Ameristar Casinos acquires potential casino site in Massachusetts

One day after Massachusetts lawmakers approved a casino expansion bill, a Las Vegas-based gaming company announced plans to buy 41 acres in the western part of the state for a potential resort complex.

Regional gaming operator Ameristar Casinos said Wednesday it would purchase a site in Springfield, Mass., for $16 million.

"There are not many attractive new-market growth opportunities for casino companies, and this one in particular fits squarely within the Ameristar business model," Ameristar Chief Executive Officer Gordon Kanofsky said in a statement.

Massachusetts lawmakers on Tuesday passed a final version of a bill designed to license as many as three resort-style casinos and a single slots parlor in the state.

The House voted 118-33 to accept the compromise bill and the Senate quickly followed, approving it on a 23-14 vote.

Each chamber must take a final procedural vote before sending the bill to Gov. Deval Patrick, who is expected to sign it.

Supporters of casino gambling have predicted it will create as many as 15,000 jobs in Massachusetts, including 6,000 temporary construction jobs, and generate at least $300 million in new annual revenue for state and local governments.

Kanofsky said Ameristar's preliminary development plans include a hotel-casino; restaurants; retail shops; entertainment and meeting space; and parking structures.

Union Gaming Group Principal Bill Lerner, in a note to investors, said a casino in the Springfield area could generate approximately $380 million in annual gaming revenue and $65 million to $90 million in total resort cash flow.

"(Gov. Patrick's) approval represents the last remaining hurdle before companies can begin making plans for more formalized bids," Lerner said.

Other casino operators with Las Vegas ties have expressed interest in Massachusetts including Las Vegas Sands Corp., Penn National Gaming and Wynn Resorts Ltd. Caesars Entertainment Corp. is expected to bid on a casino license for the Boston area.

The southeastern Massachusetts license is widely thought to be reserved for the Mashpee Wampanoag Indian tribe.

Under the Massachusetts plan, casino developers would be required to pay $85 million for one of the three licenses and invest at least
$500 million in their projects. For the lone slot parlor, the license would cost $25 million with a minimum investment of $125 million.

The most frequently cited state report on gambling estimates that casinos could be up and running within five years, though some lawmakers have talked of more ambitious timetables of two to three years. The slot machine parlor could open sooner, perhaps in less than a year, given its lower threshold for investment.

Contact reporter Howard Stutz at hstutz@reviewjournal.com or 702-477-3871.
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