A lawsuit has been filed against MGC Chairman Stephen Crosby
Caesars Sues Massachusetts Gaming Commission Chairman
Stephen Crosby
Towards the end of October, Nevada-based casino gaming giant Caesars Entertainment stated that it will no longer have a partnership with the Boston race track Suffolk Downs that would allow the casino operator to build a casino in the area. The main reason to drop the deal was that the Massachusetts Gaming Commission was concerned about one of the subsidiaries that Caesars has, despite the fact that the operator denied doing anything wrong.
Now, Caesars Entertainment has filed a lawsuit against Massachusetts Gaming Commission Chairman Stephen Crosby on the belief that he is looking to keep Caesars away from the market and was not willing to grant it a casino license for untrue reasons.
The lawsuit also reveals that Crosby has a business and friendship relationship with one of the owners of the land on which it is expected for a Wynn Resorts casino to be built. This relationship with Paul Lohnes was not known during the licensing process and Caesars believes that it is the main reason for it getting denied.
In fact, Wynn has also announced recently that it is thinking of no longer building the $1.3 billion resort in the region due to the unjustifiably strict regulations in Massachusetts.
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The lawsuit against Crosby is for “reputational and economic injury” since the Caesars Entertainment image has been stained after it failed to pass the suitability hearing and that this can affect the company in other markets, according to recent reports.
Caesars Sues Massachusetts Gaming Commission ChairmanA difficult market to enter
The competition between casino operators for licenses started in 2012 in the state and quite a few giants have already given up on their huge gaming projects, similar to those found in Las Vegas, mostly due to the difficult restrictions. These include Ameristar, Penn National Gaming, Hard Rock and also Mohegan Sun.
MGM Resorts – the second largest gaming company in the world – is still looking to join the market and is currently waiting for the MGC to give the green light in Springfield. However, things don’t seem to be going well for MGM since the report of 500 pages presented by investigators reveals some issues with the company operations in Macau, as well as other concerns.
The gaming act in Massachusetts passed in 2011 and the MGC is expected to issue its first license in February, 2014. The regulations only allow three regional casinos and a slot parlor to be built for now.