After the New Hampshire Senate passed earlier this week a bill that would legalize the construction of up to two casinos, it can be said that the war for precious casino clientele will probably intensify even more in New England.
Located in the US Northeast, the New England region is comprised of six states – Vermont, New Hampshire, Massachusetts, Connecticut, Maine, and Rhode Island – and is home to more than 14.7 million people.
Among many other things, the past several years have been marked by the efforts of most of the above-mentioned states to expand or legalize commercial casino gambling within their borders. It can be said that Massachusetts led the way after residents said ‘yes’ to the construction of up to three full-scale casinos and a slot parlor in 2014.
The slot parlor is already operational in Plainville, Massachusetts, and two casino complexes are under development in Springfield and Everett. Casino developers and operators Wynn Resorts and MGM Resorts International are bringing the integrated resorts model to the state and the New England region, as a whole. And their projects – one valued at more than $2 billion, the other at almost $1 billion – have evoked fears among neighboring states that they would lose casino patrons, once the properties open doors.
MGM Springfield, the $950-million Springfield complex, is slated for September 2018 opening. And after multiple construction delays, Wynn Boston Harbor is finally on schedule for 2019 launch. The announcements about the two projects unlocked an arms race in the region that, as it seems, will only heat up as their opening approaches.
Shortly after news had spread about Massachusetts’ plans for two Las Vegas-style resorts, neighboring Connecticut, which has two tribal casinos in operation, voiced concerns that MGM Springfield, in particular, would steal customers and would hurt considerably its own gambling venues.
Connecticut’s two federally recognized tribes – the Mohegans and the Mashantucket Pequots, became the main driving force behind the effort for an amendment in the state Constitution that would allow a third casino on its territory, however, one that would be off reservation land.
The proposed amendment was eventually approved. And the two tribes, which are to jointly operate that third casino, recently revealed first renderings of how the venue would look when and if built in the small town of East Windsor. The property will aim to compete directly with MGM Springfield, which will be located not far from the proposed site for the Connecticut casino.
The proposed location still needs green light from lawmakers. And Connecticut legislators have been in doubt whether the state will be able to sustain and benefit from a third casino or it would have the exact opposite effect.
MGM Resorts has been criticizing heavily the bidding process for Connecticut’s third casino, arguing that it was unfairly deprived of the chance to apply for a license and potentially develop the property. Thus, the battle between the major casino operator, the state’s two tribes, and state lawmakers may result in either the casino not being built at all, or in it being built and launched after MGM Springfield.
The Mohegan and the Mashantucket Pequot Tribes’ original idea was to be able to complete the property before its competitor.
Rhode Island has, too, entered the New England battle for casino clientele. The state has two operational casinos – Twin River in Lincoln and Newport Grand Casino in Newport. It has been proposed that gambling options at the latter are transferred to a new Tiverton casino. However, the project is in danger of not being completed, after facing staunch opposition from local environmentalists and other discontent groups. Although the venue has been promised to bring millions of dollars in tax revenue and other benefits, opponents have argued that Tiverton and the surrounding area will lose more than benefit. A hearing on the casino proposal will be held early next week.
As mentioned above, New Hampshire is also looking for a piece of the New England gambling pie. The state Senate passed last week SB 242 that calls for the construction of an $80-million Category 1 casino and a $40-million Category 2 property. The effort will now go to the House. A similar proposal had previously reached the state Legislature’s lower house, but had been rejected.
Proponents are hopeful that with the growing casino expansion in neighboring states and the possibility of casinos generating much-needed revenue for the state’s coffers, the House will take a softer stance on the measure.
Maine may also see a new casino open doors in near future. The state already has two gambling venues – one in Oxford and the other in Bangor. A third casino in York County is promoted as one that will boost Maine’s revenue. However, lawmakers have not been very happy with the new gambling expansion push, so it is not clear whether it will gain enough momentum.
The proposal will likely be voted in a November referendum, as it had gathered the necessary signatures from supporters. Bridge Capital, the company behind the proposed project, has Shawn Scott as one of its majors. Mr. Scott participated in the bid for the state’s first casino. That first casino license was issued in 2003 after a ballot question was passed.
It seems now and for now that Massachusetts and Connecticut will be the primary competitors for precious casino patrons in New England. However, if the other states join the competition, it will certainly become more fierce than ever. And it is quite doubtful whether a not-so-large region will be able to support expanded gambling industry and will be able to draw enough clientele for all of its casinos.
Here it is also important to note that New England’s existing and future casinos also have to compete with neighboring New York, which has recently seen three commercial properties with Las Vegas-style gambling options open doors Upstate. The outside competition may actually turn into a bigger stumbling block for the region’s gambling industry. It is now all up to lawmakers to find the right balance and the most reasonable solutions to the saturation problem, for saturation will likely be a problem.
Follow us on Facebook and Twitter to keep up with the latest news from the global gambling industry.
