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TAX IMPACT

By CHRISTOPHER WALKER ~ The Patriot Ledger

onvenience store walls lined with colorful scratch tickets. Players staring for hours at Keno screens. Wagering at horse and dog racing tracks. The nightly Lottery drawings.
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Even though craps, black jack and slot machines are still illegal in the state, it’s fair to say Massachusetts residents like to gamble.

The Massachusetts Lottery is considered the largest per-capita lottery in the country. Last year, it generated $3.9 billion, about a quarter of which is funneled to cities and towns.

The 2002 Profile of the American Gambler, conducted by Harrah’s Entertainment Inc., found that 27 percent of Massachusetts adults visited a casino at least once last year. The average Massachusetts gambler made four trips a year, almost all to one of the two American Indian casinos in neighboring Connecticut.

Massachusetts residents’ affinity for wagering is both a driving factor for - and argument against - allowing casinos in the state.

“We’re a gambling society. It would be a little hypocritical for us to say that this is some kind of novel idea,” said state Sen. Mark Montigny, D-New Bedford.

As a new casino debate emerges in Massachusetts, some of the most serious reservations center around the effects they would have on the Lottery, which is a critical source of revenue for cities and towns.

If slot machines and black jack tables cut into the Lottery profits, any tax benefits realized from casinos could be nullified, some officials worry.

The concerns are backed up by evidence in some states but refuted by others. Connecticut, for example, is home to two of the world’s largest casinos, yet that state’s lottery - while substantially smaller than the Massachusetts Lottery - continues to grow annually.

“I really don’t think that casinos have any impact on lottery games. They’re two different types of gambling,” said David Schwarz, director of the gaming research center at the University of Nevada at Las Vegas.

On the flip side, a growing number of state officials are eager to keep Massachusetts gamblers - more importantly their money - closer to home. Studies have indicated that as much as 40 percent of the business at Foxwoods Resort Casino in Connecticut comes from Massachusetts residents.

Gambling proponents in this state estimate that’s at least $240 million in revenue, and with the state in a steep economic decline, those numbers are becoming increasingly hard to digest for some state officials.

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