Who is a member?
Our members are the local governments of Massachusetts and their elected and appointed leadership.
On April 14, the House by a large majority approved a bill that would expand gaming in Massachusetts by authorizing two resort casinos and allowing up to 750 slot machines at each of the state’s four race tracks.
The plan was described as a way to add jobs to a struggling economy and to generate new revenue for state government programs, including aid to cities and towns.
The House bill includes provisions intended to address key municipal concerns about the effect of expanded gaming on Lottery proceeds, which are used to fund municipal aid, and the financial and infrastructure impact on cities and towns that are near any gaming facility.
The Senate has announced plans to take up gaming legislation in early June, after it wraps up debate on a fiscal 2011 state budget bill. The Senate plan is not expected to be a mirror image of the House bill, which could lead to major differences between the two branches that would have to be worked out before a final bill could be sent to the governor. One sticking point is that Senate leaders and the governor have expressed concerns about allowing slot machines at the tracks.
The House plan, approved by a margin of 120-37, would establish state gaming tax rates of 40 percent for the race tracks and 25 percent for casinos. With the licensing process expected to take several months for slot machines at the tracks and even longer for casinos, any resulting revenue is not expected for fiscal 2011 budget purposes.
The House plan would direct 100 percent of the gaming tax revenue from slots to a Gaming Local Aid Fund until the resort casinos are operational. Once the casinos open, the Local Aid Fund would receive 30 percent of the taxes imposed on the tracks and casinos.
Because slot machines and casinos are expected to take a bite out of Lottery revenue, it is difficult to project how much gaming and Lottery revenue might be available for distribution to cities and towns. At the proposed 30 percent share of gaming tax revenue, preliminary calculations indicate that a significant portion of new gaming revenue would be needed to offset Lottery losses.
The House plan would establish a Community Mitigation Fund to assist cities and towns near gaming facilities. The mitigation fund would receive $15 million from licensing fees and 2 percent of gaming tax collections.
Other gaming tax revenue would be dedicated to a Local Capital Projects Fund, a Tourism Fund, an Education Fund, an Economic Stabilization Fund, and a Performing Arts Center Fund. One-half of 1 percent of revenue would be dedicated to the Massachusetts Cultural Council.