In a significant development for the Massachusetts gaming industry, 15 sports betting operator applications were diligently submitted to the Massachusetts Gaming Commission (MGC) by the November 21 deadline. This move, accompanied by a corresponding $200,000 application fee from each applicant, marks a pivotal step towards establishing a dynamic sports betting ecosystem within the state.
Application Overview:
The Massachusetts Gaming Commission’s decision to approve in-person sports betting in late January, followed by online betting in early March, has set the stage for a transformative period in the state’s sports wagering landscape. This decisive move, with a 4-0 vote and one abstention, aligns the launch of in-person sports betting before the Super Bowl and mobile sports betting in time for the NCAA March Madness basketball tournament, albeit with a contingency plan to adjust the timeline if needed.
Key Casino Applicants:
The gaming heavyweights, Encore Boston Harbor, MGM Springfield, and Plainridge Park Casino, have each demonstrated their commitment by submitting applications for Category 1 operator licenses. These casinos are poised to not only offer in-person betting within their properties but also operate up to two online platforms. Encore Boston Harbor stands out by intending to manage two online platforms: WynnBet and Caesars Sportsbook. MGM Springfield, on the other hand, has opted for one online platform – BetMGM. Plainridge Park Casino has chosen to diversify its digital presence with two online platforms, Penn Sports Interactive and Fanatics Sportsbook.
Expanding Category 3 Operators:
A notable influx of Category 3 applications emerged from well-known names including Bally Bet, Betr, Betway, DraftKings, FanDuel, and Pointsbet. These applications, excluding those affiliated with Category 1 applicants, reflect the thriving interest in offering sports betting through online platforms. The state’s regulations permit the MGC to award up to seven standalone Category 3 licenses, thereby enriching the diversity of operators in the online sports betting space.
Category 2 License Aspirants:
Raynham-Taunton Greyhound Park and Suffolk Downs hold the distinction of being the sole entities eligible to pursue a Category 2 license. These tracks are set to embark on a journey to offer retail sports betting, though not by January 2023. Their applications will be accepted on a rolling basis. Raynham Park’s strategy centers around leveraging the capabilities of bet365 to establish its presence in the sports betting realm.
Growing Revenue Trends:
The Massachusetts Gaming Commission’s latest revenue report reflects the impressive growth trajectory of the state’s gaming industry. In October, Plainridge Park Casino, MGM Springfield, and Encore Boston Harbor collectively generated $97 million in gross gaming revenue (GGR). This showcases a 1% year-on-year increase and a notable 3% rise from September 2022’s GGR total of $94 million.
Breakdown of GGR:
Within this revenue landscape, each casino played a significant role. Encore Boston Harbor contributed a substantial GGR of $62 million, followed by MGM Springfield at $22.8 million and Plainridge Park at $12.3 million. This triumvirate of casinos not only enhances the state’s entertainment offerings but also fuels the financial ecosystem by contributing tax revenue. In October, the combined tax revenue from these three casinos amounted to $27.2 million, with Encore Boston Harbor contributing $15.5 million, MGM Springfield adding $5.7 million, and Plainridge Park contributing $6 million.
Massachusetts’ journey into the world of legalized sports betting is marked by the convergence of prominent casino players, a diverse array of operators, and a burgeoning revenue stream. The successful submission of sports betting operator applications and the subsequent regulatory decisions are poised to shape a thriving sports wagering environment within the state. As timelines unfold and revenue continues to climb, Massachusetts stands ready to make its mark in the realm of legalized sports betting.