Mohegan Sun Casino & Foxwoods Resort Casino: Potential Impact of Gaming Expansion in Massachusetts & New York Submitted to: Mohegan Tribal Gaming Authority & Mashantucket Pequot Gaming Enterprise Submitted by: Pyramid Associates, LLC Contact: Clyde Barrow, Ph.D. Pyramid Associates, LLC 151 State Road, Suite 4 Westport, MA 02790 978-340-6234 (phone)
[email protected] March 2015 Revenue Displacement & Negative Economic Impacts Executive Summary Pyramid Associates, LLC (“Pyramid”) was commissioned by The Mohegan Tribal Gaming Authority & Mashantucket Pequot Gaming Enterprise to conduct a revenue displacement (market impact) analysis and an estimate of potential employment and revenue losses to the State of Connecticut that will occur as the result of competition from new casinos in Massachusetts and New York. The commissioned work includes: § an estimate of the potential gaming market for the proposed resort casinos and slot parlor in New York and Massachusetts based on a custom designed gravity model that incorporates adult population (age 21+), disposable personal income (DPI), and the estimated propensity to gamble within primary (60 minute drive), secondary (61-120 minute drive), and tertiary (121-150 minute drive) market areas, including a tourism and out-of-market factor. The gravity model incorporates all relevant market areas in New York and the six New England states, § an estimate of annual gross gaming revenue at planned new gaming venues in Massachusetts and New York (by slot machines and table games) from Fiscal Year 2016