2019 ANNUAL REPORT
December 2019 HONORABLE MADAMS AND MESSRS.
Governor We are pleased to deliver the eighth annual report of the Massachusetts
Charles D. Baker Gaming Commission (MGC). This report covers the details of our
operations as of the end of the Fiscal Year 2019 (June 30, 2019), and is
Attorney General submitted per section 70 of Chapter 23K. During FY19, we continued
Maura Healey to implement the operational readiness process in anticipation of the
opening of Encore Boston Harbor (EBH). During most of FY19, our
Treasurer
Investigations and Enforcement Bureau conducted and completed an
Deborah Goldberg
investigation into the allegations against its former chief executive
and the company’s response to those allegations. In April 2019, the
Chairs of the House and Senate
Commission assessed a $35.5 million fine to Wynn Resorts for their
Committees on Ways & Means
inadequate response to those allegations.
Chairs of the Joint Committee
The fourth full year of operations for Plainridge Park Casino (PPC)
on Economic Development &
concluded on June 30, 2019, while the first full year of operations for
Emerging Technologies
MGM Springfield (MGM) ended on August 20, 2019. The total gaming
Clerks of the House and Senate tax revenues collected for the fiscal year were $144.9 million
(including the first week of EBH after its opening on June 23, 2019).
The calendar year 2019 marked the fifth year of funding for mitigation
projects across the Commonwealth, totaling $15.6 million in grants.
Also, this fiscal year, MGC increased funding for workforce development
activities, leveraging existing efforts at the State and local levels to
advance more opportunities for employment.
We are always available to discuss with you at your convenience
the efforts the Commission is making, the results it is achieving,
and any other aspect of our operations about which you would like
additional information.
Sincerely,
Massachusetts Gaming Commission
 MISSION
The mission of the Massachusetts Gaming Commission is
to create and maintain a fair, transparent, and participatory
process for implementing the expanded gaming law passed
by the Legislature and signed by the Governor in November
2011. The Commission strives to ensure that its decision-
making and regulatory systems engender the confidence of
the public and participants, and that they provide the greatest
possible economic development benefits and revenues to the
people of the Commonwealth, reduce to the maximum extent
possible the potentially negative or unintended consequences
of expanded gaming, and allow an appropriate return on
investment for gaming providers that assures the operation
of casino-resorts of the highest quality.
TABLE OF CONTENTS
5 Letter from the Chair
6 Major Milestones Anticipated for Fiscal Year 20
8 Key Provisions of the Gaming Act
9 Recommendations for Legislative Action
11 Agency Divisions
17 Research & Responsible Gaming
23 Casino Properties & Project Summaries
27 Racing Operations
29 Tax Collections & Agency Finances
35 Workforce, Supplier & Diversity Development
41 Litigation Matters
 LETTER
FROM THE CHAIR
The MGC has been in existence since March 21, 2012. This report entails the eighth fiscal year of operations in the
process of implementing the expanded gaming legislation (Chapter 194 of the Acts of 2011 — An Act Establishing
Expanded Gaming in the Commonwealth) enacted by the General Court and signed into law by the Governor in
November 2011. The Commission made significant progress towards its mission during FY19. We continue to operate
the regulatory framework to enable this Commission to oversee and regulate the gaming licenses allowed by the
Gaming Act.
DURING FY19 THE COMMISSION:
1. Oversaw the fourth full year of operations at PPC. 6. Released important reports, including the Social
For FY19 (ending June 30, 2019) Gross Gaming & Economic Impacts of Expanded Gambling in
Revenues totaled $168.7 million (a $1.3 million Massachusetts: 2018 summarizing the impacts of
decrease from the prior year — reflecting increased expanded gaming to date. Other reports included a
in-state competition), resulting in taxes of $82.6 gambling screening study among military veterans
million ($33.0 million to Local Aid and $7.4 million (by the Bedford Veterans Administration), and
to the Race Horse Development Fund). African-American Perspectives in Casino Gambling.
