Two Massachusetts casinos received licensing Friday and plans for development are underway. GRAPHIC BY SAMANTHA GROSS/DAILY FREE PRESS STAFF
MGM Resorts International and Wynn Resorts received a unanimous vote Friday from the Massachusetts Gaming Commission, officially granting each company a license to operate resort casinos in downtown Springfield and Everett, respectively.
High competition for the sole license to operate a casino in the Greater Boston area resulted in Wynn Resorts receiving a license in place of Mohegan Sun, which had plans to open in Revere.
MGC Commissioner James McHugh was also swayed toward giving the bid to Wynn Resorts in Everett over Mohegan Sun in Revere in the hopes of cleaning up toxic waste in the area, said Elaine Driscoll, MGC’s spokeswoman.
“Our goal is to also mitigate any unintended negative consequences such as traffic and problem gambling,” Driscoll said in an email. “For every affected community including Boston, our hope is to increase benefits and mitigate challenges.”
Chairman and CEO of Wynn Resorts Steve Wynn proposed a multi-million dollar cleanup of the pollution-ridden industrial site, and transforming it into an area that can be accessible to the public. The commissioners at MGC saw this as a conclusive factor in their decision, Driscoll said.
Massachusetts Gov. Deval Patrick signed into law the Expanded Gaming Act in 2011. The law allowed for three resort casinos in diverse locations throughout Commonwealth and one slots facility, according to the MGC.
Boston voters decided against the bid to build casinos in the Boston/Revere territory during the 2013 mayoral election, in which 44 percent said “Yes” to the casino and 56 percent said “No.” The rejection of the proposed casino led to the demise of Suffolk Downs racetrack, which closed on Oct. 4.
The fate of casinos was at risk once again with Question 3 of the Nov. 4 midterm elections, for which voters could vote “Yes,” to repeal the ban, or “No,” to ban casinos in the Commonwealth. The ban was repealed by a 60.1 to 39.9 percent vote.
In a statement made on Sept. 18, Boston Mayor Martin Walsh said traffic was the main concern in determining who would receive the licensing.
“Six million cars a year are going to go into the site, 67 percent from the Boston area,” Walsh said. “We have to make sure that we protect the community.”
James Murren, chairman and CEO of MGM Resorts International, said he was appreciative for the opportunity to work on the plans for the casino in Springfield.
“This has been one of the most exciting weeks in MGM’s history,” he said in a Nov. 6 statement. “We are grateful to the voters of the Commonwealth, and especially the people of Springfield for voting for jobs and economic opportunities. Today we want to thank the Massachusetts Gaming Commission for formalizing our agreement that will allow us to revitalize a great downtown.”
MGM Springfield, an $800-million investment, is designed to ignite an urban revival. It will feature 125,000 square feet of gaming space with 3,000 slot machines, 75 gaming tables, a poker room and a VIP gambling area, according to its website.
Springfield, 90 miles west of Boston, was chosen as the location site for MGM due to its proud and vibrant history, Driscoll said. The project will bring jobs and economic development to the resilient residents of Springfield after experiencing several misfortunes in recent years, including a tornado in 2011.
Driscoll said she anticipates that these two casinos will bring more than $300 million and $500 million in increased revenue, between 8,000 and 10,000 construction jobs and 8,000 and 10,000 permanent jobs to the Commonwealth, all respectively.
MGM envisions a resort casino that will enhance the entire urban center of Springfield, said MGM spokeswoman Vanessa Krawczyk. Their design serves to celebrate the history of Springfield while also promoting economic opportunity.
“Our multi-use plan envisions an exciting and lively residential, retail, dining and entertainment district that preserves much of downtown’s most iconic architecture while rebuilding the city’s hardest-hit downtown neighborhood,” she said. “MGM’s renaissance project is about opening up the downtown and bringing new life, new visitors and new reasons to be proud of Springfield.”
MGM alone will bring 3,000 permanent jobs as well as 2,000 construction jobs to the city, according to a Friday MGM press release. MGM established a hiring goal of 35 percent of Springfield’s workforce. The development process is expected to be completed in Summer 2017, according to a Nov. 6 MGM press release.
Wynn Resorts, the second casino that was awarded the license, has plans to turn a forlorn chemical plant on the Mystic River in Everett into a $1.6 billion gambling resort, making it the largest private, single-phase development in Commonwealth history, according to the resort’s online fact sheet.
The resort will include several convention centers, premium retail stores and restaurants, a high-energy nightclub, a five-star spa, approximately 500 luxury hotel rooms and a uniquely designed gaming area, including table games and slot machines, the fact sheet states.
Wynn will create 4,000 construction jobs and more than 4,000 permanent jobs, with competitive compensation for employees, according to the fact sheet.
Several residents said they had mixed feelings about the newly licensed casinos.
Kathy Ann Stavropoulos, 53, of Jamaica Plain, said she sees the possibility of a paycheck from MGM in the future.
“There will be so many new and exciting job opportunities available that we won’t have seen in Boston before. I’ll definitely encourage my kids to apply,” she said.
Kenneth Morrison, 64, of Back Bay, said he is doubtful of the positive impact these casinos will have on the community.
“There’s a reasonable chance that they will lead to an increased crime rate,” he said, “due to gambling addictions leading to unpredictable behavior.”