Casino companies in Western Massachusetts improve their odds with donations to charities
By on December 08, 2012
Developers of proposed casinos in Western Massachusetts are donating thousands of dollars to charities and sponsoring community events in moves that could improve their public images and influence people ahead of votes expected on their projects next year.
The donations serve a dual purpose: they help charities and activities and they also further the interests of the casino companies themselves.
William Hornbuckle is president and chief marketing officer for MGM International.
Penn National Gaming, which is planning a casino in the North End of Springfield's downtown, and its local casino investor, Peter A. Picknelly, last week gave $25,000 to a nonprofit child care organization that lost a building in the Nov. 23 gas explosion. Penn National previously donated $2,500 to distribute Thanksgiving turkeys to 150 needy families in the North End.
MGM Resorts International, which is planning a casino in the downtown's south end, has donated $15,000 to the Springfield July 4 event, $25,000 to the annual Christmas lights display for drivers in Forest Park, and $50,000 to the South End Community Center.
MGM, based in Las Vegas, is also sponsoring the Springfield Falcons, the minor league hockey team, and the Springfield Armor, a team in the NBA Development League. At the MassMutual Center, MGM Springfield logos are at center ice and elsewhere in the arena for Falcon games and on the uniforms and the home court of the basketball team.
Eric Schippers
The Mohegan Sun, which is planning a casino in Palmer and is competing with MGM and Penn National for the single Western Massachusetts casino license, also listed a number of community and regional events and non profits it is supporting in the area.
The Rev. Richard McGowan, an adjunct associate professor at Boston College and author of books on gambling, said Western Massachusetts is currently the only region in the state with competition for a casino and the donations appear to be ways to curry favor with voters. McGowan said the contributions could be considered a side benefit of casinos.
"Clearly, they are trying to win the favor of the Springfield public," McGowan said.
"It's pretty evident what they are trying to do."
Casino companies would need the support of voters in their communities as part of their applications for a state license for a resort.
William J. Hornbuckle IV, president and chief marketing officer for MGM and president of MGM Springfield, said philanthropy of course serves the company well, but it also shows what Springfield can expect from the company if MGM wins the casino license.
"It's what we do and who we are," Hornbuckle said. "It's about demonstrating who we are as good community citizens and specifically as people."
Mitchell Etess
Hornbuckle said he doesn't agree with the notion that MGM is contributing to charities to affect a vote on the casino. He said MGM chooses its donations to charities carefully and has decided not to contribute to dozens of organizations.
Employees of MGM last year, for example, donated $4.6 million to charities and causes in the communities where they live, the company said.
D. Eric Schippers, a senior vice president for Wyomissing-Pa.-based Penn National, said the charitable contributions have nothing to do with the company's bid for a casino in Springfield.
"This is independent of the competition for a license in Springfield," Schippers said. "This is completely separate."
Schippers said the company's contribution to the private, nonprofit Square One child care organization was not part of an effort to improve the company's image. When the company comes into a community, it wants to give back and be part of the community, he said.
"This was not about public relations," he said. "This was about supporting those in need in the community."
Sharianne Walker, a professor in the College of Business at Western New England University in Springfield, said the charitable contributions and sponsorships of the casino companies represent a typical practice of businesses that are seeking to enter a marketplace and favorably influence public perception.
The tactic generates good will in a community and allows the companies to get to know the communities better, Walker said.
"It definitely is a good business practice," said Walker, who teaches a course on the resort, gaming and hospitality industry.
Walker said it's questionable if the donations by casino companies can ultimately sway public opinion ahead of a vote on a casino. She said people are not naive and not easily swayed by capital infusions.
Springfield Mayor Domenic J. Sarno is leading an effort to select and negotiate a host community agreement with one or two of the companies. Any agreement would have to be approved by voters in a referendum that seems likely to be held in November of next year.
Sarno said that charitable contributions made by the casino companies have "no impact" on his decision to choose a project for the city.
“None whatsoever,” Sarno said. “All these world class operations have a philanthropic arm and donate to good causes and non profits."
"The bottom line is what is the best deal and the most viable location for residents, taxpayers and the business community, period,” Sarno said.
Springfield City Council President James J. Ferrera III, said he greatly appreciates corporate sponsorships and generosity, but they will have no bearing on the city's selection process for a casino.