2. Oversaw the first 10 months of operations at MGM 7. Continued to oversee and regulate the racing and
following the August 26, 2018 opening. Gaming simulcasting operations in the Commonwealth,
revenue for the period (from opening through including disbursements to purses and for the benefit
June 30, 2019) amounted to $232.4 million, which of horsemen and breeders associations for a total
resulted in $58.1 million in gaming taxes. of $17.07 million ($13.5 million disbursed to purses,
$2.8 million to breeders and $704,773 to health and
3. Completed the investigation into Wynn Resorts’
wellness programs).
response to the misconduct allegations of its former
chief executive. The Commission adjudicated $35.5 8. Held 24 public meetings of the Commission, and an
million in fines and significant conditions. Per statute, additional five public hearings. The Commission live
all fines are deposited to the same funds in which streams all public meetings via the MGC website
gaming taxes from Category 1 licenses are distributed. and transcribes the meetings and hearings in full.
Further, there were 24 additional open meetings
4. Issued an operations certificate to EBH, which
(Access and Opportunity Committee, Public Health
opened in June 2019. The first week of operations
Trust Fund Executive Committee, Horse Racing
generated $16.7 million in gaming revenue and
Committee, Local Community Mitigation Advisory
$4.1 million in gaming taxes.
and Gaming Policy Advisory Committee).
5. Promulgated or amended eleven sets of regulations
that govern many important aspects of gaming and
racing operations, including Junket enterprises,
gaming equipment (progressive games), licensing
and administrative hearings, and Standardbred and
Thoroughbred Racing (amendments as exotic bets —
Pick & Pools).
MASSACHUSET TS GAMING COMMISSION ANNUAL REPORT PAGE 5
 MAJOR MILESTONES
ANTICIPATED FOR
FISCAL YEAR 2020
The initial five-year term of the license of PPC will monies for purses. There were no Thoroughbred
conclude on June 24, 2020. The Commission initiated racing applications submitted by the statutory deadline
policy discussions around renewal and will shortly of November 2019; Thus, live Thoroughbred racing
promulgate associated regulations. Although we do will likely not take place for calendar 2020. There are
not anticipate any legislative changes are required currently three bills under consideration that, in one way
to grant renewal, the Commission will conduct a or another, attempt to address Thoroughbred live racing
regulatory and compliance review of Penn’s license and simulcasting.
conditions, and an updated investigation into the
suitability of individual qualifiers. PPC now operates We will continue efforts to maximize the economic
with more in-state competition (MGM and Encore), and benefits of the emerging gaming industry. We convene
gaming revenue for the first quarter of FY20 was $36.2 and connect licensees to the Commonwealth’s workforce
million. The associated revenues to the Commonwealth and small business resources. We provide grants to
were $17.7 million. During FY19, PPC annual revenues leverage and supplement state and local workforce
decreased by $1.3 million and FY20 will bring further development programs.
declines (the first three months of FY20 netted an $8.6
million decline in gaming revenues for the same first We will continue our transition to regulatory aspects
quarter the prior year). of the operations of casinos, including:
• Further regulations that govern operations and
FY20 will mark the first full year of operations of both
Category 1 licensees (MGM and Encore) within a fiscal functions at the gaming establishments
year. The total revenues to the Commonwealth could • Implementation of additional rules and procedures to
approach $250 million for FY20. ensure the integrity of the game
We will continue to improve our responsible gaming • Compliance, monitoring and audit programs for the
efforts. Under contract with the MGC, the Massachusetts oversight of operations of licensees
Council on Compulsive Gambling operates GameSense,
an on-site space to promote positive play and connect We will monitor developments affecting the gaming
people with resources, including the Voluntary Self industry to make policy recommendations. Topics
Exclusion program. like the status of the Mashpee Wampanoag Tribe have
significant implications for Region C (Southeastern
We will continue our research and program evaluation Massachusetts). Other topics include online gaming,
activities. We will implement the priorities from the sports betting, illegal gambling, and the status of the
previous year’s strategic planning process for the Wampanoag Tribe of Gay Head (Aquinnah) and their
research program to continue making our research potential impact on the state’s nascent gaming industry.
and program evaluation activities as useful as possible
for regulation, mitigation, and informing policymakers.
