Summary
With the introduction of casino gambling in Massachusetts, the Commonwealth has made protection of the lottery a priority. The Legislature required all prospective casino operators to be a licensed state lottery agent.
Lottery revenues are the largest source of unrestricted local aid in Massachusetts and the second largest source of all local aid. Casino tax revenue will also contribute to local aid, with 82 percent of tax revenue from Plainridge Park Casino allocated to local aid. The Category 1 casinos scheduled to open in Everett and Springfield will contribute 20 percent of tax revenue to local aid.
Statewide lottery revenue grew 4.3% in fiscal year 2016, a time period that nearly corresponds to the first full year of operation of Plainridge Park Casino, which opened June 24, 2015. In fiscal year 2016, lottery sales established an all-time sales record. In fiscal year 2017, however, statewide lottery revenue declined 2.6%. Lottery sales for the Town of Plainville increased 25% in the year after the casino opened relative to the prior year and remained at that level in the second year. This increase is due to increased lottery sales at Plainridge Park Casino.
Sales for lottery agents in the surrounding communities of Attleboro, Foxborough, Mansfield, North Attleborough, and Wrentham, combined, did not decline in the first year following the opening of the new casino, but grew more slowly, increasing 3.6% over the year prior to the casino opening compared to 5.2% for lottery sales statewide. In the second year of operation, sales in the combined surrounding communities decreased by 1.5% relative to the year prior to the casino opening compared to a 2.8% increase statewide relative to the base period prior to the casino opening. Even when including Plainridge Park Casino, sales for agents within a 15-minute drive of the casino follow a similar pattern, growing more slowly in the first year (3.78%) and decreasing (0.37%) in the second year. However, it should also be noted that sales for agents within a 16-30 minute drive of the casino performed better than the state as a whole, increasing in both years following the opening of the casino, by 5.70% in year 1 and 3.12% in year 2 compared to the year prior to opening.