Massachusetts Gaming Commission unveils regulations to guide licensing of casinos
Members of the Massachusetts Gaming Commission are shown at Western New England University in Springfield last year for an (Photo by Michael S. Gordon / The Republican [file])
By on March 25, 2013
BOSTON — The Massachusetts Gaming Commission on Monday unveiled draft regulations for the licensing process for proposed specific casino sites, along with detailed standards for evaluating applications for the gambling projects.
The state's 2011 casino law left scores of important details to be decided by gaming regulators, including the election process for ballot questions on casinos, contents of applications, when the licensing fees need to be submitted and the costs that need to be included when calculating the minimum $500 million investment for a casino resort.
Stephen P. Crosby, chairman of the commission, said the draft regulations for licensing casinos resorts are scheduled to be finalized on June 6, after public hearings, time for comment and review by municipal officials.
"This process gives everybody an opportunity to see what we are thinking about way in advance," Crosby said after the meeting.
On an election process, for example, the draft regulations state that Springfield must hold ballot questions on the same day for both of the city's estimated $800 million casino proposals – MGM
Resorts in the South End of the city and Penn National Gaming in the North End – if the mayor decides to send both proposals to the ballot.
A separate ballot question would be needed for each proposal, the draft regulations said. A voter can check "yes" for both questions, "no" on both questions or "yes" on one and "no" on the other, the regulations said.
The casino companies or company would need to reimburse a host community for the cost of the election. The dates of the elections, including three in Western Massachusetts, are currently unclear, because they depend on when the commission completes background checks on casino applicants.
Mayor Domenic J. Sarno is negotiating agreements, including impact fees and traffic mitigation, with both casino companies, but has not decided yet if just one or both will be on the ballot for city voters.
A casino proposal needs approval of voters in a host community as part of the state application process.
According to the draft regulations, casino developers, when calculating costs to meet the minimum $500 million capital investment, cannot include items such as legal fees, infrastructure improvements outside the property boundaries of a casino site and the costs of purchasing land.
The regulations include 57 items that will be included in applications for specific casino proposals including whether the applicant has a contract with labor unions, whether it has the support of unions and details on pay rates and benefits for employees and contractors.
During a nearly four-hour meeting in Boston, the five members of the commission reviewed the 53 pages of regulations and 11 pages of evaluation criteria almost line by line and agreed to vote on them during a meeting on Thursday.
Crosby said the evaluation standards for casinos will be included in applications that will be provided to casino operators when "site specific" bidding begins this year.
The state's casino law authorizes up to three casino resorts in separate geographic regions including one for Western Massachusetts. The law also allows one slots facility that can be anywhere in the state.
The commission is involved in a two-phase bidding process for casinos starting with background checks into the ethics and finances of casino applicants. It approved the regulations for the first phase last year and then put out requests for proposals for that first phase.
The Mashpee Wampanoag tribe has exclusive rights for a casino in southeastern Massachusetts, but the gaming commission must consider bids for a commercial casino in the region if the panel decides the U.S. Department of the Interior will not approve land in trust for a tribal casino.
In Western Massachusetts, two other casino companies are competing with MGM and Penn National for the region's lone license.
The Mohegan Sun is proposing a casino on 152 acres near Exit 8 of the Massachusetts Turnpike in Palmer.
Hard Rock International is proposing a $700 million to $800 million casino resort in West Springfield on the grounds of the Eastern States Exposition, which holds a yearly 17-day Big E fair.
Eleven companies, including those in Palmer, Springfield and West Springfield, each paid a $400,000 nonrefundable application fee by a Jan. 15 deadline for the initial phase involving background checks. Seven companies are proposing casino resorts and four are proposing a slots facility.
Companies that pass background checks would then need to file applications for specific sites, maybe as early as June. The regulations for applying for specific sites were released on Monday.
No community can finalize an agreement with a casino company until the commission has determined that the company has passed the background investigation.
The commission plans to award the license for the slots facility sometime between September and December.
The commission is aiming to award the first resort casino license by February 2014.
