The Massachusetts Gaming Commission is grappling with another difficult dilemma regarding the future of its relatively young casino gambling industry. The state gaming regulator is burdened with the challenging task to choose between two equally attractive casino projects for Southeastern Massachusetts, a region that needs jobs and economy boost but cannot support two large-scale gambling developments at once.
On the one hand, the federally recognized Mashpee Wampanoag Tribe has long been striving to build a $500-million casino resort in Taunton. And on the other hand, Mass Gaming & Entertainment, an enterprise led by real estate developer and casino magnate Neil Bluhm and local businessman George Carney, is bound to establish a $677-million complex at the Brockton Fairgrounds.
If the latter project is approved by the Massachusetts Gaming Commission, this will, in fact, result in the construction of the state’s third commercial casino, following the completion and launch of MGM Springfield and Wynn Boston Harbor.
To a great extent, the Brockton casino proposal is qualified enough to be granted the necessary license. It has been submitted by an experienced casino developer who has the finances needed for the completion and the operation of the venue. What is more, it is to be constructed not far from an important highway.
However, if MassGaming approves the Brockton project, the Mashpee Wampanoag Tribe will have the right to proceed with the construction of its own casino, without having to ask for permission or contribute a share of its gaming revenue to the state.
Back in 2011, when state lawmakers were crafting Massachusetts’ casino regulations, they signed a deal with tribal officials, under the terms of which the tribe would be given the exclusive right to operate a casino in the region in exchange for a 25% share of the revenue the venue annually generates.
Commenting on the dilemma the state gambling regulator is facing, Chairman Stephen Crosby has said in a statement that the Gaming Commission is well-aware that the 2011 casino law has contemplated the construction of only one full-scale casino in Southeastern Massachusetts. The official further noted that it is their biggest challenge to somehow reconcile the “two competing public policy goals.”
In February, the Brockton casino developers and a group of Taunton landowners filed a lawsuit against the tribal casino project, seeking to block its construction for years ahead. With the Mashpee Wampanoag Tribe being unable to proceed with its plan, the people behind the Brockton proposal stated that it is the best for the state as it would bring much-needed jobs and tax revenue sooner.
The Massachusetts Gaming Commission is expected to announce its decision whether it would license the Brockton casino in April. If the regulator indeed grants the third state license for a full-fledged casino, the Mashpee Wampanoag Tribe will have the right to neglect its agreement with the state and to build its venue in Taunton. Thus, Southeastern Massachusetts may eventually end up with two casino resorts and it is rather doubtful that the region can handle them both.
If, however, the Massachusetts Gaming Commission does not license the Brockton proposal and the tribal project is blocked, Southeastern Massachusetts may not have a casino at all. Thus, the region would be deprived of jobs and tax revenue that it really needs.
