Opposition to HHR Machines Grows in Massachusetts

Opposition is growing in Massachusetts to a plan to install historical horse racing (HHR) machines at two former racetracks. Critics argue the plan could weaken existing casinos, reduce public revenue, and create a disorderly regulatory environment.

The proposal is part of the House version of the economic development bill passed in July. It permits HHR machine operation under the former licenses of Suffolk Downs and Raynham Park. The Senate version does not include this provision. House Speaker Ron Mariano argues the plan would bring in more revenue for health care spending. 2.5 percent of the total amount wagered on HHR machines will be transferred to the Health Safety Net fund, which supports institutions serving uninsured and underinsured patients.

Supporters argue the new operations could generate 120 million dollars in tax revenue per year in their third year. The state's three licensed casino operators dispute these estimates. Encore Boston Harbor, MGM Springfield, and Plainridge Park asked for a no vote, citing a study prepared by Morowitz Gaming Advisors and Global Gaming and Hospitality. According to the study, HHR could draw between 131 million and 216 million dollars from existing casinos. This would mean an annual loss of 45 million to 73 million dollars for state and local governments.

Current rules limit casinos to three geographic regions. The House change, however, sets no limit on the number or location of HHR machines. The text may also allow online HHR wagering, which could become a new competitor to the Massachusetts Lottery platform the state recently launched. The Mashpee Wampanoag Tribe, which operates First Light Casino in Taunton, has also said it is concerned about its economic interests and sovereignty. Mariano said he has a personal relationship with George Carney of the Carney family, but argued that the law is written for the state.