Massachusetts Rescinds Funds to Casino Communities

In 2105, the Massachusetts legislature created the Community Mitigation Fund (CMF), which used a portion of the gaming revenue for communities that would be adversely impacted due to their geographic proximity to casinos.

However, due to budgetary constraints, this will be the second year in which those funds are not dispersed but instead kept by the state.

Broken Promises

The Massachusetts state legislature has targeted the Community Mitigation Fund (CMF), which was a bartering chip the legislation used to appease those who used the NIMBY (Not In My Backyard) argument to say no to the state’s three casinos.

The deal was that those cities and towns that were either housing a casino or close to one would receive 6.5% of the gaming revenue to mitigate the adverse effects of a gaming property in their area. Money was used on surveillance programs to monitor a potential spike in crime or spent on addiction services used for community members who may be vulnerable to gambling addiction.

However, Massachusetts Governor Maura Healey has spent billions on housing and feeding undocumented families, which has stretched the Bay State budget thinner than a sewing needle. Seeking additional money, last year the legislature turned its eyes to the CMF and allowed what Governor Healey referred to as a one-time redirection of funds to free up $100 million for state spending during a tight budget year.

Not a One-Time Thing

The legislature has gone back to the same well despite promising it would only be a one-time money grab. And the news was not received well by the cities and towns that count on that money.

Springfield’s chief development officer, Tim Sheehan, whose western Massachusetts city is the home of the MGM Springfield, spoke about the lack of funds from the CMF.

“Retrospectively, I think that’s when we should have really voiced concern that they’re touching the money at all. From the Legislature’s standpoint, we did it once, and we didn’t have any pushback; therefore, we’re going to take it again.”

The CMF has distributed nearly $80 million since 2015, but the funds reaching the eight cities, including Everett, Chelsea, Revere, Malden, and Lynn, due to their proximity to the Encore Boston Harbor casino in Everett, as well as Springfield, Holyoke, and Chicopee, because of the MGM Springfield casino, will be but a fraction of what they should be in fiscal year 2027.

Springfield has received the most CMF money since 2015 ($15.43 million), but will receive only $360,000 in the next fiscal year. Whether the legislature continues to pilfer the CNF is anybody’s guess, but those who have been around Massachusetts politics believe it will ultimately be the rule and not the exception.