Gaming Commissioners Leaning Toward Wynn Casino Proposal
The Massachusetts Gaming Commission may be nearing a decision on whether Wynn Resorts or Mohegan Sun will receive the Boston-area casino license.
The gaming board is discussing its commissioners’ individual preferences between the two bids. Ahead of a vote, Wynn has a 3-1 advantage on the board.
Commissioners Gayle Cameron, Bruce Stebbins, and Enrique Zuniga all came out in favor of Wynn. They said they felt more comfortable with Wynn’s financial footing and long-term stability. Stebbins and Zuniga both said their preference is “strong,’’ while Cameron said hers is “less clear.’’ In May, the board vowed it would not end the process in a tie.
Commissioner James McHugh, who favors Mohgan Sun, said he agrees Wynn has a “slight edge in potential yield.’’ But he said he favors the Mohegan Sun proposal because of concerns about Wynn’s ability to ultimately get development underway, due to open-ended elements of its plan—like how it will handle traffic at Sullivan Square in Charlestown or navigate Massachusetts environmental law, and its less-than-friendly relationships with nearby communities.
A vote, which has been expected this week, could follow discussion (though could remains a key word).
“We have reached a take-it-or-leave-it stage,’’ McHugh said Tuesday around noon.
If the commissioners hold their opinions through to the vote, Wynn would be in line to receive the license.
McHugh was referring to the ironing out of final conditions for both Mohegan Sun’s Suffolk Downs bid and Wynn’s planned casino, which were arrived at after board discussions Tuesday morning.
After discussing the conditions, the board pored over some of the numbers related to the proposals, including the construction jobs expected from each (Wynn seems to have the edge there) and the more than 1,100 race track jobs at Suffolk Downs. The Mohegan Sun proposal is expected to keep the track operating.
Earlier, the gaming board heard from representatives of both Wynn and Mohegan Sun as the two sides responded to outstanding questions and concerns from the board about their proposals to kick off the meeting.
Wynn had come out strongly against a proposal from the board that it pay penalties for excess traffic at Sullivan Square, which the board and the City of Boston expect to be compounded by the proposed casino.
However, speaking to the board Tuesday, Wynn representatives (including former Massachusetts Governor Bill Weld) agreed to traffic penalties, provided they be capped capped at $20 million over 10 years. McHugh suggested the cap should be boosted to $40 million, but the rest of the commission did not agree.
With that sum in mind, if it gets the license, Wynn could wind up providing more than $75 million in total mitigation payments to the City of Boston—up from a once-best offer of $46 million. Boston and Wynn have not reached a mitigation agreement, as Mayor Martin Walsh has opted to forego arbitration with Wynn after reaching a surrounding community agreement with Mohegan Sun that will pay the city at least $18 million per year.
Wynn also made it clear that it was considering a redesign of its exterior, per the board’s request.
Mohegan Sun, planning to build at Suffolk Downs in Revere, talked about its financing and marketing plans, both of which had captured the concern of the board. Changes proposed by Mohegan Sun in response to conditions levied by the board last week, and discussed at Monday’s gaming board meeting, would see Mohegan Sun and its partner Brigade Capital put more equity into the project, and offer to match any deal at its other resorts at the Massachusetts casino. The new plans seemed to satisfy the commission on Tuesday.
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