Uh-oh! Developer withdraws New Bedford Casino bid

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The developer behind a proposed New Bedford casino has withdrawn its application for the state’s third and final casino license.

The Massachusetts Gaming Commission received a letter from developer KG Urban, saying they were going to withdraw their proposal due to lack of financing.

It was back in May that KG Urban wrote to state regulators saying that together with a former Foxwoods CEO as a partner, they secured financing for the $650 million project.

City officials said that the construction and operation of the waterfront casino would’ve created an estimated 12,000 jobs.

In addition to that, Jon Mitchell, New Bedford mayor stated that KG Urban’s move to pull the bid is “an extreme disappointment and a great shock.”

According to Mitchell, KG Urban’s decision had upset city leaders and residents for they believe the financing was imminent, considering they voted to approve the project back in June.

But Urban CEO Barry Gosin defended the decision, saying that the investors expressed reluctance in the project due to the potential for an Indian-tribe owned casino opening in the region and undercutting casino profits.

In nearby Taunton, the Mashpee Wampanoag seeks federal land-trust status in order to build a casino resort that will not require state licensure approval.

For years, KG Urban has been pushing to develop the former NStar power plant’s city waterfront site. In recent months, the project seemed to gather momentum as it inked a deal with Foxwoods to operate the casino, partnered with former Foxwoods CEO Scott Butera and made a financial compensation deal with the city.

According to the Associated Press, If the deal pushes through and Urban’s bid would win the competition for the southeast region casino license, New Bedford would be receiving a $4.5 million upfront payment and $12.5 million a year thereafter once the facility is opened.

A $650 million resort casino proposed for the Brockton Fairgrounds is now the only bid left for the southeast region casino license.

One Response

  1. Scott Barrett August 5, 2015

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