Slots in Worcester - A Play by Play

Friday, March 29, 2013

Kate Nagle, GoLocalWorcester News Contributor

Can Worcester win the bid for Massachusetts' sole slots parlor license?

With Worcester now in serious contention for the Commonwealth's sole slots-parlor license, here's the scoop on the players involved, what's at stake for Worcester -- and what the time frame is looking like.

Slots Parlors Proposals -- Who's at the Table?

The official application period for the state's sole slots-parlor license closed on January 15, 2013. Applicants who paid the $400,00 application fee with the Massachusetts Gaming Commission are all vying to be the big -- and only -- winner in the slots race.

The victor will be required to invest a minimum of $125 million into the facility and pay a $25 million license fee with the state. The players in the mix include:

Raynham Park: Owned by George Carney, the former greyhound track site that now operates as a simulcast betting parlor has partnered with the Pennsylvania-based Greenwood Racing in hopes of securing the license. The Mashpee Wampanoag tribe is looking to secure a full-scale casino the next town over in Taunton.
Plainridge Racecourse: The harness-racing track, which also offers simulcasting, is in contention, with owner and CEO Gary Piontkowski at the reins. LIke Raynham, Plainridge is hoping its existing location and track-record will push it to tops of the list.
PPE Casino Resorts, MA: The Baltimore-based Cordish Company is behind the Massachusetts-operated PPE entity, which has expressed interest in developing a slots parlor in Danvers. Current speculation is that it could be located at Liberty Tree Mall.
Mass Gaming and Entertainment, LLC: Officials from the recently formed MA LLC operation, along with members of their parent company, Chicago-based Rush Street Gaming, met with Worcester public officials Wednesday afternoon to set the stage for a Worcester proposal.

Rush Street Gaming Looking to Parlay Casino Experience in MA

Headed by CEO Greg Carlin, Rush Street Gaming counts among its team Chicago-based casino and real estate developer Neil G. Bluhm.

According to the Rush Street Gaming website, it was formed in 2009, although its history goes back to 1996. Bluhm and Carlin partnered with Hyatt Gaming, INC. that year to form Falls Management Company, eventually entering into an agreement with the Province of Ontario to manage Casino Niagra and build a new permanent casino in Niagra Falls in 2004.

Bluhm and Carlin formed Rush Street Gaming in 2009, which lists three casinos on its website. They are Rivers Casino in Des Plaines, IL, SugarHouse Casino in Philadelphia, and Rivers Casino in Pittsburgh.

Between October 2008 and July 2011, Rush Street Gaming casinos have added more than 4,000 direct and permanent jobs, and deployed over $1.7 billion in capital, according to the website.

What's at Stake for Worcester?

Mass Gaming and LLC is looking to build a $200 million facility on the Wyman-Gordon property on Madison Street. It would include 1,250 slot machines, the maximum allowed by state law.

In addition, Cambridge-based hotel developer Richard L. Friedman of Carpenter and Company has plans to build a full service hotel, with 150 to 200 rooms, to the tune of $40 million.

Together, the two properties project they could add 600 jobs to the Worcester economy, with approximately 450 slated for the casino, and 150 to 250 at the hotel, which Mr. Friedman has indicated would not be next to the casino, but rather downtown.

Next Steps

The Massachusetts Gaming Commission, whose stated mission is to "create a fair, transparent, and participatory process for implementing the expanded gaming law," has listed on its website a time frame for the slots parlor selection process.

The Commission has determined that efforts will be made to award a Category 2 (slots only) gaming license prior to the award of Category 1 (resort casino) licenses, and anticipates that will happen by fall of this year.

According to the timeline listed on the website, following the now-closed January 15th date for applications, the Commission will now assess the Request for Application (RFA)-1 Applications, which includes background checks, and will release a Request for Applications-Phase Two (RFA-2) to successfully pre-qualified applicants for a site-specific application by July 2013.

During this time, "Host and Surrounding Community" agreements will have to be executed. By October 2013, host communities will need to have a referendum approved by voters to remain in contention.

The Gaming Commission lists December 2013 as the official "award date" for the license.

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