KG Urban Enterprises and its partner Foxwoods abruptly pulled their proposed 0 million casino project for New Bedford out of the running for the Massachusetts southeastern casino license in July. They cited their inability to secure financing as the cause.
In a letter to the Massachusetts Gaming Commission, the developers said they had found securing financing “significantly harder” than they had anticipated.
The letter concluded, “Given the uncertainty of obtaining viable financing for the project and the time constraints of the license application process, we cannot justify investing any additional funds in the project beyond the significant amount already invested.”
The letter said investors had been reluctant to invest because of the very real possibility that the Mashpee Wampanoag tribe could still open a casino in Taunton.
With this announcement, suddenly the license for the Bay State’s fourth and final casino appears to be hanging in limbo. At the very least, no more casinos will open before 2018.
One bidder remains for the license, Brockton, whose developer Mass Gaming, a subsidiary of Neil Bluhm’s Rush Street Gaming, has already cleared the ethical and financial suitability vetting by the state’s investigators, as well as gaining the approval of the city’s voters.
This is all good news for the Mashpee Wampanoag tribe, which was originally intended to be the recipient of the southeastern license, but which failed to meet all of the requirements in time—prompting the commission to open the license to commercial bids.