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Casino Gaming in Massachusetts: Casino Gaming in Massachusetts:

Casino Gaming in Massachusetts: - PowerPoint Presentation

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Casino Gaming in Massachusetts: - PPT Presentation

An Economic Fiscal and Social Analysis Carl Jenkins CPAABV Managing Director CBIZ Tofias Background Commissioned by the Greater Boston Chamber of Commerce and completed in 2008 Examined critical issues including ID: 449268

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Slide1

Casino Gaming in Massachusetts:

An Economic, Fiscal and

Social Analysis

Carl Jenkins, CPA/ABV

Managing Director, CBIZ TofiasSlide2

Background

Commissioned by the Greater Boston Chamber of Commerce and completed in 2008

Examined critical issues including:

Demand for casino gaming

Potential gaming revenue

Socioeconomic effects

Analysis and report are based upon:

Public data

Casino patronage and expenditure patterns in other states

Documented models and methodology

Interviews with policymakers and stakeholders

Forecasts and projectionsSlide3

Economic Impact

Revenue will be

dependent

on the specific circumstances of the particular region and type of development.

Origins of Revenue

Destination Effect:

Drawing visitors from outside the host region. Spending by casino patrons from outside the region increases the aggregate amount of economic activity within the region.

Recapture Effect:

Residents of the host region will be less likely to engage in gaming activities outside of the region. These individuals will patronize casino gaming within the host region.

Substitution Effect:

Casino gaming cause a reallocation of expenditures by individuals within the region. The increased expenditures for casino gaming will cause a decrease in expenditures on other forms of consumption or in net savings.Slide4

Economic Impact

Destination Resort Casinos:

Establishments that offer amenities and entertainment options that extend beyond gaming

Including luxury hotel, high-end retail shopping and dining, golf courses, sports arenas and convention facilities

Analysis assumes the development of three destination casinos in different regions of Massachusetts and does not include the possibility of tribal casinos.

Current plans for development now include:

Three destination casinos (Category 1)

One slot parlor (Category 2)Slide5

Fiscal Impact

Basis for Revenue Projections

Projected Revenue

Market Size: $2.15 billion in gross gaming revenues (GGR)

Assumptions of 2008 Report

Current Expenditures and Requirements

Estimated dollars spent

by Massachusetts residents on casino gaming in CT, ME, RI

$800 million

$909 million

Initial license fee for Massachusetts

$200 million

$85 million

for Category 1

$25 million for Category 2

Massachusetts

g

aming tax on GGR

27%

25% for Category

1

40% for Category 2Slide6

Socioeconomic Impact

Employment Opportunities

Social impacts are difficult to quantify as studies are contradictory

Potential Social Benefits: increased employment, higher average income

Social Costs: infrastructure, added fiscal pressure on surrounding area, housing, schools

Disputed Effects: crime, bankruptcy, problem gaming

Other

Employment

Report Projections

for 3 Casinos

Current Projections for 3 Casinos

Estimates for Revere Casino (1 casino)

Casino

17,000 – 20,000

12,000 – 15,000

4,000

Construction

10,000

– 11,500

7,500 – 9,000

2,500Slide7

Contact Information

Carl F. Jenkins, CPA/ABV, CFE, MST

 

Managing Director, CBIZ Tofias

Forensic, Litigation and Valuation Services Group

 

Direct: (617) 761-0549

Email: CJenkins@cbiztofias.com