Study gives a peek at casino impacts

Nov. 2, 2017 | G. Michael Dobbs
news@thereminder.com

There is some pretty interesting reading in a report from researchers at the University of Massachusetts Amherst that studied the people who have come to gamble at the Plainridge Park Casino (PPC), essentially the Commonwealth’s “slots in a box” facility in the southeastern portion of the state.

The study, called “Social and Economic Impacts of Gambling in Massachusetts (SEIGMA)” was conducted last year.

Here are some results worth noting:
• “Nearly 90 percent of PPC patrons had visited casinos in other states in the year before PPC opened, with the majority, 72.3 percent, having visited casinos in Connecticut and 55.9 percent in Rhode Island. The majority of PPC patrons were from Massachusetts, with 11.4 percent from Plainville or nearby towns and another 66.5 percent from other Massachusetts communities. Overall, 19.2 percent of patrons were from outside the Commonwealth.”
• “The research team also reports that compared to the general adult Massachusetts population, PPC patrons were older, somewhat more likely to be white, more likely to have higher education and an annual household income between $50,000 and $100,000.”
• “In addition to its existing horse race betting, PPC now offers 1,250 slot machines including several electronic table games. The report states that most patrons, 87 percent, played the slot machines while a much smaller number, 12.3 percent, played electronic table games, and just 7.7 percent bet on live or simulcast horse racing.”

Mark Melnik, director of the UMass Donahue Institute’s Economic & Public Policy research group and a lead SEIGMA researcher, said, “Perhaps most notably, we were able to use the survey results to estimate that the majority of the money spent at PPC would have been spent out of state if gambling had never expanded in Massachusetts.”

It seems to be a case of “build it and they will come” as opposed to brand loyalty. My other conclusion is old people like slot machines – that’s big news – and no one cares much about the ponies.

So I wonder if any of these findings will apply to MGM Springfield. Are we looking at a group of people who are already casino patrons as the core of a customer base? Are these people essentially middle class, white and “older?” I love that last description, as it borders on meaningless. What the heck is “older” these days when I keep reading 70 is the new 40.

MGM has made changes to its mix of games and have decreased the number of slot machines while increasing table games. The reason cited was that Millennials are more interested in the social experience that table games provide as opposed to sitting in front of a machine feeing money into it and pressing a button. I’m not a gambler at all, but slots are incredibly boring to me.

I would assume that MGM, one of the largest such companies in the world, has mountains of data to back such a change and is endeavoring to appeal to a younger market.

I would also guess considering the demographics of Western Massachusetts and northern Connecticut MGM would tailor its marketing to appeal not only to younger age groups, but also to groups other than “white.” While the PPC report indicated the majority of that casino’s audience came from Massachusetts, MGM Springfield’s draw has always been described as coming from a 100-mile radius of Springfield, which includes New York, Vermont, New Hampshire and Rhode Island. In fact, MGM would be competing with PPC for customers.

What can we learn from such a study? My takeaway is PPC is one kind of beast, but MGM will be something completely different and hopefully much better.

Say it ain’t so

When I was growing up the way I saw reporters is that they smoked, drank, swore, were cynical on the outside, hopeful on the inside, drank coffee and had the occasional doughnut. All of the above tends to apply to me to this day with the exception of coffee, as I’ve never developed that habit. The news then that a New England-born institution such as Dunkin’ Donuts would consider dropping “donuts” from its name and trim some of its menu items, including some varieties of sinkers – as doughnuts were once called – is sacrilegious.

I don’t go to Dunkin’ Donuts for the experience. I don’t go there to get a flatbread tuna salad sandwich. I go there to get some sort of beverage and some fried bakery item. I would submit that is exactly what most people do. The place sells coffee, but is not a coffee shop. People don’t hang out there all day. That’s okay with me.

There are better places to buy a doughnut by the way – Bob’s Bakery in Chicopee, Mrs. Murphy’s in Southwick and Chmura’s Bakery in Indian Orchard are three that come to mind. Their doughnuts are much better.

Dunkin’ Donuts are ubiquitous, though, and serviceable.

I hope the management considers their next move carefully.

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