BAY STATE TO GO SLOT PARLORS?

On Tuesday, March 3, 2009, Timothy Cahill, Treasurer of the State of Massachusetts, proposed three (3) slot parlors for his state.

Cahill believes that the plan would generate for Massachusetts about $2 billion to $3 billion ($2,000,000,000.00 to $3,000,000,000.00) in licensing fees for the slot parlors and about $250 million a year in tax revenue from the gaming.

Massachusetts Governor Deval Patrick, has said he prefers destination casinos, resorts that could provide more jobs and revenues than the slot parlors.

Jeffery Hartmann, Executive Vice President and Chief Operating Officer for the Mohegan Sun, said regarding Cahill's proposal, "It's too soon to react to what he's saying."

Hartmann would not comment on whether the MTGA, (Mohegan Tribal Gaming Authority) would be interested in developing a slot parlor on it's leased land in Palmer, Massachusetts. He seemed to be glad that the Massachusetts Treasurer had mentioned three (3) slot parlors in the entire state.

Hartmann, talking of the 152 acre Palmer property said, "The site we've selected can support a destination facility.....on with a casino, a hotel, restaurants, that would create thousands of jobs."

He further said, "Most important, we think a facility in western Massachusetts makes sense in terms of job creation. We have the best overall site. We think it's really the premier site."

The Plamer site is off Exit 8 off the Massachusetts Turnpike (Interstate 90).

It sounds like the licensing fee (entry fee) is totally unrealistic. $2 billion to $3 billion divided by three (3) slot parlors is $670 million to $1 billion each. Are you kidding me? The proposed resort casino that the MTGA is estimated to cost around $500 million.

At these numbers, how could the MTGA possibly make a profit? Does it look like the Mohgean Sun at Pocono Downs deal? Is this deal, worse than the Mohegan Sun at Pocono Downs? Is the MTGA (the Mohegan Tribal Council) making another bad deal? What do you think?