Encore Boston Harbor Casino | 1 Broadway | Everett

beck4537

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Is there information on how Mass is using the taxes from the casinos?
 

beck4537

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From the Mass Gaming Commission website.
Thanks dshoot88! I don't understand how to interpret this graph though. Is Encore gaming revenue tax only contributing to the the sections in gold on the graph? Also, what is the purpose of the racehorse development fund? With Suffolk downs now closed why would MA choose to allocate money there? What is even more surprising given all of the transportation talk as of late is that allocations towards transportation is such a small percentage. Why not adjust the allocations to a higher amount to address our transit infrastructure funding gaps?
 

dshoost88

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Thanks dshoot88! I don't understand how to interpret this graph though. Is Encore gaming revenue tax only contributing to the the sections in gold on the graph? Also, what is the purpose of the racehorse development fund? With Suffolk downs now closed why would MA choose to allocate money there? What is even more surprising given all of the transportation talk as of late is that allocations towards transportation is such a small percentage. Why not adjust the allocations to a higher amount to address our transit infrastructure funding gaps?
The answers to all of your questions can be found on the Massachusetts Gaming Commission webpage.
 

Johnnyrocket891

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If a politician's relative rides a horse, they get money from this fund. Duh. ;)
That's $418,788 to the race horse development fund for the month.

Would that mean that race horse development fund would bring an estimated 5 Million for the year?
I wonder who is part of that group?
 

navigator4

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From the Mass Gaming Commission website.
Except for the race horse money, this is similar to the general budget expenditures. In most states that approved gambling, the money was set aside for a specific purpose. In Pennsylvania, the money is used to reduce property taxes. Each homeowners' property tax bill has a line reducing their tax that says gambling funds. In Mass. the legislators are so greedy and just want to use the money for their pet projects rather than to give relief to taxpayers. That's what happens when you have on-party control of the Legislature- you get corruption and taxpayers screwed.
 

navigator4

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Thanks dshoot88! I don't understand how to interpret this graph though. Is Encore gaming revenue tax only contributing to the the sections in gold on the graph? Also, what is the purpose of the racehorse development fund? With Suffolk downs now closed why would MA choose to allocate money there? What is even more surprising given all of the transportation talk as of late is that allocations towards transportation is such a small percentage. Why not adjust the allocations to a higher amount to address our transit infrastructure funding gaps?
Because the House Speaker represents Revere and Winthrop, the location of Suffolk Downs.
 

George_Apley

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What happened to the 3rd "vegas style" casino?
I believe it's all tied up in federal court over whether the Wampanoag have the prerogative to build one with or without the state's blessing, so the state hasn't issued the third license to any operators.
 

Rover

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I believe it's all tied up in federal court over whether the Wampanoag have the prerogative to build one with or without the state's blessing, so the state hasn't issued the third license to any operators.
IMHO I think this is a convenient excuse not to issue a 3rd license in an oversaturated market. The Mashpee tribe has a better chance of seeing God than winning this court case as the SCOTUS ruling is very clear - no reservation shopping is allowed in their situation. The law would have to change, and good luck with that as tribes who already have gambling rights aren't going to want to share the pot with new competitors and they have all the money to lobby Congress with.

But, the state gets to throw up its hands and say that we can't award the 3rd license to a private company because if the tribe does by some miracle in their case not only would they build a 4th casino with no state oversight (it'd be outside of the existing state law) BUT they'd also be under no obligation to pay anything to the state thus putting them at a competitive advantage.
 

HenryAlan

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Why not just award the third license to the Mashpee tribe and be done with it?
 

Rover

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Why not just award the third license to the Mashpee tribe and be done with it?
Pure speculation on my part, but 1) the tribe seems to be horribly inept at managing their own finances, much less a casino, that they wouldn't even be in consideration if they weren't in fact the only federally recognized tribe in region 3. The state all things being equal would open the contest up to the highest bidder. 2) I'm also wondering if they'd have to give up claims of sovereignty in order to operate an off-reservation casino which is something they might be reluctant to do in case the political winds shift in DC and they do end up being able to reservation shop.

