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Massachusetts Senate Passes Casino Bill
Focuses on Job Creation and New
Revenues for the State
BOSTON - The Senate on Thursday with a 25-15 vote passed gaming
legislation authorizing three resort casinos in separate geographic
locations of the state that could generate more than $350 million
annually for the Commonwealth, 15,000 full-time permanent jobs and up to
9,000 immediate construction jobs.
An independent study commissioned by the Senate also indicates the
Senate plan would bring additional revenues for the Commonwealth, more
than $250 million annually, from onsite hotels and the full-spectrum of
attractions associated with destination resort-style casinos.
The bill sets casino-funded requirements for community mitigation,
addiction services and local aid stabilization, and establishes a law
enforcement and regulatory structure to ensure thorough and vigorous
oversight of the gaming industry.
"Casino gambling will be a significant change for Massachusetts, and we
took the right approach to ensure public analysis and input over the
past year and to allow impassioned debate in the Senate," Senate
President Therese Murray (D-Plymouth) said. "I believe we have produced
a bill that takes into consideration the Commonwealth's reputation as a
cultural destination and a place where tourism thrives and where tourism
continues to be a big part of our allure and our economy.
"We have produced a bill that is responsible to the public and will do
what's best for our overall economic interests, creating short-term
construction jobs and permanent long-term jobs," Murray continued. "With
the development and commitment to robust, profitable resort casinos that
offer a wide range of services and attractions, we will help our economy
grow and capture significant revenues for the Commonwealth currently
being lost to other states."
"With this legislation, we have the potential to create thousands of
jobs for working families, including both short-term and long-term
construction jobs and up to 15,000 permanent jobs," said Senator Karen
Spilka (D-Ashland), the Senate Chair of the Joint Committee on Economic
Development and Emerging Technologies. "This bill creates strong
provisions for community mitigation, including local advisory councils
and upfront impact fees.
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"It also takes an aggressive approach to problem-gambling, requiring a
baseline study for the treatment of addiction before casinos even enter
the state and ongoing research on the impact of casinos on both
individuals and the Commonwealth," Spilka continued. "Further, to ensure
that we support all of the economic development activities in the state,
this bill dedicates more than $130 million to an economic development
fund that will fund our existing programs and invest in initiatives,
such as STEM education, that will prepare our workforce for the future."
"I want to thank my colleagues for their spirited debate," Senator
Stanley Rosenberg (D-Amherst) said. "We now have a strong proposal that
will maximize job creation, help capture revenues lost to other states,
and create mechanisms to address potential impacts. When Senate
President Murray appointed me as the Senate's neutral point-person on
gaming three years ago, I vowed that I would seek to find the best
result for Massachusetts regarding whether to allow casinos within our
borders. I truly believe this bill meets that goal."
The three resort casino licenses established under the bill are
distributed among county-drawn regions - East, Southeast and West. The
East region includes Suffolk, Middlesex, Essex and Worcester counties.
The Southeast region includes Norfolk, Plymouth, Bristol, Dukes and
Nantucket counties. The West region includes Hampden, Hampshire,
Berkshire and Franklin counties. A provision proposed by Senator Spilka
that was accepted in the bill would prevent casinos from being located
within a 40 mile radius of one another, thereby spreading the revenue
generation and job creation throughout the state.
In addition to projected annual revenues, a one-time, up-front licensing
fee of $75 million applies to all three regions for a total collection
of $225 million for the state. Those funds would be distributed as
follows: $105 million to the state's Stabilization Fund; $85 million for
local aid; $20 million for start-up costs; and $15 million for community
mitigation.
The bill does not designate any licenses for racetracks or former
racetracks, though any qualified bidder may apply. There will be an
open, competitive and transparent bidding process for all applicants of
all three licenses. An applicant must show financial viability through a
rigorous disclosure process and execute an agreement with the
prospective host community and the impacted surrounding communities that
includes a local impact fee and a referendum vote by the host community.
The legislation sets a 25 percent daily tax rate on gross gaming
revenues to generate the estimated $350 million annually from gambling
activities. Thirty percent of those revenues would go toward
Commonwealth debt reduction; another 30 percent to the Gaming Economic
Development Fund for statewide economic development programs; 30 percent
to the state Lottery and Gaming Fund to protect Lottery aid and
supplement unrestricted local aid; and 10 percent to the Gaming
Mitigation Fund for social, community, cultural and racetrack relief.
The bill's Gaming Control Board would be responsible for administering
mitigation funds from initial licensing fees and gross gaming revenues.
The Board consists of three full-time members appointed by the Governor
for four-year terms. Additional responsibilities include drafting
proposed regulations, reviewing license applications, performing casino
and financial audits to ensure compliance with applicable laws,
approving gambling machines, and monitoring daily gross gaming revenues.
The bill strengthens law enforcement efforts, creating a special unit
within the Attorney General's Office with dedicated state police
resources to for the investigation and prosecution of gaming-related
crimes.
The legislation also puts in place a focused regulatory structure
containing significant new laws for money laundering and enterprise
crime, as well as changing the wiretap laws to specifically include
authority where gaming crimes are suspected.
Crimes of money laundering - those financial transactions resulting from
criminal activity related to gambling - would be punishable by up to six
years in prison or a fine up to $250,000 (or twice the value of the
property transacted), or both. Subsequent offenses are punishable by up
to 8 years in prison or a fine up to $500,000 (or three times the
transaction value), or both.
Enterprise crime - or cooperative, organized criminal ventures related
to gambling - would be punishable by up to 15 years in prison or a fine
up to $25,000, or both. Those crimes include prostitution, child
exploitation, and the manufacturing and distribution of narcotics.
The bill also adds new crimes of licensure violations, making false
statements to the gaming board, underage gaming, and possession or use
of a cheating or swindling devices.
Finally, the legislation defines state and local jurisdictions.
Massachusetts State Police would be the primary enforcer inside a casino
and share jurisdiction with the host community's local police on other
matters according to arrangements worked out in a memorandum of
understanding facilitated by the gaming board. Those matters would
include things such as police details and use of local police at
casinos; 9-1-1 calls and emergency response; and internal
investigations.
During the eight days of public debate in the Senate, the bill was
amended to include a smoking ban in all casinos; a two-year extension on
simulcasting at the state's racetracks; local ward approval for cities
larger than 125,000 population; property tax relief for senior citizens;
and the removal of a land restriction in Fall River to allow
construction of a casino.
The Senate legislation will now go to a conference committee where
differences will be worked out with a bill passed by the House of
Representatives.
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