Summary

With the introduction of expanded 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.

An analysis of lottery revenues one year after the opening of Plainridge Park Casino shows that, on average, lottery revenues have not decreased statewide or nearer the casino, whether this includes designated surrounding communities or agents within various driving distances. However, lottery revenues for agents nearer the casino grew more slowly on average than the rest of the state. Lottery revenues in the surrounding communities of Attleboro and Mansfield increased after the opening of the casino, whereas revenues in Foxborough, North Attleborough, and Wrentham decreased. Whether the casino had differential impacts on communities or is the source of variation in lottery revenue cannot be definitively determined as variation in lottery revenue may stem from other factors. It is also important to recognize that this result is based on one year of data and may not reflect longer term trends.