- Associated Press - Thursday, June 26, 2014

BOSTON (AP) - Mayor Martin Walsh on Thursday asked state gambling regulators to halt the process for awarding the Boston-area casino license until after a November vote on Massachusetts’ casino law.

Walsh said he doesn’t want to continue spending taxpayer money on negotiating financial compensation deals with Mohegan Sun and Wynn Resorts - the two companies still vying for the Boston-area license - while the fate of the law is uncertain.

“We’re facing an unprecedented situation here in Massachusetts right now,” Walsh said. “If the voters choose to repeal the law in November, all parties involved will risk losing precious time and millions of dollars for nothing.”

The state’s highest court on Tuesday cleared the way for a referendum that would repeal the casino law to be placed on the ballot, after state Attorney General Martha Coakley, who is running for governor, initially declared the question unconstitutional.

The Massachusetts Gaming Commission has said it intends to continue with the licensing process, despite the court ruling. On Thursday, it confirmed it had received Walsh’s letter but had not yet reviewed it.

The Boston-area license is one of three regional casino licenses the commission is authorized to award.

The five-member panel this month awarded the state’s first casino license to MGM Resorts International for an $800 million casino proposed for downtown Springfield. It has also already awarded the state’s lone slot parlor license to Penn National Gaming for its Plainridge harness racing track project in Plainville.

Walsh’s office had been negotiating with Mohegan Sun and Wynn Resorts on deals to compensate Boston for impacts to traffic and city services.

The city and Wynn had set a Wednesday deadline to finalize a deal. Mohegan Sun and the city had set a Friday deadline. Walsh on Thursday said the city and the casinos will go to arbitration in about five days if no deal is reached.

The Boston-region license is expected to be awarded in late August or early September.

Wynn proposes a $1.6 billion casino in Everett and Mohegan Sun proposes a $1.3 billion one on the Suffolk Downs horse racing track in Revere.

A Wynn spokesman said further delay in the process would be “unfair and burdensome” and Mohegan Sun said it was “shocked and extremely disappointed” with the mayor’s announcement.

“We have been fully cooperative with Mayor Walsh’s administration and negotiating in good faith with the City to agree on a surrounding community agreement,” Mohegan Sun said in a statement. “Two licenses have already been awarded and there is absolutely no reason not to continue fulfilling the promise of this landmark legislation.”

Revere Mayor Daniel Rizzo agreed and said the board should follow the timeline it has announced

Bill Mulrow, board chairman at Suffolk Downs, said he was “dismayed” by the mayor’s request, and that additional delays in the licensing decision “will put our operation and our workforce at risk and we urge the Commission to stick to its announced timeline.”

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