New Casino In Rhode Island Poses Threat For Mass. Casino Industry
The Massachusetts gambling industry started with a very positive outlook as gambling establishments were eager to set up operations and take advantage of the new market. These gambling providers are now concerned about the competition being posed by casinos in the neighboring states of Rhode Island and Connecticut.
Rhode Island is in the process of reviewing plans for a new casino submitted by Twin River Management that is expected to be constructed south of the border and will focus on gamblers from the bay state.
The Rhode Island developer has submitted a proposal to build a new casino which will look more like a shopping mall than the usual Las Vegas style casino.
Twin River Management have stated that this new casino will generate around $75 million for the state in gambling taxes and also create a number of employment opportunities for the local community.
The developer believes that a significant amount of revenue generated from this casino will come from gamblers in Massachusetts. The new casino site is expected to be just 380 feet from the Massachusetts state and will look to attract gamblers from New Bedford and Fall River. This casino will not only target gamblers from Massachusetts but will also discourage gamblers from Rhode Island from going across the border and gambling in Massachusetts.
Massachusetts has faced a similar problem in Connecticut and the state gambling association has recently approved a third casino to be constructed near the state line and MGM Springfield was threatened by this move. MGM decided to file a lawsuit against the state of Connecticut stating that the state did not follow due process in requesting for proposals but awarded the license to its tribal casinos and hence violated a fair opportunity rule. MGM Springfield is concerned that its expected revenues will take a hit due to the approval of this newly approved casino in Connecticut.
Twin River Management already controls the two casinos that operate in Rhode Island and is confident that it will get the necessary approval from the statewide and local voters for this third casino. The new casino is estimated to cost around $75 million and will have around 32 table games, 1,000 slot machines and modern hotel with 84 rooms.
Gambling establishments who are venturing into Massachusetts are now concerned if their establishments will be able to generate sufficient revenue on an annual basis considering the competition from the neighboring states and the reduction in potential market share.
