Caesars Out of Boston Casino Bid after MA Regulators Background Probe

Online GamblingIn spite of its reputation as the biggest operator of casinos in the U.S., Caesars Entertainment failed to meet the Massachusetts Gaming Commission’s (MGC) prerequisites for the granting of a casino license. As a result, Suffolk Downs nixed its partnership with Caesars for the racetrack company’s East Boston casino venture.

Details of the MGC’s investigative report will be revealed in a public hearing slated for Suffolk Downs’ license petition within the next two weeks. However, unofficial statements coming from those who have seen the content of the report cited the casino company’s lack of financial stability, and affiliation with a person coming from a family with alleged ties to organized crime, as the critical concerns pondered by the state regulators.

Actually, the MGC’s vetting process is the first part of the two-phase application procedures that casino operators go through, before a license is granted. License applicants have to prove their qualifications and suitability, by passing the thorough background investigations conducted by the MGC’s Investigations and Enforcement Bureau. Thereafter, the MGC will determine if there is “clear and convincing evidence” that the license petitioner, including its affiliates and/or financial investors, is qualified and suitable to proceed with the second and final phase of the application procedures.

The second phase is more concerned with the physical aspects of the gambling facility, its potential benefits to the state’s communities, as well as the systems implemented to alleviate any harmful impact on the public.

In Suffolk Down’s case, its bid to operate a casino in East Boston is also subject to a referendum slated to take place on November 05 of this year; thus, the importance of having a casino partner that can meet Michigan’s entire regulatory requirements in accordance with the state’s 2011 gambling laws.