Massachusetts Gaming Commission Ombudsman Presents to Selectmen

Selectmen received a presentation from representatives from the Massachusetts Gaming Commission Tuesday night on the current status of expanded gaming in the commonwealth. 

The presentation allowed Selectmen to ask questions and voice concerns about the current process Tewksbury is going through in deciding whether to move forward with the proposed Merrimack Valley Casino at 300 Ames Pond Drive. 

Penn National Gaming is proposing a $200 million slots-only casino in Tewksbury, and residents will vote on approving the zoning changes necessary to accommodate such a facility at a special Town Meeting on Aug. 20. 

John Ziemba, ombudsman for Mass Gaming, said the category 2 license for a slots parlor Penn National Gaming is currently pursuing has a license period of five years, a $25 million initial license fee, $125 million investment and is taxed at 40 percent of gross gaming revenue with another 9 percent of gross gaming revenue credited to the racehorse development fund. 

Selectman Jim Wentworth said he has heard concern from residents that the slots-only casino could become a full fledged casino if the proposal is approved, and asked Ziemba if this was a possibility.

"The commission only has the ability to issue three category 1 licenses," Ziemba said. "We have a number of applicants that are now competing for those licenses for a 15-year period. Our issuance of category 1 licenses is limited to those."

Category 1 licenses are for resort casinos, have an initial license period of 15 years, an $85 million license fee, $500 million minimum investment and are taxed at 25 percent of gross gaming revenues.

There are currently four applicants for the sole category 2 license - Penn National Gaming in Tewksbury, PPE Casino Resorts in Leominster, Mass Gaming and Entertainment in Millbury and Raynham Park in Raynham. 

Once all applications are submitted for the slots parlor license on Oct. 4, Ziemba said Mass Gaming will evaluate the suitability of each applicant based on five criteria:

• Finance
• Economic Development
• Building and Site Design 
• Mitigation
• General Overview (what about this license applicant's project will make the project unique in the industry and as a destination)

Ziemba said gaming beverage licenses for the slots parlor will be issued by Mass Gaming in coordination with the Alcoholic Beverages Control Commission, and would not count against the liquor licenses the town can currently issue. 

Statute currently allows gaming facilities in Massachusetts to serve alcohol between 8 a.m. and 2 a.m., but Ziemba said the Gaming Commission is currently working to resolve how municipalities could regulate alcohol service at the facilities as to conform with each town's bylaws.

Resident Patricia Meuse, of South Street, said she felt the character of Tewksbury would be lost if the proposed Merrimack Valley Casino were approved.

"My issue is the soul of our town, and I think by putting in a gaming district you forget what our town is," Meuse said. "A gaming district brings in gambling which preys on our people, it preys on the weak. I hope all of you will really think about this before you go to Town Meeting and sell our town."

Resident Rick Wild said he felt the proposal could provide much needed revenue the town could use to complete much needed public works projects.

"I think it's a good opportunity for us to get the money we need to get those jobs done," Wild said. 

Following the presentation by the Massachusetts Gaming Commission, Town Manager Richard Montuori gave a report on conversations he and other town officials had with civic leaders in other communities where Penn National Gaming currently operates. 

Along with Police Chief Timothy Sheehan and Fire Chief Mike Hazel, Montuori and members of the Board of Selectmen contacted public officials from Toledo, Ohio; Joliet, Illinois; Kansas City, Kansas and Bangor, Maine. 

In speaking with public officials and public safety personnel from Toledo, Montuori said Tewksbury officials were told crime in surrounding communities decreased, and property values were unaffected. 

"Most importantly we heard Penn helped Toledo get through the recession," Montuori said. 

In speaking with the City Manager of Joliet, Montuori said the feedback was that there were no increases in staffing to the police or fire departments, the impact on traffic was minimal and that Penn National was a model member of the local business community. 

"According to City Manager Penn has been a great corporate citizen, and exceeded all of the city's expectations," Montuori said. "They hire local and use local vendors."

Selectman Todd Johnson, who sat in on the call with officials from Bangor, said he made a point of asking about any difficulties the city had Penn National.

"When we asked specifically about relationship problems with Penn or difficulties, the response was that Penn was a first class organization," Johnson said. "I specifically wanted to know about any issues or difficulties."

Sheehan said he had taken the time to reach out to colleagues in law enforcement on top of the calls he made with the Town Manager, asking for their experiences in dealing with gaming facilities.

"All of the material I received in the beginning was that all residents and business owners had anticipated prostitution crime, organized crime and violent crime," Sheehan said. "It just never materialized for any of these places."

Sheehan said in speaking with Bangor Police Chief Mark Hathaway, he learned that Bangor Police receive approximately two calls per week from the casino, usually for minor incidents.

Sheehan said he was also able to ask his colleagues about the impacts gaming facilities have had on traffic in the communities they are located in. 

"What I've heard is that people were anticipating a large influx of traffic in the area and it didn't materialize," Sheehan said. "People [going to the casino] travel on off hours."

Hazel said he similarly reached out to fire officials in areas where Penn National operates, and said he found that other departments did not need to increase their staff as a result of gaming facilities.

"None of the communities we spoke to had to add resources or staff directly as a result of a casino," Hazel said. "They found it was insignificant as far as call increases for ambulance or fire."

Hazel said North Fire Station in Tewksbury is located just more than a mile from the proposed slots-only casino, and that he couldn't imagine a facility of that sort having a negative impact on the Fire Department.

"I can't see how it's going to be a negative impact on our department to absorb that type of facility," Hazel said. 

Wentworth asked Hazel if the proposed Merrimack Valley Casino would be a larger strain on Fire Department resources than some of the other larger properties in town such as Home Depot, Raytheon or Thermo Fisher.

"I just don't see the impact on the Fire Department from this type of facility going in there as opposed to another facility going in there," Hazel said.