The donations should not be perceived as having any effect on the process, he said.
"It's not going to influence my vote," Ferrera said. "I am going to look at each proposal with a clear and open mind and select what is best for the city of Springfield."
The Mohegan Sun is a multi-year sponsor of events including Palmer's historic Nostalgia Day, the Eastern States Exposition in West Springfield, the St. Patrick's Day Parade in Holyoke, the air show at Westover Air Reserve Base in Chicopee and the Caribbean Festival in Springfield. The casino company also supports a variety of area nonprofit agencies and schools and has longstanding relationships with institutions such as the Naismith Memorial Basketball Hall of Fame.
“From day one in Palmer, nearly five years ago, it’s been our practice to make good corporate citizenship a top priority, which has always been a fundamental principle of how Mohegan Sun operates," stated Mitchell G. Detests , chief executive officer of the Connecticut-based Mohegan Tribal Gaming Authority, which is planning a casino on 152 acres off Exit 8 of the Massachusetts Turnpike to complement its casino near Uncasville, Conn.
"For us, this has meant expanding upon our already established relationships in the region and further becoming a part of the Western Mass community through sponsorships of events and participating in charitable endeavors."
Paul E. Burns, a town councilor in Palmer and supporter of a casino for the town, said it's critical for casino companies like the Mohegan Sun to show how they can benefit the entire community and region, not just their site.
Morgan's charitable contributions have not risen to the level's of MGM, Burns said. To some degree, Mohegan Sun needs to play catch up, he said.
In Holyoke, Mayor Alex Morse said developers of proposed casinos have not begun making donations to the city.
Morse announced that he has starting talking with the owner of a former amusement park on Mount Tom about developing a casino. Paper City Development is also seeking to revive its plan for a casino at the Scoff Country Club in Holyoke.
"We haven't yet decided if we will negotiate a host agreement," Morse said in an e-mail. "Donations to community organizations will not play a role in my decision making process."
Michael T. Kogut, a leader of Citizens Against Casino Gaming, a political action committee he created to oppose proposals for a casino in Springfield, said casino companies are attempting to create "good, solid, family-like" images with their donations and sponsorships.
"It creates this perception that the casino owner and casino operator are community-oriented, community-spirited and will be a partner with the city," Kogut said. "At the end of the day, they are coming into town to take money out of people's pockets.'
Kogut said the companies are seeking to influence city government, decisionmakers and voters.
"Whether it's good business or bad business, it's not good for the city, because a casino is not good for the city," Kogut said.
Staff writers Peter Goonan and Mike Plaisance contributed to this report.
The donations serve a dual purpose: they help charities and activities and they also further the interests of the casino companies themselves.
William Hornbuckle is president and chief marketing officer for MGM International. MGM Resorts International, which is planning a casino in the downtown's south end, has donated $15,000 to the Springfield July 4 event, $25,000 to the annual Christmas lights display for drivers in Forest Park, and $50,000 to the South End Community Center.
MGM, based in Las Vegas, is also sponsoring the Springfield Falcons, the minor league hockey team, and the Springfield Armor, a team in the NBA Development League. At the MassMutual Center, MGM Springfield logos are at center ice and elsewhere in the arena for Falcon games and on the uniforms and the home court of the basketball team.
Eric Schippers The Rev. Richard McGowan, an adjunct associate professor at Boston College and author of books on gambling, said Western Massachusetts is currently the only region in the state with competition for a casino and the donations appear to be ways to curry favor with voters. McGowan said the contributions could be considered a side benefit of casinos.
"Clearly, they are trying to win the favor of the Springfield public," McGowan said.
"It's pretty evident what they are trying to do."
Casino companies would need the support of voters in their communities as part of their applications for a state license for a resort.
William J. Hornbuckle IV, president and chief marketing officer for MGM and president of MGM Springfield, said philanthropy of course serves the company well, but it also shows what Springfield can expect from the company if MGM wins the casino license.
"It's what we do and who we are," Hornbuckle said. "It's about demonstrating who we are as good community citizens and specifically as people."
Mitchell Etess Employees of MGM last year, for example, donated $4.6 million to charities and causes in the communities where they live, the company said.
