Suffolk Downs, Caesars plan casino project outside Boston

Although Massachusetts has yet to approve casinos, Sterling Suffolk Racecourse LLC, owner of the Suffolk Downs racetrack in East Boston and Revere, announced Thursday that it has reached agreement with Caesars Entertainment Corp. to develop "a gaming and entertainment complex" on the racetrack property.

Las Vegas-based Caesars, formerly known as Harrah's, the world's largest gaming company, owns or manages casino resorts on four continents.

A Boston-area casino would likely harm business at Connecticut's two casinos, particularly Foxwoods, and Rhode Island's two slots parlors, gaming industry analysts have said. Requests for comment on the Caesars-Suffolk Downs agreement elicited no public response from Foxwoods or Mohegan Sun.

Last year, the Massachusetts legislature forwarded to Gov. Deval Patrick a bill authorizing three full-scale resort casinos as well as slot machines at two of the state's racetracks. Patrick, who opposes the licensing of slots, refused to sign the measure into law. Reportedly, House Speaker Robert DeLeo, Senate President Therese Murray and Patrick have had recent discussions on the matter, and the legislature is expected to take it up in the weeks ahead.

Under the Suffolk Downs-Caesars agreement, Suffolk Downs retains control of the potential development of the property, including licensing, community relations and labor relations, while Caesars would manage a casino at the track if such a development occurs.

"Our alliance … will bring significant management expertise, marketing power and additional potential investment to enhance our ability to develop a gaming and racing complex commensurate with Boston's status as a world-class city and tourism destination," Richard Fields, Suffolk Downs' managing partner, said in a statement.

Financial terms of the agreement were not disclosed.

Fields, a casino developer, rancher and horse-racing enthusiast, and Joe O'Donnell, a Cambridge, Mass.-based entrepreneur, philanthropist and former owner of the Boston Culinary Group, are the principal shareholders of Sterling Suffolk Racecourse.

"Should Massachusetts authorize casino gaming, we believe that there is no stronger team in place nor any better venue than Suffolk Downs and we look forward to the opportunity to compete to develop this property to create jobs and new revenue for the state," Chip Tuttle, Suffolk Downs' chief operating officer, said.

Caesars, whose chairman and chief executive officer, Gary Loveman, is a Massachusetts resident, referred inquiries to Suffolk Downs.