Aug 7, 2008 8:20 pm US/Eastern
Report Shows Casino Projections Hit, Miss The Mark
Glen Johnson, AP Political Writer
BOSTON (AP) ―
A new study says building three casinos in Massachusetts would allow the state to recapture up to $700 million of the $1.1 billion Bay State gamblers already spend in Connecticut and Rhode Island.
But the analysis released Thursday also shows the casinos would create about 15,000 permanent jobs, not the 20,000 projected by Gov. Deval Patrick.
The report also found that the casinos would generate 9,000 construction jobs, far fewer than the 30,000 once projected by the governor.
The study by the Spectrum Gaming Group of Linwood, N.J., was conducted for the Patrick administration. The Legislature killed Patrick's casinos plan earlier this year, but the governor has spoken about reviving it.
"I believe that this analysis will prove valuable for future policy deliberations if the issue of expanded gaming in Massachusetts re-emerges," Economic Development Secretary Daniel O'Connell said in a statement. "The analysis provides a comprehensive response to the many thoughtful questions raised by legislators and other interested groups, and reflects the integrity and financial expertise for which Spectrum Gaming is widely regarded."
The governor filed legislation last September proposing to license three casinos he said would generate $600 million in licensing fees and $400 million in annual tax revenues. The report doesn't estimate licensing fees, but it said tax revenues might be as high as $600 million.
Patrick's proposal included special consideration for an Indian application, a nod to the Mashpee Wampanoags, who are proposing their own casino in Middleborough. The report said resolving the prospect of a rival Indian casino was important because it could affect the interest of commercial applicants, as well as the financing various parties could receive.
The analysis reported challenges in quantifying the social impacts of casino gambling, saying they "typically take much longer to emerge." But it said Patrick's proposal contained what would be the largest budget for treating gambling problems among all casino states.
House Speaker Salvatore DiMasi, who engineered the defeat of Patrick's proposal partly due to concerns about social problems, said in a statement: "While I remain an opponent of allowing casino gambling in the commonwealth, I will fully analyze the details of today's report ... and I will discuss best next steps with Gov. Patrick, Senate President (Therese) Murray and my colleagues in the House."
(© 2009 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)
Click to enlarge
Stumble It!
Comments