A study conducted by the UMass Donahue Institute revealed that the construction of Wynn Resort’s Encore Boston Casino in Everett generated an estimated $1.6B in economic activity in Massachusetts. It also created or supported around 2,500 jobs that earned a total personal income of $1B.
Per Rod Motamedi, UMass Donahue senior research manager:
“We found that the $1.6 billion in construction spending created $2.6 billion of total economic activity and the related income and jobs that would be needed to produce that.”
Wynn’s $2.6B Project
Te Encore Boston Harbor Casino cost Wynn Resorts $1.6B to build. However, it is considered a $2.6B project because of the other costs the gambling company incurred associate with it like the purchase of land, licensing fees, cost of furnishing for the hotel and casino, and other non-construction expenses.
$1.1B of the total construction costs were awarded to local companies in Massachusetts. Suffolk Construction got about 27% of that amount or $425.4M while Middlesex County companies took 15% of the construction costs at $236.8M. The remaining $446M spend that went outside Massachusetts was distributed among 36 states while $71M of the total construction costs were awarded to non U.S. companies.
A Cumulative Total of 5.2M Man-Hours
According to the study which was submitted to the Gaming Commission last Thursday, a total of 6,700 individuals worked on the site at some point from the site remediation in 2015 to the Massachusetts casino’s opening on July 23, 2019. These persons worked in a cumulative total of 5.2M man-hours with the average hours per worker totalling 760, or a total of 19 40-hour weeks on the job.
The study says that about half of the 6,700 people who worked on the Massachusetts casino project lived in the Suffolk or Middlesex counties, most of which reside in the nearby communities like Everett, Medford, Malden, Boston, Lynn, Sommerville, Cambridge, and Melrose.
Create Jobs and Opportunities
The Donahue report found out that when the construction expenses of the Massachusetts casino were compared to the economic impact to the state, every $1.55 spent on construction costs created an additional $1 worth of economic activity in Massachussets and created another 0.85 jobs elsewhere in the commonwealth.
When the arguments for building a Massachusetts casino were being heard over ten years ago, proponents talked about the jobs created and opportunities for women and minority businesses that a casino construction project would bring. They also argued that legalizing casino gambling in the state would spur economic activity. Massachusetts’ second full-scale casino accomplished that.