The Massachusetts Gaming Commission has released its latest figures, revealing a robust performance in the state’s gaming industry for the month of March. With a focus on casino wagering and retail sports betting, the data highlights substantial taxable gaming revenue and a positive economic impact.
Casino Performance
In March, Massachusetts’ gaming establishments collectively reported a remarkable $105 million in combined taxable gaming revenue. Leading the way was Encore Boston Harbor, with a gross gaming revenue of $66.1 million from table games and slots. MGM Springfield followed with $24 million in revenue, and Plainridge Park Casino contributed $14.2 million to the state’s coffers.
Online Sports Betting Debut
A significant development in March was the launch of online and mobile sports wagering through six Category 3 licensees. This marked a pivotal moment in the state’s gambling landscape, with approximately $47 million in taxable sports wagering revenue generated across the six mobile/online licensees and three in-person licensees.
Tax Contributions and Revenue Allocation
The success of Massachusetts’ gaming industry is not just reflected in revenue figures but also in tax contributions. The three casinos combined to generate $29.5 million in tax revenue for the state. Since their respective openings, the Commonwealth has collected an impressive $1.38 billion in taxes and assessments.
The tax rates vary depending on the category of the gaming establishment. Category 2 slots facilities like PPC are taxed on 49% of gross gaming revenue (GGR). Category 1 resort casinos, such as MGM Springfield and Encore Boston Harbor, face a 25% tax rate on GGR. All three establishments have also obtained licenses as Category 1 Sports Wagering Operators, subject to a 15% tax on Gross Sports Wagering Revenue (GSWR).
Category 3 Sports Wagering Operators, including Barstool Sportsbook, BetMGM, Caesars Sportsbook, DraftKings, FanDuel, and WynnBet, can operate mobile or online sportsbooks and are taxed at a 20% rate on taxable sports wagering revenue (TSWR).
Revenue Allocation
The revenue collected from these taxes is allocated to various funds. Notably, 45% goes to the General Fund, while 17.5% is allocated to the Workforce Investment Trust Fund. The Gaming Local Aid Fund receives 27.5%, and 1% is directed to the Youth Development and Achievement Fund. An additional 9% is contributed to the Public Health Trust Fund.
Positive Impact of Sports Betting
Since the commencement of sports wagering, both in-person on January 31, 2023, and online on March 10, 2023, the Commonwealth has collected approximately $9.65 million in total taxes and assessments. This underscores the positive impact of sports betting on Massachusetts’ economy and the significant tax revenue it generates for the state.
In summary, Massachusetts’ gaming industry continues to thrive, with impressive revenue figures and substantial tax contributions. The successful launch of online sports betting has added a new dimension to the state’s gambling landscape, contributing to economic growth and benefiting various sectors through tax allocations.