Standardbred racing will continue at PPC and is
expected to include 110 days of live racing for the
calendar year 2020. We continue to evaluate the
feasibility of Thoroughbred Racing given available
PAGE 6 MASSACHUSET TS GAMING COMMISSION ANNUAL REPORT
 KEY PROVISIONS
OF THE GAMING ACT
Chapter 194 of the Acts of 2011 (“The Gaming Act”) includes significant features to ensure public confidence and
a robust gaming industry that generates economic development while providing mitigation measures to protect
potentially vulnerable groups.
A STRONG, INDEPENDENT REGULATORY FRAMEWORK STRONG LOCAL CONTROL
• Host communities vote on the host community
• Five full-time commissioners appointed by the
agreement negotiated between the applicant and
three constitutional officers
the local executive
• Rigorous standards for suitability and licensure
• Surrounding communities have a process for
of companies, vendors and employees
addressing mitigation concerns (that must also be
• The on-site presence of gaming agents, state funded and addressed by the applicants)
police and responsible gaming councilors
• Reimbursement to communities for mitigation costs
(GameSense Advisors)
• Detailed regulations and strict oversight to ensure the
integrity of the operations and fairness of the games POLICIES TO MAXIMIZE THE BENEFITS TO
THE COMMONWEALTH
• A competitive and transparent process for license
A ROBUST AND FUNDED RESEARCH MANDATE solicitation, evaluation and award of up to three
The Gaming Act enshrines the role of research in Category 1 licenses and one Category 2 license to
enhancing responsible gaming and mitigating the negative maximize capital investment
consequences of expanded gaming in Massachusetts.
• Clear directives and specific criteria to realize
To this end, the secretary of health & human services
and the Commission established a Public Health Trust economic benefits to support local, small and
Fund Executive Committee to oversee and execute on this diverse businesses, employ the unemployed and
mandate. The act directs the parties to: underemployed while protecting vulnerable groups
and other commonwealth assets including the
• Understand the social and economic effects of lottery and impacted live entertainment venues
expanded gambling including conducting a baseline
study and subsequent studies of all relevant critical,
social and economic variables
• Obtain scientific information relative to the
neuroscience, psychology, sociology, epidemiology
and etiology of gambling
• Make annual, scientifically-based recommendations
for policy to the Legislature
PAGE 8 MASSACHUSET TS GAMING COMMISSION ANNUAL REPORT
RECOMMENDATIONS FOR
LEGISLATIVE ACTION
In accordance with Chapter 30 Section 33 and C. 23 k (the Gaming Act); we submit recommendations for legislative
action. The topics for consideration are:
1. Consider addressing the expiring nature of the 3. Consider exempting members of the gaming policy
racing statutes in a permanent manner. The current advisory committee, its subcommittees and local
statutes that govern live racing and simulcasting in advisory committees from certain conflicts of
the Commonwealth (g.l. c. 128a and c. 128c) expire interest and ethics restrictions. G.l. c. 23k, §68
on January 2020. As part of the Gaming Act (c. 194 of created a Gaming Policy Advisory Committee (GPAC)
the acts of 2011, §104), the Commission was tasked and subcommittees (specifically a subcommittee
with providing findings and recommendations to the on community mitigation) and local community
Legislature (given its then pending expiration of July mitigation advisory committees (LCMAC) to provide
31, 2014). These recommendations were submitted in advice to the Commission on gaming policy and
April 2013, in a report that included a draft proposed related mitigation matters. By statute, the LCMACs
new g.l. c. 128d. While the Legislature did not enact include appointees from the host and surrounding
the proposed c. 128d, different efforts to address communities to the casinos. The people in the best
this (in the House & Senate) resulted in five annual position to provide informed input in many of these
extensions of sections 128a and 128c (st. 2105c. advisory roles are local officials, municipal and
10 §59, st. 2016 c.176, st. 2017 c.56, st.2018 c.159 regional employees. However, it has been determined
and st.2019 c.47. These extensions have allowed that municipal and regional employees may be in
Suffolk Downs to continue simulcasting while violation of the state’s conflict of interest law (g.l. c.
requiring they conduct at least one day of live racing. 268a) if they provide advice to the Commission while
However, in our opinion, the current short-term also performing their local duties, which typically
nature of the law creates uncertainty to the viability of include gaming-related matters. MGC worked
live horse racing in the Commonwealth. Accordingly, closely with the State Ethics Commission to craft
the Commission favors an appro