The Massachusetts Gaming Commission Issues a Positive Determination of Suitability for Mass Gaming & Entertainment, LLC

Today the Massachusetts Gaming Commission (MGC) voted 4-0 to find Mass Gaming & Entertainment, LLC (Applicant) and its partnering entities suitable. The positive determination of suitability allows the Applicant to continue with its pursuit of the Category 1 (resort-casino) license for Southeastern Massachusetts (Region C).

The application for a gaming license has two parts. The first, called the Phase 1 application, essentially focuses on the qualifications and suitability of the applicants and its “qualifiers” (entities and individuals) to hold a gaming license. The Phase 2 application is ‘site specific’ and focuses on site, design, finance, operation, community mitigation and other attributes of the gaming facility itself. As one of the prerequisites to submitting a Phase 2 (and final) application to the Commission outlining the specifics of its proposal for a gaming establishment, all applicants must first be issued a positive determination of suitability by the Commission. The burden is on each applicant to establish its suitability to hold a gaming license by “clear and convincing evidence.” To that end, all applicants that submitted a Phase 1 application have subjected themselves to a thorough background investigation of all its qualifiers, both individuals and entities.

In January 2015, Mass Gaming & Entertainment, LLC applied to the MGC for a resort-casino license for Region C. Previously, on July 11, 2013, the Commission issued a positive determination of suitability to the Applicant in connection with its phase 1 application for a category 2 (slots) license. MGC’s Investigations and Enforcement Bureau (IEB) updated its investigation of the Applicant’s phase I suitability and presented its findings to the Commission during public meeting on May 6, 2015.

After a comprehensive and thorough review, the IEB did identify several concerns regarding previous regulatory violations reported in other gaming jurisdictions; however, the Bluhm-affiliated properties have a history and reputation for self-reporting, instituting corrective actions, and paying regulatory fines in a timely fashion. Taking into consideration the entirety of this investigation, including the background investigations of all of the qualifiers, the IEB concluded that the Applicant and each qualifier established their phase 1 qualifications for licensure by clear and convincing evidence, including the statutory criteria of integrity, good character, honesty, reputation, financial stability, financial integrity, and financial responsibility.

On the basis of the updated investigation to date, the IEB recommended that the Commission find the Applicant, Mass Gaming & Entertainment, LLC, suitable for licensure, subject to certain conditions. The Commission accepted the recommendation and imposed the four conditions.

The IEB’s findings of fact are set forth in the Updated Report available here. The required conditions are found on page 69 of the report (or page 73 of the PDF).

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