New England casino gambling: a business in decline

The 1990s surge of casino gambling in New England is long past. Newer casinos have largely been feeding on older ones. Unlike the Southwest and Midwest, New England is geographically compact. Except for northern Vermont, most people in the region now live within about a 2-hour drive from a New England casino. Most people in the region who want to participate in casino gambling have been doing so.

There are now six New England casinos: two each in Connecticut, Rhode Island and Maine. Adding casinos in Massachusetts and southern New Hampshire could make gambling more convenient for some 3 to 5 million residents. That would be likely to increase gambling somewhat and to grow more gambling addicts. However, no surge in gambling resembling the 1990s appears in prospect. Trends can be seen in reports of gross incomes, on which state gambling taxes are based.

New England gross incomes for casino gambling, 2004 to 2012

Source of data: New England casino gambling, 2013 update, U. Mass. Dartmouth

A declining trend in gross income from New England casino gambling–total stakes less total payouts–began in 2007, before the severe recession of 2008 and 2009. There has been no recovery. Instead, gross income from casino gambling continues to fall. Adjusted for inflation by the U.S. Consumer Price Index, total gross income in 2012 for New England casinos–which includes food, lodging and other entertainment–fell to about 71 percent of total gross income in 2006, the peak year. Gross income from New England casino gambling remains a small element in the region’s economy. For 2012, it was 0.28 percent of New England’s gross domestic product and shrinking.

During the 21st century, there was a major expansion at the Twin River casino in Lincoln, RI, in 2007. New casinos opened in Bangor, ME, in 2005, and in Oxford, ME, in 2012. None of the additions led to an increase in gross income from New England casino gambling. Instead, each addition appeared to take business from older casinos. From 2006 to 2012, the New England market share for Foxwoods in Ledyard, CT, shrank from 46 to 33 percent. The market share for Mohegan Sun in Montville, CT, shrank from 44 to 40 percent. An ambitious 2005 program to expand Foxwoods proved badly timed; in 2009 Foxwoods defaulted on debt.

NewEnglandFoxwoodStates

Source of data: New England casino gambling, 2006 and 2013 updates, U. Mass. Dartmouth

The main sources of decline in New England’s gross incomes from casino gambling look straightforward. The origin states of gamblers at Foxwoods, the oldest and largest New England casino, have gradually concentrated in Connecticut, where it is located. As casinos opened in New York and Pennsylvania, fewer gamblers opted to travel longer distances to Foxwoods. For the great majority of gamblers who do not become addicts, casinos are only one of many pastimes. In the 1990s they were novel in New England; now they have become dated and, for some, no longer as interesting.

– Craig Bolon, Brookline, MA, May 17, 2014


Clyde W. Barrow, et al., New England casino gaming, annual update 8, Center for Policy Research, University of Massachusetts at Dartmouth, 2013

Auditi Guha, Barrow resigns, alleges faculty exodus and lack of support at UMass Dartmouth, New Bedford Standard Times, April 22, 2014

Matthew Sturdevant, Foxwoods report details revenue erosion, debt details, risks of increased competition, Hartford Courant, January 8, 2014

Clifford Woodruff and Catherine Wang, Widespread economic growth in 2012, U.S. Bureau of Economic Analysis, June, 2013

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>