Las Vegas can benefit from popular legalization

Moody’s Investors Service said in a report that the potential expansion of casinos in Massachusetts could be a winning gamble for several Las Vegas-based companies, especially Caesars Entertainment and International Gaming Technology.

The bond-rating firm told investors that the long-awaited deal, which could lead to full-fledged casino gambling in the state, could have ripple effects. If Massachusetts legalizes casinos, it could spur neighboring states such as Rhode Island to also consider new gaming legislation.

Moody’s gaming analyst Keith Foley warned investors that this may not be a good thing for the market.

“We think that this ‘Jones mentality’ will further devastate a market that is already saturated and needs to reach even greater distances to attract the same number of customers,” Foley said in a report.

Last week, Governor Deval Patrick of Massachusetts and leaders of the House and Senate agreed to expand the game in the state. The effort is touted as a way to create jobs and end a $1.8 billion budget shortfall.

The measure needs legislative approval and faces several state-by-state legal hurdles, social considerations and political and economic decisions.

Under the agreement, Massachusetts will have three standalone Las Vegas-style casinos and a fourth slot machine-only casino with up to 1,250 games. 바카라

The casino’s total gaming income will be taxed 25 percent and slot machine casinos will be paid 40 percent to the state. An additional 9 percent tax will subsidize the horse racing industry.

Foley told investors that the bill is likely to pass. But the success of the bill does not mean that more gamblers will be born. Instead, gamblers in Massachusetts who flock to casinos in nearby Connecticut may be more likely to stay home. Also, economic conditions will play a role in consumer spending.

“Unlike before the Great Recession, I don’t think further expansion in gambling will necessarily entail a substantial increase in consumer spending on gaming,” Foley said. “This could increase pressure on existing operators, not just in the Northeast but across the U.S. gaming sector.”

Foley said Caesars Entertainment, whose chairman Gary Loveman lives in the Boston area and has longstanding ties to the state, would be the winner. The company has a contract with the Suffolk Downs racetrack owner to manage the casino if the two can obtain one of its casino licenses.

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