The Massachusetts Gaming Commission announced that developer Crossroads Massachusetts LLC had pulled out its application for the construction of a casino resort in Somerset. Thus, the competition for a gambling license in the Southeastern Massachusetts region is down to two proposals.
The developer announced its decision to withdraw its application in a letter sent to the state gambling regulator. The letter in question was released by the Massachusetts Gaming Commission at a Thursday meeting. No reason has been cited why Crossroads Massachusetts pulled out its bid. Furthermore, no representatives for the group attended the meeting.
Stephen Crosby, Chairman of the state Gaming Commission, commented that he was not surprised by the developer’s decision. Recently, certain commission members have raised questions about the project’s viability, as changes were implemented in its management team. It also seems that the developer found it difficult to provide the required financing for the project.
With the Somerset application out of competition, the Massachusetts Gaming Commission will have to choose between two casino bids for the third and last license for the provision of gambling services on the territory of the state.
Developer Mass Gaming and Entertainment proposed the construction of a $650-million casino resort on the Brockton Fairgrounds. Earlier this week, a citywide vote was held and residents approved the project narrowly.
New York-based company KG Urban Enterprises has applied for a license for a $650-million Foxwoods resort on the New Bedford Waterfront. During the Thursday meeting, the Massachusetts Gaming Commission decided that the proposal can move forward.
KG Urban Enterprises has been warned by the state gambling regulator to submit all the necessary papers on time. The developer is yet to provide particular financial details and is expected to do so within the next 14 days. However, the Gaming Commission deemed the bid “substantially complete.”
Scott Butera, a former CEO of Foxwoods who currently works together with KG Urban Enterprises, pointed out that they only need to take care of certain “final economic terms.”
Residents of New Bedford will be given the opportunity to vote on the casino project on June 23. The Somerset proposal has never been set a date for a citywide vote.
Mr. Crosby said that the commission would do its best to award the license for the Southeastern Massachusetts region by the end of the year.
Last year, the state gambling regulator decided that it would award three licenses for the construction of casinos across the state. Gambling operators Wynn Resorts and MGM Resorts International have already been granted theirs. The companies are to launch multimillion gambling venues in Everett and Springfield, respectively.
