Scott Van VoorhisSteve Crosby may very well wind up overseeing the longest casino license competition in recorded history, with years before the first gambling palace opens in Massachusetts.

And with state coffers bare and hundreds of thousands still struggling to find work, the Massachusetts Gaming Commission chief’s go-slow approach has looked to some like ill-timed dithering.

But now that Steve Wynn has suddenly reemerged as a potential competitor for the state’s coveted Boston-area casino license, maybe it’s time to reassess just what our state’s casino czar has been up to.

Crosby may indeed be guilty of bureaucratic overkill. But the deliberate pace with which our state’s gambler-in-chief has approached the casino licensing process has had a beneficial side effect. It’s created precious time for deep-pocketed outsiders like Wynn, who haven’t spent the last two decades working over the Legislature, to get their feet on the ground here in the Bay State.

It remains to be seen whether Wynn or the bevy of other gambling giants now eyeing the Bay State will hit one of the few jackpots left in the casino industry.

But at least we may be looking at a competition instead of a coronation.

Seeking Competition

I’m sure Crosby won’t like the characterization of the licensing process as slow-moving, but so be it.

Given that Ohio and Pennsylvania rolled out their casinos in a year or two, we are indeed going at a snail’s pace. But considering that Pennsylvania’s casino industry has spent years digging out of one regulatory scandal after another, being too hasty certainly has its perils as well.

Still, it’s fair to ask whether Crosby is deliberately dragging out the licensing process in hopes of seeing more potential bidders emerge.

Certainly, the former university dean and advisor to governors past and present has made no secret that he’s not just going to run with the current, narrow field of candidates, especially when it comes to the Boston area.

There’s a lively competition going on now in western Massachusetts, with three different casino operators, but for the Boston area license, the only major contender to emerge has been Suffolk Downs.

Backed by a high-powered group of local wheelers and dealers and casino giant Caesars, Suffolk Downs has spent years lobbying for a casino, building support among the movers and shakers on the state’s political scene.

It’s a juggernaut that has scared off potential competitors, who are loath to blow millions on a lost cause.

Stephen CrosbyCrosby has gone as far as to suggest that casino developers who fall short in the Western Massachusetts competition be allowed to compete again against Suffolk for the Eastern license.

He even reportedly previously pointed out the Everett site that Wynn is kicking the tires on to Hard Rock, the casino giant owned by Florida’s slot-rich Seminole Tribe.

Still, it is probably too much to say that Crosby is deliberately taking a slow-go approach in order to get more bidders into the game – he’s obviously a pretty thorough guy with a sharp mind for policy issues and potential pitfalls.

Yet the fact is, the longer the licensing process drags on, the higher the chances are that we may see an upset or at least a horse race for the Boston license, which has the potential to bring in hundreds of millions in upfront fees alone.

 

Odds Evening Out?

If Massachusetts opted to follow the lead of Ohio and Pennsylvania and roll out casinos in a couple of years, Suffolk would very well likely be gearing up for construction right now, not sweating out a potential challenge from the King of Las Vegas.

Suffolk has built up an arsenal of advantages over the years, from bringing on board politically savvy business leaders like Joe O’Donnell to lining up the support of Mayor Thomas M. Menino and House Speaker Robert DeLeo.

iStock_000019930635Small_twgWhile other potential competitors will have to woo city or town leaders in a process that gives locals veto power, Suffolk can rest assured that its casino plans will sail through Menino’s City Hall.

Wynn’s first and disastrous foray into the state, with a $1 billion proposed Foxborough casino, was a prime example of the challenges various gambling tycoons will face trying to sell their plans to upscale Boston area suburbs.

Wynn seems to have learned some painful lessons and is now considering taking a page out of Suffolk’s playbook, teaming up with an old-style city mayor in Everett with the power to get things done.

Wynn has yet to sign any deals – this could all prove to be a flash in the pan.

And he faces some unique challenges. His vocal opposition to President Obama during the election and his testy relationship with unions could prove to be vulnerable points here in the bluest of all blue states.

But Wynn has the cash and industry reputation to take on Suffolk and win this deal, at least if he plays his cards better than he did in Foxborough.

And if he does, he can thank Steve Crosby, our state’s casino czar, for giving him a shot.

 

Scott Van Voorhis can be reached at sbvanvoorhis@hotmail.com

In Casino Race, Crosby’s Measured Pace Has Benefits

by Scott Van Voorhis time to read: 4 min
0