Economic Growth and Job Creation Following Casino Openings in Massachusetts
The recently published report, “Social and Economic Impacts of Casino Introduction in Massachusetts,” authored by Dr. Robert Williams, Professor in the Faculty of Health Sciences at the University of Lethbridge, Alberta, Canada, and Co-Principal Investigator of SEIGMA, outlines a range of effects that the opening of casinos has had on Massachusetts communities.
The Impact of Casinos on the Massachusetts Economy
The impact of casinos on Massachusetts’s society and economy is multifaceted. The development and operation of casinos in Massachusetts have led to significant economic activity and job growth, particularly in regions close to these establishments.
This impact stems from billions of dollars invested by out-of-state casino companies, billions generated from gaming and non-gaming revenue, and the substantial ripple effect these investments create in Massachusetts’s economy.
Additionally, gaming tax revenue delivers hundreds of millions of dollars annually to the state budget, benefiting local cities, towns, and residents throughout Massachusetts.
Casinos have also become a popular leisure option for Massachusetts residents. Interestingly, studies indicate no significant rise in crime statewide or in casino host cities. In fact, there’s been a decrease in property crime across these areas since casino openings, along with reduced violent crime near Encore Boston Harbor in Everett and MGM Springfield.
Since the openings of Wynn and Plainridge casinos in Everett and Plainville, there has been population growth in these areas. Springfield’s population has remained stable.
Furthermore, Encore Boston Harbor’s opening has likely spurred a “hot” real estate market in Everett, driving up home prices. MGM’s presence in Springfield has led to increased multi-family home sales and ongoing gentrification in an area once in decline. The report also suggests Plainridge Park has had minimal impact on nearby residential property values.
Challenges and Considerations
Despite the benefits, Massachusetts still experiences economic leakage from casino revenues and profits leaving the state.
The casino openings have also impacted other sectors, like hospitality and dining, especially near MGM and Plainridge. These industries face increased competition for labor, with approximately 75% of casino employees having left full-time roles elsewhere.
A slight uptick in certain crimes has been noted around casinos, such as money laundering, chip theft, public intoxication, fraud, purse snatching, and auto theft. Traffic volume, accidents, and DUIs have also risen near casinos.
While problem gambling rates haven’t increased overall, revenue from vulnerable groups has likely risen. Findings suggest problem gambling rates remain stable as those susceptible to gambling addiction were already frequenting casinos in nearby Rhode Island and Connecticut.
Interestingly, the majority of Massachusetts residents (68%) now feel that gambling is “too widely available,” up from 16% before the casinos opened.
In summary, casinos have had both positive and negative impacts on Massachusetts’s economy and society. They have boosted economic activity, employment, and tax revenues while also introducing certain social challenges, including an increase in specific crimes and greater gambling accessibility. It’s notable that a significant portion of economic activity stems from expenditures by those with gambling addiction.
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