Critics of the newest push to broaden gambling options in Massachusetts have found an unexpected supporter in the face of Wynn Resorts, which made its stance clear in a letter submitted to the Legislature’s economic development committee during the latter’s recent review.
Wynn Resorts Criticizes Massachusetts Bill
In the letter, the company sharply criticized a bill introduced by Representative David Muradian of Grafton that would permit gamblers to use their phones to wager on poker, blackjack, and other games of chance. The company argued that lawmakers should be concerned about the potential economic fallout. Wynn suggested that the bill could jeopardize the 3,300 jobs at Encore if its revenue drops due to the spread of “iGaming,” as online gambling is known in the industry. In Wynn’s view, internet gambling is a risky wager for Massachusetts.
In the letter, signed by Eileen McAnneny, Wynn’s executive director of government relations, wrote that mobile gambling is significantly more addictive than gambling in person. The letter argued this could happen as mobile gaming offers constant, immediate action anywhere cell service is available. McAnneny also argues that the appealing tax revenue projections fail to consider the potential decline in brick-and-mortar gaming taxes, along with related losses in hotel and restaurant tax revenue.
The Retailers Association of Massachusetts also joined in opposition, citing the possible harm to member businesses. Labor unions are against the proposal as well, pointing to job losses in states where iGaming has already been introduced; hundreds, if not thousands, of workers tied to Encore, MGM Springfield, and Plainridge Park could be affected.
Wynn’s pushback against online gambling comes at a time when the sports-betting industry is becoming an influential lobbying force. The Sports Betting Alliance remains highly active on Beacon Hill, and aside from health care organizations, no trade group spent more on lobbying during the first half of the year. Its spending climbed to $255,000, up from $165,000 in the same period last year.
Others Oppose Wynn Resorts’ Claims
To date, seven states have legalized iGaming, including Connecticut and Rhode Island. DraftKings is eager for Massachusetts (its home base) to become the eighth. Rebecca London, the company’s senior government affairs manager, pointed out that DraftKings already employs more than 1,300 people in the state, a figure she said would likely increase if iGaming were permitted here.
London told lawmakers that the online gambling framework outlined in Muradian’s bill could generate between $170 million and $200 million annually in new state tax revenue. She added that a separate iGaming proposal, sponsored by Senator Paul Feeney of Foxborough and under review by another legislative committee, could bring in as much as $275 million a year.
London also argued that legalizing online gaming would help curb the widespread black-market gambling currently occurring in Massachusetts. With the DraftKings app, she noted, consumers at least have access to protections such as support services for problem gamblers.