Boston may have rejected intends to host a casino, but city officials nevertheless want host community status for nearby proposals. (Image: Gretchen Ertl, Ny Times)
To express that Boston has had a complicated relationship with Massachusetts’ gaming regulators throughout the state’s casino licensing procedure is putting it really lightly. The city has been on both sides of the issue, always trying to get the best possible outcome for Boston even if they won’t be hosting a resort themselves from originally hoping to get a casino in the city to standing by the community that voted against such a plan.
Maybe that’s why Boston Mayor Marty Walsh has made statements that are strong about the head of the Massachusetts Gaming Commission. According to lawyers working on behalf of Walsh’s administration, payment chair Steve Crosby has made ‘prejudicial’ statements that put into question his objectivity in Boston’s bid to be considered a host community for casinos in nearby locations.
Host Community Status Would Grant Veto Power
That host community status is something that Boston is hoping to obtain for casino plans in both Everett where Wynn Resorts is hoping to gain a permit and in Revere, where a Mohegan Sun casino plan at Suffolk Downs was revitalized after being rejected by East Boston. In both cases, the proposed casinos will be built totally outside of the town, but very near to Boston’s boundaries.
The neighborhoods near the casinos would have the right to vote on whether these casinos could be built essentially giving them veto power over the plans if Boston were able to achieve host community status in either of these cases. That could apply to East Boston for the Revere casino, because well as Charlestown for the Everett proposal.
The Walsh administration criticized Crosby, saying that he was biased and had already been critical of the request for host community status ahead of a planned May 1 hearing in which the state gambling commission will rule on the issue in a letter submitted to the commission.
Mayor Walsh also objected to the hearing itself, saying that the format gives the city extremely little chance to make its case.
‘It eliminates the city’s opportunity to call witnesses, to cross-examine witnesses and to create an appropriate evidentiary record that is subject to appropriate review,’ the letter said. ‘In sum, the procedure that is proposed a thinly veiled attempt to ‘stack the deck’ against the city.’
Commission Stands Firm
But while the words of the Walsh management might have been harsh, they don’t provoke much of a response from hawaii Gaming Commission.
‘The payment’s role is not to participate in or be distracted by the politicizing of certain aspects of the procedure,’ said spokesperson Elaine Driscoll. ‘The commission has usually been presented with complex matters of law requiring fair and judicious decision-making by the five appointed commissioners,’ she added. ‘This matter is no different.’
Boston is not the only city that has submitted information about the battle throughout the Greater Boston casino license. Both Mohegan Sun ( which would operate a Suffolk Downs casino) and Wynn have submitted briefs arguing against Boston’s community status. Revere Mayor Daniel Rizzo has additionally said that his city should be considered the only host community for a Suffolk Downs resort.
All parties agree that Boston should have ‘surrounding community’ status at the same time. That would entitle the city to some profits as well as other concessions, but wouldn’t allow it to outright veto the projects.
Detroit Casino Revenues Continue to Fall
The MGM Grand Detroit is one of three gambling enterprises that the town relies on for tax income. (Image: destination360.com)
Detroit’s financial issues have been covered extensively on the past year. As an outcome regarding the town’s bankruptcy, it has additionally become common knowledge that the town is relying heavily regarding the revenues from Detroit’s three casinos to hold it afloat. Unfortunately, it seems like also those revenue that is reliable have been slipping in current months.
In accordance with the newest numbers from the Michigan Gaming Control Board, the three Detroit casinos saw their revenues fall 7.3 percent year-over-year in March. Combined, the three venues MGM Grand, engine City and Greektown brought in about $125 million.
The MGM Grand had been the best choice with $50.8 million in income, though that was down 6.6 percent compared to March 2013. The Greektown saw the drop that is sharpest associated with the three gambling enterprises, with month-to-month revenues falling 10 percent to $31.2 million.
Tax Dollars Essential for City
For the town, those reduced revenues also mean less in the way of vital income tax dollars. Detroit collected $10.1 million in tax revenue from the gambling enterprises in March, down from $10.9 million an earlier year.
That continues a trend which has been ongoing for the last two years. In 2012, Detroit accumulated $114.8 million in tax revenue for the season. That fell to $109.3 million year that is last and could fall even more throughout 2014.
Several Reasons Behind Drop Proposed
The timing of the fall might be traced to increased competition in your community. For instance, revenues are clearly down because the Hollywood Casino Toledo opened in 2012. Compared to initial quarter of 2012 the final full quarter before Hollywood started doing business Detroit’s casino revenues were down 12 percent in 2014’s first three months.
