How Irresponsible Are The MA Responsible Gaming Research Budget Cuts?

Two Massachusetts resort casinos are scheduled to begin operations in 2018 and 2019. Additionally, online gambling and online lottery are being looked into for 2018. However, the Massachusetts legislature seems to be contemplating significant reductions in Responsible Gaming resources for the second year in a row.

New cuts worth $250,000

The reason behind the cuts is to ensure that the state budget is balanced. The legislature believes that reducing funding for responsible gaming programs by 17 percent is necessary as part of this effort. Although this amounts to a small portion of the budget, only $250,000, it is worth mentioning that there was already a $500,000 reduction in responsible gaming funding in December, as reported by local press.

Should this year’s proposed cuts be implemented, the cumulative reduction in funding for responsible gaming over the past two years would reach an astonishing 37.5 percent. The overall allocated funds for responsible gaming would decrease from $2 million to $1,250,000.

According to MassLive.com:

The fiscal 2018 budget, amounting to $40.2 billion, is currently awaiting Baker’s approval. It allocates $1.25 million for the Department of Public Health to be used for problem gambling services, which is $250,000 less than the previous year’s allocation.

In a statement, Marlene Warner, the executive director of the Massachusetts Council on Compulsive Gambling, provided additional information.

The timing for these reductions in problem gambling services is incredibly unfortunate, especially considering the rapid growth of online gambling, the expected opening of new casinos in the near future, and the Lottery’s exceptional performance this year. These funding cuts will have a profoundly detrimental impact on our efforts to help individuals struggling with addiction and to prevent problem gambling from occurring in the first instance.

The current hope is for Governor Charlie Baker to either restore the funding or reallocate it. However, the likelihood of this happening seems slim, given that it was Governor Baker who implemented the budget cuts in 2016.

A hiccup in the Massachusetts Model

In recent years, Massachusetts has been a leading force in casino and gaming research, making this line quite unusual for the state.

In Plainville, Massachusetts, the Plainridge Casino has been the testing ground for various responsible gaming pilot programs introduced by the state. These successful initiatives will also be implemented at MGM Springfield and Wynn Boston Harbor upon their respective openings. Since 2011, when the legislature initially approved the establishment of casinos, these programs have diligently examined the economic and social consequences of Massachusetts’ venture into casino gambling.

It is quite unexpected for Massachusetts to reduce funding for responsible gaming programs. Nonetheless, there may be a reasonable explanation for the legislature’s decision.

Is the legislature thinking further down the road?

It is important to consider that the cuts may become irrelevant if the legislature intends to legalize online gambling in 2018.

If Massachusetts were to legalize online gambling next year, it is highly probable that the law would mandate online gaming operators to contribute a substantial sum towards responsible gaming research and programs. This contribution would most likely exceed the current funding reductions and potentially even compensate for the cuts made in 2016.

Nevertheless, given the relatively modest savings generated by these cuts, reducing funding for responsible gaming appears to be a significant gamble with minimal payoff.