Gaming Commission report: casino hasn’t hurt lottery sales Date: 5/18/2018 BOSTON – One of the arguments against casino gaming was its possible harm to the Commonwealth’s lottery. A report released last week indicates that after a two-year study of the Plainridge Park Casino, state lottery sales were not diminished in the region served by the casino.
Elaine Driscoll, the director of communications for the Massachusetts Gaming Commission (MGC), confirmed to Reminder Publications the commission plans to have another such report after the opening of MGM Springfield.
She said the intent was to establish a “long term analysis” of how casino gaming affects the state lottery.
State Sen. Eric lesser released the following statement, “This morning, the United States Supreme Court struck down the 1992 Professional and Amateur Sports Protection Act. The Supreme Court's decision now allows individual states to legalize and regulate sports betting. The Joint Committee on Economic Development & Emerging Technologies is actively considering several bills that address gaming, including former Senator Eileen Donoghue's legislation, S. 2273. In the coming weeks, my House Co-Chair and I will engage our colleagues, relevant stakeholders, and the public at large in both the opportunities and challenges presented by the Supreme Court's decision.”
The state lottery is an important source of revenue for the Commonwealth and its cities and towns. The report noted, “In fiscal year 2017, the lottery’s net profit was $1,039 billion, a historic high, of which $958 million was distributed to the Commonwealth’s municipalities in the form of direct local aid.”
“Social and Economic Impacts of Gambling in Massachusetts” (SEIGMA) was compiled by researcher Rachel Volberg and Mark Nichols, professor of economics at the University of Nevada Reno, working with the University of Massachusetts Donahue Institute.
MGC Commissioner Enrique Zuniga said, “The Legislature wisely prioritized the protection of the state’s highly successful lottery by requiring casinos to support and enhance its performance. It is gratifying to learn from the research that this strategy appears to be working as Plainridge Park Casino continues to contribute to a significant increase in lottery sales in Plainville. As of December 2017, Plainridge Park contributed almost $164 million in state taxes allocating 82 percent ($134 million) to local aid to the benefit of 351 cities and towns, and effectively offsetting any potential decline in lottery sales and associated impact to local aid.”
The report stated, “Statewide lottery revenue grew 4.3 percent in fiscal year 2016, a time period that nearly corresponds to the first full year of operation of Plainridge Park Casino, which opened June 24, 2015. In fiscal year 2016, lottery sales established an all-time sales record. In fiscal year 2017, however, statewide lottery sales declined 2.6 percent. Lottery sales for the Town of Plainville increased 25 percent in the year after the casino opened relative to the prior year and remained at that level in the second year. This increase is due to increased lottery sales at Plainridge Park Casino.”
Other conclusions from the study include:
• No large, significant decline in lottery revenue can be attributed to Plainridge Park Casino.
• No obvious pattern between lottery sales growth and proximity to the casino was detected.
• In the first year after the opening of Plainridge Park Casino, lottery sales in Plainville increased approximately 25 percent. Sales have remained at that level in the second year of operation.
• Sales for other agents in Plainville have not notably declined since the opening of Plainridge Park Casino.
“Compared to the year before the casino opened, increased lottery sales in Plainville have offset decreased sales in the surrounding communities leaving lottery sales overall essentially unchanged in the area,” said the report’s primary author Mark Nichols.
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