Within two years, two casino resorts are slated to open doors for visitors in Massachusetts and developers promise plenty of job opportunities as well as solid revenues for the state coffers.
However, these casinos are to be managed by influential companies and people with knowledge of the matter expressed their fears that casino moguls will be enabled to lobby for their interests on all levels. Taxes, employment, and transportation are expected to be among their top priorities. The current situation allows and even encourages casino developers to seek a legislative change.
Back in 2011, the state legislative authorities passed a law, according to which the gross gaming revenue of resort casinos is subject to a 25% tax. Due to their tribal status, the Mashpee Wampanoag was given a considerable advantage as their gross gaming revenue is subject to 17% tax. As a result, the soon-to-open casinos in Everett and Springfield are expected to disagree with the current regulations they have to comply with.
Wynn Resorts CEO Steve Wynn has already expressed his resentment towards the matter and was quoted as saying that it would be unfair to pay more than the Mashpee. Mr. Wynn also emphasized on the disadvantage Massachusetts-based casinos would have on its biggest rivals Foxwoods and Mohegan Sun in Connecticut. The Connecticut casinos are given the right to keep the revenue from table games for themselves while in the Bay state, they are also subject to a 25% levy.
Tax decrease will be of top priority for casinos and they are expected to join forces and hire lobbyists to defend their interests and demand preferential tax treatment. For the time being, casino representatives remain silent as to whether they will make any lobbying efforts, but Wynn Boston Harbor President Robert DeSalvio emphasized on the huge impact the casino would have on the state economy.
Apart from tax reduction, casinos are also expected to make attempts towards sports betting expansion and online gambling. Massachusetts has long been an appealing destination for developers due to the high income of the residents and the lack of competition. The Bay state had its gambling market untapped with the opening of the Penn National’s slot parlor in Plainville last year.
Massachusetts authorities appointed a special commission to deal with casino issues and made efforts to avoid any corruption practices. They even banned the participation of casino companies in donation campaigns.
Pam Wilmot, Common Cause Massachusetts’ executive director, commented on the anticipated requests for legislative changes and said that was exactly what Massachusetts lawmakers wanted to prevent- namely any attempts for a change in the agreed terms between the casinos and the state. He also added that there were protections for the public in the passed law, but they were not as robust as necessary.
