UMaine Economist Releases Study Examining Racino’s Influence on Bangor Hospitality Sales
Contact: Todd Gabe (207) 581-3307; David Munson (207) 581-3777
ORONO, Maine — Associate Professor Todd Gabe of UMaine’s School of Economics recently released a report that looks at the effects of Hollywood Slots on Bangor-area restaurant and lodging sales. The report, which is available by contacting the author, shows a positive and statistically significant relationship between net gaming revenues at Hollywood Slots and area restaurant and hotel sales.
The results of the study are based on statistical analysis of monthly gaming revenues and retails sales figures from between January 2000, well before the racino opened, and March 2007.
“Other things being equal, a $1 increase in net gaming revenues is associated with $0.12 of additional spending in Bangor Area hotels and motels and a $0.29 increase in sales at local restaurants,” Gabe stated. “Between the months of November 2005, when the temporary gaming facility opened, and March 2007, Hollywood Slots’ patrons spent an estimated $14 million in Bangor-area restaurants and an estimated $6.02 million in Bangor-area hotels.”
Gabe cautioned, however, that the study examined only one aspect of the gaming facility’s effect on the Bangor area, and the results of the study alone cannot be used to conclude whether Hollywood Slots has a positive or negative affect overall on the region or state.
Gabe also noted that the current study captures racino patrons’ impact on restaurant and hotel sales outside the facility, but that the results of the study may not apply to future area sales when the new racino opens with its expanded dining and lodging options.
The report also found a substantial increase in gaming revenues since Hollywood Slots opened in 2005, with recent net revenues equivalent to over 20 percent of Bangor-area restaurant sales and exceeding the area’s monthly lodging sales.
“The study has a pretty narrow focus,” Gabe said. “But the results when properly framed should be of interest to Bangor residents and local officials.”