Massachusetts Awards First Casino License to MGM
Following years of arguments, postponements, demonstrations, and discussions, it's finally official: the Massachusetts Gaming Commission has given the green light to granting a license to MGM for their $800 million casino resort project in Springfield. However, even this decision comes with some backup plans in case matters don't transpire as intended.
The state's Supreme Judicial Court has until July 9 to decide whether to grant a state ballot question that might overturn permitting land casinos in Massachusetts altogether.
Delayed Fees Due to Possible Vote
Nevertheless, the approval comes with some conditions that MGM requested due to the shaky scenario in Massachusetts. While casinos generally hold sway (when do they not?), the possibility of a potential repeal vote for the casino law this November has at least created the possibility that MGM and other licensees may never get to build their resorts.
Because it's unclear when the court decision — and a potential statewide vote — will happen, MGM has been given some leeway in paying its licensing fees.
Normally, the $85 million licensing fee would be due about 30 days after a license was granted. If the courts rule that the repeal question won't appear on the ballot, this deadline would still stand: MGM would have until mid-July to pay their fees. But if the question does go on the ballot, the company won't be required to pay the fee unless the measure is defeated. This safeguards the company from a potentially unrecoverable fee if the state's voters halt the casino expansion plan.
"We'll work with [MGM] to accommodate these other scenarios. These are just businesslike adjustments to these realities," said Gaming Commission Chairman Stephen Crosby.
MGM Springfield President Michael Mathis concurred that tweaking the fee structure was vital for the project to proceed.
"Many recognize the challenging predicament we're in. We want to get started and see this project progress," Mathis said.
State Seeks Economic Advantage, Out-of-State Gamblers
Massachusetts hopes that the MGM Springfield will not only be able to retain local gamblers, but also lure gamblers from Connecticut and New York who currently travel to the two Connecticut casinos, Foxwoods and Mohegan Sun. The state also anticipates it will revive a struggling city.
As Crosby stated, "The MGM proposal is a truly extraordinary and unique attempt to use a casino development's economic clout to drive regeneration of an entire distressing urban area."
MGM was compelled to agree to certain conditions to obtain the license. The gaming commission proposed that at least 35% of the casino employees would come from Springfield, and the casino would avoid disrupting the downtown area during construction. MGM didn't object to these terms.
"MGM is extremely thankful for today's...vote to award us the Western Massachusetts license," remarked MGM Springfield spokesperson Carole Brennan in a statement.
MGM's Springfield initiative was the only candidate for a Western Massachusetts casino license.
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