Massachusetts Towns Get Ready for Financial Troubles as Casino Cash Runs Out

Cities and towns in Massachusetts that have big casinos or are next to them are getting ready for big financial problems. 

Local Budgets Strain as State Again Diverts Casino Mitigation Money

This is happening because lawmakers have taken money away from a special fund. This fund was made to help these places deal with the downsides of having casinos nearby. Now, several Gateway Cities are facing a tough time with less money, right when they are already having financial troubles, reported The Commonwealth Beacon.

For almost ten years, towns like Springfield, Holyoke, Everett, and Lynn have used the Community Mitigation Fund to solve issues linked to casino operations. This fund gets money from casino taxes to tackle problems ranging from increased traffic and safety needs to gambling addiction and local infrastructure demands. The fund receives 6.5% of yearly casino tax income, which has been essential for many community projects.

Politicians first moved the money in the state’s 2025 budget, calling it a one-year measure to lessen statewide financial troubles. However, this practice went on in the 2026 budget, with the shifted funds going to wider state needs such as transport and growing the economy. Town and city leaders said the absence of early opposition from lawmakers last year made it simpler for the amendment to stay for a second time.

Officials Blast State for Abandoning Promises Tied to Casino Deals

Tim Sheehan, Springfield’s chief development officer, said city leaders should have seen the red flags when someone first suggested diverting funds. He pointed out that his city, which used to get about $3 million each year, now thinks it will get around $360,000 in fiscal year 2027. He made the case that this money helped pay for things the regular city budget could not cover, like police staffing near the MGM Springfield casino, fire gear, fixing sidewalks, and making parks like Court Square better.

Officials in Holyoke expressed similar worries. Aaron Vega, who heads up planning and economic growth, said that previous grants helped the city monitor for gambling risks, start tourism projects, and run small programs like event shuttles. He cautioned that with about $5 million left in the state pot for 2027 — much less than before — many of these efforts might just stop.

Towns and cities are getting more and more upset. Springfield’s City Council passed a motion asking for the money to be given back. They slammed the state for backing World Cup 2026 funds while cutting help to western Massachusetts. Holyoke plans to file a similar motion next year.

Local officials claim that the funding was a key promise made when the casinos got approval in 2015. Now, they argue, the pledges that helped gain public backing for the projects are being reversed, forcing communities to deal with the lasting effects by themselves.