If three resort casinos and a slots parlor open in Massachusetts, Rhode Island could lose about 0 million, or 30 percent – 35 percent of its gaming tax revenues, according to a 2012 Christiansen Capital Advisors LLC report for Governor Lincoln Chafee. At least 200 jobs and possibly 600 could be lost, the report indicated. A consultant for Twin River Casino, in Lincoln, said the new competition would affect its work force of 1,550 people, 80 percent of them Rhode Islanders.
The numbers are vague because a lot depends on the locations of the gambling establishments. The slots license went to Plainville, just across the Rhode Island state line, where Penn National Gaming is expanding a harness racetrack to accommodate 1,250 slot machines.
Two of the three full-casino licenses also have been awarded. One went to MGM Resorts for a casino in Springfield in western Massachusetts. That location likely will have minimal affect on Rhode Island gaming revenues. In the Boston region, considered the most lucrative area for a casino, the license went to Las Vegas-based Wynn Resorts. The southeastern Massachusetts license has not been awarded due to pending legal issues.
State finances also would be impacted. The report, in a most-likely-case analysis, said Rhode Island’s casino revenue would drop by $160 million to $247.3 million, due to the Massachusetts competition. Gambling income from Twin River and Newport Grand, lottery and Keno sales is the third-largest revenue source for Rhode Island, with Twin River generating the largest share.
The great unknown is the November election, when Massachusetts casino opponents will decide whether to repeal the new gambling law. In Rhode Island, voters also will determine if they will allow additional table games at Newport Grand and stop the operation from relocating.
Meanwhile, a study by economist and University of Rhode Island professor Dr. Edward M. Mazze asserts that a proposed $40 million renovation of the Newport Grand Casino would save 200 existing jobs and create more than 700 new ones, including 350 full-time permanent positions.
“The proposal to make improvements at Newport Grand is an economic opportunity for the city?and the state?to protect the jobs and revenue that exist today, and create more of both,” Mazze said. “The alternative is bleak. The voters are being presented with a very clear choice with serious repercussions.”
The proposed upgrades require statewide voter approval this November.
Newport currently receives almost $450,000 each year from Newport Grand’s existing VLTs. Under the new agreement, the annual revenue would increase to $650,000 this fiscal year. And when the renovations are complete, the state would guarantee the city at least $9 million in property tax relief over the following six years, WPRI reports.
