Penn National is the latest gaming company to express interest in Western Massachusetts, which is flatly guaranteed a casino in a bill that was approved overwhelmingly on Wednesday in the state House of Representatives.
File photo / The Patriot-NewsSlot machines are seen at Penn National's Holywood Casino in Pennsylvania.
BOSTON - With new legislation giving Western Massachusetts a leg up for a casino, Penn National Gaming, a national gambling company, is laying the groundwork for a possible casino in the Springfield area.
Penn National is the latest gaming company to express interest in Western Massachusetts, which is flatly guaranteed a casino in a bill that was approved overwhelmingly on Wednesday in the state House of Representatives. The bill is set for a debate and likely approval in the Senate the week of Sept. 26.
Eric Schippers, senior vice president for government affairs and public relations for Penn National Gaming, said the company is looking for a site in Western Massachusetts that would be strategically located to capture dollars now going to Connecticut casinos and would have strong community support. He said the company is currently having informal conversations about possible sites in the region.
"Springfield is certainly a place where we're placing a lot of focus, as well as communities around Springfield," Schippers said. "We have not pinpointed a location. We continue to explore multiple sites in Western Massachusetts. Springfield would definitely be on the list. Springfield is a place where we would be very interested."
Penn National, based in Wyomissing, Pa., currently operates 26 gaming facilities in 17 states and Ontario including a harness racing track and off-track betting in Bangor, Maine. The company, which has $2.6 billion in annual revenues, is planning to open next year additional casinos in Kansas City, as well as Toldeo and Columbus in Ohio.
The casino bill, approved by 123-32 in the House, designates a casino for each of three geographic zones, including one for anywhere in the four counties of Western Massachusetts, one in Boston, Worcester or surrounding communities and one in the southeastern part of the state. It also includes a slot parlor with up to 1,250 slot machines that could be anywhere in the state. Licenses would be auctioned to the highest bidder.
Gov. Deval L. Patrick has expressed support for the bill. Last year, state legislators approved a casino bill, but Patrick rejected it when House Speaker Robert A. DeLeo, who has a horse track and a former dog track in his district, insisted on licenses for slots at two tracks. In this year's bill, DeLeo and Patrick compromised by agreeing to one license for a slot parlor that would be competitively bid.
DeLeo said the bill could create 15,000 jobs and provide millions of dollars in assistance to cities and towns.
"I am extraordinarily proud of the House's unwavering commitment to jobs and growth," DeLeo said in a statement after the vote.
Penn National looked at a site in southeastern Massachusetts and considered the Boston area, Schippers said. But the casino bill gives a federally-recognized Indian tribe, likely the Wampanoag of Mashpee, a year to negotiate the casino license set for the southeast part of the state. Schippers said Penn National does not want to wait a year.
"We are most comfortable and most interested in a license in the western zone," Schippers said. "We see that as really fitting within the model we have done in other communities."
Penn National would compete for a casino license with at least two other companies -- the Mohegan Sun of Connecticut, which has been planning a casino resort for 152 acres it leases off Exit 8 of the Massachusetts Turnpike in Palmer, and Paper City Development, which is proposing a casino for the Wyckoff Country Club off Interstate 91 in Holyoke.
The competition is already heating up.
Mohegan, which operates the successful Mohegan Sun in Uncasville, Conn., is playing "a protection game" by proposing a casino in Palmer, Schippers said.
"It would appear to us the Mohegan Sun is trying to protect its flank in Connecticut," he said. "They are putting up a strategic defensive position in Palmer, or trying to."
Mitchell Etess, chief executive officer of the Mohegan Tribal Gaming Authority. fired back.
“Talk is cheap and what other gaming companies say is irrelevant," Etess said in a statement. "For the past two and a half years Mohegan Sun has repeatedly demonstrated its commitment to Palmer and to bringing a premier destination casino resort to Western Massachusetts.”
Mohegan has invested $10 million so far in its bid for a Palmer casino, a company official said.
