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Wynn Resorts, MGM and Penn Entertainment are opposing a Massachusetts historical horse racing machine proposal, citing a commissioned study that forecasts annual public tax revenue losses of $45 million to $73 million. According to Gambling.com, the dispute is a major sticking point as House and Senate negotiators work on a wide-ranging economic development bill.
The companies operate Encore Boston Harbor, MGM Springfield and Plainridge Park, respectively.
Proposal would allow slot-style machines at former tracks
Developer Richard Fields, an investor in Suffolk Downs, is behind the proposal to allow historical horse racing machines at former racetracks, including Suffolk Downs and Raynham Park. Suffolk Downs now operates only as a simulcasting parlor, and Fields says he has an option to buy the shuttered Raynham site.
Historical horse racing machines look and play like slots, but wagers are placed on races that have already been run.
The House version places no restrictions on where facilities could open or how many machines they could operate. It sets a 2.5% tax on handle — the amount wagered — for the state’s Health Safety Net trust fund.
Competing studies project different tax and job effects
The casino operators hired Morowitz Gaming Advisors and Global Gaming and Hospitality to examine the proposal’s effects on their properties. Their report projects that the machines could divert $131 million to $216 million annually from the three casinos and lead to cuts of 585 to 975 casino jobs.
A separate report funded by Fields projects $120 million in annual new state tax revenue by the third year if machines are added at Suffolk Downs and Raynham, alongside 1,200 jobs at the two facilities. The studies use different machine counts, partly because the bill sets no cap.
The proposed tax on handle differs from the existing casinos’ taxes on gross gaming revenue. Plainridge Park pays a 49% rate, with 82% of those tax proceeds allocated to local aid and 18% to the Race Horse Development Fund. MGM Springfield and Encore Boston Harbor pay 25%.
According to Gambling.com’s account of Massachusetts Gaming Commission figures, the commonwealth has collected roughly $2.55 billion in taxes and assessments from the three properties since they opened.
If you or someone you know has a gambling problem, call the Massachusetts Problem Gambling Helpline at 1-800-327-5050 to speak with a trained specialist.
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Source: As reported by Gambling.com.
