MGC “Parsing Words” Regarding Live Entertainment Gaming Statute

Encore Boston Harbor has been accused by Massachusetts theaters of disregarding state gaming laws concerning live concerts. Consequently, the legal counsel of the Massachusetts Gaming Commission (MGC) has examined the legislation and interpreted it to support the casino’s stance.

After a long break due to the pandemic, Encore is gearing up to bring back live concerts and entertainment once again.

What the gaming statute says about live entertainment at MA casinos

Lawmakers in Massachusetts prioritized the interests of smaller theaters when implementing gaming laws for casinos. They aimed to establish a protective measure for these theaters, which often struggle to compete against the grand scale of live concert halls found within casinos.

Performers at casinos receive a substantial payout for their shows, which is later compensated through the patronage of concert attendees who become customers on the casino floor, thereby offsetting any financial losses.

As per the 2014 legislation pertaining to Massachusetts gaming licenses’ applications:

A gaming licensee is only allowed to construct a live entertainment venue with a seating capacity ranging from less than 1,000 seats to more than 3,500 seats.

How Encore allegedly violated the live entertainment statue

Although Encore has not constructed any live entertainment venues of the specified size as required by the statute, they have cleverly discovered a loophole in the law. The casino has utilized its Picasso Ballroom to host music and entertainment events that surpass the seating capacity outlined in the prohibited range.

Official written testimonies have been submitted to the MGC by theaters in the vicinity of the casino, such as the Chevalier Theatre and the Hanover Theatre.

According to testimonies, it was alleged that the casino’s ballroom hosted the following shows, with ticket sales ranging from 1,000 to 3,500 seats.

• The B-52s, October 2019
• In December 2019, Straight No Chaser performed.
• Wayne Brady, January 2020
• Dropkick Murphys, March 2020

The theaters that are dissatisfied have demanded that the MGC impose fines and put an end to the casino’s actions.

MGC legal council says statute hasn’t technically been violated

Earlier this month, Todd Grossman, the legal counsel appointed by the MGC, thoroughly investigated the complaints lodged against Encore Boston Harbor. After careful evaluation, Grossman concluded that the casino’s actions were faultless, providing his interpretation of the matter.

Grossman focused specifically on the term “build” while analyzing the Massachusetts gambling law. He proposed that since the casino did not construct a physical live entertainment facility, they are not breaching any legal regulations.

Additionally, he asserts that Massachusetts casinos are not prohibited by the law from transforming a meeting room or lounge into an area where tickets can be sold in quantities exceeding 1,000.

“The hotel ballroom is suitable for events featuring live entertainment,” Grossman stated. “The agreement does not impose any limitations on the size of such events, including the number of seats or attendees, the frequency of events, or any other restrictions. However, these limitations could have been included in the agreement if desired.”

Dan Rabinovitz is a lawyer employed at Murphy & King, a law firm responsible for representing the booking agent and the city of Medford in legal matters pertaining to the Chevalier Theater.

Rabinovitz contended that the casino had indeed “constructed” the ballroom in question. Consequently, he asserted that the casino should not be permitted to utilize the area for performances involving the specified seating capacity.

Agreement may be damning for Encore Boston Harbor

In order for Encore Boston Harbor to obtain an operating license in Massachusetts, Grossman highlights the significance of a distinct agreement with the Massachusetts Performing Arts Coalition, which is deemed obligatory.

According to him, the supplementary agreement provides even more evidence to support his interpretation in favor of the casino. The agreement explicitly declares that all areas within the casino can be utilized for events that encompass “live entertainment.”

According to Troy Siebels, the CEO of Hanover Theater and Conservatory for the Performing Arts in Worcester, the summary provided by Grossman regarding the additional agreement is deceptive. Siebels personally engaged in negotiations for this agreement with Encore.

He insisted, “You must read the entire thing.”

Siebels also furnished the complete wording of the agreement being referred to. The agreement between the casino and the Coalition explicitly forbids any form of a “temporary live entertainment venue.”

In addition, Siebels acknowledged the aspect of the agreement highlighted by Grossman, which permitted events to feature “live entertainment” as well.

According to him, the provision in the agreement was meant for the entertainment accompanying an event, not for the event itself, where thousands of tickets are being sold for the entertainment in the ballroom.

Siebels argued, “They are merely dissecting words, which clearly contradicts the essence of the gaming law.”

The MGC has chosen to remain silent on this issue and has shown no signs of reconsidering it, even after Grossman’s interpretation. Nevertheless, nearby theaters are unlikely to give up the fight in the near future.