Massachusetts Expanded Gaming Act

Massachusetts Expanded Gaming Act. The Massachusetts Expanded Gaming Act, formally known as "An Act Establishing Expanded Gaming in the Commonwealth," is a landmark piece of legislation signed into law in 2011 that legalized casino gambling and authorized the development of resort-style casinos and a slots parlor within the state. Enacted after years of debate, the law aimed to generate substantial tax revenue, create thousands of jobs, and recapture gambling dollars being spent by residents in neighboring states like Connecticut and Rhode Island. The legislation established a rigorous licensing framework overseen by the Massachusetts Gaming Commission and set in motion a highly competitive and often contentious process to select operators and locations for the new gaming facilities.

Background and legislative history

The push for expanded gambling in Massachusetts gained significant momentum in the late 2000s, driven by state budget shortfalls and the success of established gaming destinations like Foxwoods Resort Casino and Mohegan Sun in Connecticut. Previous legislative efforts, including proposals by Governor Deval Patrick and the Massachusetts Senate, had repeatedly failed due to disagreements over the number of licenses and the inclusion of slot machines at racetracks. A key turning point came in 2010 when the legislature passed a bill allowing for two resort casinos and a slots facility, which was subsequently vetoed by Governor Patrick over concerns about no-bid contracts for the slots parlor. After further negotiations between the Massachusetts House of Representatives, the Senate, and the Governor's office, a final compromise bill was reached in late 2011. The legislation was heavily influenced by lobbying from major gaming companies, labor unions like UNITE HERE, and debates over potential social costs, ultimately receiving enough support to override a potential veto.

Key provisions and scope

The Act authorized up to three geographically distinct resort casino licenses, with one designated for each of three regions: Western Massachusetts, Southeastern Massachusetts, and the Greater Boston area. It also authorized a single Category 2 license for a slots-only facility, which could be located anywhere in the state. The law created the independent Massachusetts Gaming Commission, a five-member body vested with full regulatory authority to implement the statute, oversee the competitive bidding process, and enforce all gaming regulations. Key statutory mandates included a minimum investment of $500 million for each resort casino, a 25% tax on gross gaming revenue from casinos, and a 40% tax on revenue from the slots parlor. The legislation also established the Community Mitigation Fund to address local impacts and dedicated portions of state tax revenue to specific funds, including one for local aid and another for the Massachusetts Cultural Council.

Licensing process and casino locations

The Massachusetts Gaming Commission conducted a rigorous, multi-phase licensing process involving extensive background checks, financial vetting, and host community agreements. For the Western Massachusetts region, MGM Resorts International was awarded the license and developed MGM Springfield, which opened in 2018. In the Greater Boston region, a highly competitive process saw Wynn Resorts (later rebranded as Encore Boston Harbor) win the license for a development in Everett, opening in 2019. The slots license was awarded to Penn National Gaming for a facility at the Plainridge Park Casino in Plainville, which opened in 2015. The licensing process for the Southeastern region, which includes Cape Cod and the islands, was notably protracted due to the need to first negotiate a compact with the federally recognized Mashpee Wampanoag Tribe, which pursued a tribal casino under the Indian Gaming Regulatory Act.

Economic and social impact

The implementation of the Act has generated significant state tax revenue, contributing hundreds of millions of dollars annually to the Massachusetts state budget for programs like education, transportation, and local aid. The construction and operation of facilities like Encore Boston Harbor and MGM Springfield created thousands of union construction jobs and permanent employment positions, providing a major economic boost to host cities. However, the expansion has also prompted concerns from public health advocates and organizations like the Massachusetts Council on Compulsive Gambling regarding increased rates of problem gambling. Studies have examined the law's impact on existing businesses, local traffic patterns, and property values, while the promised mitigation funds have been used by municipalities for public safety and infrastructure projects to offset casino-related impacts.

Legal challenges and amendments

The Act's implementation faced numerous legal and procedural challenges. The most significant involved the Southeastern region license, where the Mashpee Wampanoag Tribe's quest for a tribal casino in Taunton was stalled by federal legal challenges to its land-in-trust status, a case that reached the United States Supreme Court. This uncertainty led the Gaming Commission to eventually open the region to commercial bidders, with Commission ultimately awarding a license to Southeast Asian Gaming for a project in Taunton. Other lawsuits challenged the suitability of license winners, the validity of host community referendums, and zoning approvals. The law has also been amended several times, including changes to the distribution of gaming revenue and adjustments to the licensing timeline, reflecting the complex and evolving nature of establishing a new industry within the Commonwealth. Category:Massachusetts law Category:2011 in American law Category:Gambling in the United States