Rush Gaming Pulls the Plug on Worcester Slots Proposal

Tuesday, June 04, 2013

GoLocalWorcester Business Team

In the latest twist in the proposed slot parlor, the developer - Rush Gaming from Chicago, Illinois - has withdrawn its $240 million proposal.

Late today, Rush Gaming through its local affiliate Mass Gaming & Entertainment issued a joint announcement with the City of Worcester.

The proposal had been controversial from the beginning and faced a number of hurdles. The project on the positive side may have generated millions in construction, new revenue for the City of Worcester, and was claimed to potentially produce thousands of new jobs.

Slot opponents cheered the decision, "We are grateful that the issue of the slots parlor was resolved without our community being torn apart in a lengthy referendum process. Vote No Slots co-chair Ed Moynihan will withdraw the petition requesting the end of negotiations through the City Clerk," said a statement issued by Vote No Slots.

"Vote No Slots asks that citizens interested only in the slots proposal not attend tomorrow's City Council meeting. Tonight's developments mean the slots parlor will not be a focus of the City Council meeting. For supporters with lawn signs, Vote No Slots will begin collecting them on Friday, June 7."

Statement Issued

The following is the joint statement that was released from the City and Mass Gaming and Entertainment this afternoon.

"The City of Worcester and Mass Gaming & Entertainment announced today that they are terminating negotiations on a Host Community Agreement.

"We have been working in good faith for several months to develop a strong slots casino plan for the City," said Neil Bluhm, Chairman of Mass Gaming & Entertainment. "This has been a complex undertaking, with a multitude of factors impacting the project including the high state tax rate for the category 2 license, the reasonable mitigation requests from the city and escalating development and operating costs. It recently became clear that we could not reach a mutually satisfactory host community agreement. We appreciated the professionalism of all those we worked with."

"As City Manager, I understand and value that the State legislation and regulations were set to allow a completed host agreement to go to the voters to decide yes or no to a slots parlor only," said City Manager Michael V. O'Brien. "I also clearly understood it was my role to get to a host agreement that would integrate a slots parlor with our community. Both sides worked very hard to meet the reasonable expectations of the parties but we could not get to a deal and felt it was in our collective best interests to conclude without a host agreement. I consulted with the Mayor and the co-chairs of the joint committee, and they supported these realities and our decisions to conclude negotiations. I am grateful to Neil Bluhm and Mass Gaming & Entertainment, and to Carpenter and Company and Dick Friedman for their collective efforts and look forward to the potential of working together in the future. They are world class."

Mayor Joseph Petty stated "I know Mass Gaming and Entertainment and the City wished to get to terms of a deal. We know the City Manager has the best interests and expectations of the City Council and community at heart in these discussions. It was not for lack of trying by both parties but, in the final analysis, I believe it is the right decision to end it here and leave the door open for future development opportunities. We welcome the chance to partner with them."