Because the state doesn't have to issue an license in this region, its just that it can if it chooses to, the stalemate will continue. If you allow a 3rd non-Indian casino and then they go ahead and get approval, you'd now have 4 up and running in the state instead of 3 and the 4th one is tax free. But, it might take forever for the tribe to actually get approval to build outside of their already recognized land in Mashpee.
 

jass

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Wynn is arguably the most successful casino operator in the world. The Wynn in Vegas is the most profitable casino in the US. And Wynn's table game pricing policy is entirely in line with standard industry best practices and economic theory.

Unless you have any evidence that Wynn doesn't know what they're doing with respect to game pricing, I'll move forward under the assumption that they do.
Woops.

‘We were wrong:’ Encore Boston Harbor drops $50 table game minimums, paid parking
Encore Boston Harbor killed its $50 table game minimums and parking fees as it seeks to draw crowds beyond the high rollers.

The $2.6 billion Everett resort casino now offers $15 table game minimums and dropped its parking fees for self parking. The company also plans to roll out a tiered card system to offer rewards for a variety of players, said Brian Gullbrants, Encore’s new president.

“We thought we could charge for parking here in Boston, and we were wrong,” he said. “We have now made self-parking free for all guests, 24/7. We thought we could charge for some of the transportation like boats and premiums buses. We were wrong.”
 

JumboBuc

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Woops.


The "we were wrong" quote is about parking/transportation. It has nothing to do with table pricing:
“We thought we could charge for parking here in Boston, and we were wrong,” he said. “We have now made self-parking free for all guests, 24/7. We thought we could charge for some of the transportation like boats and premiums buses. We were wrong.”
Also, table revenue isn't the problem:
Over the past five months, Encore has seen strong revenues for table games, which typically attract the top spenders, but low slots numbers. Slots numbers made up less than half of the property’s gross gaming revenue in July, August and September.
My argument all along has been that Wynn should charge high table prices for as long as they can, then lower them when demand dries up. Charge high prices to get the high rollers, then drop prices accordingly when you still have space. This is how markets work, and every successful business does it.
When demand drops and the tables stop filling up at $50 minimums, then the minimums drop and the tables fill up again. Basic econ 101: when demand is variable but supply/marginal cost of production is fixed, price rises and falls with demand but quantity of output stays constant.
Wynn will now say BS like “The last thing we want to do is be a Vegas casino in Boston. We want to be a Boston casino in Boston," but that's politics and PR. They know what they're doing and they're following the book of profit-maximizing best practices to the letter. You can be sure that whenever demand surges and floor fills up, table game minimums will go right back up to $50 or wherever they were.
 
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tangent

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The "we were wrong" quote is about parking/transportation. It has nothing to do with table pricing:

Also, table revenue isn't the problem:


My argument all along has been that Wynn should charge high table prices for as long as they can, then lower them when demand dries up. Charge high prices to get the high rollers, then drop prices accordingly when you still have space. This is how markets work, and every successful business does it.


Wynn will now say BS like “The last thing we want to do is be a Vegas casino in Boston. We want to be a Boston casino in Boston," but that's politics and PR. They know what they're doing and they're following the book of profit-maximizing best practices to the letter. You can be sure that whenever demand surges and floor fills up, table game minimums will go right back up to $50 or wherever they were.
Call this for what it is... getting some free press to announce lower prices for what is going to be undoubtedly their slower season. At this point they/we are just getting a glimpse of the monthly and seasonal variation in the Boston casino/entertainment market.

However, the state (beyond the casino commission) should be very much focused on making sure this area remains a focus of redevelop effort and dollars to keep up the momentum. Build hotels, build additional mixed use, build that pedestrian bridge and complete the river walk.
 

stick n move

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The more I think about it, and the more connected this becomes to Assembly, I could see the soccer stadium being built in the parking lot next door to Encore. With Assembly and Encore right there, with OL access and water taxis, waterfront views, future development around the Encore strip a given, its a much more viable spot now. Hell even the parking lot at Wellington is looking better. I think that if they cant make it work downtown then somewhere out in this direction would work perfectly fine.
 

sm89

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I'm really confused by this story. The news is months old. Parking was made free back in August and I personally experienced the $15 tables when I was there in early October. Is this just a marketing ploy to re-release an old announcement? https://www.bostonglobe.com/metro/2019/10/04/self-parking-now-free-encore-boston-harbor/VDrCgbdej5IsKvgPKm5KtI/story.html
 

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