The Massachusetts Gaming Commission is extending the deadline for commercial casino applicants in Southeastern Massachusetts at least until Sept. 23 partly because the Mashpee Wampanoag Tribe remains a player for an Indian casino.
The deadline for Phase 2 applications in Region C was July 23, which would have required referendum votes in cities where the casinos are proposed by mid-May.
None has been scheduled.
At its meeting April 17, the commission may consider extending the deadline even longer. The commission also will consider a change in the $500 million capital requirement after a potential applicant in the region said it's too high for the congested market.
The tribe's $500 million casino proposal in Taunton was front and center in Thursday's debate. One year ago, the commission opened up the region to commercial casinos, citing the federal hurdles to the tribe's proposal.
The tribe still is awaiting word from the federal Bureau of Indian Affairs on its application to have 155 acres in Taunton and 170 acres in Masphee taken into federal trust.
By extending the deadline, the commission may know the bureau's outcome before issuing a license, Gaming Commission Chairman Stephen Crosby said in support of extending the deadline for commercial casinos.
"Every day that goes by, we're one day closer to it," he said.
Discussing the land-in-trust question, Crosby made a comment that likely sent shock waves through the Southeastern Massachusetts market.
"Maybe what we ought to do is wait until that decision is made," he said. "Until that issue is resolved, I don't think anything's going to change. Time isn't going to help."
Tribe leaders reacted to the commission's deadline extension saying they remain focused on their own project.
"We are well along in our planning and approval processes, and our compact with the commonwealth is approved," Tribal Council Chairman Cedric Cromwell said. "We're very pleased with the support we've received from the Legislature, the governor, the congressional delegation and the Obama administration, and we're making real progress."
Under a compact approved between the tribe and Gov. Deval Patrick, an Indian casino in the region would pay 17 percent of gross gambling revenue to the state. But if a commercial casino is licensed in the same region, the tribe would pay zero, according to the compact.
Earlier in Thursday's meeting, the commission rejected an idea floated by casino mogul Steve Wynn, who is seeking the Boston area license. He suggested the commission seek a change in the state law that sets the tax rate for commercial casinos at 25 percent and ask to have it match what the tribe would pay.
Mass Gaming & Entertainment LLC, an affiliate of Rush Street Gaming that originally applied for the state's lone slot parlor license, asked for the change in the capital requirement, saying the marketplace is too competitive and has too many variables, such as the tribe, for that much of an investment. The company, which has not yet filed a formal proposal in Region C, requested a deadline extension until the end of the year.
The company wants off-site infrastructure costs, preopening interest expenditures and upfront mitigation costs to be calculated as part of the $500 million investment, according to the letter.
KG Urban Enterprises, which hopes to build a casino on the New Bedford waterfront, requested the extension to September, in part, to reach a deal with New Bedford leaders on a host community agreement.
"We support an extension for Region C," Andy Paven, a spokesman for KG Urban, said.
There are substantial costs for KG, including the cleanup of the New Bedford site, that are not part of the capital requirement, so a change in that formula would help their project, too, Paven said.
Meanwhile, Foxwoods and Fall River, which are also late to the game, wrote letters to the commission asking it to keep the deadline where it is, though commission ombudsman John Ziemba said officials have since conceded they could use more time.
Commissioners pointed out questions were raised about the financing for Foxwoods, which had a proposal rejected by voters in Milford, during last fall's suitability hearings.
Karen Wells, director of the commission's Investigations and Enforcement Bureau, said Foxwoods has not submitted any additional information to date.
Crosby called it a "long shot" that Foxwoods and Fall River could meet the current deadline given how the company's initial suitability hearing went.
A spokeswoman for Foxwoods could not be reached for comment.
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