NEW: Mass Casino Poses “Dire” Fiscal Threat To RI
Thursday, September 15, 2011
Last night, the Massachusetts House voted 123-32 in favor of a bill that would authorize casino gambling in the commonwealth. Supporters of the bill argue that the new casinos would benefit the state by providing more jobs and new tax revenue; opponents, however, argue that casinos ultimately harm the state more than they would help it.
For Rhode Island, the issue is less murky: more gambling in Massachusetts means less gambling in Rhode Island.
Currently, the state derives around $300 million in tax revenue from casino gambling. According to Clyde Barrow, a professor at Umass Dartmouth who has researched casino gambling, the fiscal impact of expanded gambling in Massachusetts “will be significant, if not, dire for the Ocean State’s taxpayers.”
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“Massachusetts residents now account for more than half of all visitations to Twin River and Newport Grand, and they almost certainly account for a similar proportion of spending. These are mostly convenience gamblers, who will almost immediately shift their spending to closer gaming venue if one becomes available. Thus, depending on where Massachusetts locates its gaming venues, Rhode Island could lose approximately $100 to $150 million annually in tax revenues that are now generated by its two slot parlors.”
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