The decline in LOTTERY SALES was previously predicted, never discussed, never addressed because Casino Cheerleaders were too busy cramming the flawed legislation through!
The failure to address it appropriately would be compensated for with INTERNET GAMBLING ADDICTION? Does anyone see a flaw in that prescription? More Government Sponsored Addiction?
Experts say casinos could drain Lottery sales
Photo by:
Patrick Whittemore
‘THERE’S NO QUESTION’: Lottery chairman Steve Grossman, above, says casinos will have an impact on the state Lottery.
Wednesday, July 31, 2013
Lottery officials — now touting record sales — are bracing for a hit on revenues when casinos open their doors in Massachusetts, raising new fears that cities and towns already pleading for more state money will lose desperately needed local aid.
“There’s no question when casinos are up and running, it’s going to have an impact,” said Treasurer Steven Grossman, who also serves as the Lottery chairman. “No one knows how big of an impact.”
The Lottery announced yesterday that it posted its second-highest profit level last fiscal year, bringing in $952 million on record sales of $4.8 billion — $25 million more in profits than projected.
The majority of those dollars, by law, go directly to cities and towns as local aid — funding roads, police and senior services.
Experts say the source of those funds could be in jeopardy.“It will take a hit,” predicted gambling expert I. Nelson Rose, a Whittier Law School professor, referring to state lottery revenues. “Every time any form of gambling opens up, it tends to expand the market. In other words, there’s more gambling, but the trouble is there’s more types dividing it so each individual one tends to go down a little.”
Massachusetts Lottery Executive Director Paul Sternburg said, “I expect some of our sales will go to the casinos initially. But if the Lottery and the casinos do more for the state than the Lottery alone, it’s a win for the state. I expect sales will start to come back and return to their normal level down the road.”
Municipalities have been nervously watching budget talks — Gov. Deval Patrick initially vetoed $177 million in local aid during his recent tax dispute with the Legislature. Although that money was restored, only $200 million of a proposed $300 million in road funds was approved.
And while local aid was ultimately up by $21 million this year, that comes after six years in which cities and towns lost more than $400 million, according to the Massachusetts Municipal Association.
Kathleen Conley Norbut, a Massachusetts casino critic, said losses in local aid would be another “whack” to towns that people “haven’t given the attention that it certainly warrants.”
Celeste Myers, co-chairwoman of the group No Eastie Casino, agreed.“If we reduce those dollars, the impact comes right off the top,” Myers said.
Grossman noted that even if the revenue loss cuts into local aid, gambling — the Lottery, casinos and slots combined — is projected to bring in $300 million and 15,000 more jobs overall that the state isn’t seeing now.
Those projections have already been proven to be GROSSLY OVERSTATED!
And while that money will not be mandated for local aid as lottery revenues are, Grossman said
lawmakers can redirect gaming revenue to cities and towns.
But they won't!
“I don’t think the Legislature will allow the cities and towns to see that cut in lottery revenues and profits be reflected in a cut to local aid,” Grossman said. “Local aid is still the lifeblood of cities and towns.”
However, with the advent of casinos, the Lottery will have to make adjustments to maintain revenues, Grossman conceded, including potentially moving into online games.
BECAUSE MASSACHUSETTS DOESN'T HAVE ENOUGH LOTTERY GAMBLING ADDICTION!
Lawmakers are considering a bill that would allow the Lottery to test some online gaming models, but Grossman said he would support online gaming only if it could be done in a way to shield the state’s 7,400 Lottery agents from losing sales.
- See more at:
http://bostonherald.com/news_opinion/local_coverage/2013/07/experts_say_casinos_could_drain_lottery_sales#sthash.nARiBoZe.dpuf
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