Ameristar drops casino resort bid in Massachusetts

The Las Vegas-based firm, which in January completed a us$ 16 million purchase of a former industrial site, said while it still considers its casino proposal superior to others in the region, it did not believe the likelihood of winning the sole western Massachusetts casino license was strong enough to continue its pursuit. “This was a difficult decision that will unfortunately result in us not being able to bring a world-class casino entertainment facility to western Massachusetts,” Gordon Kanofsky, Ameristar’s CEO, said in a statement.

Officials in the city of Springfield were considering casino plans from Ameristar, MGM Resorts and Penn National and are planning to pick one or more of the proposals to send to the state for consideration for the sole western Massachusetts gaming license. Ameristar withdrew from the process Friday.
Springfield Mayor Domenic Sarno lamented the loss of one of the competitors, which leaves MGM Resorts and Penn National in the competition. Less than a month ago, the companies concluded in Maryland what may have been the most expensive and contentious campaign for casino expansion.

Penn National and MGM Resorts combined spent almost us$ 90 million on opposite sides of Question 7, which passed by a 52 percent to 48 percent vote. MGM Resorts supported the measure and is expected to be awarded a license to build a casino in suburban Maryland. Penn opposed the measure because the company believed it should be awarded the gaming license and a new casino in Maryland would take customers from the company’s West Virginia casino.

Springfield’s mayor offered a bit foreshadowing.  “Obviously the city is very disappointed in Ameristar’s decision to withdraw from the competition,” Sarno said in a statement. “Ameristar made a strong proposal for an exciting project that would have given our voters a clear choice as to the type of location that would best serve the city. Nonetheless, I am confident that the proposals of MGM and Penn Gaming will create a robust competition.”

Western Massachusetts has seen the most competition for the one casino license. In addition to the companies pursuing development rights in Springfield, the operators of the Mohegan Sun casino in Connecticut are planning a resort in Palmer. On Friday, two Massachusetts developers made separate moves to apply for a casino in Holyoke, which is just north of Springfield.

Ameristar’s announcement came two days after Wynn Resorts Chairman Steve Wynn toured a potential casino site in Everett, raising the prospect of a battle for the single casino license in Boston with Caesars Entertainment, which has aligned itself with the Suffolk Downs Racetrack to build a casino at the raceway in East Boston.

Under the casino law, the state gambling commission can issue up to three licenses for resort-style casinos, no more than one in each of three regions of the state. The panel also controls one slot parlor license, which can be issued in any region. The state gambling commission has set a January 15 deadline for casino applicants to submit extensive financial documentation and a us$ 400,000 non-refundable fee.