D. Eric Schippers, a senior vice president for Wyomissing-Pa.-based Penn National, said the charitable contributions have nothing to do with the company's bid for a casino in Springfield.
"This is independent of the competition for a license in Springfield," Schippers said. "This is completely separate."
Schippers said the company's contribution to the private, nonprofit Square One child care organization was not part of an effort to improve the company's image. When the company comes into a community, it wants to give back and be part of the community, he said.
"This was not about public relations," he said. "This was about supporting those in need in the community."
Sharianne Walker, a professor in the College of Business at Western New England University in Springfield, said the charitable contributions and sponsorships of the casino companies represent a typical practice of businesses that are seeking to enter a marketplace and favorably influence public perception.
The tactic generates good will in a community and allows the companies to get to know the communities better, Walker said.
"It definitely is a good business practice," said Walker, who teaches a course on the resort, gaming and hospitality industry.
Walker said it's questionable if the donations by casino companies can ultimately sway public opinion ahead of a vote on a casino. She said people are not naive and not easily swayed by capital infusions.
Springfield Mayor Domenic J. Sarno is leading an effort to select and negotiate a host community agreement with one or two of the companies. Any agreement would have to be approved by voters in a referendum that seems likely to be held in November of next year.
Sarno said that charitable contributions made by the casino companies have "no impact" on his decision to choose a project for the city.
“None whatsoever,” Sarno said. “All these world class operations have a philanthropic arm and donate to good causes and non profits."
"The bottom line is what is the best deal and the most viable location for residents, taxpayers and the business community, period,” Sarno said.
Springfield City Council President James J. Ferrera III, said he greatly appreciates corporate sponsorships and generosity, but they will have no bearing on the city's selection process for a casino.
The donations should not be perceived as having any effect on the process, he said.
"It's not going to influence my vote," Ferrera said. "I am going to look at each proposal with a clear and open mind and select what is best for the city of Springfield."
The Mohegan Sun is a multi-year sponsor of events including Palmer's historic Nostalgia Day, the Eastern States Exposition in West Springfield, the St. Patrick's Day Parade in Holyoke, the air show at Westover Air Reserve Base in Chicopee and the Caribbean Festival in Springfield. The casino company also supports a variety of area nonprofit agencies and schools and has longstanding relationships with institutions such as the Naismith Memorial Basketball Hall of Fame.
“From day one in Palmer, nearly five years ago, it’s been our practice to make good corporate citizenship a top priority, which has always been a fundamental principle of how Mohegan Sun operates," stated Mitchell G. Detests , chief executive officer of the Connecticut-based Mohegan Tribal Gaming Authority, which is planning a casino on 152 acres off Exit 8 of the Massachusetts Turnpike to complement its casino near Uncasville, Conn.
"For us, this has meant expanding upon our already established relationships in the region and further becoming a part of the Western Mass community through sponsorships of events and participating in charitable endeavors."
Paul E. Burns, a town councilor in Palmer and supporter of a casino for the town, said it's critical for casino companies like the Mohegan Sun to show how they can benefit the entire community and region, not just their site.
Morgan's charitable contributions have not risen to the level's of MGM, Burns said. To some degree, Mohegan Sun needs to play catch up, he said.
In Holyoke, Mayor Alex Morse said developers of proposed casinos have not begun making donations to the city.
Morse announced that he has starting talking with the owner of a former amusement park on Mount Tom about developing a casino. Paper City Development is also seeking to revive its plan for a casino at the Scoff Country Club in Holyoke.
"We haven't yet decided if we will negotiate a host agreement," Morse said in an e-mail. "Donations to community organizations will not play a role in my decision making process."
Michael T. Kogut, a leader of Citizens Against Casino Gaming, a political action committee he created to oppose proposals for a casino in Springfield, said casino companies are attempting to create "good, solid, family-like" images with their donations and sponsorships.
"It creates this perception that the casino owner and casino operator are community-oriented, community-spirited and will be a partner with the city," Kogut said. "At the end of the day, they are coming into town to take money out of people's pockets.'
Kogut said the companies are seeking to influence city government, decisionmakers and voters.
"Whether it's good business or bad business, it's not good for the city, because a casino is not good for the city," Kogut said.
Staff writers Peter Goonan and Mike Plaisance contributed to this report.
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