Boston may have refused plans to host a casino, but town officials nevertheless want host community status for nearby proposals. (Image: Gretchen Ertl, New York Circumstances)
To say that Boston has had a complicated relationship with Massachusetts’ gaming regulators through the state’s casino licensing procedure is putting it very lightly. From originally hoping to get a casino in the city to standing by the community that voted against such a plan, the town is on both edges associated with issue, constantly trying to get the most effective outcome for Boston even in the event they won’t be hosting a resort themselves.
Possibly that’s why Boston Mayor Marty Walsh has made strong statements recently about your head of this Massachusetts Gaming Commission. In accordance with lawyers working on behalf of Walsh’s administration, payment 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 something that Boston is hoping to obtain for casino plans both in Everett where Wynn Resorts is hoping to get a permit 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 would be built completely outside of the town, 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 would use to East Boston for the Revere casino, since well as Charlestown for the Everett proposition.
In a letter submitted to the commission, the Walsh administration criticized Crosby, saying that he was biased and had already been critical of the request host community status in front of a fully planned May 1 hearing in which hawaii gambling commission will rule in the issue.
Mayor Walsh also objected to your hearing itself, saying that the format gives the city extremely chance that is little make its situation.
‘It eliminates the city’s opportunity to phone witnesses, to cross-examine witnesses and to create an appropriate evidentiary record that is topic to legal review,’ the letter said. ‘In sum, the proposed procedure represents a thinly veiled make an effort to ‘stack the deck’ against the city.’
Commission Stands Firm
But while the expressed words of the Walsh management may have been harsh, they don’t provoke much of the response from their state Gaming Commission.
‘The commission’s role isn’t to participate in or be distracted by the politicizing of certain aspects with this process,’ said spokesperson Elaine Driscoll. ‘The commission has often been presented with complex matters of law requiring fair and judicious decision-making by the five appointed commissioners,’ she included. ‘This matter is no different.’
Boston is not the city that is only has submitted information about the battle throughout the Greater Boston casino license. Both Mohegan Sun ( which may operate a Suffolk Downs casino) and Wynn have submitted briefs arguing against Boston’s community status. Revere Mayor Daniel Rizzo in addition has said that their city should be considered the only host community for a Suffolk Downs resort.
As well, all parties agree that Boston should have ‘surrounding community’ status. That would entitle the city to some profits and other concessions, but wouldn’t let it veto the projects outright.
Detroit Casino Revenues Continue to Fall
The MGM Grand Detroit is certainly one of three casinos that the city relies on for tax revenue. (Image: destination360.com)
Detroit’s financial issues have actually been covered extensively throughout the year that is past. As a result regarding the city’s bankruptcy, it has also become typical knowledge that the town is relying heavily regarding the revenues from Detroit’s three casinos to hold it afloat. Unfortuitously, it seems like even those reliable revenue streams have actually been slipping in recent months.
Based on the latest numbers through the Michigan Gaming Control Board, the three Detroit casino-bonus-free-money.com casinos saw their revenues fall 7.3 percent year-over-year in March. Combined, the three venues MGM Grand, Motor City and Greektown introduced 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 contrasted to March 2013. The Greektown saw the sharpest drop regarding the three casinos, with monthly revenues falling 10 per cent to $31.2 million.
Tax Dollars Essential for City
For the city, those reduced revenues also mean less into the way of vital tax dollars. Detroit collected $10.1 million in tax income from the casinos in March, down from $10.9 million a year earlier.
That continues a trend which 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 year that is last and could fall even further throughout 2014.
A few Grounds For Drop Proposed
The timing of the fall might be traced to increased competition in the area. For instance, revenues are clearly down considering that the Hollywood Casino Toledo opened in 2012. When compared with the very first quarter of 2012 the final full quarter before Hollywood began doing business Detroit’s casino revenues were down 12 percent in 2014’s first three months.
That’s just one single of several Ohio gambling enterprises which were approved by voters for the reason that continuing state in 2009. In total, four new casinos and two brand new racetracks were exposed in Ohio over the past two years.
