Massachusetts: Developer, state spar over casino law

Developer, state spar over casino law
By Steve Decosta

The new state gaming law illegally restricts competition by giving preference to federally recognized Indian tribes, KG Urban Enterprises maintains in its most recent filing in U.S. District Court.

A hearing on KG's request for a preliminary injunction to halt implementation of the law is set for Jan. 31 in front of Judge Nathaniel M. Gorton.

KG hopes to build a casino on the site of an abandoned power plant on the New Bedford waterfront.

In the Tuesday filing submitted by attorney Alexander Furey, KG states: "Massachusetts' brief is remarkable for what it concedes. It admits that multiple aspects of the act exclude individuals from valuable government opportunities based only on the fact that they are not Indian tribes or tribal members. It also concedes that, while the rest of Massachusetts is open to free competition — where considerations of race play no role, and considerations of economic development will carry the day — the Southeastern region is different. There, no one other than members of federally recognized Indian tribes need apply."

The new law, ceremoniously signed by Patrick last month after years of legislative wrangling, allows up to three casinos in the three distinct areas of the state, plus a slots parlor.

It gives a federally recognized tribe the exclusive rights to negotiate for the Southeastern casino license through July 31.

The state, represented by Assistant Attorney General Kenneth Salinger, had argued in its court filing that KG's claim was "not ripe," in that "it rests upon contingent future events that may not occur as anticipated."

KG responded: "Massachusetts' efforts to dismiss KG's claims as unripe fail. .... No one can deny that KG cannot compete now, or that competition in earnest is beginning in the rest of the state. ... Any suggestion that KG must await every detail as to how Massachusetts plans to discriminate before it can obtain a ruling on the merits is not tenable."

New York-based KG has been laying the groundwork for a casino development at the abandoned Cannon Street power plant for four years, saying it already has invested $4.5 million in the project.