Economic Effect

A master’s thesis from UMASS concluded the following in regard to local economic growth following the development of a casino:

Towns should not expect spillover economic growth stimulated by casino development. The multiplier effects expected by economic base theory are relatively small compared to other types of destination tourism because nearly all of the ancillary spending (food, entertainment, shopping) occurs within the casino complex and the profits from this activity are largely retained by the casino operators. Local economic impacts from additional earnings are also reduced because many workers commute from neighboring areas or send large portions of their earnings out of the country through remittance.[1]

Ledyard has the experience of living with a casino:

Ledyard Town Planner Brian Palaia backed up Mendenhall’s assertions in a telephone interview, saying the only thing the community has seen in economic growth is a new Dunkin’ Donuts and a hotel that was built by the casino.[2]

Everything is internal, Palaia said. There was no need for off-site business expansion because the casino meets all of its customers’ needs within the casino property.

It is unlikely Milford businesses will derive much benefit from a casino.