Massachusetts Casinos: Forward Momentum
Despite the recession, Massachusetts gaming expert Clyde Barrow sees a good future for casinos in the state. Barrow noted that “There is still clearly demand for casino gaming in Massachusetts.” The report also concludes that Mass. residents still spend close to $1 billion on gaming annually in nearby states and the Boston area is a major feeder market for Las Vegas.
I'm with Barrow on his optimism for Massachusetts gaming. A few well-placed casinos will draw lots of business from southern New England and upstate New York, in addition to Maine & New Hampshire. Right now appears to be a good time for Massachusetts legislators to move forward, despite the recession. However, the recent Maryland outcome demonstrates that developers may not be especially eager to put up much capital for new facilities, though Maryland's 67% tax rate and high application fees were big factors. Massachusetts legislators aren't going to repeat those mistakes.
In addition, the Carcieri vs. Salazar ruling was highly favorable to commercial gaming expansion in Massachusetts by specifically eliminating the competitive threat posed by the planned Wampanoag casino near Boston and Cape Cod.
The major appeal of Massachusetts casinos is in their potential -- like Foxwoods & Mohegan Sun -- to be high performers in the realm of non-destination gaming. Wait, you say, aren't the Connecticut resorts now destination resorts? Yes-- but they really took off as non-destination resorts in the 1990s: amazingly so, as easier-to-access destinations more attractive from people from New York City to Bangor, Maine than Atlantic City or Las Vegas. Pennsylvania is a bright spot in east coast gaming because it is focused on non-destination gaming. On the question of limited slots-only properties vs. full-scale casinos, I favor the latter for competitive purposes.
Seeing Foxwoods and Mohegan Sun as the major competition for the new Massachusetts casinos, gaming developers would be more likely to invest in properties that could really compete. As well, momentum is clearly in the direction of adding table games in slots-only states such as Pennsylvania and Delaware -- other competitive states for east coast gaming. Of course, stars aligning in any given state doesn't mean things will necessarily progress in a productive way for gaming in that state! (see New York, Maryland, Florida.....)
