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With Massachusetts getting ready to deal with the issue of whether or not to legalize casino gambling in the state, a new study is showing that Bay State residents are playing at surrounding New England area casinos.

MA Losing Big Bucks to Neighboring Casinos


With Massachusetts getting ready to deal with the issue of whether or not to legalize casino gambling in the state, a new study is showing that Bay State residents are playing at surrounding New England area casinos. Last year alone residents spent nearly $1.1 billion in Connecticut and Rhode Island. Additionally, Rhode Islanders looking to play somewhere other than local slot parlors poured another $547 million into Connecticut’s Foxwoods and Mohegan Sun.

That’s according to the 2007 New England Casino Gaming Update released by the University of Massachusetts Dartmouth Center for Policy Analysis (CFPA).

Additionally, Connecticut casinos are starting to see some of their profits chipped away by the emerging slot machine scene in New York State. The Empire State currently has slot machines at Monticello Raceway and Yonkers Raceway, both of which are located in areas close enough to pull from the same population pool.

The fourth annual study, which tracks spending patterns at New England’s five casino style venues, found in 2006 Massachusetts residents spent nearly $876 million in Connecticut at Foxwoods Resort Casino and Mohegan Sun Casino; $180 million in Rhode Island at Lincoln Park and Newport Grand; and $ 1.4 million in Maine at Hollywood Slots in Bangor (which has been open for 16 months).

Additionally, Massachusetts residents comprise approximately 35% of Foxwoods patrons and 21% of Mohegan Sun patrons. Once again, Bay Staters represent Foxwoods’ largest customer base, even exceeding Connecticut residents’ patronage of their home-state casino.

Foxwoods and Mohegan Sun are already the world’s two largest destination resort casinos. But now are both expanding their properties to the tune of a combined $1.4 billion. In partnership with MGM Grand, Foxwoods is in the midst of a $700 million expansion with a scheduled summer 2008 completion date. Last November, Mohegan Sun announced a $740 million expansion, scheduled for completion by spring
2010 that will add a second 1,000-room hotel, 42,000 feet of new gaming space, expansive retail offerings, and enhanced convention and meetings space.

Management at both casinos acknowledges that the current expansion projects are designed to grow their non-gaming offerings as part of a comprehensive strategy to dominate New England’s gaming, entertainment and tourism sectors. They have also forged a business and legislative alliance to establish southeastern Connecticut as New England’s premier destination site for conventions, conferences and business meetings.
Massachusetts residents comprise 41% of Lincoln Park patrons, and 44% of Newport Grand patrons. Lincoln Park now offers more VLTs than any other racino-style slot parlor worldwide. In the midst of completing a $220 million build-out and refurbishment, management recently said its investment and marketing strategy is predicated on luring more customers from the Greater Boston and Greater Worcester market areas.

The CFPA plans to release a series of recommendations as to how Massachusetts could maximize the potential fiscal and economic benefits, and minimize the potential social costs, if state officials approve one or more casinos as well as slot machines at the state’s racetracks.

“Pennsylvania and New York have proven that, given competitive alternatives, either destination casinos or slots at racetracks, many patrons will choose to gamble at a facility more convenient to their residential locale,” said Dr. Clyde W. Barrow, director of the Dartmouth Center for Policy Analysis. “And that’s why Mohegan Sun and Foxwoods are so heavily invested in developing their facilities into four-season gaming, entertainment and destination resort facilities, while at the same time enhancing their domination of the Massachusetts and Rhode Island markets. Massachusetts and Rhode Island are their closest and most lucrative market and they can’t afford to lose that market to a Massachusetts or Rhode Island-based destination casino.”

© Copyright 2007 Gambling Central's material. It may not be published, broadcast, rewritten, or redistributed.

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