Shifty speculation in Massachusetts; Hoosiers spend more

Two Boston-area mayors are digging in against a slot parlor proposed for Revere. New Revere Mayor Brian Arrigo and Somerville Mayor Joseph Curtatone (below) have both Curtatonevoiced opposition to the project, which would be near Suffolk Downs (the ballot question is worded in such a way that no other site in the state would be eligible). Wannabe casino owner Eugene McCain has spent at least $6.5 million snapping up land near the racetrack. “I am making offers on many properties, but this is not something I can presently address as these are private discussions and contingent transactions,” McCain told the Boston Globe from his hideout in Thailand. McCain has good reason to keep a low profile, since his colleagues include a convicted felon — something you think would get his project nixed by the Massachusetts Gaming Commission outright.

McCain claims to have an (unnamed) gaming operator lined up and a hotel deal with Accor-Novotel. His stated aim is “to preserve the proud New England tradition of horse racing.” MGC Chairman Stephen Crosby is not convinced, saying, “To change in any fundamental way the basic competitive environment that our licensees, the casino operators, have bought into during their license period, would not be fair. It would be prejudicial.”

More ominous still, McCain has been seen in the company of slippery casino speculator Shawn Scotta five-time loser where gaming licenses are concerned — and his sidekick, convicted thief Hoolae Paoa. McCain basically says it’s all a big coincidence, although one property seller told the Globe their check was signed by a Scott associate. Another seller thinks a big flip is in the wings: “There’s a lot of money involved. My feeling is they’re lining up the property and putting a package together. They will take their chunk of change and leave.” The negotiations have certainly been colorful. “He was wearing skin-tight jeans and was playing with his gold chain,” Route 1A body shop owner John Ford said of a McCain sidekick. “We were at the last table at the end of the [Starbucks] and they moved the chairs to set up a barrier. The whole thing was bizarre.”

wynn_night-fullCurtatone says the slot parlor is doomed once Wynn Boston Harbor opens, “How would the economy absorb this? … we are setting ourselves up for failure if this passes.” That’s somewhat disingenuous, considering that Curtatone is trying to kill Wynn Boston Harbor at the same time. Suffolk Downs is maintaining neutrality while Penn National Gaming is claiming impartiality with a strong undertone of opposition. Said spokesman Eric Schippers, “While we haven’t decided whether we’ll engage in the fight over this ballot question, we think the more Massachusetts voters learn about this effort and who’s behind it, the more the opposition will grow.”

Not only would an election victory run a cart and horses through Massachusetts’ statutory limit of three casinos and one slot parlor, it would threaten to legitimize Scott and Paoa … good enough reason to vote against it.

* Wall Street analysts and gaming companies have been telling us that June would provide a more reliable barometer for the regional casino industry than did May. In Indiana, customers are going a lot less (-9%) and spending a good deal more (+7%). The state was 3% down for the month, led by Horseshoe Hammond, which weathered an Horseshoe-Southern-Indiana-288x17211% decline for a $29 million gross. Bringing up a distant third was another Caesars Entertainment property, Horseshoe Southern Indiana, grossing $19 million for a 4% decline. Sandwiched in between them was Indiana Downs, gaining 5.5% for $21 million. Hollywood Lawrenceburg, once a real powerhouse, did manage a 7% gain ($14 million). Pinnacle Entertainment had a droopy month, with Ameristar East Chicago and Belterra each off 9%, grossing $16 million and $9 million, respectively.

Full House ResortsRising Sun was flat (a measly $4 million), as was Boyd Gaming‘s Blue Chip ($12.5 million), while the two Majestic Star boats went in opposite ways, the first up 2% (7.5% million), the second — a former Donald Trump vessel — down 3% ($5 million). French Lick Resort had a good month, up 13%, to $7 million. Hoosier Park didn’t, down 8% and grossing $16 million. Finally, plucky Tropicana Evansville posted its usual good numbers, grossing $10 million for a 6% gain.

* Rivers Casino is fed up with Pittsburgh‘s municipal gaming tax and wants its money back. According to the Pittsburgh Tribune, Neil Bluhm‘s casino maintains the tax “is unconstitutional because it applies different tax rates to casinos and doesn’t tax all casinos Rivers Casinoequally in terms of revenue from slot machines that goes to municipalities.” Luckily for Rivers — and all other Pennsylvania casinos — it has never exceeded the $500 million annual revenue threshold that would require it to turn over 2% of all slot revenue. (The high-water mark was Parx Casino‘s $388 million in fiscal 2011-12.) If the $500 million mark is not breached, Bluhm’s SugarHouse Casino in Philadelphia is obligated to pony up 4%. It is discrepancies like this that prompted Rivers to argue that the levy is unconstitutional. The casino joins Harrah’s Philadelphia and Mt. Airy Casino Resort in taking the issue to court. Vowing to fight Bluhm “vigorously, Pittsburgh Mayor Bill Peduto said, “Rivers Casino knew about this funding commitment prior to applying for their license, and knew this funding was due to the city for hosting them.” Our view? Go Steelers!

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