But other factors can also be in play, as casino revenue has been down around the region that is entire including in Ohio and Indiana. Along with a potential saturation associated with the casino market, the terrible weather that area residents suffered through was additionally cited as a possible cause. Some have also pointed to modifications in player behavior, saying that casual players merely are not spending money at casinos at the minute.
‘we do think more than anything else it’s the pressure they’re feeling by themselves spending plan that is affecting us and others to their spending in this industry,’ said Penn National Gaming CEO Tim Wilmott during a February media seminar call.
Casino Revenues Critical to Bankruptcy Deal
After income taxes and the aid of the state, casino wagering taxes are Detroit’s next biggest source of revenue, accounting for approximately 16 percent of the city’s earnings.
That can help explain why casino revenues were such a contentious issue whenever city filed for bankruptcy protection year that is last. Detroit had used the casino income tax income as collateral in 2009 to avoid defaulting on the town’s pension debts. But when that deal went sour and a settlement with the banks proved difficult to come by, it showed up as though those casino revenues could potentially head to those institutions as opposed to the city which may have caused an immediate spending plan collapse.
But final week, a federal bankruptcy court agreed to a deal that would see Detroit spend $85 million to UBS and Bank of America in monthly installments of $4.2 million, therefore ensuring that Detroit could restructure its debt and continue to gather casino revenue.
Crown Resorts prepared 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 US gaming market, but that’s not stopping him from giving the US a 2nd try. According to reports out of Australia, Crown Resorts the gaming company owned by Packer is planning to enter in to the fight to take over The Cosmopolitan of Las Vegas.
Crown is likely to be just one of several companies that will take a good look at purchasing the sprawling casino resort on the Strip. With almost 3,000 resort rooms, it would give any owner a major stake in America’s gambling hub that is biggest. Currently, The Cosmopolitan is owned by Deutsche Bank.
Packer Longing For Better Luck in Second US Venture
This would mark the second time Packer has tried to invest in US casino properties. The attempt that is first not end well for their firm.
Around the time of the 2008 crisis that is financial Crown purchased about $2 billion worth of properties into the United States, including stakes in the never-built Fontainebleau Resort and in Station Casinos. Those investments cost the company billions of bucks, causing Packer to shy away from the United States in more recent moves to expand their company’s global reach.
But it now seems that Packer feels Crown is in a position that is financial will let the company to grow throughout the globe. Already, Crown has guaranteed the rights to build a $1.2 billion casino complex in Sydney that will cater exclusively to rollers that are high. Another $400 million is at risk for a casino to be built in Sri Lanka, and Melco Crown (a venture that is joint Crown is greatly invested in) will be developing casinos in Macau and the Philippines.
Then there’s the investment that is potential Japan, that is prone to legalize casinos ahead of the 2020 Summer Olympics in Tokyo. Packer has recently said he be granted a license for a casino in Japan, perhaps the world’s last great untapped casino market that he would be willing to invest as much as $5 billion in a casino there should.
That’s a great deal of outlay, and also The Cosmopolitan would be a purchase that is pricey well. The casino resort is expected to fetch a price of just as much as $2 billion once the sale is manufactured.
Cosmopolitan Off to Slow Start
But whilst The Cosmopolitan is a highly valuable home that will attract a lot of interest from investors, it hasn’t been a really effective one in its short history.
Dilemmas for the casino began even before it opened. In January 2008, owner Ian Bruce Eichner defaulted for a loan, causing Deutsche Bank to own the property. That left the bank in the odd position of owning and operating a casino perhaps not something that they had prepared on.
But Deutsche Bank did complete the place, ultimately investing about $4 billion to complete the resort and casino, making the Cosmopolitan one of the more casinos that are expensive vegas. The complex features 100,000 square feet of gaming space, along with extensive retail and space that is restaurant.
Since starting by the end of 2010, The Cosmopolitan has drawn an abundance of visitors using its upscale-yet-hip branding campaign. However, gaming profits have still been weaker than anticipated, and the property lost $298.3 million in its first 3 years of operation.