New England Public Radio

Springfield Casino Developers Meet City Deadline, Mohegan Sun Yet to Submit State Application

Penn National Gaming and MGM Resorts, two casino companies vying for a casino license in Springfield, met the city’s second phase application deadline Thursday. Now the city will review the applications and determine whether to negotiate a host community agreement with one or both companies. But to the east in Palmer, Mohegan Sun of Connecticut, has also proposed a casino, and is looking ahead to the state’s upcoming application deadline. 

Mohegan Sun has been eyeing a Palmer casino since 2007, several years before casino gambling was legalized in Massachusetts. But unlike the two companies looking to develop in Springfield, Mohegan Sun has yet to submit an application and the $400,000 fee to the state gaming commission. But a Mohegan Sun spokesman says the company plans to file its application in time for the state’s January 15th deadline.

Meanwhile, Northeast Gaming Group, the company that owns the land where Mohegan Sun has proposed its casino, is threatening to sue one of its early investors, Peter Picknelly. He is the CEO of Peter Pan Bus Lines and invested $500,000 in Northeast in early 2008. But since last summer, Picknelly has been a 50-50 partner with Penn National for a proposed casino in Springfield’s North End. 

Stephen Spelman, an attorney for Northeast, says it expects Picknelly to divest from Penn National.

“As we’ve told them, we are prepared to go forward in the Superior Court to bring a suit if we have to against Mr. Picknelly. We’d prefer not to, we’d prefer that he just live up to his obligations of good faith and fair dealing to Northeast Gaming Group.”

Spelman claims Picknelly is still a partner in Northeast. But in a statement, Picknelly says he was only an investor. He says that Northeast’s claims are “completely frivolous and smack of desperation,” saying Mohegan Sun is now an outsider in the race for the region’s single casino license. But Spelman says Mohegan Sun has nearly completed a host community agreement with Palmer, putting it ahead of companies in Springfield. 

Massachusetts Senate Passes Casino Bill, Towns Look Ahead

After months of lobbying, speculation and debate, the Massachusetts Senate voted last week to approve a bill that authorizes a casino in Western Massachusetts and two others in different parts of the state. Now a joint legislative committee will have to draft a final bill to send to the governor, but towns are already competing and evaluating the possibilities for a resort-style casino.

Mohegan Sun in Connecticut is proposing a casino in Palmer, Massachusetts and a group called Paper City Development is eyeing one in Holyoke. Penn National Gaming of Pennsylvania says it's considering expanding to Springfield or surrounding areas. But voter approval in any town will be required.

"The state's going to mandate what we're going to have to do. They're going to need a certified vote of the town, a majority vote in favor of the casino coming to town."

Andrew Golas is an administrator in the Palmer town office. He says the town council has a clear stance on a casino, but town officials are waiting to gauge interest from residents.

"The council is hoping that it goes in favor of the casino. They've been huge advocates for it. As far as the manager's office, we've been kind of playing it by ear and more playing it off of what the voters decide. If voters come up with more than 50 percent then we'll pursue it wholeheartedly. At the end of the day if voters come back and say no this isn't something that we want, we're not going to try to push it on the town."

The differences in the House and Senate versions of the casino bill include variations over who would be allowed to approve a casino at the local level. The Senate version approved an amendment that calls for a vote by all residents of Springfield if a casino is proposed for that city. But in Boston and Worcester, votes would be held only in the wards where casinos would be located, unless their city councils decide they want city-wide votes. A compromise bill is expected to reach Governor Deval Patrick's desk around Thanksgiving.