When it comes to Massachusetts the recent release of the large-scale slot parlor development plan changed the notion of the community. People weren’t exactly sure what the state had planned early on. The state was tight-lipped about its slots parlor initiative. Many thought the state might take the same route as other states and merely install slot machines in various locations throughout the state. Ohio for example, is planning on installing slot machines in pubs and bars throughout the state. Maine is looking to bring slot machines to their airport. Utah is hoping to bring more slot machines to their already established land-based casinos.  Massachusetts is planning on building a premiere facility and just released details on how large the project truly will be. Though it was thought to be a normal casino, it is now turning out to be an enormous project.

The news of the top-notch facility is news to some people’s ears. They are looking hopefully to the change, thinking it will change the economy as a whole. Gambling industry analyst Carter Sayer, of GamblingInHartford.com stated, “People need to start spending and the market needs to provide things for people to spend on. It is going to take more than the average holiday sale to make people part with their money this season…only high-end, high-value products will change people’s minds and get them to buy.”

Experts are looking at the immense slots casino being planned by Massachusetts and wondering if it will produce what is being promised. In particular it’s the job creation of 7,000 positions that is under scrutiny. Sayer added, “7,000 jobs sounds impressive, but you have to look at the details. Are these part-time jobs? Are they full-time jobs? Do they start at minimum wage? Or are they salaried positions? Most likely there is a mixture, but the majority are part-time and low-wage.” The plan for a slots casino has been named “The Crossroads Resort Project” and would be situated on over 200 acres of land. The facility would have 5,000 slot machines, 250 gaming tables, several thousand hotel rooms, a dozen restaurants, and a convention center. A nightclub is in discussions, but has not been finalized in planning. 

Massachusetts is another state looking to bring slot machine revenue into the market. The state is riddled with a bad economy and huge deficit. So are most other states and like most other states, Massachusetts is looking to capitalize on gambling. They are hoping that a new slots parlor is the answer to the deficit and finding funding for various programs and plans the state has made for the 2010 year.

According to the state, they are planning on building a slots casino in Milford and are expecting to pay $800 million for the facility’s construction. With that number being floated around it’s no doubt that city officials are planning on bringing a premiere facility to the location. They are planning on a high-end slots parlor and hoping it will spur business. The state is also predicting that it would bring in revenue, but also bring over 7,000 jobs to locals. The state’s unemployment rate is high, like most other states, and job creation is one of the top priorities of legislators. They are hoping job creation fuels more money into the pockets of consumers, who then in turn will start spending. Without a serious change in buying habits, the economy won’t be spurred forward as quickly as many are hoping it will.

That’s the one thing the recession did straight across the board: it caused people to stop spending. Regardless of income level or economic stability, people saw what was happening in the market and got scared. They quickly altered their lifestyles to stay conservative with spending. Studies have shown that families with under $50,000 in income and families with $150,000 incomes all took drastic measures to cut back. Sure the families with smaller incomes had to couple cutbacks with other money-saving activities, but both demographics were affected by the recession and acted wisely as a result. Lower income families combined cutbacks with comparison shopping, downsizing and combining households to manage the recession. While higher-income families may have had the liberty of using cutbacks alone to make it, the overall after affect of the recession was for people to stop spending. They still have not returned to old buying patters pre-recession and that has businesses and legislators concerned to say the least.

Part two coming next.

Now is not a good time for cutbacks to affect gambling programs. Although the UIGEA is set to become law tomorrow, that does not mean it will. The law is set to make online gambling illegal, but will it work? Industry insiders are saying that it won’t. They are predicting that there is enough of a legislative push to bring amendments to the UIGEA and alternatives to the picture that the question of illegal online gambling will be changed.

The state of Massachusetts is one state that is having a hard time fleshing out the online gambling issue. It is in the midst of some serious changes regarding the hobby. Online gambling is a billion-dollar business and the state is looking to expand its gambling in an effort to overcome its huge deficit problems. Unfortunately the state’s budget is causing greater cutbacks that could soon affect its new state of operations with the acceptance of gambling.

It was just announced that the Massachusetts Council on Compulsive Gambling may have to close down due to budget cuts by Governor Deval Patrick. The agency has been a very important organization for the state and it’s offered a wide variety of services to gambling addicts. However since the recession, funding for the agency has seen a 62% decline. This huge cut in funds makes it next to impossible for the organization to continue running. The change puts the state in a precarious position since legalization and regulation of gambling is such a hot topic.  One critic of the gambling issue stated, “They are going to provide all the gambling and slots people need, but when those same people become addicts, who is going to help them then?”

Although some believe that the funds from gambling and slots will fuel the economy in the state and allow it to earmark money for addiction services, there has been no formal move or committment by the government to do so. if slots are made legal and accessible in the state, some method of funding help for those in need will need to be found. Some analysts are suggesting the best option is for the state to legalize and regulate slots gambling and then portion part of the proceeds directly towards addiction services.

