Gaming in NE: Worcester Slots Proposal Heats Up
Tuesday, April 09, 2013
The New England casino market is heating up with a proposal for a slots-only facility in Worcester fully underway, following a heated public forum at the Worcester Hibernian Cultural Center last night.
The 2011 Massachusetts' casino law authorizes up to three "casino resorts" in separate geographic regions including one for Western Massachusetts. The law also allows one slots facility that can be anywhere in the state.
On Monday night, the Worcester City Council Committees on Economic Development and Public Safety held a joint meeting to consider public input on a proposed slots parlor in Worcester -- with vocal opposition heard from neighboring residents and groups.
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLASTWhat's at Stake for Worcester?
Mass Gaming and Entertainment, LLC, the Massachusetts affiliate of Chicago-based Rush Street Gaming, is looking to build a $200 million facility on the Wyman-Gordon property on Madison Street in Worcester. It would include 1,250 slot machines, the maximum allowed by state law.
In addition, Cambridge-based hotel developer Richard L. Friedman of Carpenter and Company has plans to build a full service hotel, with 150 to 200 rooms, to the tune of $40 million.
Together, the two properties project they could add 600 jobs to the Worcester economy, with approximately 450 slated for the casino, and 150 to 250 at the hotel, which Mr. Friedman has indicated would not be next to the casino, but rather downtown.
Twin River on the Record
"We continue to watch with interest the various proposals put forward for Massachusetts, but remain focused on preparing the [Twin River] property and staff for the introduction of table games at Twin River," said Patti Doyle, Twin River Spokesperson.
Doyle continued, "We’re still on track for a July 1st opening for table games – if we can advance that date, we sure will. We’ve hired key managers thus far and are now in the process of hiring dealers. Business has been strong post-election." Twin River recently won approval of state and town-wide referendum to expand operations to table games this past November.
MA Slots Parlors Proposals -- Who's at the Table?
The official application period for the state's sole slots-parlor license closed on January 15, 2013. Applicants who paid the $400,00 application fee with the Massachusetts Gaming Commission are all vying to be the big -- and only -- winner in the slots race.
The victor will be required to invest a minimum of $125 million into the facility and pay a $25 million license fee with the state. The players in the mix include:
- Raynham Park: Owned by George Carney, the former greyhound track site that now operates as a simulcast betting parlor has partnered with the Pennsylvania-based Greenwood Racing in hopes of securing the license. The Mashpee Wampanoag tribe is looking to secure a full-scale casino the next town over in Taunton.
- Plainridge Racecourse: The harness-racing track, which also offers simulcasting, is in contention, with owner and CEO Gary Piontkowski at the reins. LIke Raynham, Plainridge is hoping its existing location and track-record will push it to tops of the list. Plainridge recently held its own first community forum, with coverage detailed in The Sun Chronicle here
- PPE Casino Resorts, MA: The Baltimore-based Cordish Company is behind the Massachusetts-operated PPE entity, which has expressed interest in developing a slots parlor in Danvers. Current speculation is that it could be located at Liberty Tree Mall.
- Mass Gaming and Entertainment, LLC: Officials from the recently formed MA LLC operation, along with members of their parent company, Chicago-based Rush Street Gaming, are hoping to complete a "host community agreement" in Worcester in the near future in order for the City Council to put a vote before the City by the fall.
Rush Street Gaming Looking to Parlay Casino Experience in MA
Headed by CEO Greg Carlin, Rush Street Gaming counts among its team Chicago-based casino and real estate developer Neil G. Bluhm.
According to the Rush Street Gaming website, it was formed in 2009, although its history goes back to 1996. Bluhm and Carlin partnered with Hyatt Gaming, INC. that year to form Falls Management Company, eventually entering into an agreement with the Province of Ontario to manage Casino Niagra and build a new permanent casino in Niagra Falls in 2004.
Bluhm and Carlin formed Rush Street Gaming in 2009, which lists three casinos on its website. They are Rivers Casino in Des Plaines, IL, SugarHouse Casino in Philadelphia, and Rivers Casino in Pittsburgh.
Between October 2008 and July 2011, Rush Street Gaming casinos have added more than 4,000 direct and permanent jobs, and deployed over $1.7 billion in capital, according to the website.
Next Steps for Casinos in Massachusetts
The Massachusetts Gaming Commission, whose stated mission is to "create a fair, transparent, and participatory process for implementing the expanded gaming law," has listed on its website a time frame for the slots parlor selection process.
The Commission has determined that efforts will be made to award a Category 2 (slots only) gaming license prior to the award of Category 1 (resort casino) licenses, and anticipates that will happen by fall of this year.
According to the timeline listed on the website, following the now-closed January 15th date for applications, the Commission will now assess the Request for Application (RFA)-1 Applications, which includes background checks, and will release a Request for Applications-Phase Two (RFA-2) to successfully pre-qualified applicants for a site-specific application by July 2013.
During this time, "Host and Surrounding Community" agreements will have to be executed. By October 2013, host communities will need to have a referendum approved by voters to remain in contention.
The Gaming Commission lists December 2013 as the official "award date" for the license.
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