Foxwoods, Suffolk struggling in Massachusetts

Foxwoods Resorts Casino‘s inability to keep its financial house in order has, as predicted, caught up with it in Massachusetts. The
tribally owned casino’s debt burden put it in the hot seat before the Massachusetts Gaming Commission. Chairman Stephen Crosby said the casino’s equity structure was an issue that called for resolution — or else. Also, even with Genting Group bringing money by the bushel, Foxwoods has less than 50% of the needed financing lined up. MGC lead investigator Karen Wells “was unable to advise the panel on whether the Foxwoods bid should be cleared to continue. She said the ‘glaring issue’ was the group’s failure to secure a 55 percent equity ownership interest.” Equally predictably, the recent convictions of tribal execs Michael and Steve Thomas drew scrutiny from the regulators.

CEO Scott “Woody” Butera, playing for time, said interested buyers were being sought. Foxwoods will manage the project and own 10%, which certainly casts the it in a new light, revealing FoxMass as a stalking horse for ownership to be named later. Under those circumstances, even having a suitability hearing seems premature. Approving Foxwoods now is like buying a cat in a sack, as the old saying goes.

In its four-strikes-and-you’re-out verdict against Caesars Entertainment, the MGC enumerated several reasons why Caesars Interactive boss Mitch Garber had a checkered past. The seven pages devoted to Garber, however, are as nothing compared to the 21 pages enumerating the questionable associations of Arik Kislin. Caesars’ lack of due diligence in the Kislin affair is fairly staggering … or may they just didn’t give a fig.

Suffolk Downs has its hands full scrambling to shoehorn its casino project into the Revere city line. Ownership is threatening to scrap live racing if it doesn’t get a casino and East Boston opponents are sulking and demanding a re-vote, which seems redundant at this point. Revere voters already approved the original form of the project by a wide margin. Now they’d get it all to themselves while East Boston has to settle for monetary table scraps.

In fact, Downs ownership has been busy scheming up mixed-use developments in lieu of a casino: an office park, retail, maybe residential dwelling or perhaps light industry. However you slice it, it’s bad news for the horsey set.

Milford groups are wheeling up the heavy artillery for Tuesday’s vote on Foxwoods Massachusetts (now renamed Crossroads Massachusetts). The latter and its allies have spent $797,000, while opponents have fired back with $14,000 — a $57-to-$1 disparity in Foxwoods favor. Local restaurateurs form an important bloc of the anti-Foxwoods coalition, for obvious reasons.

Speaking of racinos, Saratoga County is having to be dragged kicking and screaming into New York State‘s new, broadened casino industry. Owners of the racino at Saratoga Springs Casino & Raceway would dearly love to upgrade from just VLTs and the Saratoga-Albany area is one of those designated by statute for casino development. Unfortunately, and perhaps much to Gov. Andrew Cuomo‘s chagrin, both Albany and Saratoga counties voted “no.” “The process requires local support before a site is chosen … [but] … Under state law, a community can’t block a casino,” reports The Associated Press. In other words, it’s as clear as mud.

Endangered species. Slot  inventory on the Strip has fallen to 1995 levels. Here’s why.