A recent report indicated Maine could accommodate two new casinos for a total of four. But one of the two lost business when the second one opened, and a new one could continue the cannibalization trend. In Massachusetts, planned casinos would be the cannibals, taking revenues from casinos across state lines and keeping it at home.
The gambling story is all about cannibalization in Maine and other New England states. Maine currently has casinos in Bangor and Oxford, and a recent report indicated the state could accommodate two more, near the Canadian border and in the Portland area. But the report also stated a new Portland casino could cannibalize 20 percent of business from the established Oxford casino. The Bangor casino experienced a 19 percent drop when the Oxford casino opened in 2012, the report noted.
Many Maine legislators are pushing for the new casinos because of the revenues they could generate. But operators of the existing casinos lobbied legislators in 2013 against several proposed gaming expansion bills. Although none of the bills passed, the legislature voted to approve a study of expanded gambling possibilities in consequences in Maine. Specifically, how much does the state depend on gambling revenues and how much cannibalization can the casinos take.
In Massachusetts, three planned resorts and a slot parlor would be the cannibals, taking revenues from casinos across state lines and keeping it at home. That argument is being used this election cycle in Massachusetts by supporters of the new operations, and in Maine by existing casinos against any new ones. Oxford Casino spokeswoman Jane Hoyt said, “Maine’s gambling revenues have flattened. Our concern is that additional casinos in Maine, or in neighboring states such as Massachusetts or New Hampshire, will have a direct negative impact to jobs and economic development, not only at the casino property but also as it relates to rural Oxford County.”
In Rhode Island, voters will decide whether to allow the Newport Grand slots parlor to become a full casino in light of looming Massachusetts casinos. Revenues have declined at Connecticut’s casinos partly due to the growth of New York’s young gambling market; Steve Wynn’s Everett casino, Penn National’s Plainville slots parlor and the MGM casino in Springfield also are expected to impact Connecticut’s gaming market.
