Boston Mayor Wants Gambling Regulator Out of Licensing Process

Boston may have rejected intends to host a casino, but city officials nevertheless want host community status for nearby proposals. (Image: Gretchen Ertl, Ny Days)
To say that Boston has had a complicated relationship with Massachusetts’ gaming regulators throughout the state’s casino licensing process is putting it extremely lightly. The city has been on both sides of the issue, always trying to get the best possible outcome for Boston even if they won’t be hosting a resort themselves from originally hoping to get a casino in the city to standing by the community that voted against such a plan.
Possibly that is why Boston Mayor Marty Walsh has made strong statements recently about the top associated with Massachusetts Gaming Commission. In accordance with lawyers working on behalf of Walsh’s administration, commission chair Steve Crosby has made ‘prejudicial’ statements that put into question his objectivity in Boston’s bid to be considered a host community for casinos in nearby locations.
Host Community Status Would Grant Veto Power
That host community status is something which Boston is hoping to obtain for casino plans both in Everett where Wynn Resorts is hoping to gain a permit as well as in Revere, where a Mohegan Sun casino plan at Suffolk Downs was revitalized after being rejected by East Boston. In both cases, the proposed casinos could be built entirely outside of the city, but very close to Boston’s edges.
If Boston had the ability to achieve host community status in either of those situations, the neighborhoods nearby the casinos would have the right to vote on whether these casinos could possibly be built really providing them with veto power over the plans. That could apply play titanic slot machine to East Boston for the Revere casino, because well as Charlestown for the Everett proposal.
In a letter submitted to the commission, the Walsh administration criticized Crosby, saying that he was biased and had currently been critical of the ask for host community status in front of a planned May 1 hearing in which their state gambling commission will rule on the issue.
Mayor Walsh also objected towards the hearing itself, saying that the structure gives the city very little chance to make its situation.
‘It eliminates the town’s opportunity to phone witnesses, to cross-examine witnesses and also to create an appropriate evidentiary record that is topic to appropriate review,’ the letter said. ‘In sum, the procedure that is proposed a thinly veiled attempt to ‘stack the deck’ against the town.’
Commission Stands Firm
But while the words of the Walsh administration might have been harsh, they did not provoke much of a response from the State Gaming Commission.
‘The commission’s role isn’t to participate in or be distracted by the politicizing of certain aspects of the procedure,’ said spokesperson Elaine Driscoll. ‘The commission has usually been presented with complex matters of law requiring fair and decision-making that is judicious the five appointed commissioners,’ she added. ‘This matter is no different.’
Boston is not the city that is only has submitted information about the battle on the Greater Boston casino license. Both Mohegan Sun ( which will operate a Suffolk Downs casino) and Wynn have submitted briefs arguing against Boston’s community status. Revere Mayor Daniel Rizzo has additionally said that their town should be considered the only host community for a Suffolk Downs resort.
On top of that, all parties agree that Boston should have ‘surrounding community’ status. That would entitle the town for some revenues along with other concessions, but wouldn’t allow it to outright veto the projects.
Detroit Casino Revenues Continue to Fall
The MGM Grand Detroit is certainly one of three casinos that the populous city relies on for tax income. (Image: destination360.com)
Detroit’s financial issues have been covered extensively within the past year. As a result regarding the city’s bankruptcy, it has additionally become common knowledge that the town is relying heavily in the revenues from Detroit’s three casinos to help keep it afloat. Unfortunately, it appears as though also those revenue that is reliable have actually been slipping in recent months.
In accordance with the latest numbers through the Michigan Gaming Control Board, the three Detroit casinos saw their revenues fall 7.3 percent year-over-year in March. Combined, the three venues MGM Grand, engine City and Greektown brought in about $125 million.
The MGM Grand had been the first choice with $50.8 million in income, though that was down 6.6 percent compared to March 2013. The Greektown saw the drop that is sharpest associated with the three gambling enterprises, with monthly revenues falling 10 percent to $31.2 million.
Tax Dollars Important for City
Those reduced revenues also mean less in the way of vital tax dollars for the city. Detroit collected $10.1 million in tax income from the gambling enterprises in March, down from $10.9 million a year earlier.
That continues a trend which has been ongoing for the last two years. In 2012, Detroit accumulated $114.8 million in tax revenue for the season. That fell to $109.3 million year that is last and could fall further throughout 2014.
Several Good Reasons For Drop Proposed
The timing of the drop may be traced to increased competition in the region. For instance, revenues are clearly down because the Hollywood Casino Toledo opened in 2012. Compared to initial quarter of 2012 the last full quarter before Hollywood began doing business Detroit’s casino revenues were down 12 percent in 2014′s first three months.
