Wynn Resorts CEO Craig Billings says Massachusetts’ proposed historic horse racing machines risk weakening the 2011 casino framework by adding competition for customers without the obligations imposed on licensed casinos.
In an editorial published in The Boston Globe, Billings argued that the state’s original arrangement paired a limited number of casino licenses with major private investment, jobs, tax revenue and community payments. Massachusetts authorized three resort casinos and one slots facility under that model; the House later approved an economic development bill amendment that would let horse racing licensees offer historic horse racing machines.
The measure would allow simulcast centers at Suffolk Downs and Raynham Park to operate the machines. It is a legislative proposal, not an authorization already in effect. The House’s action has drawn opposition from casino operators and the Mashpee Wampanoag Tribe, according to reporting by CDC GamingView and the Boston Herald.
Billings points to costs and competing products
Billings said the state has expanded gambling through live sports betting and online lottery sales, while lawmakers are considering online casino legislation. He argued that adding further products could divide demand among more operators and put pressure on the revenue that supports casino taxes, host-community payments, jobs and future investment.
His warning focuses in particular on HHR machines, which replay completed horse races through terminals. Billings contends they would compete for the same customers as casinos while operating without equivalent licensing costs, tax duties, community commitments, capital requirements and regulatory oversight.
The state’s three casinos generated about $101.9 million in gross gaming revenue in August, CDC GamingView reported. Massachusetts has collected approximately $2.53 billion in taxes and assessments from casino operators since the facilities opened. The state taxes Plainridge Park Casino at 49% of gross gaming revenue and the resort casinos, Encore Boston Harbor and MGM Springfield, at 25%.
Encore’s labor dispute adds pressure
Billings also linked the policy debate to Encore Boston Harbor’s labor dispute. About 1,300 Teamsters and Unite Here members were on strike after their contract expired on August 31; they walked out on September 4. He said Encore’s labor costs had risen nearly 37% over four years while revenue grew by less than 2%, and described a sustainable labor agreement as part of adapting to the state’s changing market.
Wynn invested $2.6 billion in Encore, which opened in 2019, and Billings said it has generated more than $1.1 billion in state tax revenue. He also cited $1.3 billion in employee compensation and $370 million in community payments. The company’s operating case for the property therefore rests not only on casino demand, but also on the tax and local commitments tied to its license.
Horse-racing provision remains under negotiation
The Boston Herald reported that the Senate’s version of the economic development bill did not include the HHR authorization, while also rejecting an amendment that would have explicitly barred the machines. The issue was among the policies being discussed by lawmakers in negotiations over the legislation.
For Wynn, the practical question is whether Massachusetts lawmakers preserve the limited-supply model as they decide which new forms of gambling to permit. The conference negotiations will determine whether the HHR provision remains in the final economic development bill.
Discussion about this post