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More Details Of Senate Gambling Proposal Bared

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Last week, the Massachusetts Senate presented in a caucus their own version of a gambling proposal which would authorize three casinos spread out geographically across the state. The bill does not call for slots at the state’s four racetracks, in contrast to the House-approved version. This week, as it gets ready for a public hearing scheduled on Tuesday, the Senate disclosed additional details of the bill. A very tense public hearing on the bill is expected because of the completely conflicting proposals of both chambers.

The Senate bill further proposes that the gambling licenses of the two casinos would be awarded to the most qualified casino developers after applicants have gone through a competitive bidding process. The third casino license would be assigned to a federally recognized Indian tribe. No price has yet been set on the licenses and the required minimum investments for each casino. The draft bill also requires casino developers to pay host communities an “impact fee.” The developers will also be asked to submit proposals that exhibit “fiscal soundness and benefit to the Commonwealth,” which would have to pass a local referendum.

The Senate wants to pattern the gambling regulating system in the state after Nevada’s approach in which a gaming commission would lay down the rules for the casinos and for licensing and a control board in coordination with the State Police would regularly check the gambling activities and see to the dispensation of the rules. The Senate has named four state programs that would become likely beneficiaries of casino revenue if the bill would require part of the revenue from gambling to fund some state programs, namely, funding regulation of the industry; balancing losses in Lottery revenue for communities; refilling the state’s rainy day fund; and paying for the consequences that the host communities would have to put up with, such as gambling addiction.

Sen. Steven C. Panagiotakos is the chairman of the Senate Ways and Means Committee which will conduct Tuesday’s public hearing on the proposal before it is taken up in a debate in the full Senate floor. The Senator said people are excited to see where the votes would go after having the debate. He said during the closed-door caucus, divisions in opinion among the Senators became apparent, adding that the committee members are also split. He said the factions in the Senate consist of those who are opponents of any form of expanded gambling, those who are not in favour of a casino proposal with slots at the tracks, and those who will vote for casinos as long as slots are allowed at the racetracks in their districts. He confirmed the possibility of the bill not passing when it comes up for a vote, but he said it’s not really a certainty, but there is a slim chance.

If the Senate bill is approved, the conflicting proposals of the House and the Senate would have to be resolved by a conference committee. The House bill which was passed by the members of the House proposes for two casinos in locations that have not been identified and 750 slots at the state’s two horse tracks and two dog tracks. Gov. Deval Patrick has already made known his preference for casinos to slots at tracks because he said there are more jobs generated by resort-style casinos as those facilities generally have hotels, retail stores, and the like.

Senate President Therese Murray agrees with the governor and is also supporting the proposal on casinos but not slots at tracks. Murray, incidentally, has announced that a few days after the public hearing on Tuesday, she will be in Ireland in June 11-18. Her spokesman, David Falcone, said it will be a “short economic development trip” where she is slated to be the keynote speaker at the European Connected Health Leadership Summit in Belfast, aside from other commitments.