In the midst of a recession, Bay State residents in 2009 spent $968.3 million at New England’s resort casinos and racinos in 2009, a 5.3 percent increase over 2008 spending, according to a new study.
The 2010 New England Gaming Update released today by the Center for Policy Analysis (CFPA) at the University of Massachusetts at Dartmouth found Massachusetts spending in 2009 at New England’s casinos and racinos generated $230 million in tax revenues to Connecticut, Rhode Island and Maine state governments, a $19 million increase – about 9 percent more than 2008’s $211 million in taxes generated.
Overall in 2009, Foxwoods and Mohegan Sun generated $362 million in tax revenues to Connecticut state government. Table games are untaxed in Connecticut yet traditionally equal about 30 percent of slot machine revenues at resort casinos.
From 2004 through 2009, gaming and non-gaming expenditures at New England’s resort casinos and racinos totaled $20.7 billion. Some $6.8 billion – about 33 percent – was spent by Massachusetts residents.
CFPA Director Clyde W. Barrow said Massachusetts spending at the resort casinos and racinos "is a consistent and sustaining revenue generating, job-creating and tourism and hospitality incubator for Connecticut and Rhode Island."
"Massachusetts spending has created more than 6,000 of the 20,000 jobs at New England’s resort casinos and racinos," Barrow said.
Since 1992, Massachusetts residents have spent more than $12 billion at Connecticut’s resort casinos and at the Rhode Island and Maine racinos, generating about $4.3 billion in tax revenues, primarily, to Connecticut and Rhode Island state government, according to the study.
Massachusetts residents comprise 36 percent of Foxwoods, 19 percent of Mohegan Sun, 48 percent of Twin River, 45 percent of Newport Grand, and one percent of Maine’s Hollywood Slots’ patrons, respectively. They are the Connecticut resort casinos and Rhode Island racinos’ largest out-of-state customer base, and make more visitations to Foxwoods – 3.7 million annually – than residents of Connecticut.
Barrow said "Rhode Island is particularly vulnerable" should Massachusetts officials approve resort casinos and racinos.
"Slot machines at southeastern Massachusetts racetracks will be devastating to Rhode Island gaming revenues, recapturing significant Massachusetts spending at Twin River and Newport Grand, and possibly capturing some Rhode Islander spending from their home state racinos," he added.
Barrow also said that, if approved, a southeastern Massachusetts resort casino will "compete for more than $200 million spent yearly by Rhode Islanders at the Connecticut casinos."
