It became clear that the Massachusetts’ gaming authorities are going to discuss the licence of the lone Boston-area casino next week. According to the initial plan, the Massachusetts Gaming Commission had to make a decision which one – Wynn Resorts or Mohegan Sun, will be enabled to use the coveted licence no later than the upcoming Friday.
However, the plan has changed. As reported by the MGG organisation, both sides should be allowed a longer period of time for complying with the Comissions new requirements. The next available sitting is next Monday and the authorities are hoping that the final decision will be made until Wednesday (Sept. 17th).
In order to become a winner, Mohegan Sun will be required to put some additional capital, equal to $100 millions with the aim of reducing the debt load before starting a new venture. Another concern of the MGG authorities is the fact that the gaming taxes in the neighbouring state, Connecticut, are significantly lower, which means that Mohegan Sun can direct the Massachusetts’ high rollers to the Foxwoods casino, located in Connecticut. In order to prevent this, the Massachusetts Gaming Commision will ask for further clarifications and approval of the marketing agreement.
Wynn’s project will also undergone some changes. As a matter of fact, the traffic in the close proximity of the casino is expected to cause issues so this problem is believed to require immediate actions. In addition, Wynn will have to make the following payments: the sum of $1 million will be requested in advance, $2.6 m. is the annual fee and last but not least, Wynn will have to comply to the requirement of buying goods and services from the local Boston traders.
Actually, the amount of money required is approximately the same amount Wynn has offered anyway so it is not expected to be too resentful about it.
A month ago, Martin Walsh, the Boston Mayor, expressed his disappointment with the Wynn’s offer because it was lower than the Mohegan Sun’s promise of $20 m cash payment per year. This, respectively led to revoking Boston’s “community status” title. The decision was made by the MGG organisation.
A couple of days ago, Wynn put forward an offer for a casino in Everett, which was said to beat the Mohegan Sun’s offer. Wynn’s project was believed to boost the economy outside the Boston area. Wynn has one great advantage – according to their estimates, almost a quarter of the casino players will stay on the premises overnight while Mohegan Sun proposed that only 3,3% of the visitors are likely to book a room.
Wynn expects around $75 million of the annual turnover to come from players who do not live in the eastern part. Comparatively, Mohegan Sun expects $40 million coming mainly from Connecticut.
Although the winning side will experience all the positive sides of being a winner of such a prestigious Boston competition, their victory might not last long. The reason is the voting, planned in November. The voters will either approve or disapprove the building of three casinos and a slots hall. According to the latest surveys, the abolition is not going to be successful.
