Letter: Casino revenue promises seem overly optimistic

Posted 8/10/16

To the editor:

I was surprised to discover that Jay J. Lambert, a member of the Tiverton Town Council, responded to my letter concerning the reasons why I am opposed to a casino in Tiverton. I was …

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Letter: Casino revenue promises seem overly optimistic

Posted

To the editor:

I was surprised to discover that Jay J. Lambert, a member of the Tiverton Town Council, responded to my letter concerning the reasons why I am opposed to a casino in Tiverton. I was even more surprised to read that, in his opinion, my letter “…misses the real issue entirely.”

Before I reply, let me say that it would have been very easy to take a combative and adversarial approach in my response. That is what often happens when differences of opinion are aired within a public format. However, I have decided to take a

different approach, because, in the long run, such an  approach is never helpful regardless of the outcome.  Inevitably, one side will win, and then, after an adversarial battle, all that is left is hurt feelings, bitter resentments and broken relationships.And after everything is said and done and the voting is over, we need to build community.

I do disagree with Mr. Lambert, and so I will make every effort to disagree well. If I am understanding Mr. Lambert correctly, he sees the revenue generated by the casino for the town of Tiverton as the real issue. He also makes a case that a casino in a nearby community (like Fall River, Swansea, Westport, or New Bedford) would have the same negative impacts on Tiverton without gaining any of the benefits of the revenue.

While I heartily agree that Tiverton is in need of additional revenue (as I stated in my previous letter), I believe there is a preponderance of clear evidence indicating that a casino will not address that need.

In fact, the issues are so broad and varied that my goal is to submit a series of letters.

First, I would like to consider the $3 million of the $4 million in minimum  tax revenue that is being promised to Tiverton. The proposed local and state revenue is based on the casino earnings. Twin River projects that, by 2020, the Tiverton casino will bring in between $104 million to $148 million in revenue.

The top number requires over $40,000 of income every day. What happens, though, if that income drops, or simply doesn’t materialize?  Several newspaper articles caught my attention.  The Boston Globe ran an article on December 14, 2015 about

the dramatically lower-than-projected performance from the Plainridge Park Casino in Plainville, Mass.  At the time, that casino was running at about 60% of what had been projected.  The people who opened that casino had had developed solid projections, but they were wrong.  Projections are not guarantees.

Another article from the November 06, 2014, Providence Journal discusses income projections for the Newport Grand Casino in Newport and what impact a casino in Taunton might have.  The prospects were not hopeful to say the least.

The Taunton Gazette on August 5 announced that the Mashpee Wampanoag Tribe has broken ground and construction on that casino has begun.  Even though the discussion in the Providence Journal was about the Newport Grand and not the Tiverton casino, the fact remains that two years ago it was identified that a casino in Taunton would bring a negative impact to a casino in this area.  That is now a reality.

Clearly, there is stiff competition for whatever gaming income is available in this area, and the challenge that the Taunton casino poses should not be minimized. In the April 28 Boston Globe, there is an article stating that the Massachusetts Gaming Commission denied the application for a casino in Brockton.  One of the reasons is that a casino — 20 miles from the Taunton casino — would introduce too much competition for gaming dollars and over-saturate the area. Tiverton is 30 miles from the Taunton casino — well within the field of competition, and the information that the Twin River association has produced acknowledges the growing competition.

If we are listening to the promise of a minimal $3 million in town revenue through 2030 based on casino earnings, I believe we have to responsibly ask how that will be maintained if income is dramatically lower than projected.  What are the contract details, including terms and conditions and the matters in fine print?  I believe the citizens of Tiverton deserve to know these details, or to be prudently suspicious if they are not disclosed.

I have serious reservations about the reality of the income “promised” to Tiverton.  In my next letter, I will explore the aspect that any money generated for the town is not free and clear. There is a significant price attached to that income.

Rev. Patrick Crough

Tiverton

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