Crosby said the evaluation standards are "a heads-up" for casino applicants. "We want them to know that as soon as possible so they have the opportunity to conform to our criteria and standards," he said.
http://www.masslive.com/politics/index.ssf/2013/03/massachusetts_gaming_commissio_13.html
The state's 2011 casino law left scores of important details to be decided by gaming regulators, including the election process for ballot questions on casinos, contents of applications, when the licensing fees need to be submitted and the costs that need to be included when calculating the minimum $500 million investment for a casino resort.
Stephen P. Crosby, chairman of the commission, said the draft regulations for licensing casinos resorts are scheduled to be finalized on June 6, after public hearings, time for comment and review by municipal officials.
"This process gives everybody an opportunity to see what we are thinking about way in advance," Crosby said after the meeting.
On an election process, for example, the draft regulations state that Springfield must hold ballot questions on the same day for both of the city's estimated $800 million casino proposals – MGM
Resorts in the South End of the city and Penn National Gaming in the North End – if the mayor decides to send both proposals to the ballot.
A separate ballot question would be needed for each proposal, the draft regulations said. A voter can check "yes" for both questions, "no" on both questions or "yes" on one and "no" on the other, the regulations said.
The casino companies or company would need to reimburse a host community for the cost of the election. The dates of the elections, including three in Western Massachusetts, are currently unclear, because they depend on when the commission completes background checks on casino applicants.
Mayor Domenic J. Sarno is negotiating agreements, including impact fees and traffic mitigation, with both casino companies, but has not decided yet if just one or both will be on the ballot for city voters.
A casino proposal needs approval of voters in a host community as part of the state application process.
According to the draft regulations, casino developers, when calculating costs to meet the minimum $500 million capital investment, cannot include items such as legal fees, infrastructure improvements outside the property boundaries of a casino site and the costs of purchasing land.
The regulations include 57 items that will be included in applications for specific casino proposals including whether the applicant has a contract with labor unions, whether it has the support of unions and details on pay rates and benefits for employees and contractors.
During a nearly four-hour meeting in Boston, the five members of the commission reviewed the 53 pages of regulations and 11 pages of evaluation criteria almost line by line and agreed to vote on them during a meeting on Thursday.
Crosby said the evaluation standards for casinos will be included in applications that will be provided to casino operators when "site specific" bidding begins this year.
The state's casino law authorizes up to three casino resorts in separate geographic regions including one for Western Massachusetts. The law also allows one slots facility that can be anywhere in the state.
The commission is involved in a two-phase bidding process for casinos starting with background checks into the ethics and finances of casino applicants. It approved the regulations for the first phase last year and then put out requests for proposals for that first phase.
The Mashpee Wampanoag tribe has exclusive rights for a casino in southeastern Massachusetts, but the gaming commission must consider bids for a commercial casino in the region if the panel decides the U.S. Department of the Interior will not approve land in trust for a tribal casino.
In Western Massachusetts, two other casino companies are competing with MGM and Penn National for the region's lone license.
The Mohegan Sun is proposing a casino on 152 acres near Exit 8 of the Massachusetts Turnpike in Palmer.
Hard Rock International is proposing a $700 million to $800 million casino resort in West Springfield on the grounds of the Eastern States Exposition, which holds a yearly 17-day Big E fair.
Eleven companies, including those in Palmer, Springfield and West Springfield, each paid a $400,000 nonrefundable application fee by a Jan. 15 deadline for the initial phase involving background checks. Seven companies are proposing casino resorts and four are proposing a slots facility.
Companies that pass background checks would then need to file applications for specific sites, maybe as early as June. The regulations for applying for specific sites were released on Monday.
No community can finalize an agreement with a casino company until the commission has determined that the company has passed the background investigation.
The commission plans to award the license for the slots facility sometime between September and December.
The commission is aiming to award the first resort casino license by February 2014.
Crosby said the evaluation standards are "a heads-up" for casino applicants. "We want them to know that as soon as possible so they have the opportunity to conform to our criteria and standards," he said.
http://www.masslive.com/politics/index.ssf/2013/03/massachusetts_gaming_commissio_13.html
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