Editorial

Gaming Panel Got Competition It Wanted

When Stephen Crosby, the chairman of the Mass. Gaming Commission, sat down for an interview with BusinessWest nearly a year ago in the restaurant at the Newton Marriott, he spoke at length about the process that would soon commence to identify casino operators who would be granted the coveted licenses to do business in the Bay State.

He used words like ‘public,’ ‘transparent,’ and ‘optimize’ to describe both this process and the goals for it. But the term he came back to repeatedly was ‘competition.’ Paraphrasing the so-called casino czar, he said the Gaming Commission didn’t want to merely award licenses, it wanted to create intense competition for them.

A year later, that goal has been accomplished, even though at times it didn’t look that way, especially in the eastern part of the state.

Indeed, by Jan. 15, the deadline to file extensive financial documents and pay a non-refundable $400,000 fee, there were 11 players in the mix, including four in the Western Mass. region, and two who have undetermined locations and could conceivably intensify the battle already taking shape within the 413 area code. Chicopee Mayor Michael Bissonnette has a site at the Cabotville Industrial Park, for example, that could come into play.

What people will soon realize, if they haven’t already, is that, when it comes to the fight for a casino license, competition is a very, very good thing. Look at the battle taking shape in Springfield as just one example.

Already, MGM Resorts and Penn National Gaming Inc. (in partnership with Peter Picknelly) seem to be trying to outdo each other when it comes to who can do the most for Union Station, one of the economic-development priorities identified by city officials. MGM says it will lease 44,000 square feet in the long-dormant station for a training institute that includes a hiring center, training rooms, and a regional call center — and it is taking out full-page ads in the local paper to announce these intentions. Penn National, meanwhile, says it will be catalyst for new development in the station by leasing office, retail, and garage space, and linking the station to the casino complex with a skywalk. These plans can now be seen on the sides of Peter Pan buses.

But it goes much deeper than Union Station. The dueling casino operators are announcing their presence, and their intentions, with philanthropic initiatives that indicate that 2013 should be a great year for organizations ranging from the Spirit of Springfield to Square One to the Dunbar Community Center.

And now, the competition is truly regional. In addition to the two Springfield proposals, there is the Mohegan Tribal Gaming Authority’s plans for Palmer, and Hard Rock International’s recently released plans for a casino complex at the Big E. As a result, the Springfield proposals not only have to compete against each other, but also against the other area players.

This should prove very beneficial for the Western Mass. area as a whole because it should — that’s should — result in a casino project that takes a more regional approach, and becomes much more than a contest to see who can take the most square footage in Union Station or write the most checks to area nonprofits. The casino will be located in one city or town, but it will impact a number of communities, to one extent or another, and the final plans should reflect this.

People in business all say they love competition (although most would probably admit privately that it is more of a love/hate relationship) because it makes them try harder, never allows them to rest easily, and drives them to continually raise the bar.

As the battle for the coveted Western Mass. casino license reaches its next critical stage, this region will find out why Crosby placed such heavy emphasis on competition. It’s because, when it exists, there are far more winners than those who are granted the casino licenses.