Wynn Resorts appears to have trumped Mohegan Sun in a contest for the sole license to operate a casino in Greater Boston, now that the Massachusetts Gaming Commission has voted 3-to-1 in Wynn’s favor.
The commission’s acting chairman, James F. McHugh, cast the dissenting vote Tuesday in a preliminary nod of approval, pending Wynn’s acceptance of the commission’s conditions. A final vote is set for Wednesday morning, provided that Wynn agrees to the terms.
Wynn gave every indication Tuesday that it would.
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“We look forward very much to getting started with this project,” Robert J. DeSalvio, Wynn Resorts Development’s senior vice president, told reporters after the vote. “We know that there will be twists and turns along the way, but we can’t wait to get started on the project.”
State law does not allow for an appeal of the Massachusetts Gaming Commission’s choice.
“We are extremely disappointed in today’s decision,” Mohegan Tribal Gaming Authority CEO Mitchell Grossinger Etess said in a statement.
“Mohegan Sun has worked incredibly hard to develop a comprehensive proposal that will deliver the most economic development and revenue for the Commonwealth,” Etess said. “We have worked cooperatively with our thirteen host and surrounding communities, met or exceeded all of the Commission’s conditions and believe we are the best choice for the Commonwealth’s flagship casino.”
This is the second loss in a year for the Mohegans, who had hoped to build a casino in western Massachusetts, but that plan was rejected last November by residents of the host town, Palmer.
In Revere, Mohegan Sun Massachusetts proposed a $1.3 billion casino at Suffolk Downs racetrack. Wynn Resorts proposed a $1.6 billion casino in nearby Everett.
A major factor in the commission’s decision was economic development and the jobs that each plan would create — both the number of jobs and the pay.
The Mohegan Sun plan would have created 2,538 full-time-equivalent jobs with an annual payroll of $107.5 million in the fifth year of operations. The Wynn proposal calls for 3,287 full-time-equivalent jobs with an annual payroll of $186.4 million. Wynn’s plan calls for higher salaries.
McHugh said the contest was close.
Wynn, he said, “had the edge in terms of the economic benefits it would provide to the community and to the region.” But he said he remained concerned about the complicated nature of the permitting process ahead for Wynn. It has been widely reported that the Everett site is tainted with pollutants.
“We had the benefit of two terrifically qualified applicants, and we looked exhaustively at what they brought to the table … and, ultimately, chose the Wynn applicant,” McHugh said.
Commissioners Gayle Cameron, Bruce Stebbins and Enrique Zuniga all voted for the Wynn plan. Chairman Stephen P. Crosby recused himself from the process in May amid criticism for his business relationship with one of the landowners in Everett, where Wynn Resorts plans to build.
One major sticking point in Wynn’s plan is traffic at Sullivan Square across the Mystic River from Everett in the Charlestown section of Boston. Wynn on Tuesday announced plans to put $76 million toward traffic mitigation, over time, up from its previous commitment of $62.75 million.
“Wynn’s current offer to the City of Boston is unacceptable,” Boston Mayor Martin J. Walsh said in a statement Tuesday afternoon. “We are evaluating the gambling commission’s decision, and all of the conditions imposed on the issuance of this license.”
“Serious questions remain around Sullivan Square and Rutherford Ave., and other impacts in Charlestown, as well as other neighborhoods in the City of Boston,” Walsh said.
Everett Mayor Carlo DeMaria praised Wynn’s plan.
“You won’t recognize the city of Everett, hopefully, in 10 years,” DeMaria said. “It’ll definitely change. We’ll no longer be the butt end of the city of Boston.”
At stake is a license for the most lucrative market in Massachusetts. Greater Boston is one of three distinct regions that will have a casino, as allowed by legislation passed in 2011. The other regions are western Massachusetts and the southeastern part of the state. Additionally, the law allows a slots parlor.
However, the entire process could be rendered moot if residents throughout the state vote on Nov. 4 to repeal the law allowing casinos.
Petitioners gathered enough signatures to get a repeal on the ballot. However, Attorney General Martha Coakley refused to certify the petitions, saying that a repeal would take property in the form of contract rights without compensation. The state’s Supreme Judicial Court sided with petitioners and allowed the repeal to go to a statewide vote.
Suffolk Downs Chief Operating Officer Chip Tuttle said in a statement: “We are extraordinarily disappointed as this action is likely to cost the Commonwealth thousands of jobs, small business and family farms. We will be meeting with employees and horsemen over the next several days to talk about how we wind down racing operations as a 79-year legacy of thoroughbred racing in Massachusetts will be coming to an end, resulting in unemployment and uncertainty for many hard-working people.”
Mohegan Tribal Chairman Kevin P. “Red Eagle” Brown said in a statement that the tribe had worked for more than three years to develop a gaming resort in Massachusetts that would build on the success of Mohegan Sun while protecting the tribe’s business in Connecticut. He expressed disappointment at the decision.
“As we have in Connecticut, the Mohegan Tribe has built important and lasting partnerships in Massachusetts throughout this process,” Brown said. “Mohegan Sun continues to be one of the most successful casinos in the Western Hemisphere, and we will move forward to expand and diversify our business.”
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