Economic Development

1

• Economic Development
• in Massachusetts
• Greater Boston Chamber of Commerce
• Government Affairs Breakfast
• May 24, 2007

2
State of the Treasury Job Growth Task Force

• With Bank of America, Sovereign, Citizens, TD
  Banknorth, Rockland Trust and United Commercial
  Bank, we have leveraged 1.2 billion for job
  growth and affordable housing
• This includes 230 million for Economically
  Targeted Investments through the state pension
  fund (PRIM).
• Results
• 5000 new jobs, with the potential for 8100
  additional new jobs
• 2194 affordable housing units in Massachusetts

3
State of the TreasuryMassachusetts School
Building Authority

• 4.5 billion reimbursed to cities
  and towns for 354 projects
• 1.8 billion saved in avoided
  interest costs
• Over 4 billion 5-year
  capital plan
• 34,000 construction jobs
  estimated

4
State of the State

• Net Job Growth in Massachusetts, 2001-2006

5
State of the Lottery

• The Massachusetts State Lottery is the best in
  the nation, but is mature and growth is slowing.
• The average annual growth for lotteries
  nationwide is 6.9 compared to 1.8 for
  Massachusetts.

6
Where Is Our Money Going?

• Massachusetts residents spent 1.1 billion at
  casinos in Connecticut and Rhode Island in 2006.

Rhode Island Connecticut
7
Online Competition

• Worldwide
• In 2005, consumers spent 12 billion worldwide on
  online gaming
• This is expected to more than double by 2010
• National
• Recently, Rep. Barney Frank filed a bill to
  overturn the ban on US online wagering
• This would reintroduce online gaming as
  competition to lotteries and casinos

8
Societal Shifts

• Historically
• Lottery products were purchased at small
  neighborhood shops
• Players used cash
• Players enjoyed a game of chance

• Today
• Most shopping is done at big box stores and malls
• 55 of all payments are made with credit cards
• Players seek skill based games with a social
  component

Therefore, fewer people are playing the Lottery,
less often.
9
Where Are We Now?

• Despite our best efforts, the Lottery is not able
  to meet increased demand for Local Aid.

Municipal Budgets (in billions) Local Aid
(in billions)
10
Gaming in New England
11
Potential Local Aid

• Net Massachusetts Lottery Revenue
• FY04 912 million
• FY05 936 million
• FY06 951 million

• 2006 Net Gaming Revenue in other states
• Indiana 883.7 million
• Illinois 830.2 million
• Louisiana 527.8 million

12
Benefits of Destination Casinos

• Revenue for state and local economy
• Added tax receipts
• Increase in long term public spending and
  redevelopment
• Employment opportunities and job growth
• Increased travel and tourism opportunities
• Significant leadership opportunities for women
  and minorities

13
Keys to Success

• Full Service Destination Casinos
• Competitive Bidding for Licenses
• Control Process and Maximize Opportunity and
  Benefits
• Increased Local Aid to Cities and Towns