A new study reveals that the three commercial casinos in Massachusetts have generally been advantageous for the state.
Two years after legislators permitted up to three comprehensive casinos featuring slot machines and table games, along with a property exclusively for slots, Massachusetts established a study commission to continually assess the impact of casino gambling on the state. Titled the Social and Economic Impacts of Gambling in Massachusetts, or SEIGMA, the University of Massachusetts Amherst School of Public Health was assigned to evaluate the economic and social effects of the casinos.
In the 194-page October report named “Social and Economic Impacts of Casino Introduction in Massachusetts,” SEIGMA researchers discovered that the gambling establishments have made a net beneficial impact on life in the commonwealth.
"The introduction of casinos to Massachusetts has significantly increased overall economic activity and employment in Massachusetts, particularly in regions proximate to the casinos, and particularly for the construction and operation of Encore Boston Harbor,” the study conclusion read. “Furthermore, casino taxes on gross gaming revenue provides hundreds of millions of dollars to the state government, which is then used to benefit towns and cities.”
Since the launch of Plainridge Park Casino in 2015, MGM Springfield in 2018, and Encore Boston Harbor in 2019, SEIGMA has finalized 55 interim reports and academic papers regarding the effects of the casinos. The report published this week is a comprehensive document emphasizing the numerous advantages of three casinos.
The Positive
The SEIGMA team, which also involves scholars from the University of Lethbridge in Alberta, Canada, found that the main advantage of the 2011 casino legislation has been a considerable rise in total economic activity and jobs in the three areas hosting casinos. The report highlighted the billions of dollars put in by out-of-state casino firms and the billions of dollars in continuous gaming and non-gaming income produced by the properties as the primary drivers of the economic activity and tax revenue increase.
Researchers noted that the continuous flow of revenue and taxes primarily comes from residents of Massachusetts "who used to spend this money outside the state." The tax revenue amounting to hundreds of millions of dollars from the three casinos has been “utilized to aid both municipal areas and the residents of Massachusetts.”
The research revealed no noteworthy alterations in crime rates across the state or in the host and nearby cities of the casinos. Property crime occurrences have declined in all host and neighboring cities since the opening of their casinos, while instances of violent crime also fell near Encore in Everett and MGM in Springfield.
Everett and Plainville have seen growth in their populations since Wynn and Plainridge launched. The population of Springfield stayed the same.
In terms of residential real estate, Encore is believed to have produced a “hot” property market with rising home prices. MGM's arrival in Springfield resulted in a rise in multi-home sales, while the gentrification of the previously neglected city persists. Plainridge Park is not considered to have significantly affected local residential real estate.
And a Few Negative
The SEIGMA results also highlighted the adverse effects of introducing a slice of Las Vegas to Massachusetts. The study revealed that a significant portion of the increased economic activity has stemmed from the spending of at-risk and problematic gamblers.
"While the actual population prevalence of problem and at-risk gambling did not increase, the revenue drawn from this vulnerable segment of the population likely has,” the report said.
The results indicate that instances of problem gambling did not rise since individuals vulnerable to gambling addiction were already engaging in a “high level of casino gambling participation” in nearby Rhode Island and Connecticut.
There has been some overlap with other industries, particularly in the food and beverage sector and hospitality areas, near where MGM and Plainridge function. These industries have also struggled with a tighter labor market due to the casino openings, as approximately 75% of the casino employees transitioned from other full-time jobs.
