Operator News
US – Caesars forced to withdraw from Suffolk Downs racino bid
By Phil - 21 October 2013
Suffolk Downs’ race course owners has asked Caesars Entertainment to withdraw from a casino project competing for the sole Greater Boston resort casino license due to concerns that the international casino operator would fail its mandatory state background check.
Less than three weeks before East Boston cast its votes on which of the casino proposal will win out with a series of referendums, Caesars will now be replaced with another casino operator.
After receiving a briefing from the commission’s staff, Suffolk Downs’ owners said it was still confident the racino project will be deemed suitable to bid for a license, just not with Caesars as a partner.
Suffolk Downs Chief Operating Officer Chip Tuttle said: “Based on recent information and the briefing we received from investigative bureau of the Massachusetts Gaming Commission, we have asked our management partner, Caesars Entertainment, to withdraw as a qualifier from our license application. We are confident that Suffolk Downs will be deemed suitable for licensing as we work to earn a gaming license in the Commonwealth. As a result of the briefing we have asked our management partner, Caesars Entertainment, to withdraw as a qualifier from our license application. We will immediately begin a public communications initiative to notify our host communities of this change. We look forward to the next phases of the public process to bring to fruition our proposal to develop a world class destination resort casino on our 161 acre property that will be an economic generator for our two host communities of Boston and Revere.”
The report has not been made public, however it is believed that concern was raised about one of Caesars’ business relationships outside the US with a person alleged to have family members involved in organised crime.
A spokesperson for Caesars, who agreed to withdraw from the project, said: “Caesars Entertainment, which is licensed in more jurisdictions than any other gaming company, has decided to withdraw its application to develop a casino in Massachusetts. We believe that the Gaming Commission is attempting to set suitability requirements that are arbitrary, unreasonable, and inconsistent with those that exist in every other jurisdiction.”
Mayor Thomas Menino has already signed a host agreement with Suffolk Downs. His spokesperson said: “The mayor is very happy that the Massachusetts Gaming Commission has been diligent in their efforts. While the mayor is pleased that Suffolk Downs is moving forward in seeking a new operator for their gaming operations, his first priority is protecting the interests of the city and especially the residents of East Boston. Our host community agreement includes, in small part, Caesars Entertainment, and the city will seek clarity in how events could impact the overall agreement with Suffolk Downs.”
The vision for the project will remain the same.
The casino will cover approximately 200,000 sq. ft. of gaming space and will house 4,000 to 5,000 slots, 200 table games, and a World Series of Poker room.
The proposed billion-dollar development is expected to be the most sustainably designed and built resort casino in the world. It will feature world-class amenities, including hotel, dining, spa, entertainment space and live thoroughbred racing in addition to gaming space and a World Series of Poker room. As part of its agreement with Boston, the developers have made upfront and ongoing financial commitments to each community. These commitments include combined, estimated annual payments of $52m to Boston once the resort is fully operational. The amount of the payments is determined in part by the resort’s performance and includes anticipated impact fees as well as tax payments. In addition to the annual payments, the agreements include more than $33m in one-time community investment, including capital commitments related to education, parks, public health, arts, public safety and more than $45m in transportation and infrastructure improvements.
Five applicants have passed background checks: Penn National Gaming, Cordish Cos., Raynham Park and partner Greenwood Racing, Mohegan Sun, and Rush Street Gaming. However, Rush Street withdrew its bid to develop a slot parlour in Millbury.
