Mashpee tribe loses exclusive casino rights
PALMER — The Massachusetts Gaming Commission voted unanimously Thursday to open Southeastern Massachusetts to commercial bids, ending the Mashpee Wampanoag Tribe's exclusive hold on the region and creating yet another hurdle for the tribe to overcome in its pursuit of a tribal casino.
After taking two weeks to hear more public comments, commissioners concluded the tribe's proposal for a $500 million Indian casino in Taunton was too unpredictable.
Commissioners said the tribe could continue with its federal review process, noting that if it got approvals in the timeline predicted, it would be in the game before a commercial license could be awarded at the end of 2014.
"It seems to me that amongst these undesirable options, the tribe has the least to lose of all the invested parties by us going forward the way we're going forward," commission Chairman Stephen Crosby said. "The tribe has the opportunity to win. If the tribe does what the tribe says it is able to do, it has by far the best chance at getting what it wants."
Before the commission began its deliberations, tribal council Chairman Cedric Cromwell made one last plea for commissioners to keep Southeastern Massachusetts, known as Region C in the law that authorized casinos, closed to competition. He said a vote to open the region would pave the way for four casinos and the state to get no revenue from the tribe.
The tribe has negotiated a compact with Gov. Deval Patrick that would pay the state on a sliding scale from zero to 21 percent, depending on the level of competition in Region C. That compact still needs the approval of the Legislature and the federal Bureau of Indian Affairs.
"I ask you do not interfere with the compact and the process," Cromwell said. "Do not undermine the governor and the Legislature. Do not interfere with our federal rights. Do not pave the way for four casinos. Do not put at risk hundreds of millions of dollars and thousands of jobs."
More than a dozen tribe members made the 130-mile trek by bus to Pathfinder Regional Vocational Technical High School in Palmer to witness the vote. There was little emotion among tribe members as the vote was taken.
After the meeting, Cromwell called the decision "misguided." He said the commission ignored a consultant's report that urged the state to factor in a tribal casino and failed to fully understand the federal process. "Everything they said today made no sense," he said.
The tribe's attorney, Howard Cooper, declined to comment on whether the tribe would take legal action in an attempt to preserve its exclusivity. Cooper has said repeatedly that the commission lacks legal authority to open the region to commercial bids.
At issue is whether the tribe is eligible to have land taken into trust, a federal requirement for an Indian casino. The Bureau of Indian Affairs is reviewing the tribe's application and has promised a decision on a key legal issue in "early 2013," but commissioners ultimately concluded that the federal process had too many variables to keep Region C closed.
The decision comes after a media blitz by the tribe against the commission and goes against the opinion of Patrick, who recently renegotiated a compact with the tribe. Patrick has said on multiple occasions during the past two weeks that he thinks the commission should at least give the compact time to be acted on by the Legislature and the BIA.
Commissioner Bruce Stebbins appeared to be leaning that way initially, but ultimately voted with the other four commissioners.
"Today's vote by the Massachusetts Gaming Commission does not change the process for the Mashpee Wampanoag Tribe, or our cooperative effort to create new economic development and job creation opportunities in the region," Jason Lefferts, a spokesman for the state Executive Office of Housing and Economic Development, said. "We encourage the Legislature to quickly ratify the compact so we can keep this process moving forward."
The commission received hundreds of comments, the majority of them urging commissioners to give the tribe more time. One that stood out was a letter from an MGM Resorts International executive who said he believed opening the region could "significantly alter" the gaming market in other regions of the state, especially if four casinos were ultimately up and running. MGM has proposed a resort casino in Springfield.
KG Urban Enterprises, a developer that hopes to build a commercial casino in New Bedford and has sued the state over the tribe's exclusivity, also was represented at Thursday's meeting. A lawyer for the company had no immediate comment on whether KG Urban would file an application based on the scenario outlined by commissioners.
"The vote just happened; I need to consult with my client," attorney Kevin Considine said.
It's possible a commercial developer such as KG Urban could pay the nonrefundable $400,000 application fee and ultimately have the commission determine that a tribal casino posed too much of a threat to make a commercial project viable.
Commissioners pointed out that there is no guarantee they will issue licenses in other regions of the state, so developers there are taking the same risk.
"We appreciate the effort and the commitment that the commissioners put into getting this right, and that the Southeast region will have the same opportunity as the rest of the commonwealth," Andrew Stern, managing director of KG Urban, said in a statement released after the vote. "The economics of the proposal KG will put before the commission, and the quality and upside for the city of New Bedford of the proposal itself, will demonstrate to the commissioners that they made the right decision today for the commonwealth."
The decision also was praised by New Bedford legislators, who have been pushing for the commission to act. "This decision finally puts Southeastern Massachusetts on an equal footing with the rest of the state as the commission considers gaming development," state Rep. Antonio Cabral, D-New Bedford, said.
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