When Massachusetts legalized casino gambling over a decade ago, few anticipated the wide-ranging social and economic changes it would bring. The University of Massachusetts Amherst’s SEIGMA (Social and Economic Impacts of Gambling in Massachusetts) project has just published a comprehensive 10-year report detailing these impacts, showing how casinos have influenced everything from the economy to public health. It’s clear that while casinos have added economic value, they’ve also raised concerns.
The findings are robust, derived from 55 interim reports and academic publications, and provide a data-backed look into casino gambling’s impact on Massachusetts communities. Here’s what the research team uncovered over this decade-long journey.
Economic Upsides of Massachusetts Casinos
The economic benefits of Massachusetts casinos are impressive:
- Construction Jobs: Building the three casinos—Plainridge Park (2015), MGM Springfield (2018), and Encore Boston Harbor (2019)—created more than 8,000 full-time construction jobs and generated $2.8 billion in total costs.
- Long-term Employment: Since opening, the casinos collectively employ around 5,000 workers and generate about $1.15 billion annually in gross gaming revenue.
- Revenue and Taxes: Casino-generated taxes surged, rising from $78 million in 2016 to $330 million in 2023. This revenue benefits 12 state funds that support essential services, with Massachusetts’ 351 municipalities receiving a substantial share.
The positive social impact also includes new recreational options, attracting not only Massachusetts residents but visitors from outside the state, creating an influx of new tourist dollars.
Social and Economic Downsides
While the economic benefits are notable, the research also uncovered some significant downsides—many of which go beyond the financial.
- Job Transfers: Although casinos create jobs, 75% of employees left previous full-time positions to join the casino workforce. The majority of these positions don’t meet the living wage threshold in many counties, with only 39% of workers earning enough to match regional living costs.
- Spending Shifts: According to the study, 46%-80% of casino patrons report spending less in other businesses, especially in restaurants and bars. This trend suggests a direct impact on local businesses competing for leisure dollars.
- Traffic and Crime: Increased traffic volume, alongside higher incidents of impaired driving and some rise in specific crimes near casino locations, has strained local resources and affected community safety.
Despite the perception of problem gambling increasing with new casinos, the data show that Massachusetts’s overall problem gambling rates have remained stable since the first casino opened. However, the report does reveal a striking trend: casino revenues are increasingly reliant on problem and at-risk gamblers—rising from 74% in 2013-2014 to a staggering 90% in 2021-2022.
Tackling Problem Gambling and Enhancing Community Well-being
One of the report’s most critical insights is the heavy reliance of casino revenues on at-risk and problem gamblers. As the study reveals, a large portion of Massachusetts casino revenue now comes from a relatively small percentage of patrons who are vulnerable to gambling addiction.
To mitigate this, SEIGMA suggests that policy-makers consider strategies to diversify casino revenue sources and reduce reliance on problematic gambling. This could involve:
- Enhanced educational campaigns around responsible gambling.
- Expanding problem gambling prevention programs within communities close to casinos.
- Strengthening support systems to help individuals struggling with gambling issues.
Future of Gambling in Massachusetts
The report suggests that Massachusetts may have reached casino saturation, even though current legislation allows for the potential of an additional casino. Interestingly, public sentiment reflects a shift: more residents believe gambling is now too widely available, casting doubt on the necessity for more gaming establishments.
“Today, a much larger portion of Massachusetts residents think gambling has become too accessible,” said lead researcher Rachel Volberg. Given these insights, Massachusetts lawmakers may need to tread carefully in considering any further expansion of gambling-related industries.
