For Immediate Release CONTACT: Christian Teja
(857) 231-6788
cteja@suffolkdowns.com
Thousands of Jobs, Expansion of Agri-Business and Farm Acreage, Increased Purses All Part of Total Economic
Impact of Thoroughbred Industry in Massachusetts with a Resort Casino at Suffolk Downs
Purses supplemented by gaming revenue a catalyst for growth according to industry analyst
(EAST BOSTON – October 23, 2013) – More than 2,000 new Thoroughbred equine industry jobs will be generated in Massachusetts and the net positive impact of the Thoroughbred industry in the state will increase from $116.3 million to $183 million – a 57 percent climb – should Suffolk Downs earn a resort casino license, according to a report released today by Christiansen Capital Advisors, LLC, which includes data gathered by Salem State University’s Center for Economic Development and Sustainability.
The report projects purses at Suffolk Downs to increase from the current level of $9.4 million per year to $26.9 million per year in 2019, five years after the expected opening of commercial casinos.
Currently, the Thoroughbred industry in Massachusetts supports 1,486 jobs. That number is expected to grow to 3,631 from the projected expansion of the breeding industry and the greater number of horses competing at Suffolk Downs as a result of the dramatically increased purses.
The expansion of existing breeding farms and the establishment of new breeding farms due to the significant purse incentives for horses bred in Massachusetts could result in as many as 7,825 additional acres, a 118 percent increase from the current 6,650 acres of farmland.
“The Thoroughbred industry in Massachusetts has been a significant part of the state’s economy since Suffolk Downs first opened for business 78 years ago, providing a livelihood for many families and preserving thousands of acres of working open space while also making substantial financial contributions to the state,” said Chip Tuttle, Chief Operating Officer of Suffolk Downs. “This report validates our continued commitment to racing as we work toward earning a gaming license from the state.”
The report measures the current economic impact of the industry and utilizes economic modeling techniques to project the growth of the industry as a result of the supplementing of purses with gaming revenue generated by three commercial casinos and one slot facility in Massachusetts.
“Our projections are generated from an input-output model that includes a thorough examination of the current Thoroughbred industry in Massachusetts and a review of the 14 states that currently have purses and/or breeding funds supplemented by gaming revenue, with a particular focus on Delaware, New York and Pennsylvania,” said Sebastian Sinclair, President of Christiansen Capital Advisors, LLC. “Based on what we observed in these other states, we anticipate significant growth in the Thoroughbred industry in Massachusetts should Suffolk Downs be successful in its efforts to obtain the Region A gaming license.”
The Massachusetts Thoroughbred equine industry, as defined in the report, includes 62 breeding farms, an additional 71 farms affiliated with Thoroughbreds, horse owners and breeders, suppliers of equine goods and services, one racetrack (Suffolk Downs, the lone remaining Thoroughbred track in New England), jockeys and trainers and other licensed workers at Suffolk Downs, employees of Suffolk Downs and its on-site vendors, bettors who form the consumer base for pari-mutuel racing, and the Commonwealth of Massachusetts, which through its Gaming Commission licenses and regulates pari-mutuel racing and derives direct revenue from it in the form of license fees and taxes levied on pari-mutuel wagering.
Christiansen Capital Advisors, LLC is an independent research and consulting firm with expertise in the economics, management, operations, taxation, and regulation of the leisure and entertainment industry.
The complete report is available at http://www.suffolkdowns.com/resortnews.html.
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