Sands Corp., Mohegans Making Separate MA Plays

 It’s expected that early next month Massachusetts Governor Deval Patrick will make a decision on whether to support casino gaming within his state’s boundaries.

This issue has taken on a life of itself recently as lobbyists have been hammering home how much it’s losing in tax revenue to nearby Connecticut. Just over the border, Connecticut is home to the world’s two largest casino complexes – Foxwoods and Mohegan Sun – which together currently see annual revenue of more than $1 billion.

With the tide turning toward legalization many groups have donned their lobbying hats to get a piece of the action. Las Vegas Sands Corporation, which just last week opened the $2.4 billion Venetian Macau Resort in Asia is looking into joining the fray. That company is building a major project in Pennsylvania and sees Massachusetts as a second location for its growing casino empire.

Most significantly the Mohegan Tribe, which owns and operates Mohegan Sun, announced a project that would cost upwards of $1 billion. That property would include up to 4,000 slot machines, a 600-room hotel and a large retail component.

According to the Tribe’s Chairman Bruce “Two Dogs” Bozsum, the project would employ as many as 5,000 people permanently in the region. Those are the kinds of numbers that get politicians to perk up. Known as the Palmer plan, The Mohegan Tribal Gaming Authority last month struck a deal with Northeast Realty and Pennsylvania Real Estate Investment Trust to investigate the visibility of a project on about 150 acres directly off the Mass Pike. The Palmer Town Council is set to vote on whether they want this in their neighborhood on September 10.

Meanwhile, the Mashpee Wampanoag Tribal Council has started the process of taking land into trust. It’s a necessary process that will allow the Mashpee Wampanoag Tribe to build a casino on reservation land. Though the land is not official tribal grounds, its considered that when its put into trust. 

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In all, the Tribe is looking to place into trust 539 acres in the town of Middleborough for a resort casino, as well as 140 tribal acres in the town of Mashpee
“The Mashpee Tribe has serious, systemic, long-term financial needs. There is serious unemployment among tribal members with few job opportunities within the Town of Mashpee,” the application notes. “The income of many tribal members is below the poverty level. The development of a gaming facility and resort in Middleborough will create many employment opportunities for tribal members, both short-term during its construction and, for the long term, during its ongoing operation.”

Last month the town of Middleborough approved a deal with the Mashpee Wampanoag tribe to build a $1 billion casino resort within the town’s limits. If the Indian tribe is successful in getting the dice rolling, it could mean millions for the town.
Next up for the approval process is getting both the Commonwealth of Massachusetts and the Federal Government to approve the process, that is, if Governor Patrick capitulates and allows gambling within the state. Then the Department of the Interior will have to approve a deal to convert U.S. soil to tribal land.

It makes fiscal sense for the state to get into the casino business. According to the 2007 New England Casino Gaming Update researched by the University of Massachusetts Dartmouth Center for Policy Analysis (CFPA), many locals are going to Mohegan Sun and Foxwoods; nearby Connecticut’s mega resorts.

The fourth annual study, which tracks spending patterns at New England’s five casino style venues, found in 2006 Massachusetts residents spent nearly $876 million in Connecticut at Foxwoods Resort Casino and Mohegan Sun Casino; $180 million in Rhode Island at Lincoln Park and Newport Grand; and $ 1.4 million in Maine at Hollywood Slots in Bangor (which has been open for 16 months).

Additionally, Massachusetts residents comprise approximately 35% of Foxwoods patrons and 21% of Mohegan Sun patrons. Once again, Bay Staters represent Foxwoods’ largest customer base, even exceeding Connecticut residents’ patronage of their home-state casino.

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