Benefits_shutterstock_57862405

What you need to know

  • The Gaming Act allows for up to three destination resort casinos located in three geographically diverse regions across the state and single slots facility competitively awarded for one location statewide.
  • The licensing fee for each resort casino will be an $85 million and requires a capital investment, to include a hotel facility, of at least $500 million. The Commonwealth will receive 25% of gross gaming revenues.
  • The slots facility, which will hold up to 1,250 slot machines, has a $25 million license fee, and a minimum capital investment of $125 million.  The slots facility will be taxed at 49% of its gross gaming revenue.

Resort Casino and Slot Parlor Development

The Gaming Act allows for up to three destination resort casinos located in three geographically diverse regions across the state and single slots facility competitively awarded for one location statewide. The legislation divides the state into three regions to include: Region A (Suffolk, Middlesex, Essex, Norfolk and Worcester counties), Region B (Hampshire, Hampden, Franklin and Berkshire counties) and Region C (Bristol, Plymouth, Nantucket, Dukes and Barnstable counties).

The licensing fee for each resort casino will be a minimum of $85 million and requires a capital investment, to include a hotel facility, of at least $500 million. The Commonwealth will receive 25% of gross gaming revenues. The slots facility, which will hold up to 1,250 slot machines, has a $25 million license fee, and a minimum capital investment of $125 million.  The slots facility will be taxed at 40% of its gross gaming revenue.

The legislation includes a number of key principles to ensure the successful implementation of expanded gaming. The principles include: a transparent and competitive bidding process, maximum long-term value to the Commonwealth, protection for host and surrounding communities, mitigation for social impacts and costs and ensuring the nation’s best and most rigorous public safety, regulatory and enforcement mechanisms.

MGC received Phase 1 applications and the $400,000 application fee from the following entities:

  • MGM Springfield
  • Penn National Gaming, Inc.
  • Hard Rock MA
  • Wynn, LLC
  • Mohegan Sun
  • Sterling Suffolk Racecourse
  • Raynham Park
  • PPE Casino Resorts
  • Crossroads Massachusetts, LLC
  • KG Urban
  • Mass Gaming & Entertainment LLC

The background investigation phase for Category 1 (resort-casino) applicants in Region C will begin upon receipt of applicants’ RFA-1 applications, which are due by January 30, 2014. Each applicant for a gaming license, as well as their qualifiers, will must undergo extensive background investigations to ensure they meet the high standards for good character, honesty, integrity and financial suitability.

MGC has established multiple investigative teams to execute the substantial background investigations. The teams are comprised of gaming experts from the consulting firms, Spectrum Gaming and Michael & Carroll and collectively includes former FBI agents, state investigators, prosecutors, Massachusetts state police troopers, and accountants, all of who have vast experience in all types of investigations, including, but not limited to, background, corruption, organized criminal enterprise and racketeering as well as corporate due diligence and gaming industry backgrounds for the largest gaming entities in the industry.

The due diligence investigations for Massachusetts entity applicants will cover their regulatory history in other jurisdictions, financial stability, compliance plan and history, and recent litigation, among other areas. The investigations for qualifiers – those individuals who are officers, board members or key investors of the applicant – will cover their employment history, criminal record, education, stock holdings and financial suitability, among other areas.

Investigations may take up to six months to complete, dependent on the complexity and number of qualifiers for each applicant.

The background investigations of all applicants for Category 1 (resort-casino in Regions A & B) have concluded. The Phase 2 applications for the resort-casino licenses in Regions A & B are available here. The resort-casino license in Region A (Eastern Mass.) was awarded to Wynn MA, LLC on September 17, 2014. The resort-casino license in Region B (Western Mass.) was awarded to MGM Springfield on June 13, 2014.

The background investigations of all applicants for Category 2 (single slots-parlor) have concluded. The Phase 2 applications for the slots-parlor license are available here. The slots-parlor license was awarded to Penn National Gaming on February 28, 2014.

Regulations governing the Phase 2 process are generally contained in sections 118.00 through 128.00. Find the regulations here.

Stay updated on the Massachusetts Gaming Commission

Sign up to receive the latest gaming news and updates!