Massachusetts Cities Brace for Financial Strain as Casino Funds Dwindle

Cities and towns in Massachusetts are preparing for significant financial challenges as funding from local casinos diminishes. The state government has redirected money from the Community Mitigation Fund, which was established to help communities manage the impacts of nearby casinos. This decision has left several municipalities, particularly in the Gateway Cities region, grappling with budget constraints just as they are already facing economic difficulties.

The Community Mitigation Fund, which allocates 6.5% of annual casino tax revenue, has been instrumental in addressing various local issues, including increased traffic, safety concerns, gambling addiction, and infrastructure needs. For nearly a decade, communities like Springfield, Holyoke, Everett, and Lynn have relied on these funds to support essential projects.

In the 2025 budget, state lawmakers first diverted funds from this critical source, describing it as a temporary measure to mitigate broader financial difficulties. Unfortunately, this trend continued in the 2026 budget, with funds being allocated to statewide needs such as transportation and economic development instead of local projects.

Local leaders have expressed frustration at the lack of opposition from state lawmakers when the funds were initially redirected. Tim Sheehan, Springfield’s chief development officer, highlighted the drastic reduction in funding, stating that the city, which previously received approximately $3 million annually, is expected to receive only around $360,000 for the fiscal year 2027. This funding has historically been vital for covering costs that exceed the regular city budget, including police staffing near the MGM Springfield casino, fire department equipment, sidewalk repairs, and enhancements to public parks like Court Square.

Concerns regarding the impact of reduced funding are echoed in Holyoke. Aaron Vega, the city’s director of planning and economic growth, noted that past grants have been crucial for monitoring gambling-related issues, initiating tourism projects, and supporting community events. With only about $5 million remaining in the state’s allocation for 2027—significantly less than previous years—many of these initiatives are now at risk of being discontinued.

The discontent among local leaders is palpable. In response to the funding cuts, Springfield’s City Council has passed a motion urging the state to restore the diverted funds. They criticized the state for prioritizing financial support for events like the World Cup 2026 while cutting vital resources to Western Massachusetts. Holyoke is preparing to propose a similar motion in the upcoming year.

Officials argue that the funding was a key promise made to communities when casinos were approved in 2015. They contend that the state is reneging on its commitments, leaving towns to address the long-term repercussions of these decisions without necessary support. The shift in funding priorities raises serious concerns about the future sustainability of local projects and services that have become reliant on casino-generated revenue.

As Massachusetts cities brace for a financially uncertain future, the implications of these funding cuts will likely resonate throughout local communities, affecting both infrastructure and public services in a significant way.