The Massachusetts Gaming Commission (MGC) has been inundated with interest from 42 prominent companies looking to secure sports betting licenses in the state. The diverse pool of applicants includes renowned names such as MGM Resorts, Bally’s, 888, Caesars, Rush Street FanDuel, and DraftKings.
The Licensing Process:
Under Massachusetts’ sports betting legislation, licenses are classified into three categories, each with specific privileges and limitations.
a) Category One Licenses:
Three casino and slot hall operators, namely MGM Springfield, Plainridge Park Casino, and Encore Boston Harbor, are eligible for Category One licenses. These licenses grant operators the authority to offer in-person betting as well as digital betting through two individually-branded mobile applications or “skins.”
b) Category Two Licenses:
Live horse racing tracks and simulcasting facilities can apply for Category Two licenses, allowing them to offer in-person betting and digital gaming through a single “skin.”
c) Category Three Licenses:
Companies seeking to provide sports betting through mobile applications or digital platforms can vie for up to seven Category Three licenses.
Legislative Milestone:
The legal landscape for sports betting in Massachusetts reached a crucial milestone when Governor Charlie Baker signed House Bill 5164 into law. This legislative triumph was achieved after weeks of negotiations between the House and Senate, solidifying Massachusetts’ position as the 36th state in the US to legalize sports betting.
Impressive Gaming Revenue Figures:
In July, the three Massachusetts casinos, namely Plainridge Park Casino, MGM Springfield, and Encore Boston Harbor, collectively generated a staggering $98.7 million in gross gaming revenue (GGR). This notable performance represented a 6.1% increase compared to the previous month’s total of $93 million.
a) Revenue Breakdown:
Encore Boston Harbor emerged as the frontrunner, contributing $64.7 million in GGR, followed by MGM Springfield with $21.5 million and Plainridge Park with $12.5 million. These remarkable revenue figures illustrate the flourishing state of the gaming industry in Massachusetts.
b) Tax Contributions:
The economic impact of the gaming industry was also evident in the substantial tax revenue generated in July. The three casinos collectively contributed $27.6 million in taxes to the state. Encore Boston Harbor led the way, contributing $16.2 million, followed by MGM Springfield with $6.1 million and Plainridge Park with $5.4 million. Since the inception of these gaming facilities, the state has successfully collected approximately $1.12 billion in total taxes and assessments.
Massachusetts’ foray into the world of sports betting has witnessed overwhelming interest from 42 prominent companies vying for licenses. With well-established names like MGM Resorts, Bally’s, 888, Caesars, Rush Street FanDuel, and DraftKings expressing their intent, the competition promises to be fierce. As the state embraces legalized sports betting, the gaming industry continues to thrive, as evidenced by the impressive $98.7 million in gross gaming revenue reported in July. With a comprehensive regulatory framework in place and a flourishing market, Massachusetts is undoubtedly making its mark as a significant player in the sports betting landscape.