With only hours left until a license-filing deadline, owners of Connecticut’s Mohegan Sun appear to be facing at least three competing proposals to put a resort casino in western Massachusetts.
With the deadline to file for Massachusetts’ three casino licenses looming at 5 p.m. Tuesday, the Mohegan Tribal Gaming Authority was the last in the state’s western region to submit the $400,000 application fee for its $600 million proposed resort on 152 acres in Palmer, about 46 miles northwest of Hartford.
Facing off against Mohegan Sun for the lone western Massachusetts license are a $800 million proposal by Hard Rock for West Springfield and separate $800 million proposals by Penn National Gaming and MGM Resorts for downtown Springfield.
In filing its application late Monday, the Mohegans announced a new partnership with $12 billion New York City investment advisor Brigade Capital Management to finance the Palmer casino’s construction. With the strong financial backing, the Mohegans hope to get a leg up on the other competition for the license.
When the Massachusetts casinos eventually open, they will further erode the customer base and revenues of Connecticut’s two resort casinos – Mohegan Sun in Uncasville and Foxwoods Resort Casino in Mashantucket. The two casinos once held a duopoly in the Northeast but now face competition from casinos in New York, Rhode Island, Pennsylvania, and soon Massachusetts.
In addition to the four competing for the western license, Las Vegas operators Caesars Entertainment and Steve Wynn are competing for the license in the Greater Boston area.
Moreover, the Wampanoag tribe of Mashpee is likely to get the license for southern Massachusetts. Aside from the three casino licenses, Massachusetts is allowing for one slot parlor, and Plainridge Racecourse is the only applicant for that license.
To be considered for a license, the Massachusetts Gaming Commission requires all proposals to pass a voter referendum in their respective communities. The commission then expects to award the licenses by Feb. 26, 2014.
