It’s entirely possible that Milford voters could pink-slip Crossroads Massachusetts next Tuesday. But even if they don’t, Foxwoods Casino Resort CEO Scott “Woody” Butera is watching the project crumble before his 
very eyes. The Massachusetts Gaming Commission looked at the project’s financing — or lack of same — and didn’t like what it saw. On the flip side, voters could approve Crossroads, only to have the MGC nix it because the financing is so vaporous. Flinging a Hail Mary pass, Butera promised to have a co-owner by the weekend. That’s a pretty bold promise when you consider Foxwoods has had years to line up capital and the project is still only 45% funded. “Because $1 billion is a lot of money, the return an investor would generate is much riskier,” replied Macquarie Capital analyst Chad Beynon, playing Eeyore to Butera’s Tigger. The latter said he was dickering with yet another casino company, as well as a private equity firm “that has been involved in gaming.” Oh no! It’s Colony Capital! (Let’s hope not.)
“I’m 110 percent comfortable, I know what we have and I know where we’re headed,” said COO David Nunes, who must be in a unique position indeed. The gaming company is transparently Penn National Gaming parent Gaming & Leisure Properties Inc.: “a publicly traded entity that would fund the real estate portion of the development and the casino would essentially rent from them.” As for the unnamed private equity fund, it would kick in $350 million, which still leaves Foxwoods $200 million short of the finish line. For once, I have to agree with a casino opponent, Casino-Free Milford Co-Chairman John Seaver: “This is yet another example that Foxwoods management doesn’t have their act together. It’s incredible that here we are, four days before the Milford vote and Foxwoods doesn’t have the majority financing lined up.” It’s such a Chinese fire drill that it’s laughable.
Suffolk Downs‘ chances are suddenly looking a lot better and the racetrack is advancing a novel argument: We’ve got more acreage than you do. It’s unclear whether Suffolk Downs can amass 52 acres without cannibalizing the paddock area but they want that casino so badly they can taste it and the flavor is a lot like horse meat.
Pot, meet kettle. Executives of Joseph “Tomato King” Procacci‘s Casino Revolution project couldn’t resist taking a few kicks at Steve Wynn‘s backside as he exited Philadelphia. “Big, bloated, very expensive projects are not going to fly in this market,” said Vice President of Community Affairs John O’Riordan. Mind you, Wynn was contemplating a $900 million investment while Tomato King’s combined tab for Casino Revolution and the conjoined LoSo Entertainment Complex comes in at a less-than-cheap $706 million. Some familiar Vegas brands would be part of LoSo, including CityCenter‘s Todd English P.U.B. (Which stands for “public urban bar,” not “puke up beer,” even if the floor is bare concrete.)
As consultant said, with refreshing candor, “We want four soccer moms from Ardmore to be able to come down, spend $15 to $20 on lunch and have some money left for the slots.” Fearful of getting canned by city planners, Tomato King’s courtiers say they can be open six months earlier than everyone else — meaning six more months of taxes. Few cities can resist a tune strummed on that golden harp. They also point out that they have the capacity to eventually go to 5,000 slots. The important part is the tax money, almost $42 million according to former Trump Entertainment Resorts CFO John Burke, who whined, “It’s just something we feel like we should get credit for.” Where’s your dignity, man?
PHL Local President Joseph Canfora became outright delusional and “even spoke of attracting gamblers from Maryland.” (They’ve got a better mousetrap down there already and it’s called Maryland Live!) Too funny!
Way out west, perhaps you’ve forgotten Kansas Star Casino, the first of the Sunflower State’s government-owned casinos. It’s doing sufficiently well to expand its hotel capacity. Congratulations.
