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June 25, 2014

Clearance of casino question raises political, budget stakes

The Supreme Judicial Court ruling paving the way for statewide debate over a November ballot question repealing the state's casino law is dramatically reshaping the Bay State's political landscape, as candidates for office will have to compete with the question for airtime and voter attention.

Secretary of State William Galvin, the state's elections chief, said he believes casino opponents have enough signatures to appear on the Nov. 4 ballot. Once all the ballot initiative petitioners file signatures with his office by July 2, Galvin said he will number the questions within the first week of July.

Galvin said the question repealing the 2011 casino law will likely boost voter turnout, which was already expected to be high with a gubernatorial election and contested races for constitutional offices.

"I will suggest to you I think this question will provide another reason to vote. So I'm guessing there's going to be a very intensive turnout," he said. "Everyone anticipates there'll be a lot of money spent. I think they're right."

The state's two licensees under the casino law - MGM Springfield and Penn National Gaming, which is building a racino in Plainville - expressed confidence that voters would preserve the law, but calls were quickly issued for state regulators to halt the process until voters have their say.

Rep. Carlo Basile, an East Boston Democrat facing a challenge from one of the ballot question's petitioners, issued a statement calling on the gaming commission to delay awarding of any casino licenses until after the November election. "We need to have stability in our communities as we deal with these important decisions," said Basile, who voted for the 2011 law.

Mohegan Sun is pursuing an eastern Massachusetts casino license for the Suffolk Downs racetrack, which is located on the East Boston-Revere border. East Boston voters last November rejected a casino at Suffolk Downs, prompting a shift in plans that led to approval of a revised plan in Revere. Wynn Resorts is competing with the Mohegan Sun bid, hoping to win the license and build a resort casino in Everett.

A delay in licensing, along with a successful ballot question, could have an impact on the state budget.

The House and Senate fiscal year 2015 budgets include $53 million from licensing fees from at least two casinos if they are awarded the licenses, and $20 million in anticipated slot parlor money in the last quarter of the fiscal year, assuming an expected slot parlor opens in Plainville. MGM Springfield has been awarded the western Massachusetts casino license.

"The whole idea of being able to fund the budget into the future was one of the motivating factors of the Legislature adopting an expanded gaming bill in the Commonwealth," said Sen. Marc Pacheco, a Taunton Democrat and a member of the Senate Ways and Means Committee who supports the casino law. "And there's been a lot of resources expended already, investments that have been made, and in the case of Springfield, you already have a decision made."

National lobbying firms are gearing up for a fight, with the American Gaming Association, an industry group based in Washington D.C., saying on Tuesday it will make sure voters have "facts" instead of "stereotypes" before making a decision on the repeal the casino ballot question.

"While it's up to Massachusetts to decide whether or not to welcome the thousands of jobs and millions of dollars in revenues gaming will bring to the Commonwealth, the AGA will ensure that voters have the facts about our industry instead of tired stereotypes," the organization said in a statement, arguing that gambling provides thousands of jobs and revenue for education and public safety.

Opponents say casinos have a negative impact on small businesses and lead to an increase in crime and addiction.

Polls show a divided electorate, and elected officials and candidates seeking higher office, are similarly split in their views on whether to vote for or against keeping the 2011 casino law, which allows for up to three resort-style casinos.

The chairman of the gaming commission, which was established under the 2011 law, said in a statement that it "respects" the SJC decision and "has not taken a position" on the question. "As the Commission has demonstrated in the past, we have the flexibility to achieve progress in the licensing and regulatory process even in an atmosphere of uncertainty and we will continue to do so," said Steve Crosby, the commission chair.

Coakley, whose office oversees certification of ballot initiatives, on Tuesday defended her decision not to initially certify the initiative repealing the casino law and said the court's unanimous rejection of her argument would not impact her gubernatorial campaign. Her office will certify the ballot question on Tuesday, she said.

Secretary Galvin said he and Coakley already agreed on a one-sentence statement for the casino repeal question. Now, proponents and opponents of repealing casinos will submit a 150-word argument that will appear in the voter information guide the secretary of state prints for the election.

"Our determination on this question was never going to be the final word," Coakley said a press conference after the ruling. "It was always going to be before the court."

Coakley said she believes the decision, written by Chief Justice Ralph Gants, was "thoughtful."

"I think it looks at the law and the facts and I think it reaches conclusions. I think sometimes the law is not commonsensical, in fairness, and I think we tried our best and I tried our best in our office . . . and I made the decision in this instance that it was the call that we made and I made. So I don't take that personally, I respect the court's decision and the analysis."

MGM Springfield said it was prepared to make a case for casinos to voters statewide.

"MGM Resorts has spent three years collaborating and talking with the people of Western Massachusetts on the value of a casino resort as a unique economic development catalyst," MGM Springfield President Michael Mathis

said in a statement.

"We are confident that our urban revitalization project in Springfield, one of the Commonwealth's most prominent Gateway Cities, is something to which all Massachusetts voters can relate. It is a comeback story in progress with hard-working people eager to grow jobs and get back to work. We are fully prepared to extend this message to a larger audience through a statewide campaign to educate the voters on the enormous economic benefits that would be lost to the taxpayers of the Commonwealth in a repeal."

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