Critics Say Failed Casino Deal Cost Worcester Millions
Thursday, October 17, 2013
“It is anticipated that the successful implementation of The Gaming Act will provide the citizens of the Commonwealth with 8,000 to 10,000 construction jobs, 8,000 to 10,000 permanent jobs and $300 to $500 million in annual revenue,” said Elaine Driscoll, Communications Director for the Massachusetts Gaming Commission.
For the history of Worcester's casino debate, see the slides, below.
Some critics say Worcester could be missing out on its share.
“The public doesn’t know what happened to it and why it didn’t progress,” said John Giangregario, President of the Canal District Alliance, of the proposed slots parlor in Worcester.
“Given the disadvantages of some gambling issues, legalized gambling was approved by the voters,” he said, “and it certainly presented an opportunity to the city of Worcester in terms of tax revenue, jobs, and economic development.”
Giangregario was disappointed that a potential slots parlor in Worcester’s Canal District, proposed by Rush Street Gaming, was not explored further. According to Rush Street Gaming’s proposal, the slots parlor would have brought $240 million in investment to Worcester’s downtown and at least 600 permanent jobs. The construction of the casino and accompanying hotel may have brought several temporary construction jobs as well.
“We were in favor of it,” said Giangregario.
“We thought that this billionaire developer who has a history of opening up casinos near water, with deep pockets, had the capacity to invest in the Blackstone Canal, which would provide economic development for the entire city of Worcester,” he said. “Now Worcester is left with all the problems of legalized gambling and none of the benefits.”
Other Development In The Works
Others agreed that Worcester was in need of economic development, but were not sure a slots parlor would have brought the shot in the arm the city needs.
“I was not here in my current capacity during that discussion,” said Tim Murray, President and CEO of the Worcester Regional Chamber of Commerce. “There was no formal proposal that was presented to the community and, as the city manager said, they weren’t able to come up with an agreement.”
He stressed the Chamber’s current “recruit, retain, and incubate” agenda, saying that while many may view the failed slots parlor proposal as a missed opportunity, Worcester has been making considerable progress without it.
“The last five years Worcester has seen construction cranes on its horizon – a lot continued to happen, all of those projects continued to go forward when projects in other cities including Boston were shelved,” said Murray. “I think it speaks to the momentum in Worcester that these projects endured despite the great recession.”
That momentum was not enough to carry the controversial casino proposal forward. It was officially abandoned in June after the city of Worcester and Rush Street Gaming failed to make an agreement. The Chicago-based company then shifted their focus to a similar proposal in Millbury, however that eventually fell through as well.
Short Term Investment Not Worth The Long Term Consequences
“The promises always sound great but the long term negative impacts outweigh the short term, perceived gains,” said John Ribeiro, Chairperson of Repeal the Casino Deal, a statewide organization fighting to include a repeal option on November 2014’s statewide ballot.
“Another way to look at it would be to compare it with a natural disaster like the Springfield tornado,” Ribeiro said. “As a result of that disaster, there was a tremendous amount of money infused into the economy in terms of construction and rebuilding costs but they came at a tragic cost. A casino doesn't have the acute impact of such an event, but one could argue that in the long term the negatives are even greater.”
Steve Abdow of the Episcopal Diocese of Western Massachusetts gave more concrete examples.
“There will be a shift in money spent away from the state lottery, away from entertainment venues and restaurants, away from auto repair shops and appliance dealers and department stores as discretionary income is spent at a casino,” he said. “The discretionary income is finite. The customers will not be affluent people with extra money.”
Abdow also cited the Institute for American Values’ recent report, Why Casinos Matter: Thirty-One Evidence-Based Propositions from the Health and Social Sciences. The report says that while casinos may inject much needed revenue into communities in the short term, in the long run they extract wealth from communities and hurt local businesses and property values.
“Massachusetts has the benefit of witnessing the effect casinos have had on the economy in several other states,” said Brain Ashmanksas, Campaign Director of Repeal the Casino Deal.
“In all cases the so-called investment has been revealed to be a mirage,” he said. “The jobs it creates are funded by redistributing wealth from the very community they are employing, rather than creating or bringing in new wealth, so it results in a net job loss when dollars spent on slots cease to be spent at local businesses.”
While both sides of the debate have studies and expert opinions on their side, one thing is clear, that Worcester residents will not have the opportunity to decide the slots parlor issue at the ballot box, unlike in Palmer, where residents will vote on Mohegan Sun Massachusetts’ proposal on November 5.
Related Slideshow: The Evolution of Worcester’s Slots Parlor Debate
Related Articles
- Casino Series Part 7: Massachusetts Casino Jobs Could Prove Fleeting
- NEW: Chicago Casino Firm Sets Sights on Worcester for Slots Parlor
- Tim Cahill: Why the Gaming Commission Wants the Casino Law Changed
- Cordish Head Defends Leominster Slots + Casino Gaming
- NEW: Governor Gives Mass Tribe Casino Rights
- What Would You Rather Have In Your Town: Casino or Medical Marijuana?
- Deadline Approaches For MA Casino Developers
- NEW: Mohegan Sun Announces Details Of New Casino in Palmer
- Worcester Casino: 13 to Watch in Central Mass in 2013
- Casino Game Changes: Emergency Regulations, Opposition Ups Ante
- Gambling Addicts Are Easy Prey For Massachusetts Casinos + Slots
- NEW: Plainville Slots Wins + West Springfield Casino Loses
- Worcester’s EcoTarium to Host Casino For Kids Next Month
- Casino Gaming: Top Stories in Central Mass in 2012
- Labor Woes: Casinos delay- No New jobs Until 2016
- NEW: Rush Street Gaming Unveils Worcester Casino Plans
- Casino Rewards Programs: How They Stack Up
- MA Casino Opponents Fight for Repeal Option on 2014 Ballot
- NEW: Worcester Council Open to Casino Proposals
- Casino Series Part 4: Following the Casino Money Trail
- MA Residents Spent Almost $1 Billion at NE Casinos
- Part 6: Behind the Massachusetts Casino Law, a Bevy of Power Players
- Casino Series Part 5: Where Developers Are Looking For Land
- MINDSETTER ™ Matt Amorello: How Casinos Could Have Saved Our Roads
- Part 8: How Casinos Could Devastate Worcester Theaters
Follow us on Pinterest Google + Facebook Twitter See It Read It