BOSTON – After six days of session and more than 16 hours of public debate, the Senate on Thursday voted 24-14 to approve expanded gambling legislation that authorizes three resort casinos in separate geographic locations of the state and one open-bid slot machine facility.

Independent analysis suggests the plan could provide 10,000 to 15,000 long-term jobs in the Commonwealth in addition to thousands of immediate construction jobs once licenses are awarded and host communities approve proposed projects. It is estimated that fully operational facilities would generate hundreds-of-millions of dollars a year for the state.

Senator Jennifer L. Flanagan (D-Leominster) stated, "I am very happy that we passed a bill today in the Senate. There are too many residents of this Commonwealth looking for jobs; and this bill is about jobs!" Added Flanagan, "I felt a responsibility to file this legislation this year on behalf of my District, where the unemployment rate is still hovering well over 10%"

"Our main focus with this bill is jobs," Senate President Therese Murray (D-Plymouth) said. "We still have too many people out of work, and this bill provides immediate and long-term opportunities that pay a good salary. There are more than 250,000 people unemployed in our state, and they are our special interest. As public servants, it is our responsibility to do all we can to help them get back to work. This bill does that while also capturing hundreds of millions in revenues that we've been losing to other states for far too long."

Senator Stephen M. Brewer (D-Barre), chair of the Senate Committee on Ways and Means, said: "The Senate has been meticulous in working out the details of this bill, which would bring more jobs and increased revenue to the Commonwealth. In these challenging fiscal times, these are things we need to pursue; however, as we continue to move forward with the gaming proposal, we will also remain committed to protecting small businesses and the citizens of this state. This bill has progressed significantly from last year, and we have strengthened a number of provisions to ensure that host and abutting committees receive the consideration and financial support they deserve in this process."

The state receives revenue from a 25 percent tax on casino revenues and a 40 percent tax on the slot parlor revenue. An additional 15 percent of the slot facility revenue would go toward supporting the state's race horse industry. The collected revenues would be used to fund essential state and local services, including public safety, education, transportation, public health, debt reduction, local aid and the stabilization fund.

Because of the state's already strong stabilization fund – which will exceed $1.2 Billion once an approved supplemental budget is signed by the governor – and because of a continuing record of legislative reforms, the international rating agency Standard & Poor's recently upgraded the Commonwealth's bond rating to AA+.

And as the Massachusetts unemployment rate continues a steady decline, now at 7.4 percent and well below the national average, the jobs offered by the expanded gambling bill are expected to contribute to other ongoing economic development efforts by the state intended to bring unemployment down even further.

Licensing fees collected by the state – $85 million for each casino and $25 million for the slot facility license – would be used in a similar way to collected gambling revenues, going toward community mitigation, local capital projects, community colleges, tourism and other needs.

The bill contains strong community aid and mitigation provisions requiring the Gaming Commission to work with municipalities on reducing potential negative effects brought on by a gambling establishment. Most importantly, no gambling facility would be built in a community without the residents of that community approving a project in a referendum vote.

For Boston and Worcester – which represent cities with a population of more than 175,000 – only the residents of the ward in which a facility would be located would have the ability to approve or reject a proposed project. The measure, meant to protect those residents who would be most affected, also provides an opt-out provision allowing the city council to require a city-wide vote.

The Senate legislation also provides protections for local business, requiring gambling facilities to negotiate agreements to level the playing field in terms of live entertainment and other cultural-related events. One amendment approved during debate of the bill would allow local bars and restaurants to operate under the same rules as casinos with regard to alcoholic beverages.
Provisions meant to protect individuals allow for voluntary betting limits and exclusions from gambling establishments. Mandatory monthly win/loss statements were also instituted. Additionally, family members can petition to have a relative banned from a facility if there are signs of addiction.

Under the bill's tough law enforcement and regulatory structure, the enforcement of gambling laws will fall upon dedicated state police and attorney general units which will collaborate with local police from any host community. The independent Gaming Commission will oversee and regulate casino and slot parlor gambling in the Commonwealth. It will consist of governor, attorney general and treasurer appointees who must have experience in legal and gambling policy, law enforcement and finance.

A safety provision added to the bill during floor debate requires all potential employees to provide any criminal history to the Gaming Commission. Other provisions added to the bill include:

• Disqualifying anyone with a felony from receiving a gaming license;
• A one-year cooling-off period for any legislator seeking to work for a casino after leaving office;
• A ban on donations to municipal candidates in a city or town involved in negotiating a gambling license;
• A requirement for gambling license applicants to check the immigration status of all potential employees and contractors through the Department of Homeland Security; and
• A requirement that all slot machines have a sticker on the frontposting odds of winning and a compulsive gambling hotline.

Under the bill, the Gaming Commission can offer three casino licenses, divided by region, and one slot facility license with up to 1,250 slot machines bid competitively statewide. The three casino regions are categorized as follows:

• Eastern Region – consisting of Suffolk, Middlesex, Essex, Norfolk and Worcester counties;
• Southeastern Region – consisting of Bristol, Plymouth, Barnstable, Dukes and Nantucket counties; and
• Western Region – consisting of Berkshire, Hampden, Hampshire and Franklin counties.

Additionally, the bill recognizes federal tribal rights and therefore authorizes the governor to contract with Native American tribes before casino license applications are submitted. There are currently two federally recognized tribes in Massachusetts: the Mashpee Wampanoag and the Aquinnah. The Aquinnah have given up their gaming rights, leaving only the Mashpees to negotiate a compact at this time.

Any applicant approved for a license must agree to minimum investments of $500 million for a casino and $125 million for the slot facility license, with an upfront 10 percent deposit.
The Senate legislation will now likely go to a conference committee where differences with the House bill will be worked out, allowing a final version to be sent to the governor.