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Massachusetts governor signs bill legalizing casinos
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Gov. Deval Patrick
Signed casino bill
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LAS VEGAS REVIEW-JOURNAL
Now that casinos are coming, the real wagering begins in Massachusetts.
Gov. Deval Patrick on Tuesday signed a highly anticipated bill to legalize three Las Vegas-style casino resorts and a slot machine parlor in the state.
The move opens up Massachusetts to legalized casino gaming roughly 20 years after casinos first began operating in a neighboring Connecticut.
It may also set off a free-for-all for the potentially lucrative casino licenses.
Macquarie Securities gaming analyst Chad Beynon told investors Tuesday it was too early to judge which company could benefit from passage of this legislation.
"Competition for the licenses will be very strong, as almost every major casino company will most likely be in the hunt," Beynon said in research note. "Jockeying for position has been going on for some time now, as gaming operators and property owners maneuver themselves into the best position."
The bill, approved last week by the state Legislature, authorizes three casino developments in the Boston area, southeastern Massachusetts and one in any of the four counties of western Massachusetts. It is unclear where the slot machine parlor would be located.
Developers seeking a casino license are required to pay $85 million for the license and invest $500 million into the project. The slot machine parlor would cost $25 million for the license and $125 million for the facility. The 25 percent gaming tax is considered reasonable, since the three licenses are virtual monopolies.
"The capital requirement could keep several smaller regional operators from submitting proposals, given the current state of their balance sheets," Beynon said.
The Suffolk Downs racetrack in East Boston is expected to seek the license for the Boston market. In April, Suffolk Downs struck a strategic alliance deal with Las Vegas-based Caesars Entertainment Corp. Several casino companies are already jockeying for the Western Massachusetts license. The Mohegan Sun Tribe of Connecticut, Hard Rock International, Penn National Gaming and Las Vegas-based Ameristar Casinos are all exploring the market.
Ameristar announced last week it would acquire a 41-acre site in Springfield to develop a project.
"There aren't many attractive new market growth opportunities left in our industry, and we believe Springfield, Mass., is the perfect fit for Ameristar," said Troy Stremming, the company's senior vice president of government relations and public affairs.
During Penn National's third-quarter earnings conference call last month, company Chief Executive Officer Peter Carlino said the regional casino operator was exploring Massachusetts. The company has yet designated a site for development.
"I think the project quality is going to count, location and community support is going to count, and ultimately, dollar spend is going to count," Carlino said. "I think in that situation, we probably will be a major contender. "
Massachusetts is providing the largest piece of gaming expansion since Ohio voters approved four casinos in 2009.
Supporters believe the legislation will create 6,000 construction jobs, 15,000 permanent jobs and generate some $300 million in annual tax revenue for state and local governments.
Patrick has 90 days to choose a five- member gaming commission that will be in charge of approving potential casino developers and selecting the licensees. Casino developers would then have to receive approval in a local referendum before they could begin building their gaming facilities.
Analysts said Nevada's largest slot machine makers will also benefit from casinos in Massachusetts with an estimated 10,000 games being required to fill the properties.
Contact reporter Howard Stutz at hstutz@reviewjournal .com or 702-477-3871. Follow @howardstutz on Twitter.
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Craig Taylor, I agree with your thoughts on Vegas, costs are too high in vegas to sustain the big production entertainment and as far as I`m concerned i`m ok watching the legends in concert, I saw the Beatles and It was $100 for a nose bleed section, you see one you seen them all,everything is too expensive in Vegas compared to the regional or tribal casinos also distance wise regional casinos are near proximity . Pala in N.San Diego offers a all you can eat lobster, crab legs, seafood, steaks plus international buffet for $30 a head, don`t think Vegas can beat that.Vegas has increasing competition yr after yr. I think the best days of Vegas was in the past. I wish them well.
Vegas will have to compete for those dollars again. Yes its noce to see well designed high end buildings (hotel) with pretty little lights on them, but in the end it comes down to the mighty dollar and its worth. This will be interesting to see what impact this will have on the already dooming, glooming corrupted silver state.
They can open casino's anywhere they want, it ain't Vegas!
Not a huge loss for Vegas as this will be a huge nail in the coffin for Foxwoods & Mohegan Sun in CT. People will still come to Vegas. Six Flags are all over America they did not put DisneyWorld/Land out of business. Vegas is an experience just as Disney is an experience. Six Flags is a place to go as will these casinos will be a place to go. As the economy turns people will return to Las Vegas. Especially when alot of hotels back east are at least $200 a night. Have any of you stayed @ FoxWoods over $200 a night and outside of gambling there is nothing to do which will be the same model in Boston. Once your stake is gone its back to the room and nothing else.
Lovechecks gets Boston, he paid big dollars for this site, And the gaming board has not been approved, The state of Ma. should take a look at the companys P & L. How do they get the money for a 50 milion lic. and a 500 milion casino. Caesars does not have the 500milion for the LING,LING,
oooooooooooooooooooooooooooooooooooooops. urban ghost town to sell slot machines cheap (hint. vegas).
Another nail in the coffin for Vegas.
Singapore and Macau have put us on a respirator in terms of losing the Asian whales, Every state desperate for revenues will be going the casinos route. Florida will be especially hurtful if the state's govenor signs off on the proposed casinos bill. Genting is placing a large wager on that probability, and Adelson and Wynn are looking at plans for Florida should the bill pass.
Vegas may well maintain its cache for 20-somethings clubbers who party, but don't gamble. Obviously, their continued presence does nothing to resuscitate this dying city.
There's no denying the fact that Vegas is a dazzling attraction.
But, just how many visitors can afford $250 ticket prices ? Meals on the Strip for two @ $200 plus tip and tax ? All you have is a handful of top casinos drawing higher end patrons from an ever shrinking pool of spenders.
As more and more states approve gambling, every state's move into the gaming arena is another nail in our coffin. I hate being a downer, but the proverbial handwriting is on the wall. And, unfortunately or inept politicians have no "Plan B"...
All my real estate agent friends said I was stupid when I told them the lending in housing was not sustainable and I could not understand why the banks where lending like crazy! Now my same thought about this. All these casino's are not good for Las Vegas at all. No incentive to come to a hot tempered environment. Why don't we try that family thing again. VEGAS use to be different. It's not any more. Even Macua is the new headquarters for the Casino's