That’s just one of several Ohio gambling enterprises which were approved by voters in that continuing state in 2009. As a whole, four new casinos and two new racetracks have been exposed in Ohio throughout the past couple of years.
But other facets may also be in play, as casino revenue has been down round the region that is entire including in Ohio and Indiana. The terrible weather that area residents suffered through was also cited as a possible cause along with a potential saturation of the casino market. Some have also pointed to changes in player behavior, saying that casual players merely are not spending money at casinos at the minute.
‘I do think more than such a thing else it is the pressure they’re feeling on their own budget that is affecting us and others to their spending in this industry,’ stated Penn National Gaming CEO Tim Wilmott during a February media conference call.
Casino Revenues Critical to Bankruptcy Contract
After income taxes and the help of the state, casino wagering taxes are Detroit’s next source that is largest of revenue, accounting for about 16 percent of the city’s income.
That can help explain why casino revenues were such a contentious issue if the city filed for bankruptcy protection year that is last. Detroit had used the casino taxation income as collateral in 2009 to prevent defaulting on the town’s retirement debts. But whenever that deal went sour and money with the banks proved difficult to come by, it showed up as though those casino revenues could potentially visit those organizations rather than the town that could have triggered a budget collapse that is immediate.
But week that is last a federal bankruptcy court consented to a deal that would see Detroit pay $85 million to UBS and Bank of America in monthly installments of $4.2 million, hence ensuring that Detroit could restructure its debt and continue to collect casino revenue.
Crown Resorts Ready to Bid for Cosmopolitan Casino in Las Vegas
The Cosmopolitan has lost nearly $300 million since opening, but continues to be considered one of the most properties that are valuable the Las Vegas Strip. (Image: Wikimedia Commons)
Australian casino mogul James Packer failed once in the American gaming market, but that’s not stopping him from giving the US a 2nd try. According to reports out of Australia, Crown Resorts the gaming firm owned by Packer is preparing to enter into the fight to take the Cosmopolitan over of nevada.
Crown is likely to be just one of several companies that will take a good look at purchasing the sprawling casino resort on the Strip. With almost 3,000 hotel rooms, it would give any owner a major stake in America’s biggest gambling hub. Presently, The Cosmopolitan is owned by Deutsche Bank.
Packer Longing For Better Luck in Second US Venture
This would mark the time that is second has tried to invest in US casino properties. The attempt that is first not end well for their company.
Around the time of the 2008 crisis that is financial Crown purchased about $2 billion worth of properties within the united states of america, including stakes within the never-built Fontainebleau Resort and in Station Casinos. Those investments cost the company billions of dollars, causing Packer to shy away from the United States in more current techniques to grow their company’s global reach.
Nonetheless it now seems that Packer feels Crown is in a position that is financial will allow the firm to grow through the globe. Already, Crown has secured the rights to create a $1.2 billion casino complex in Sydney that will cater exclusively to high rollers. Another $400 million is exactly in danger for a casino to be built in Sri Lanka, and Melco Crown (a partnership that Crown is greatly invested in) will be developing gambling enterprises in Macau and the Philippines.
Then there’s the investment that is potential Japan, which will be prone to legalize casinos ahead of the 2020 Summer Olympics in Tokyo. Packer has stated that he would be willing to invest the maximum amount of as $5 billion in a casino here should he be given a license for a casino in Japan, possibly the earth’s last great untapped casino market.
That’s a lot of outlay, therefore The Cosmopolitan would be a pricey purchase as well. The casino resort is expected to fetch a price of up to $2 billion once the sale is manufactured.
Cosmopolitan Off to Slow Start
But even though The Cosmopolitan is a highly valuable home that will attract lots of interest from investors, it’sn’t been an especially effective one in its short history.
Dilemmas for the casino started even before it opened. In January 2008, owner Ian Bruce Eichner defaulted on a loan, causing Deutsche Bank to possess the property. That left the bank in the odd place of owning and operating a casino maybe not something they had prepared on.
But Deutsche Bank did complete the location, ultimately investing about $4 billion to perform the resort and casino, making the Cosmopolitan perhaps one of the most casinos that are expensive Las Vegas. The complex features 100,000 square foot of gaming room, along side extensive retail and space that is restaurant.
Since opening by the end of 2010, The Cosmopolitan has drawn a great amount of visitors using its upscale-yet-hip branding campaign. However, video gaming revenues have still been weaker than expected, and the property lost $298.3 million in its first 36 months of operation.