Nov. 14–Official concerns about Foxwoods’ proposal for a Milford casino yesterday — on the heels of setbacks with other casino developers — are adding new fuel to questions about whether Massachusetts will end up with any casino at all two years after the state passed an expanded gambling law.
“I can foresee where all three (state casino license regions) end up without one,” said Richard McGowan, a Boston College professor who has written extensively about gaming. He said it’s “conceivable” that none of the casino applicants is able to meet all of the conditions set by the state.
In a hearing for Foxwoods before the Gaming Commission yesterday, state investigators said they could not make a recommendation about whether the casino operator is suitable for a license, saying the ”glaring issue” was its failure to identify a 55 percent equity owner for the project less than a week before a Milford referendum.
Karen Wells, director of the commission’s Investigations and Enforcement Bureau, said her office “is not in a position to make a recommendation about suitability because we don’t have a complete picture of what this applicant is going to look like.”
Foxwoods president Scott Butera told the commission he was negotiating with two entities that had made ”very strong offers” to fill the gap. Butera said two-thirds of the $1 billion project would be funded through either a loan from Deutsche Bank or the sale of real estate assets. The remaining third would be through equity.
“We will do everything we can to get this piece closed in days if not in hours,” Butera said.
The uncertainty about Foxwoods follows ballot defeats for both Hard Rock and Mohegan Sun in western Massachusetts. MGM won a referendum in Springfield, but has yet to undergo a suitability hearing. In southeastern Massachusetts, KG New Bedford needs a host community agreement, a suitability finding, and a vote.
Suffolk Downs suffered major setbacks when the commission flagged problems with Caesars Entertainment, and East Boston voted it down.
The track is now trying to cobble together a new plan for Revere, but is seen as facing an uphill battle ahead of the Dec. 31 final application deadline.
In Everett, Wynn Resorts won broad support but has yet to undergo a suitability hearing.
