BOSTON - Does having casinos in a state hurt lottery sales?
State Treasurer Tim Cahill says yes, but some economists disagree.
"Casino gambling is wrong for Massachusetts," Cahill told the Greater Boston Chamber of Commerce on Thursday. "Any state that has casinos has seen a drop in the growth of lottery revenue."
However Arthur Wright, co-editor of The Connecticut Economy publication, said the two types of gambling tend to target different audiences.
"Buying (a ticket with) your morning coffee is one thing," Wright said. "Going for the day to a destination resort is a different decision."
Other economists said lottery ticket buyers probably would not alter that habit even if they patronized local casinos.
Paul Guzzi, chamber president, said Massachusetts lawmakers should seriously consider casinos as a new revenue source, partly because of the gaming options in Connecticut, which has two casino operations, and Rhode Island, which has slot machines.
"I'm not convinced ... that there would be a drain from the Lottery," Guzzi said. "I haven't seen any data that suggests that."
The Massachusetts House voted against allowing casinos in the state this spring.
Cahill, whose office oversees the state Lottery, said that instead of casinos, the state should invest in advertising for the Lottery's jackpot games. He said he expects that next year's budget will set aside $5 million for the ads, compared with almost nothing now.
He said the Lottery last year provided nearly $900 million in aid to cities and towns - more than twice the level in public aid generated by Connecticut's two casinos. Foxwoods Resort Casino and Mohegan Sun Casino contribute 25 percent of their slot machine revenue to state coffers - a sum expected to reach $400 million this year.
Copyright © 2003, The Associated Press