Briefing: The Casino Process Begins
While there are still numerous regulations for the Massachusetts Gaming Commission to craft before it pushes ahead with casinos, the state took a marked step forward this month by accepting preliminary applications — and a big fee to boot — from would-be developers.
Who has submitted a preliminary application?
Elaine Driscoll, spokeswoman for the commission, said last week that two developers have submitted the documents and paid $400,000 fees. They include Suffolk Downs racetrack in East Boston, which wants to build a resort casino in partnership with a number of entities, including Caesars Entertainment; and Plainridge Racecourse in Plainville, which is aiming for the one slots parlor license authorized under the Massachusetts casino law, which was passed last year.
What's a preliminary application?
The application fee helps weed out serious bidders and allows those who pay it to begin development-mitigation discussions with state officials, Driscoll said. The fee, which will help offset the cost of state scrutiny and investigation of each bidder, will also help municipalities understand who is worthy to negotiate with in these early stages, she added. Developers will face another hurdle after regulations are issued in October. A formal application process will help determine developers' integrity and finances. Out of each fee, the state will take out $50,000 for a community mitigation fund that will help offset negative impacts of casinos in the areas where they're built.
How far away are we from knowing who will get the three licenses?
The process will take until at least October of next year, Driscoll said. In the meantime, the commission will vet prospective developers who apply.
How much money must developers part with?
The casino law requires a minimum investment of $500 million to build one of three resort-style casinos that the law allows. Licensees would also have to pay a one-time licensing fee of not less than $85 million. And the $400,000 preliminary application fee does not count towards that figure, Driscoll said.n
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