'Predatory': Venues Slam Encore's Entertainment District Plans

EVERETT, MA — An event space that's part of Encore Boston Harbor's planned entertainment district could spell curtains for nearby smaller, locally run theaters.

That's according to several people who spoke on their behalf at a Massachusetts Gaming Commission meeting on Monday. The commission held the meeting to receive public comment on Encore's proposal, which calls for 20,000 square feet of restaurant and retail space across from the casino, connected by a pedestrian bridge over Broadway.

Among the project's detractors are Medford Mayor Breanna Lungo-Koehn and State Rep. Paul Donato, who echoed the Medford City Council's concerns about the impact of the proposed 999-seat venue on spaces like the Chevalier Theatre.

"I'm speaking to you as a mayor to make sure that our economy flourishes in Medford," Lungo-Koehn said.

At the center of the gaming commission's discussion is whether the project is an extension of the casino, which would subject it to certain gaming regulations. But many people who spoke at Monday's meeting claimed Encore is already skirting those rules, particularly one about building a venue between 1,000 and 3,500 seats.

"The fact that Encore has continually had concerts where seats have been sold and put in their ballroom between 1,000 and 3,500 seats, that's a straight violation of the law," said Dan Rabinovitz, an attorney representing the city of Medford and Bill Blumenreich Presents, which operates the Chevalier Theatre.

In addition to its Surrounding Community Agreements with nearby cities and towns, Encore has an Impacted Live Entertainment Venue Agreement with non-profit and municipally owned theaters. Part of that agreement involves good-faith communication with local theaters, something the casino has not followed through on, said Troy Siebels, executive director of the Hanover Theatre in Worcester and chair of the Massachusetts Performing Arts Coalition.

"There is a world in which both organizations can survive, but we believe that we are not on that level playing field right now," Siebels said.

Local venues rely on ticket sales and concessions to recoup the cost of an act, whereas a casino has other primary revenue streams, which gives it an unfair advantage when it comes to booking talent, advocates for the theaters said.

Ken Krause, who serves on the board of the Friends of the Chevalier Auditorium, cited a performance by the band The B-52s at Encore in 2019. The band was "all but signed" by the Chevalier before the casino offered them "three times the amount" to play there, Krause said.

"Talk about predatory practices," Krause said.

While Krause acknowledged the casino's 999-seat proposal is within the parameters of the law, he highlighted the importance of the entertainment district falling under the jurisdiction of the gaming commission.

"If the venue goes ahead, and it's not part of the gaming commission, they could turn around the next day and make it 1,800 seats," Krause said, which would put it in direct competition with the 1,850-seat Chevalier.

Encore would already be competing with the smaller, 850-seat Cabot Theatre in Beverly, the theater's executive director Casey Soward said. The Cabot generated about $10 million to $12 million annually before the pandemic and is working to get back to that range this year.

"We understand competition well, but we are concerned about predatory competition," Soward said.

In addition to the venue, Encore's proposal includes about 800 hotel rooms, 50,000 square feet of restaurant space, a parking garage with more than 2,300 spaces, a warehouse and green space.

Representatives from Encore did not respond to emailed questions about the meeting; however, its owner Wynn Resorts has previously touted the plan as a way to revitalize the industrial area around the casino.

The company is "trying to make this a vibrant neighborhood," Wynn Resorts Development President Chris Gordon told the commission in February.

The commission will next consider the project on March 10.