Introduction
When it comes to casino ownership, information is key. But getting to the bottom of who owns and operates a casino is often far from easy. This is especially relevant in the case of Plainridge Park Casino. Despite being a popular casino that serves the residents of Massachusetts, its ownership structure has long been shrouded in mystery. However, gaining insight into who really owns the casino, and understanding the financial and social implications thereof, can be a critical step in supporting responsible gambling, ensuring compliance with state law, and protecting vulnerable patrons.
Investigative piece: “Uncovering the Mysterious Owners of Plainridge Park Casino”
Despite Plainridge Park Casino being around since 2015, its ownership structure has never been fully disclosed to the public or the state regulators. Investigative journalists and researchers have been looking into the backgrounds and connections of the casino’s owners, with varying degrees of success. The Massachusetts Gaming Commission, which oversees the state’s casinos, has been scrutinizing casino ownership after years of inadequate regulation of the industry.
A recent article by the Boston Globe, published in October 2021, has shed some light on the ownership structure of Plainridge Park Casino. According to the report, the casino’s real owners belong to a well-known family in the gambling industry, the Carney family, through the gaming company Penn National Gaming. The Carney family has been in the racetrack business for generations.
Historical perspective: “From Racetrack to Casino: A Look at the Owners of Plainridge Park Through the Years”
Plainridge Park Casino initially operated as a racetrack, but in 2015, the track’s owners installed slot machines, marking the state’s first casino. The initial owner of the racetrack was the Leewood-Myers family, who sold the tracks to Lance George, who then sold it to Ourway Realty, Inc. in 1997. In 2000, Ourway Realty, Inc. sold the racetrack to the Carney family. 23 years later, this family still holds the ownership through Penn National Gaming.
While the ownership of the casino has been stable over the past few years with the Carney family in control of the casino stake, there have been some controversies surrounding previous ownership changes. In 2011, the prior owners of the racetrack, Ourway Realty, were ordered to pay $3.4 million to the state for avoiding paying taxes owed on simulcasts and bets placed at other racetracks nationwide.
Financial analysis: “Following the Money Trail: Who Profits from Plainridge Park Casino?”
Plainridge Park Casino operates as a slots-only casino and offers patrons over 1,200 machines, and it is the most lucrative of the three casinos in Massachusetts. The financial structure of the casino is complex, but it is clear that profits are generated. For instance, according to reports, in 2020, Plainridge Park generated slot revenue of $172.6 million. The state of Massachusetts received a 25% share of this revenue. Stating the obvious, the owners made a substantial fortune from the casino. However, it is difficult to understand the profit-sharing arrangement between the Carney family, Penn National Gaming, and other stakeholders made in the company.
While not much is known about the percentage ownership of the Carney family in Penn National Gaming, the company is publically traded on NASDAQ, and their annual reports help in understanding the company’s financial operations. Penn National accounting reports indicate the following: the Northeast region, which includes Plainridge Park, made up about 40% of their operations revenue for 2020. Penn National shows a revenue of $5.3 billion for 2020. Understanding the actual percentage of profit paid to the Carney family remains unclear at the moment.
Industry comparison: “Plainridge Park Casino Ownership in Comparison to Other Casinos”
When compared to casinos in other states, the ownership structure of Plainridge Park Casino differs from that of some larger land-based casinos. For instance, some casino owners in Las Vegas are publicly traded entities that have shareholders. In contrast, the ownership of Plainridge is solely in the hands of Penn National Gaming. This is not uncommon in the casino industry, and it barely affects the day-to-day operations of the casino as long as the company adheres to state regulations.
As noted earlier, the Carney family has been in the racetrack and gambling business for generations; thus, they have considerable knowledge and experience with gambling operations in Massachusetts, making them well-positioned to run a profitable casino operation.
Legal implications: “The Legal Side of Plainridge Park Casino’s Ownership Structure”
It is important to ensure that casino ownership does not affect compliance with state laws and regulations. In Massachusetts, gaming regulations require prospective casino owners to go through a rigorous background review process, physical and legal, before being approved. It is unknown whether the Carney family had to go through the state’s full vetting process, and this raises regulatory concerns for the casino watchdogs.
However, it is known that Penn National Gaming holds other casino licenses across the country, and is, therefore, well-versed in dealing with gaming regulations. It is currently uncertain if there would be any legal implication for operating a casino as an undisclosed owner in the state of Massachusetts.
Corporate responsibility: “Who Owns Plainridge Park Casino? Examining the Company’s Approach to Social Responsibility”
As part of being a socially responsible corporate entity, it is important for casinos to support social causes in their local communities, such as charities, as well as to promote responsible gambling . As of now, it is unclear if the Carney family and Penn National Gaming have any initiatives in place due to limited public information. However, according to the Massachusetts Gaming Commission, tabled in 2018, Penn National has plans to develop a community fund to support local initiatives in the Central Mass and Greater Boston areas.
Conclusion
In conclusion, Plainridge Park Casino’s ownership has a considerable impact on its financial structure, social responsibility, and legal compliance adherence. The Carney family has had a legacy in the gambling business, making them credible experts in the industry, but it is important to vet potential owners to ensure that they meet the criteria beyond just the industry expertise. More clarity is required in terms of profit-sharing percentages and public initiatives by the company to support local communities. Hopefully, the findings presented in this article urges for more openness and greater public awareness to the ownership of Plainridge Park and potentially other casinos in the industry.