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The ink was barely dry on Gov. Deval Patrick’s signature before the state’s new casino law was embroiled in a legal challenge.
KG Urban Enterprises, which hopes to develop a casino in New Bedford, immediately filed suit in U.S. District Court in Boston claiming the legislation gives an unfair advantage to any federally recognized Indian tribe seeking to secure the casino license set aside for Southeastern Massachusetts.
“The Act is riddled with explicit, race-based set-asides that give federally recognized Indian tribes a categorical advantage over all other applicants in seeking a gaming license in Southeastern Massachusetts,” the complaint says.
In addition, because the law prohibits any consideration of an application for the Southeastern license by any non-Indian before July 31, 2012, the complaint argues that the area will be at a competitive disadvantage to Western Massachusetts and the Boston area, where bidding could begin sooner. KG is seeking an immediate injunction to block any action from being taken under the legislation.
The new law, ceremoniously signed by Patrick Tuesday morning after years of legislative wrangling, allows up to three casinos in the three distinct areas of the state, plus a slots parlor. Patrick and other proponents argued that it will create thousands of jobs and generate hundreds of millions in new revenue.
But the KG complaint argues that the playing field isn’t level.
“The casino gaming law signed by the governor denies us the opportunity to compete for the Southeast license in a fair, open and competitive licensing application process,” said Andrew Stern, managing director and principal of KG. “More importantly, the law illegally denies the people of New Bedford and southeastern Massachusetts an opportunity equal to the one afforded citizens living in western Massachusetts and in the Greater Boston region. Accordingly, we have been left with no choice but to challenge the legality of the law’s tribal carve-out provisions in federal court.”
The complaint lists Patrick and members of the Massachusetts Gaming Commission as defendants. The commission was set up by the new law and none of the five members has been named.
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