Report: Board’s a bad bet
Predicts commission will run up nearly $20M deficit
By Dave WedgeSaturday, December 1, 2012
Taxpayers could be walloped for up to $20 million a year to keep the state gaming board running by the time Massachusetts’ first casino opens for business, as slowpoke bureaucrats drag out the selection process and burn through their publicly funded startup money, a new report shows.
“Red tape and a culture of delay is killing our state and hurting [LOW WAGE] job creation,” fumed state Rep. Daniel B. Winslow, a Norfolk Republican. “We’ve got a lot riding on this.”
The Massachusetts Gaming Commission could be running at a $1.1 million deficit by next fiscal year, $12 million by 2015, and an eye-popping $19.8 million by 2016, as the board is not expected to even issue a casino license until 2014, according to a report by Spectrum Gaming, a state-hired consultant. Spectrum officials recommend in the report that the gaming panel go back to the Legislature for more funding to cover costs until casinos are “operating” — which may not be until 2016.
Casino expert Richard McGowan, a Boston College professor, blasted the commission for delays in the licensing process, as well as the board’s spending — including an October junket to Asia by MGC Chairman Stephen Crosby and another commissioner.
“There’s no reason why they can’t issue a license by the end of 2013,” McGowan said. “I don’t understand why it’s taking so long.”
MGC spokeswoman Elaine Driscoll downplayed the consultant’s report, saying the board expects to begin hauling in casino licensing fees of $85 million-plus by early 2014.
“The (report) simply presents a number of variables for the commission to consider,” Driscoll said.
“The commission fully anticipates to be generating fees from gaming applicants, which will provide the funding for commission operations. We remain on track to issue licenses by February 2014 with an effort toward condensing the process where possible.”
The Herald reported this week that New Hampshire lawmakers are aiming to approve a casino next year at Rockingham Park in Salem — and have it open before a shovel is even put in the ground in Massachusetts. Critics said a casino just over the state line could siphon off up to 40 percent of the Boston market and could drastically slash how much cash the Bay State gets from gaming. [How much Massachusetts $$$ is being siphoned because of the sales tax? How much revenue is lost to other states because travelers depart from other states?]
“They started after us and they’re going to finish before us,” Winslow said. “This is a cultural thing in Massachusetts government. And it’s the same story that any private sector developer will tell you is the way business has been done in Massachusetts for decades. The only difference is this is a high-profile public project.”
There is no indication that Rep. Dan Winslow has ever created a job or worked in the private sector: Rep. Dan Winslow
News of the potential taxpayer hit comes as out-of-state casino bigwigs shake up the local landscape.
In Springfield, Ameristar pulled out of plans for a nearly $1 billion casino, citing a murky local approval process.
In Holyoke, Paper City Development has paid a $25,000 initial fee to the city as it launches plans for a casino at a golf course. And in Everett, Las Vegas tycoon Steve Wynn has asked to meet with the state gaming board to discuss the licensing process. Wynn is bidding to build a casino off Route 99 that would challenge Suffolk Downs in East Boston.
http://www.bostonherald.com/news/politics/view.bg?articleid=1061178586&srvc=home&position=emailed
“Red tape and a culture of delay is killing our state and hurting [LOW WAGE] job creation,” fumed state Rep. Daniel B. Winslow, a Norfolk Republican. “We’ve got a lot riding on this.”
The Massachusetts Gaming Commission could be running at a $1.1 million deficit by next fiscal year, $12 million by 2015, and an eye-popping $19.8 million by 2016, as the board is not expected to even issue a casino license until 2014, according to a report by Spectrum Gaming, a state-hired consultant. Spectrum officials recommend in the report that the gaming panel go back to the Legislature for more funding to cover costs until casinos are “operating” — which may not be until 2016.
Casino expert Richard McGowan, a Boston College professor, blasted the commission for delays in the licensing process, as well as the board’s spending — including an October junket to Asia by MGC Chairman Stephen Crosby and another commissioner.
“There’s no reason why they can’t issue a license by the end of 2013,” McGowan said. “I don’t understand why it’s taking so long.”
MGC spokeswoman Elaine Driscoll downplayed the consultant’s report, saying the board expects to begin hauling in casino licensing fees of $85 million-plus by early 2014.
“The (report) simply presents a number of variables for the commission to consider,” Driscoll said.
“The commission fully anticipates to be generating fees from gaming applicants, which will provide the funding for commission operations. We remain on track to issue licenses by February 2014 with an effort toward condensing the process where possible.”
The Herald reported this week that New Hampshire lawmakers are aiming to approve a casino next year at Rockingham Park in Salem — and have it open before a shovel is even put in the ground in Massachusetts. Critics said a casino just over the state line could siphon off up to 40 percent of the Boston market and could drastically slash how much cash the Bay State gets from gaming. [How much Massachusetts $$$ is being siphoned because of the sales tax? How much revenue is lost to other states because travelers depart from other states?]
“They started after us and they’re going to finish before us,” Winslow said. “This is a cultural thing in Massachusetts government. And it’s the same story that any private sector developer will tell you is the way business has been done in Massachusetts for decades. The only difference is this is a high-profile public project.”
There is no indication that Rep. Dan Winslow has ever created a job or worked in the private sector: Rep. Dan Winslow
News of the potential taxpayer hit comes as out-of-state casino bigwigs shake up the local landscape.
In Springfield, Ameristar pulled out of plans for a nearly $1 billion casino, citing a murky local approval process.
In Holyoke, Paper City Development has paid a $25,000 initial fee to the city as it launches plans for a casino at a golf course. And in Everett, Las Vegas tycoon Steve Wynn has asked to meet with the state gaming board to discuss the licensing process. Wynn is bidding to build a casino off Route 99 that would challenge Suffolk Downs in East Boston.
http://www.bostonherald.com/news/politics/view.bg?articleid=1061178586&srvc=home&position=emailed
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