smack-dab in the middle of the 14.5 acre casino resort footprint of MGM Springfield.
The Sheriff told the Republican: “I can’t in good conscious walk away from this program. 17,225 people have gone thorough the program since 1985 and we have a 95 percent success rate. It’s had a great impact on not just alcoholism but substance abuse overall. The impact of that on the community is just huge.”
MGM purchased the building housing the program for $4.45 million. The bidder representing the program pulled out of bidding at the last minute and the program faces an eviction notice.
The Sheriff is asking the commission to provide mitigation funds of about $4 million to enable to program to find suitable property. Ashe said he knew that it would be a challenge to extract that much money from the commission.
“Quite frankly, it’s going to be awfully difficult to secure that amount of money but I have to step up and let them know this is what we need. I was pleased the commissioners who were there were favorably disposed to our earned and deserved reputation for excellence and effectiveness,” he told the Republican.
Saving Horseracing
Meanwhile the efforts to save horseracing continue at Suffolk Downs, which was the loser in the contest for a casino license in the Boston Metro area.
The idea of saving horseracing, first floated by the New England Horsemen’s Benevolent and Protective Association, has been revived by Suffolk Downs’ owners, who would like to use some of the money generated by the casino industry to bear some of the costs of a smaller racing season.
It wrote a letter to the gaming commission, requesting that Race Horse Development Fund be used to subsidize the track’s operation. The fund will begin getting cash infusions after this summer, when the Plainridge Racecourse racino in Plainville begins operations.
Suffolk Downs CEO Chip Tuttle commented last week, “We’ve had good, positive discussions with the horsemen.” This prompted a spokesman for the 900 or so horsemen to respond, “We’re pleased that the owners have come to the table and are talking.”
So far no agreement has been reached. The sticking point seems to be the length of the season, with horseman wanting up to 50 days while the owners would prefer 25. They point out that the longer the season the more the track loses.
Last September, shortly after it lost its bid with partner the Mohegan Sun, Sterling Suffolk Downs, which owns the racetrack, announced that the racetrack would shut its doors.
The horseman’s association then announced its effort to lease the racetrack to keep racing alive. Negotiations fell apart.