That is just one single of several Ohio casinos that have been approved by voters in that continuing state in 2009. In total, four new casinos and two new racetracks happen opened in Ohio on the past couple of years.
But other factors are often in play, as casino revenue has been down round the entire region, including in Ohio and Indiana. The terrible weather that area residents suffered through was also cited as a possible cause along with a potential saturation of the casino market. Some have also pointed to changes in player behavior, saying that casual players just are not spending money at casinos at the moment.
‘we do think more than anything else it is the pressure they’re feeling by themselves spending plan that is affecting us and others to their spending in this industry,’ stated Penn National Gaming CEO Tim Wilmott within a February media conference call.
Casino Revenues Critical to Bankruptcy Contract
After income taxes and the help of hawaii, casino wagering fees are Detroit’s next biggest supply of revenue, accounting for about 16 percent of the city’s earnings.
That can help explain why casino revenues were such a contentious issue once the city filed for bankruptcy protection year that is last. Detroit had used the casino tax income as security in 2009 to avoid defaulting on the city’s retirement debts. But when that deal went sour and funds with the banking institutions proved hard to come by, it showed up as though those casino revenues could potentially head to those organizations rather than the town which may have caused an immediate budget collapse.
But final week, a federal bankruptcy court agreed to a deal that would see Detroit pay $85 million to UBS and Bank of America in monthly installments of $4.2 million, thus ensuring that Detroit could restructure its debt and continue to collect casino revenue.
Crown Resorts prepared to Bid for Cosmopolitan Casino in Las Vegas
The Cosmopolitan has lost nearly $300 million since opening, but remains considered one of the most properties that are valuable the Las Vegas Strip. (Image: Wikimedia Commons)
Australian casino mogul James Packer failed once in the US gaming market, but that’s not stopping him from giving the united states a try that is second. According to reports out of Australia, Crown Resorts the gaming company owned by Packer is planning to enter into the fight to take over The Cosmopolitan of Las Vegas.
Crown is likely to be just one of several companies that will take a good look at purchasing the sprawling casino resort on the Strip. With almost 3,000 resort rooms, it would give any owner a major stake in America’s gambling hub that is biggest. Presently, The Cosmopolitan is owned by Deutsche Bank.
Packer Hoping for Better Luck in Second US Venture
This would mark the second time Packer has tried to invest in US casino properties. The attempt that is first not end well for their company.
Around the full time of the 2008 crisis that is financial Crown purchased about $2 billion worth of properties within the usa, including stakes in the never-built Fontainebleau Resort and in Station Casinos. Those investments cost the company billions of bucks, causing Packer to shy away from the United States in more current moves to expand his company’s global reach.
But it now seems that Packer feels Crown is in a position that is financial will allow the firm to grow throughout the globe. Already, Crown has secured the rights to build a $1.2 billion casino complex in Sydney that will cater exclusively to rollers that are high. Another $400 million is at risk for a casino become built in Sri Lanka, and Melco Crown (a jv that Crown is heavily invested in) will be developing gambling enterprises in Macau therefore the Philippines.
Then there’s the potential investment in Japan, that is more likely to legalize casinos ahead of the 2020 Summer Olympics in Tokyo. Packer has recently stated that he would be willing to invest as much as $5 billion in a casino there should he be granted a license for a casino in Japan, possibly the planet’s last great untapped casino market.
That’s a lot of outlay, and The Cosmopolitan would be a pricey purchase as well. The casino resort is anticipated to fetch a price of just as much as $2 billion once the sale is created.
Cosmopolitan Off to Slow Begin
But as The Cosmopolitan is a property that is highly valuable will attract a good amount of interest from investors, this hasn’t been a really successful one in its brief history.
Issues for the casino began even before it exposed. In January 2008, owner Ian Bruce Eichner defaulted for a loan, causing Deutsche Bank to obtain the property. That left the bank in the position that is odd of and operating a casino not something that they had planned on.
But Deutsche Bank did complete the venue, ultimately investing about $4 billion to complete the resort and casino, making the Cosmopolitan the most expensive casinos in Las vegas, nevada. The complex features 100,000 square foot of gaming space, along with extensive retail and space that is restaurant.
Since starting at the end of 2010, The Cosmopolitan has attracted an abundance of visitors with its branding that is upscale-yet-hip campaign. However, gaming profits have still been weaker than anticipated, and the property lost $298.3 million in its first 36 months of operation.