Home » Game News » Budget shows stagnation in expanded gaming revenues-News-Taunton, Massachusetts, Taunton Daily Gazette

Budget shows stagnation in expanded gaming revenues-News-Taunton, Massachusetts, Taunton Daily Gazette

Boston-Second full budget cycle for two large casinos operating in Massachusetts will not be as productive as the first-Baker administration expects gaming revenue to decline in fiscal 2021 due to underperforming casinos in this area Do something with the troubles the owner says.

The fiscal year 2021 budget proposal [H 2] proposed by Governor Charlie Baker relies on the gaming industry to generate approximately $ 283 million in tax revenue, which is $ 11 million less than the total estimated gaming revenue of $ 294 million in the current budget That is 3.75%. This indicates that the Baker administration has not fully accepted the casino operator's commitment that its underperforming facilities are still increasing.

Less than nine years since Massachusetts legalized casino-style gambling, and only about 17 months since the state's first resort casino opened, gaming revenue is declining year by year, and the state may see an expansion of gaming platforms under the state The $ 300 million annual tax break is less than the estimated backers used in years of efforts to bring casinos to the Gulf State.

The U.S. government estimates that MGM Springfield and Wynn Resorts' Everett Encore Boston Harbor will collectively generate $ 213.8 million in state taxes in fiscal 2021, of which total gaming revenue is approximately $ 855 million.

Encore accounts for more than 70% of total revenue and is expected to generate $ 611.2 million in gaming revenue, while MGM Springfield's $ 244.1 million will generate revenue. Large casinos in Massachusetts pay taxes at a rate of 25% of their gross gaming revenue.

Plainridge Park Casino is Plainville's slot machine store and is expected to generate $ 68.9 million in state taxes from total $ 140.7 million in gaming revenues-both are down more than 16% from slot machine store FY 2019 results. Plainridge is taxing 49% of its gross gaming revenue.

The government estimates that by fiscal year 2021, Massachusetts' gambling facilities will total nearly $ 1 billion in gaming revenue.

About ten years ago, when expansion games became a topic of debate in Beacon Hill, supporters like Jobs Steven Grossman and Salem Mayor Kim Driscoll represented the Employment and Growth Alliance. The state says the state can get about $ 400 million in taxes from casinos and casinos each year. Slot machine living room. These forecasts assume that the state will authorize all three major casinos under the law, but the Gaming Commission has never issued a third and final casino license.

Executives at MGM Springfield and Encore Boston Harbor have previously said that their properties are still making the most of their revenue-generating capabilities. Former MGM Springfield head Michael Mathis and former Encore head Bob DeSalvio both said their casinos need more time to prove themselves, but now both are unemployed.

"We have expanded the market. We have missed some data and I think we are trying to figure out where the market is, where it will go and how long it will take to get there, but there must be a chance to attract new customers to the business." Said in a radio interview late last year.

Baker's budget proposal [H 2] also includes an external section that changes where some casino revenue is deposited. Under the budget policy section [Section 21], statewide casinos [MGM Springfield and Everett's Boston Port of Encore] 15% of statewide tax revenue will be deposited into the Federal Transportation Fund, not transportation infrastructure And development funds.

The change essentially transferred the incoming casino tax from an account used to supplement municipal transportation work, but instead concentrated it into a broader transportation account that had no specific requirements to assist local projects.

The Obama administration said the conversion gives them greater flexibility to spend money on various transportation-related needs, and that most of the money still supports local road and bridge construction.

Fiscal 2019 and Fiscal 2020 [the state has collected two budget years for category 1 betting tax revenues] use the same language-Baker's budget office said that $ 14.7 million was deposited into the Federal Transportation Fund in fiscal 2019 The casino revenue government has proposed a $ 40 million Chapter 90 supplementary fund for town budgets.

The Baker Budget Office estimates that by FY 2020 and FY 2021 [if the external part is approved by the legislature], the gaming revenue portion of the Commonwealth Transport Fund will reach $ 32.1 million per year. Officials said the deposits would support $ 77.6 million in new transportation investments in Baker ’s fiscal 2021 budget proposal, including de-icing and de-icing, and debt repayments to improve transportation.

Source link

Leave a Reply

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

Name *
Email *
Website