Boston may have rejected plans to host a casino, but city officials still want host community status for nearby proposals. (Image: Gretchen Ertl, Ny Days)
To express that Boston has had a complicated relationship with Massachusetts’ gaming regulators throughout the state’s casino licensing process is putting it extremely lightly. The city has been on both sides of the issue, always trying to get the best possible outcome for Boston even if they won’t be hosting a resort themselves from originally hoping to get a casino in the city to standing by the community that voted against such a plan.
Perhaps that’s why Boston Mayor Marty Walsh has made statements that are strong about your head associated with the Massachusetts Gaming Commission. According to lawyers working on behalf of Walsh’s administration, commission chair Steve Crosby has made ‘prejudicial’ statements that put into question his objectivity in Boston’s bid to be considered a host community for casinos in nearby locations.
Host Community Status Would Grant Veto Power
That host community status is a thing that Boston is hoping to obtain for casino plans in both Everett where Wynn Resorts is hoping to get a license and in Revere, where a Mohegan Sun casino plan at Suffolk Downs was revitalized after being rejected by East Boston. In both cases, the proposed casinos is built entirely outside of the city, but very near to Boston’s edges.
The neighborhoods near the casinos would have the right to vote on whether these casinos could be built essentially giving them veto power over the plans if Boston were able to achieve host community status in either of these cases. That could apply to East Boston for the Revere casino, since well as Charlestown for the Everett proposal.
In a page submitted to the commission, the Walsh administration criticized Crosby, stating that he was biased and had already been critical of the obtain host community status ahead of a planned May 1 hearing in which the state gambling commission will rule on the issue.
Mayor Walsh also objected to the hearing itself, saying that the format gives the city extremely chance that is little make its situation.
‘It eliminates the town’s possibility to call witnesses, to cross-examine witnesses and also to create an appropriate evidentiary record that is subject to appropriate review,’ the letter said. ‘In sum, the procedure that is proposed a thinly veiled attempt to ‘stack the deck’ against the town.’
Commission Stands Firm
But while the words of the Walsh administration may have been harsh, they did not provoke much of a response from their state Gaming Commission.
‘The payment’s part is not to participate in or be distracted by the politicizing of certain aspects of this process,’ said spokesperson Elaine Driscoll. ‘The commission has frequently been presented with complex matters of legislation needing reasonable and decision-making that is judicious the five appointed commissioners,’ she included. ‘This matter is no different.’
Boston is not the city that is only has submitted details about the battle throughout the Greater Boston casino license. Both Mohegan Sun ( which would operate a Suffolk Downs casino) and Wynn have submitted briefs arguing against Boston’s community status. Revere Mayor Daniel Rizzo has additionally said that his city is highly recommended the just host community for a Suffolk Downs resort.
All parties agree that Boston should have ‘surrounding community’ status at the same time. That would entitle the town to some profits along with other concessions, but wouldn’t let it outright veto the projects.
Detroit Casino Revenues Continue to Fall
The MGM Grand Detroit is certainly one of three casinos that the populous city relies on for tax income. (Image: destination360.com)
Detroit’s financial issues have actually been covered extensively throughout the year that is past. As a result of the town’s bankruptcy, it has also become knowledge that is common the town is relying heavily in the revenues from Detroit’s three casinos to help keep it afloat. Regrettably, it seems like also those revenue that is reliable have actually been slipping in recent months.
Based on the newest numbers through the Michigan Gaming Control Board, the three Detroit casinos saw their revenues fall 7.3 percent year-over-year in March. Combined, the three venues MGM Grand, Motor City and Greektown brought in about $125 million.
The MGM Grand ended up being the first choice with $50.8 million in revenue, though that was down 6.6 percent compared to March 2013. The Greektown saw the sharpest drop of the three casinos, with month-to-month revenues falling 10 % to $31.2 million.
Tax Dollars Important for City
For the town, those reduced revenues additionally mean less in the way of vital taxation dollars. Detroit collected $10.1 million in income tax revenue from the casinos in March, down from $10.9 million a year earlier.
That continues a trend that has been ongoing for the last two years. In 2012, Detroit built-up $114.8 million in tax revenue for the year. That fell to $109.3 million this past year, and could fall further throughout 2014.
A few Good Reasons For Drop Proposed
The timing of the fall might be traced to increased competition in your community. For instance, revenues are clearly down since the Hollywood Casino Toledo opened in 2012. When compared with initial quarter of 2012 the final quarter that is full Hollywood started doing business Detroit’s casino revenues were down 12 percent in 2014’s first three months.
