Boston Mayor Wants Gambling Regulator Out of Licensing Process

Boston <span id="more-13451"></span>Mayor Wants Gambling Regulator Out of Licensing Process

Boston may have rejected plans to host a casino, but town officials still want host community status for nearby proposals. (Image: Gretchen Ertl, New York Days)

To say that Boston has had a relationship that is complicated Massachusetts’ gaming regulators through the state’s casino licensing process is putting it extremely lightly. From originally hoping to get a casino in the city to standing by the community that voted against such a plan, the city is on both sides of this issue, always trying to get the best possible outcome for Boston regardless if they won’t be hosting a resort themselves.

Perhaps that is why Boston Mayor Marty Walsh has made strong statements recently about the top associated with Massachusetts Gaming Commission. According to 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 become considered a host community for casinos in nearby locations.

Host Community Status Would Grant Veto Power

That host community status is something that Boston is hoping to obtain for casino plans in both Everett where Wynn Resorts is hoping to get a license plus 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 will be built completely outside of the town, but very near to Boston’s borders.

The neighborhoods near the casinos would have the right to vote on whether these casinos could be built essentially giving them veto power over the plans if Boston were able to achieve host community status in either of these cases. That will apply to East Boston for the Revere casino, as well as Charlestown for the Everett proposal.

In a page submitted to the commission, the Walsh administration criticized Crosby, stating that he was biased and had currently been critical of the request for host community status in front of a fully planned May 1 hearing by which hawaii gambling commission will rule regarding the issue.

Mayor Walsh also objected towards the hearing itself, saying that the format gives the city extremely little chance to make its instance.

‘It eliminates the town’s possibility to phone witnesses, to cross-examine witnesses and also to create an appropriate evidentiary record that is topic to legal 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 management might have been harsh, they didn’t provoke much of a response from the State Gaming Commission.

‘The payment’s role just isn’t to participate in or be distracted by the politicizing of certain aspects of the process,’ said spokesperson Elaine Driscoll. ‘The commission has often been presented with complex matters of legislation requiring fair and decision-making that is judicious the five appointed commissioners,’ she included. ‘This matter is no various.’

Boston isn’t the city that is only has submitted details about the battle within 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 also said that their city 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 with a profits as well as other concessions, but wouldn’t give it time to veto the projects outright.

Detroit Casino Revenues Continue to Fall

The MGM Grand Detroit is certainly one of three gambling enterprises that the populous town relies on for tax income. (Image: destination360.com)

Detroit’s financial issues have actually been covered extensively on the year that is past. As an outcome associated with the city’s bankruptcy, it has in addition become common knowledge that the town is relying heavily on the revenues from Detroit’s three casinos to hold it afloat. Regrettably, it looks like even those reliable revenue streams have actually been slipping in recent months.

In accordance with the newest 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 introduced about $125 million.

The MGM Grand ended up being the best choice with $50.8 million in income, though that was down 6.6 percent compared to March 2013. The Greektown saw the sharpest drop of this three casinos, with monthly revenues falling 10 percent casino-bonus-free-money.com to $31.2 million.

Tax Dollars Important for City

For the city, those reduced revenues also mean less in the way of vital income tax dollars. Detroit collected $10.1 million in tax income from the casinos in March, down from $10.9 million an earlier year.

That continues a trend that has been ongoing for the last two years. In 2012, Detroit collected $114.8 million in tax revenue for the season. That fell to $109.3 million year that is last and could fall even more throughout 2014.

Several Reasons Behind Drop Proposed

The timing of the drop might be traced to increased competition in the region. For instance, revenues are clearly down since the Hollywood Casino Toledo opened in 2012. Compared to the very first quarter of 2012 the final full quarter before Hollywood started doing business Detroit’s casino revenues were down 12 percent in 2014’s first three months.

That’s just one single of several Ohio gambling enterprises which were approved by voters in that state in 2009. As a whole, four casinos that are new two brand new racetracks have been exposed in Ohio throughout the past couple of years.