William H. Warner of Warner Gaming withdrew the company’s application for a gaming license in Rhode Island. The company notified the state’s Department of Business Regulation earlier this month that it would not be moving forward with the gambling license procurement.  Some speculate that problems first began when William H. Warner came under fire for his former involvement with financially unstable gambling endeavors like Twin River slots parlor. Mid-2009 Twin River ended up filing for bankruptcy protection.  Later this year Warner coupled with another business entity to construct a resort casino in Massachusetts.

Massachusetts is in the midst of debates over slot machines. Last week the state’s governor Deval Patrick said that to tackle the huge $600 million deficit, they will use cut backs, job cuts and gambling.  The state’s legislators are now examining a variety of new bills submitted for proposed licensed casinos and slot parlors to be situated at existing race tracks.  The decision  has yet to come about, but legislators are hopeful that it will come soon. 

Much of Warner’s problems are a result of bad timing. His proposal would construct a gaming facility with 5,000 slot machines, 250+ gaming tables, a hotel, restaurant and resort. The resort would be called Crossroads Resort Project and be situated about 20 miles away from Twin River.  Twin River is currently trying to fix its own finances at this time and a brand new casino in the same territory would make it more difficult to carry through with the project. Warner’s resort is slated to take too big a market share if it does go through and Twin River may have little to no hope for resuming normal operations, much less repairing its financial problems.

In Massachusetts slots machines producd a total of about $395 million in net income throughout past year. The state gets about a 60% cut of that money, about $240 million. With the huge deficit of the state, it is no wonder the legislators are pushing for some use of the gambling market to bring in additional funds.  With the removal of the Warner project that means that millions of added dollars will not be chanelled into the state.  Only time will tell if Warner changes his decision or moves into the Massachusetts market with another gambling entity.

The recession has hurt almost every economy. The number of unemployed is ballooning, jobs are sparse, home values are still down.  It’s a difficult time for almost every business in the market. In Massachusetts the racing industry is suffering too. Their numbers are down and financially this means that many are either being forced to reduce racing times or close down altogether.

As a result of the financial struggle, race tracks throughout the state are lobbying hard to save their facilities with slots machines. Slot machines historically are huge money-makers. If you look at any land-based or online casino, a large portion of their revenues come from the slot parlor. In fact, a recent study showed that of land-based casinos, almost 62% of the total revenue comes in from slots.  Race tracks are hoping to integrate parlors into their gaming floor in an effort to save their businesses.

The decision is not without controversy however. Legislators are not making it easy for race tracks. They are hearing their petitions, but then deciding on a case-by-case basis what to do. Unfortunately the cry for help from Massachusetts race track operators seems to have fallen on the deaf ears of the Massachusetts Senate.  Track operators hoped to operate as many as 2,500 slot machines as a means of additional revenues to support the industry, but the Senate voted ‘no’ on the proposal. In addition, the final vote had a large margin, so there were no questions as to whether senators wanted gambling expansion in their state.  The proposal was defeated by a 31 to 6 vote.  It is safe to say slot machines are not going to be the saving grace for race tracks throughout the state. As a result Massachusetts’ horse and dog racing venues are going to have to find new ways of bringing in higher revenues.

The proposal to introduce slot machines to race tracks did of course have a handful of determined supporters that believe the addition of slot machines to racetracks will generate new tax revenues and save jobs.  One of those believers is Senator Stanley Rosenberg.  He stated, “We are very close to turning the corner here and having the final real debate, at which point we are going to have to come to grips with a whole series of policy questions.”

Massachusetts is another state trying to tackle the movement towards legalizing gambling.  Again the major deciding factor is funding.  The initial move to accept gambling is beginning with slots. The state is making the move to place slot machines at race tracks and allow for slots play.  Track president Gary Piontkowski stated that there will be a town hall meeting to discuss the issue, but a large part of its acceptance rides on the growing deficit and lack of ways to conquer it.

Money is becoming the center of the issue of legalizing and regulating gambling. Many cities and states are seeing casino-tax revenues as the only way out of huge deficits.  It was the recession that shifted the balance and left most governments with huge expenses and small revenues.  Almost every state is looking for some debt relief and legalizing gambling seems to be a viable option for most.  Even Piontkowski confirmed that slot machines will “bring the required income to local cities and towns.” 

Last year the same issue was brought to light at a town meeting, however legalizing gambling was vetoed. Many leaders are suggesting that opinions could change due to the different financial climate legislators are under.  Also, there has been a significant change in gambling legislation and that should make the possibility of legalizing and regulating gambling much easier to introduce.

Initially Massachusetts was planning on opening a casino to generate income. Start-up plans were discussed and mapped out, however it never got underway.  Part of the reason is due to the overwhelming task of introducing a full-service casino to any area.  The planning and budget have to be on target and efficient delineation of the project is a necessity.  Many believe that it’s too big a task for the state to take on now due to the financial strains it is in. However, introducing slots to race tracks would not be as insurmountable a feat. In fact, it would be relatively easy to rearrange race tracks and make a casino floor.  While a casino would take years to build, slot machine casinos could be up and running by the end of the year.