Las Vegas Las Vegas East: Casino Boom Raises the Stakes in New England

By JON KAMP

The looming arrival of Las Vegas-style gambling in Massachusetts has prompted new looks at adding casinos in at least two neighboring states, heightening the competition for gamblers’ dollars in an already congested market.

During the past decade, more casinos have opened from the mid-Atlantic to Maine than in any other part of the country. That has put pressure on states that moved into the market early, especially those that have come to rely on revenue from casinos.

The closure of four casinos in Atlantic City last year—New Jersey is now hemmed in by gambling in nearby states—exemplifies the risk that casino bets don’t always pay off. Competition is also pressuring Delaware, where state officials are debating a potential $46 million relief package to support three racetrack casinos hurt by newer Maryland and Pennsylvania competitors.

Still, adding new casinos to try and keep business, or compete for it, can be more politically palatable than raising taxes, said the Rev. Richard McGowan, a casino expert who teaches at Boston College.

After Massachusetts solidified its plan in November to open several casinos, thanks to voters’ backing of a 2011 pro-casino state law, proponents in other states are stirring.

A New Hampshire lawmaker plans to introduce a bill soon that would allow two casinos there. It would follow a bill that passed the Senate last year, only to lose by a single vote in the House.

The Massachusetts buildup means “if you’re gonna do it, you better do it now,” said Lou D’Allesandro, the state senator, a Democrat who has long pushed bills for casinos in New Hampshire. Democratic Gov. Maggie Hassan supports the concept, though she backs “one highly regulated destination casino,” a spokesman said.

Steve Duprey, co-chairman of the group Casino Free New Hampshire, is worried casinos will hook his state on a revenue source that has proved erratic elsewhere. Typically, each state with casinos has an agreement to collect a certain percentage of gambling revenue.

In Connecticut, the Native American tribes behind the Foxwoods Resort Casino and Mohegan Sun facility are discussing jointly running a smaller casino in the northern part of the state, said Mitchell Etess, chief executive of the Mohegan Tribal Gaming Authority.

The tribe that runs Foxwoods has said it is interested. Martin Looney, Democrat and president pro tempore of the Connecticut Senate, said the idea may require complex negotiations between lawmakers and tribes, plus support from Democratic Gov. Dannel Malloy. A spokesman for Mr. Malloy said he hasn’t previously considered a third casino. But “it may be attractive just because it’s a non-tax source of revenue,” Mr. Looney said.

The hope is to counter a looming threat from a $1.6 billion Wynn Resorts Ltd. complex planned outside Boston—the license award there has sparked multiple lawsuits against a state regulator—and an $800 million MGM Resorts International casino coming to Springfield. Both could open in 2017 and threaten casino jobs and revenue in Connecticut—particularly because the MGM facility would be just 26 miles north of Hartford, significantly closer for gamblers there than Foxwoods and Mohegan, which are in the southern part of the state.

The latest Connecticut forecasts project state revenue from casinos—already hurt by competition to the south—will plunge 25% to $190.8 million in fiscal 2018.

Mohegan also wanted a Boston-area license and is fighting the Wynn award in court. Foxwoods also tried to get a license in Massachusetts.

A slots parlor at a racetrack in southeastern Massachusetts scheduled to open in June is causing concern in nearby Rhode Island, which relies heavily on revenue from the Twin River Casino near Providence. That facility, which added table games in 2013, said on Jan. 20 it now wants a small hotel. The competition is on for another resort-style casino the Massachusetts law allows in that same part of the state.

“In a few short months we will begin to compete against a Massachusetts racino just 12 miles from our front door,” said John Taylor, Twin River’s chairman, in a release.

—Scott Calvert contributed to this article.

Write to Jon Kamp at [email protected]

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Twin River in Rhode Island is even considering adding poker tables finally to try and compete with Mass.