That’s just one of several Ohio gambling enterprises which were approved by voters for the reason that state in 2009. As a whole, four new casinos and two new racetracks were opened in Ohio throughout the past two years.
But other factors may also be in play, as casino revenue has been down round the region that is entire including in Ohio and Indiana. The terrible weather that area residents suffered through was also cited as a possible cause along with a potential saturation of the casino market. Some have also pointed to changes in player behavior, saying that casual players simply aren’t spending money at casinos at the minute.
‘we do think more than such a thing else it’s the pressure they’re feeling by themselves budget that is affecting us and others to their spending in this industry,’ said Penn National Gaming CEO Tim Wilmott throughout a February news conference call.
Casino Revenues Critical to Bankruptcy Contract
After earnings taxes and the aid of hawaii, casino wagering taxes are Detroit’s next biggest supply of revenue, accounting for around 16 percent of the town’s earnings.
That can help explain why casino revenues were such a contentious issue whenever city filed for bankruptcy protection final year. Detroit had used the casino income tax income as security in 2009 to avoid defaulting on the city’s pension debts. But when that deal went sour and money with the banks proved hard to come by, it appeared as though those casino revenues could potentially go to those organizations rather than the town that could have caused a budget collapse that is immediate.
But final week, a federal bankruptcy court consented to a deal that would see Detroit pay $85 million to UBS and Bank of America in monthly installments of $4.2 million, hence ensuring that Detroit could restructure its debt and continue steadily to gather casino revenue.
Crown Resorts Ready to Bid for Cosmopolitan Casino in Las Vegas
The Cosmopolitan has lost nearly $300 million since opening, but continues to be considered one of the most properties that are valuable the Las Vegas Strip. (Image: Wikimedia Commons)
Australian casino mogul James Packer failed once in the American gaming market, but that’s not stopping him from giving the US a second try. According to reports out of Australia, Crown Resorts the gaming company owned by Packer is preparing to enter in to the fight to take over The Cosmopolitan of Las casino-bonus-free-money.com vegas, nevada.
Crown is probable to be one among several companies that will take a look at purchasing the sprawling casino resort on the Strip. With almost 3,000 rooms in hotels, it would give any owner a major stake in America’s biggest gambling hub. Currently, The Cosmopolitan is owned by Deutsche Bank.
Packer Dreaming About Better Luck in Second US Venture
This would mark the second time Packer has tried to invest in American casino properties. The attempt that is first not end well for their company.
Around the time of the 2008 financial meltdown, Crown purchased about $2 billion worth of properties into the usa, including stakes within the never-built Fontainebleau Resort plus in Station Casinos. Those investments cost the company vast sums of dollars, causing Packer to shy away from the United States in more present moves to expand his company’s global reach.
However it now seems that Packer feels Crown is in a position that is financial will let the company to grow throughout the world. Already, Crown has secured the rights to create a $1.2 billion casino complex in Sydney that will cater exclusively to high rollers. Another $400 million is at risk for a casino become built in Sri Lanka, and Melco Crown (a joint venture that Crown is greatly invested in) will be developing casinos in Macau and also the Philippines.
Then there’s the possible investment in Japan, that will be prone to legalize casinos in front of the 2020 Summer Olympics in Tokyo. Packer has already stated he would be willing to invest the maximum amount of as $5 billion in a casino there should he be provided a license for a casino in Japan, possibly the world’s last great untapped casino market.
That’s plenty of outlay, therefore The Cosmopolitan would be a purchase that is pricey well. The casino resort is expected to fetch a price of up to $2 billion once the sale is manufactured.
Cosmopolitan Off to Slow Begin
But while The Cosmopolitan is a property that is highly valuable will attract plenty of interest from investors, it’sn’t been a really successful one in its quick history.
Dilemmas for the casino began even before it launched. In January 2008, owner Ian Bruce Eichner defaulted for a loan, causing Deutsche Bank to possess the house. That left the bank in the odd place of owning and operating a casino not something they had prepared on.
But Deutsche Bank did complete the location, ultimately investing about $4 billion to perform the hotel and casino, making the Cosmopolitan one of the more expensive casinos in vegas. The complex features 100,000 square feet of gaming space, along side extensive retail and space that is restaurant.
Since starting by the end of 2010, The Cosmopolitan has drawn lots of visitors with its upscale-yet-hip branding campaign. However, video gaming profits have still been weaker than expected, and the property lost $298.3 million in its first 3 years of operation.