Blue Mass Group

Reality-based commentary on politics.

Casino Question

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Hello Fellow Blue Mates!

I have a question/project/for you/us.

 

Can anyone recall the exact tax revenues projected to be gained from the Massachusetts casinos once they were in operation and what they really are today?

I just noticed that our legislators are now trying to expand the “slots” casino in Plainville into a real casino to make up for lost revenues….due to competition from other states doing things to lure our gamblers into their states, the quintessential race to the bottom where I suspect, the casinos will go bust and the taxpayers will wind up holding the bag.

Any ideas?

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Comments

  1. Looks like Everett’s goal is to take in $800M, which would generate $200M for the State. Not sure about MGM Springfield, which had a bad June. CT’s casinos are feeling the pinch of competition.
    https://www.dotnews.com/2019/everett-casino-generated-42m-state-tax-revenue-its-opening-week

    https://www.masslive.com/casinos/2019/07/connecticut-casinos-see-continuing-decline-in-slot-revenue.html

    Mass. Gaming Commission does revenue reports on all the casinos and Plainfield. They claim that $387M has gone into state coffers so far, which goes to local aid and propping up the horse racing industry (???!):
    https://massgaming.com/blog-post/the-massachusetts-gaming-commission-releases-june-2019-gross-gaming-revenue-for-plainridge-park-casino-mgm-springfield-and-encore-boston-harbor/

  2. I’m still looking for historical sources. I found this 2014 presentation from Wynn Resorts:

    • $267 mn in annual, recurring state and local taxes ($29 mn directly to the City of Everett)
    • $183 mn in one-time state and local taxes during the resort development

    I also found a 2008 “Comprehensive Analysis” from the Spectrum Gaming Group:

    This moderate scenario shows that $596.7 million in total government revenue – including indirect revenue — would be generated, including funds that would be available for property tax relief. This amounts to 39.7 percent of projected gaming revenue.

    It’s interesting that the revenue projection from 2008 was for $596.7M, including indirect revenue (increased tax revenue from new jobs, new businesses, higher sales tax revenues, etc). The state provides a report for each casino, updated monthly.

    The total “collected state taxes” for the year ending in June 2019, from those reports, are:

    Encore Boston Harbor (partial, one month): $4.2M
    MGM Springfield: $58.1M
    Plainridge Park Casino: $75.2M

    It will be interesting to see how the numbers play out over the next few months.

    • Some friends went the first week just to see what the commotion was all about. They got some drinks and played some slots, mostly there for the selfies in front of Popeye. I suspect in a month or two the crowds will be more consistent with what to expect. I was over near there a few times in the afternoon and was surprised at how dead it was and how little it seems to affect the traffic.

      Friends of my aunt who went were surprised at how much they charge for poker ($100 the minimum ante) and the ‘penny’ slots require a dollar minimum to play. $600/night for a room (in scenic Everett!). The idea of people shelling out money to stay at this thing is shocking to me, especially since they could stay in Vegas for similar prices. It certainly didn’t prop up Suffolk Downs which ran its last live race the day it opened.

      • I didn’t realize people would be coming to casinos in Everett from far enough away to stay at a hotel at all.

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