After almost a year of speculation, Gov. Deval Patrick confirmed his proposal for the construction of three casinos in Massachusetts on Monday at the State House, though a hesitant legislature and unsupportive neighborhood groups have yet to place their bets on the project.
Patrick outlined his proposal to bring the first set of resort casinos to the state by sighting potential locations for the venues in southeastern and western parts of the state, as well as the metropolitan Boston area.
Two weeks after Labor Day — his original projection for when the announcement would come — Patrick said the casinos would create 20,000 permanent jobs for Massachusetts once built and tens of thousands of temporary employment spots during the construction period, which is projected to last until 2012. The casinos will bring in an estimated $400 million in annual revenue for a state struggling with a mounting deficit, he said. Patrick’s office declined to comment on why the proposal was delayed from its original date.
“Growing the Massachusetts economy is the best way to make the investments in those areas that will strengthen the Commonwealth,” Patrick said. “The administration’s [civil projects] are all part of a strategy to strengthen the commonwealth’s economy.”
Patrick said organizations will first have to bid for a gambling license, which is good for 10 years, before construction begins. The construction process will likely take several years and will generate significant revenue for the state on its own.
“It is our expectation that the auction process will generate hundreds of millions of dollars that I envision being directed to begin a property tax credit program, fund road and bridge repairs and improvements and to construct the regulatory, enforcement and public safety structure that will oversee the destination resort casinos,” he said.
The Mashpee Wampanoag Tribe continues to seek approval for one of the licenses after it first showed interest in late 2006 for a potential site on land it owns in Middleborough, located in the southeastern part of the state.
The tribe’s estimated $1 billion casino resort would bring at least $11 million a year in revenue to the town of Middleborough, along with more than $250 million worth of local infrastructure developments, according to a July 24 Cape Cod Times article.
Patrick said he intends to grant at least one of the three licenses to a Native American tribe.
Under Patrick’s proposal, each of the three casinos would be obligated to contribute 2.5 percent of its gross revenue to a state-established Public Health Trust Fund to offset the social problems — including addiction – created by local gambling facilities.
House Speaker Salvatore DiMasi (D-Boston), who has ardently opposed the project, is still unconvinced that Patrick is making the right decision by endorsing the project.
“We in the House remain skeptical,” DiMasi said in a statement Monday. “But we will hear the governor out and we will be asking the governor to explain the rationale behind his conclusions.”
The casino proposal has raised further concerns about battling gambling addictions in the state.
“Slots are particularly addictive because of the instant gratification/mindlessness,” said Massachusetts Council on Compulsive Gambling spokeswoman Margot Calhoon in an email. “Women problem gamblers seeking to escape depression or negative situations are often drawn to slots.”
According to the council, about 4 percent of Massachusetts residents – about 250,000 people – have had a gambling problem within the past year.
Based on trends in other states with casinos, including New York and Rhode Island, the council predicts a sharp increase in these numbers.
“My administration will work closely with the legislature to construct the most rigorous and robust gaming regulatory and enforcement scheme in the country,” Patrick said in a statement provided by his office.