Mohegan estimated that a Palmer casino could create 2,500 to 3,000 permanent jobs to operate the casino and 1,200 to 1,500 construction jobs each year during up to two years of building.
Paper City estimated 2,000 construction jobs over 12 to 18 months and 1,500 permanent jobs at a Holyoke casino.
Springfield Mayor Domenic J. Sarno threw his support behind the Mohegan Sun's Palmer project in 2008, provided that "a casino in the woods" could benefit Springfield with expanded tourism, government financial assistance, jobs and business for city merchants.
Sarno said he has talked with Penn National Gaming about a possible casino for Springfield, but he downplayed the potential of that actually happening.
"Yes, there was an inquiry, but no ongoing discussions or definite interest shown," the mayor said in a statement. " I certainly listened, as I would with any prospective developer. It doesn't appear that the City of Springfield would have the appropriate land space. It is also my understanding that a number of companies are looking/inquiring in all Western Massachusetts communities."
Chicopee Mayor Michael D. Bissonnette said city officials have also discussed a casino for his city with Penn National Gaming.
Bissonnette said Chicopee is probably the best location for a casino in Western Massachusetts since it enjoys direct access to the Massachusetts Turnpike and Interstate 91 and Interstate 291.
Bissonnette said two locations in Chicopee could be used for a casino, one consisting of about 110 acres owned by the Westover Metropolitan Development Corp., a quasi-public development group, between the turnpike and the Westover Metropolitan Airport, and more than 100 acres in the Chicopee River Business Park owned by Westmass Area Development Corp.
Bissonnette said he supports casinos because they create jobs and contribute taxes.
"My attitude is -- let the bidding begin," Bissonnette said.
Under the bill, voters in a potential host community would need to approve a ballot question for a casino to be sited in the community.
The vote by the state House of Representatives reverberated in Palmer on Thursday.
Paul I. Brody, vice president of development for Mohegan, said they are pleased that the casino bill has passed the first hurdle.
James L. St. Amand, of Palmer, the community liaison for Northeast Realty, heralded the House vote. Northeast is leasing 150 acres across from the turnpike exit on Thorndike Street to Mohegan Sun for a $500 million resort casino.
“They’re respecting the will of the people. Now it goes to the Senate and we’ll see what happens,” St. Amand said.
St. Amand said he supports the project because of the jobs and revenue it will bring to his town. St. Amand said he was not surprised, but disappointed with state Rep. Todd M. Smola’s negative vote.
“I would hope that he would offer an alternative for job creation,” St. Amand said about Smola, a Palmer Republican.
Palmer Town Council President Paul E. Burns said a casino in Palmer would bring needed jobs to the town, and the region.
But Iris L. Cardin, co-president of Quaboag Valley Against Casinos, said she is disappointed that the House approved the legislation, and that so many state representatives voted in favor of it. Cardin, of Palmer, said she finds it alarming that “so few people are worried about the effects.”
“We never did get a good cost benefit analysis,” Cardin said. The House on Wednesday night rejected a proposal by Rep. Denise Provost, a Somerville Democrat, for a study on the costs and benefits of casinos before permitting them.
Cardin said she was happy Smola voted the way he did. In the coming weeks, she said her group is going to try and make people “more aware of the dangers” of casinos including increased crime, traffic and gambling addiction.
Four legislators from Western Massachusetts - Smola, plus Reps. Brian M. Ashe, a Longmeadow Democrat, Denise Andrews, an Orange Democrat and William Pignatelli, a Lenox Democrat -- voted against the casino bill.
Smola could not be reached despite several calls to his cell and home phones.
Ashe, whose district includes Monson, which abuts Palmer, said he promised people in Monson he would oppose casinos when he was first running for the state Legislature about four years ago. "I gave them my commitment back then," he said. "You are only as good as your word."
Ashe said he understands why people would support casinos and the jobs they would create, but he is concerned about excessive traffic in Monson and possible effects on schools and police.