Boston says no to Wynn talks

The Massachusetts Gaming Commission asked its staff on Tuesday to review similar agreements between local cities and towns and casino operators as it decides what steps it will take. It also requested that staff gather information about possible casino impacts on Boston from a broad range of sources, including Wynn, the city, the commission's consultants and community members.

The move by Walsh, announced last Thursday at a press availability outside Boston City Hall, came as a surprise to casino watchers in Massachusetts as it kicks the decision making process for Boston's surrounding community agreement with Wynn to the commission. Under state law, the commission can now decide what, if anything, Boston should receive in annual mitigation payments from Wynn for their project as part of a surrounding community agreement.

Reaching financial deals with municipalities is a key part of seeking a state casino license. The deals are meant to compensate qualified cities or towns for any impacts to local services or traffic that rise from a new casino.

Last week, Boston reached a deal worth roughly US$ 300 million over 15 years with Mohegan Sun, which proposes a US$ 1.3 billion resort in Revere, the largest of its kind in the state. However, the city had been unable to reach an agreement with Wynn.

Arbitration was to begin earlier this month, but Walsh said the city would decline to participate. Under that process, each side would have submitted a "best and final offer" and a neutral arbitrator would have picked one.

Boston risks millions of dollars in annual payments by opting out of arbitration. Under state regulations, the gaming commission can rule that by refusing to participate, Boston waived its rights to be designated a "surrounding community" to the Wynn project.