UMass Donahue Institute

In its latest full year of operation, the Encore Boston Harbor Hotel & Casino generated over $1.3 billion in direct and indirect economic impact while supporting more than 9,900 jobs, according to research released today by the Economic & Public Policy Research (EPPR) group.

The report’s findings were presented Nov. 30 to the Massachusetts Gaming Commission (MGC) as part of the ongoing work of Social and Economic Impacts of Gambling in Massachusetts (SEIGMA). The UMass Amherst School of Public Health & Health Sciences has been engaged by the gaming commission since 2013 to carry out a comprehensive, multiyear research project, believed to be the first of its kind, on the social and economic impacts of introducing casino gambling in Massachusetts.

To estimate the economic impacts, the EPPR staff considered both operations (spending on vendors, employees and government entities) and patron spending (within the casino, as well as in Everett and the surrounding region). To conduct the analysis, EPPR obtained operator data collected by the MGC, including employment, payroll and purchasing data obtained directly from the casino. EPPR also obtained revenue data and data on patron spending from a survey of casino patrons conducted by the SEIGMA team.

“Although Encore Boston Harbor opened in 2019, 2022 was the first year where the SEIGMA team was able to observe a full year of operations with no shutdowns or restrictions related to the COVID-19 pandemic,” said Tom Peake, EPPR senior research analyst. “As we have observed with Massachusetts’ other two casinos, the number of people directly employed by the casino, while substantial, is actually less than the jobs created or supported by the ‘ripple effect’ of the casino’s operations. This includes the impact of the casino’s intermediate spending, the consumer spending of Encore employees, new revenue to state and local government entities and shifts in consumer spending.”

Total Combined Impacts

• In 2022, the $1.1 billion spent in and around Encore Boston Harbor by casino patrons supported an average of 3,282 positions at the casino, paying $206 million in compensation, and created demand for $85.4 million in intermediate goods and services the casino resort purchased from vendors.
• Net consumer impacts for state businesses were negative. On net, consumers shifted $167.6 million in spending away from other goods and services and toward the casino.
• Encore Boston Harbor also supported $1.1 billion in new personal income and $1.7 billion in new output (sales) within the Massachusetts economy, of which $1.3 billion was value added (that is, net new economic activity or gross state product).

Government Revenues

• Encore Boston paid $197.4 million to state and local government entities. This amount includes the tax payments on gross gaming revenue that were made to the state, and the regular state taxes that all businesses pay.

Employment

• In addition to the 3,282 jobs directly supported by the casino, new spending from vendors, government entities and new employees, along with shifts in spending from casino patrons, led to an additional 6,635 jobs on net, for a total of 9,917 jobs supported by the casino. The majority of those jobs are located in the Metro Boston region.

“Understanding the impact that Massachusetts casinos have on the economy, regional employment and their patrons is essential for the commission to carry out our role overseeing and regulating expanded gaming in the commonwealth,” said Cathy Judd-Stein, chair of the MGC. “SEIGMA’s research in these areas will aid the commission, the public and stakeholders in assessing what these impacts mean for Massachusetts and its residents.”

Upcoming SEIGMA reports include an assessment of job quality at Massachusetts casinos, a follow-up general population survey and a report on the likely impacts of advertising on sports gambling behavior.

More about the SEIGMA project: https://www.umass.edu/seigma/

(adapted from the UMass Amherst press release, 11/30/23)

November 30, 2023