Casinos Have Had a Positive Influence on Massachusetts, Study Reveals
In a recent study done by the University of Massachusetts Amherst School of Public Health, it was concluded that casino gambling has had a beneficial effect on the state overall. The Social and Economic Impacts of Gambling in Massachusetts, or SEIGMA, released its report, entitled "Social and Economic Impacts of Casino Introduction in Massachusetts," and it stated that because of the casinos, the employment and economic activity in Massachusetts have improved, and so have the collection of tax revenues, which have benefited small towns and cities.
A recent study concludes that Massachusetts' three casinos have brought overall economic benefits to the state, reinforcing the decision by lawmakers to allow gambling properties in the Commonwealth. The study, titled "Social and Economic Impacts of Casino Introduction in Massachusetts," was conducted by researchers at the University of Massachusetts Amherst's School of Public Health as part of the Social and Economic Impacts of Gambling in Massachusetts (SEIGMA) project. According to their findings, the casinos have generated substantial economic activity, increased employment, and provided vital tax revenue to benefit local communities across the state.
Economic uplift and community investment
Massachusetts' decision to authorize up to three casinos in 2011 has led to the development of Plainridge Park Casino, MGM Springfield, and Encore Boston Harbor, each bringing substantial investment to its respective region. The SEIGMA team found that these casinos have spurred billions of dollars in economic activity, mostly driven by construction and ongoing gaming operations. This uptick has been particularly notable in the communities surrounding the casinos, such as Everett, Springfield, and Plainville.
Casino taxes on gross gaming revenue have funneled hundreds of millions of dollars into the state government, supporting towns, cities, and services across Massachusetts, the SEIGMA report notes. This influx of funds has been utilized for various public initiatives, helping improve municipal resources and enhancing the quality of life for Massachusetts residents.
Researchers highlighted that a significant portion of the revenue generated by these casinos comes from Massachusetts residents who previously spent their money at out-of-state casinos in nearby Rhode Island and Connecticut. But by retaining this spending within state borders, Massachusetts has captured additional revenue that would have otherwise benefited neighboring states.
Social impact and public safety
In terms of social impact, the SEIGMA study addressed concerns that casino introductions might lead to higher crime rates or social disruptions. Contrary to some initial worries, the data indicates no significant rise in crime in the cities hosting casinos or the surrounding areas. In fact, property crime rates have even dropped since the casinos' opening, and instances of violent crime around Encore Boston Harbor in Everett and MGM Springfield have also declined.
Population trends in these cities reflect an influx of residents, particularly in Everett and Plainville, since the casino openings. Springfield's population has remained steady, but the presence of MGM Springfield has contributed to urban revitalization, including a notable increase in multi-home sales and gentrification in previously underserved areas.
In the residential real estate market, the presence of casinos has had varied effects. Encore Boston Harbor has contributed to a hot real estate market in Everett, leading to increased home values. MGM's entrance has boosted Springfield's multi-unit property sales, fueling urban renewal. Plainridge Park Casino, however, has had a more neutral impact on property values in its vicinity.
Negative effects on vulnerable populations and local industries
While the report identifies many benefits, it also outlines some adverse effects related to problem gambling and industry competition. Although the prevalence of problem gambling has not increased statewide, SEIGMA researchers found that much of the economic benefit has come from spending by individuals identified as at-risk or problem gamblers. For those who already exhibited high levels of gambling behavior, the proximity of casinos within Massachusetts provides more frequent opportunities to gamble. Researchers suggest that problem gambling rates did not surge post-casino openings, as vulnerable individuals already had access to casinos in Connecticut and Rhode Island prior to Massachusetts' legalization.
Beyond gambling-specific concerns, the casino openings have had some adverse effects on nearby sectors, such as the food and beverage and hospitality industries, particularly in areas surrounding MGM Springfield and Plainridge Park Casino. These businesses have experienced competition for both customers and labor, as casinos employ large workforces. SEIGMA estimates that approximately 75% of casino employees transitioned from other full-time roles, intensifying the labor strain on smaller businesses in the vicinity.
A balanced view of casino impact in Massachusetts
Since 2015, SEIGMA researchers have published 55 interim reports on the effects of Massachusetts' casinos, and this latest study serves as a comprehensive overview of the casinos' impacts on the state. While the introduction of casinos has undeniably boosted economic activity, job creation, and tax revenue, it has also brought challenges for problem gamblers and heightened competition for local businesses.
The findings demonstrate the dual nature of casino economics in Massachusetts. As the Commonwealth continues to monitor casino operations, balancing economic gains with social responsibility remains paramount to ensuring that gambling continues to yield a net positive for Massachusetts and its residents.