MGM Resorts has been awarded the first casino license ever issued by the state of Massachusetts. In a unanimous vote, the Massachusetts Gaming Commission (MGC) opted to award MGM the lone casino license it plans to issue for the western portion of the state. MGM’s $800m project in Springfield was the sole applicant left in pursuit of the license, making Friday’s announcement more than a little anti-climactic.
There had been some drama in April, when MGM asked the MGC to delay issuing the license until after the state Supreme Judicial Court had ruled on an appeal by activists seeking to repeal the state’s 2011 casino legislation. The group is trying to get a casino referendum on this November’s electoral ballot, but a ruling isn’t expected until early July. Upon official receipt of its casino license, MGM is required to pay around $200m in fees and deposits — $85m of which is nonrefundable – and repeal of the law would leave the company with nothing to show for its troubles.
On Friday, the MGC okayed MGM to delay making the $85m payment until the Court announces its ruling. If the Court says ‘no dice’ to the activists, MGM would be required to pay the $85m within a couple weeks. Should the Court rule in favor of the activists, MGM would be on the hook for the $85m only if the referendum fails in November. Only then would the MGC formally issue MGM its casino license.
MGM’s gain comes hot on the heels of a new Suffolk University poll showing more state residents now oppose the introduction of Vegas-style casinos than support them. The poll, conducted in the last week of May, found 47% of voters opposed casinos compared to 37% who supported them. A similar Suffolk poll in February found 51% in favor with 37% opposed. The slump in support may well have to do with the contentious infighting that has accompanied the state’s casino plans, including allegations of interference by MGC chairman Stephen Crosby to favor a Boston-area casino bid by Wynn Resorts over one by Caesars Entertainment.
