Editorial: State Must Guard Against Growing Casino Market

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We're not crazy about the introduction of casino gambling in Massachusetts, and we're not alone in that sentiment. But, for better or worse, the state is trudging down a path that will end with up to three geographically dispersed casinos and a slots parlor.

The upside that we've been sold is that gamblers won't have to travel out of state (read: have Connecticut or others benefit from their losses) to get their fix. But the bad part is that the casino market in the Northeast is becoming more saturated as other states have gradually grabbed their pieces of the action, the latest being a newly opened casino in Oxford, Maine. In fact, the CEO of Foxwoods Resort Casino in Connecticut recently told The Boston Globe that increased competition is forcing Foxwoods to shift its business model to include more non-gambling enterprises such as retail and conferences.

But whether a dilution of the market is lowering revenue at all sites or not, there are two things the state should seek to guarantee now that the jockeying for the four licenses has begun:

• An annual baseline revenue level for the state from gambling operations. Under the state law, resort casinos are required to give the state 25 percent of their gross revenues, which amounts to an estimated $300 million to $500 million a year. The state should negotiate a hard bottom to that revenue share pool – say $250 million – to guard against revenue shortfalls at the casinos. If casinos are to provide the promised economic shot in the arm, it's got to be healthy enough to actually ease the overall tax burden on businesses and improve the economic environment for all businesses.

• Safeguards for small businesses and entertainment venues that could lose potential revenue to the "resort style" casinos the law allows. The more casinos acknowledge they're diversifying into entertainment, retail and hospitality, the more directly competitive they become with local merchants. We remain concerned about the potential impact on cities like Worcester that are trying to revitalize their downtowns, with arts and entertainment as a key element of those efforts.

Our imminent leap into the world of casino gambling will undoubtedly impact the economic and social fabric of the Bay State for years to come. While the law provides for a series of checkpoints before a casino can be approved and sited in a community, state officials and those they have empowered to oversee this new sector must not lose sight of the potential effect on our overall economic well-being.

The Business Of Baseball

Baseball has long been part of the American fabric, a beautiful game of speed, precision and power that can be both a source of civic or regional pride, as well as a welcome distraction from the long summer and the pressures of everyday life.

However, baseball is a business, and that point was driven home quite poignantly last month with the front-page financial problems the Worcester Tornadoes have been experiencing.

While some in Central Massachusetts will question whether an unaffiliated, minor-league team such as the Tornadoes can satisfy a demand for sports entertainment in the area, it can only thrive if there's a market to support it.

As the team concludes another season, a hard review of whether the Tornadoes live another year will be on the table. Does new (read: local) ownership step up and buy the franchise? Does the league continue to support the team while keeping the ownership seat warm for one of its larger markets? Just like with the Red Sox, there is plenty to chew on as the Tornadoes' future gets sorted out this winter.

Image credit: FreeDigitalPhotos.net.

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