Factor analysis was used to determine residents’ perceptions toward benefits and costs of casino development. As shown in Table 2, there are 4 factors were derived as positive economic, negative economic, positive social, negative social impacts. The resultant factors met the minimum required reliability coefficients and had an eigenvalue greater than 1.
All factor loading scores were higher than 0.4 and all four factors were accounting for 60.8% of the total variance. Factor 1 was labeled as negative social impact, included nine items as gambling addicts, alcohol and drug problems, crime, destruction of families, usury to my community, congestions and pollutions, divorces, prostitution, and political corruption.
Factor 2 was named as positive economic impact, contains five perception items, including increased tourists’s spending, local tax revenues, employment opportunities, external investments and businesses, and have higher income because of the casino. Factor 3 was labeled as positive social impact, comprised five items, improved social network with people and organizations in other states and countries, educational environment and funding, enhanced the community spirit, improved residents’ pride, and contributed to traditional and cultural preservation.
Finally, factor 4 was named as negative economic impact, included three perception items as increased the cost of living, tax burden, and caused me to spend more. Five questions were asked to the respondents to estimate willingness level to support the additional development for the Foxwoods casino. Foxwoods announced a $100 million expansion in 2005, but it has yet to be completed.,
therefore it is significant to know whether these continuous large development plan will bring social and economic benefits to the communities. However, the practitioners and planners may assume only economic benefits to the region but the residents live near the operations may feel intervened and intimidated by those large scaled developments.
For these reasons, this study included questions to examine whether the residents in Ledyard support the expansion of Foxwoods resort casino in the area as well as to determine the relationship between demographic variables, perceived impact factors and willingness to support the expansion and development.