But other factors can also be 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.

‘I do think more than such a thing else it’s the pressure they’re feeling on their own spending plan that is affecting their investing with us and others in this industry,’ stated Penn National Gaming CEO Tim Wilmott during a February news seminar call.

Casino Revenues Critical to Bankruptcy Contract

After earnings taxes and aid from hawaii, casino wagering taxes are Detroit’s next source that is largest of revenue, accounting for approximately 16 percent of the town’s income.

That helps explain why casino profits were such a contentious issue once the city filed for bankruptcy protection year that is last. Detroit had used the casino taxation income as security in 2009 in order to avoid defaulting on the city’s pension debts. But when that deal went sour and a settlement with the banks proved difficult to come by, it appeared as though those casino revenues could potentially visit those organizations as opposed to the town which may have triggered an immediate budget collapse.

But last week, a federal bankruptcy court consented to a deal that would see Detroit pay $85 million to UBS and Bank of America in monthly installments of $4.2 million, therefore ensuring that Detroit could restructure its debt and continue steadily to collect casino revenue.

Crown Resorts Ready to Bid for Cosmopolitan Casino in Las Vegas

The Cosmopolitan has lost nearly $300 million since opening, but remains considered one of the most valuable properties on the Las Vegas Strip. (Image: Wikimedia Commons)

Australian casino mogul James Packer failed once in the American gaming market, but that’s not stopping him from giving the US a 2nd try. According to reports out of Australia, Crown Resorts the gaming company owned by Packer is preparing to enter into the fight to take the Cosmopolitan over of nevada.

Crown is likely to be one of several companies that will take a good look at purchasing the sprawling casino resort on the Strip. With almost 3,000 rooms in hotels, it would give any owner a major stake in America’s biggest gambling hub. Currently, The Cosmopolitan is owned by Deutsche Bank.

Packer Dreaming About 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 his firm.

Around the time of the 2008 crisis that is financial Crown purchased about $2 billion worth of properties within the United States, including stakes into the never-built Fontainebleau Resort and in Station Casinos. Those investments cost the company vast sums of dollars, causing Packer to shy away from the United States in more current techniques to expand his company’s global reach.

Nonetheless it now seems that Packer feels Crown is in a position that is financial will enable the firm to grow through the entire globe. Already, Crown has guaranteed 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 on the line for a casino to be built in Sri Lanka, and Melco Crown (a venture that is joint Crown is greatly invested in) will be developing gambling enterprises in Macau as well as the Philippines.

Then there’s the prospective investment in Japan, that is more likely to legalize casinos in front of the 2020 Summer Olympics in Tokyo. Packer has stated he be granted a license for a casino in Japan, perhaps the world’s last great untapped casino market that he would be willing to invest as much as $5 billion in a casino there should.

That’s a lot of outlay, while The Cosmopolitan would be a purchase that is pricey well. The casino resort is anticipated to fetch a price of just as much as $2 billion once the sale is made.

Cosmopolitan Off to Slow Start

But whilst The Cosmopolitan is a property that is highly valuable will attract a good amount of interest from investors, it’sn’t been a particularly effective one in its short history.

Issues for the casino began also before it launched. In January 2008, owner Ian Bruce Eichner defaulted for a loan, causing Deutsche Bank to possess the property. That left the bank in the position that is odd of and operating a casino not something they had prepared on.

But Deutsche Bank did complete the place, ultimately investing about $4 billion to accomplish the hotel and casino, making the Cosmopolitan the most casinos that are expensive Las Vegas. The complex features 100,000 square feet of video gaming room, along with extensive retail and space that is restaurant.

Since starting by the end of 2010, The Cosmopolitan has attracted a lot of visitors having its upscale-yet-hip branding campaign. However, gaming profits have still been weaker than anticipated, and the property lost $298.3 million in its first 3 years of operation.

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