Massachusetts gambling industry regulators said today they will be prepared to impose the terms of mitigation payments to the city of Boston from the developer of a proposed casino in a neighboring community. Boston is boycotting arbitration proceedings with Wynn Resorts – one of two competitors for the lone casino license in eastern Massachusetts
The Massachusetts Gaming Commission during a brief meeting Tuesday discussed the broad outline of a plan to gather information and hold at least one public hearing to determine how much the developer should pay Boston to mitigate the impact the casino would have on traffic, public safety, schools and more. Acting chairman James McHugh said the commission is within its rights to act.
"We have an obligation to protect the city from the adverse affects of a gaming establishment on its borders even if the city does not want to participate in the process to protect itself."
McHugh noted that Boston’s decision is unprecedented. Every other community surrounding a proposed casino project and all the applicants for casino licenses in Massachusetts have struck deals for mitigation payments or accepted arbitration awards.
Boston Mayor Martin Walsh, last week, indicated that talks between the city and Wynn Resorts have not been productive. He said arbitration would be a “no-win situation” because he said several details remain murky about Wynn’s proposed casino in Everett.
The gaming commission turned down Walsh’s petition to have Boston designated as a host community for the Wynn project and the competing Mohegan Sun casino proposed in Revere. The designation would have given Boston voters veto power over both projects.
The commission also rejected a request from Walsh to postpone awarding the casino license in eastern Massachusetts until after Election Day when state voters will decide whether to ban casinos.
Walsh struck a deal with Mohegan Sun for $18 million in annual payments if the Revere casino is built.
McHugh said the commission is determined not to let Boston’s refusal to participate in arbitration with Wynn upset the timetable for awarding the eastern Massachusetts casino license.
Commissioner Enrique Zuniga said he was disappointed Boston had chosen not to try to reach a deal with Wynn.
MGM negotiated agreements with six communities surrounding Springfield where it has been assigned a license to build the only resort casino authorized in western Massachusetts. Longmeadow and West Springfield won arbitration awards.
The gaming commission rejected a petition from Northampton to be designated a surrounding community for the Springfield casino.
