In May, the Massachusetts Gaming Commission (MGC) reported an impressive $155 million in taxable gaming revenue, showcasing the state’s thriving gambling industry.
Casino Wagering: Leading the Charge
Casino wagering emerged as a significant contributor, generating $97.9 million. Leading the charge was Encore Boston Harbor, which reported a remarkable $61.1 million in gross gaming revenue from table games and slots. This figure underscores Encore Boston Harbor’s position as a dominant player in the Massachusetts gaming landscape. MGM Springfield also made a notable contribution with $22.4 million, while Plainridge Park Casino added $14.4 million to the state’s coffers. These figures collectively highlight the dynamic nature of casino operations within the state.
Since the respective openings of these gaming facilities, the Commonwealth of Massachusetts has amassed a staggering $1.76 billion in taxes and assessments. This substantial sum reflects the enduring appeal and economic impact of casino wagering in the state.
Sports Betting: A Pivotal Role
Sports betting also played a pivotal role in boosting May’s revenue figures, contributing $57 million. The state’s burgeoning sports betting market saw a total of $587.2 million wagered, with a significant portion, $577 million, coming from online platforms. Retail sports betting at casinos accounted for $10.2 million, indicating a solid, albeit smaller, segment of the market. Since the launch of in-person sports wagering on January 31, 2023, and online sports betting on March 10, 2023, the Commonwealth has collected $149.18 million in taxes and assessments from these activities.
Taxation Framework for Sports Wagering Operators
The state’s taxation framework for sports wagering operators is designed to capture significant revenue. Category 1 Sports Wagering Operators, which include Encore Boston Harbor, MGM Springfield, and Plainridge Park Casino, are taxed at 15% of their taxable sports wagering revenue (TSWR). These operators manage retail sportsbooks at their respective locations, providing a physical venue for sports enthusiasts to place their bets.
On the other hand, Category 3 Sports Wagering Operators, such as BetMGM, Caesars Sportsbook, DraftKings, ESPNBet, Fanatics Betting & Gaming, and FanDuel, operate mobile or online sportsbooks. They are subject to a higher tax rate of 20% of TSWR, reflecting the substantial market reach and convenience offered by digital platforms. Notably, Betr and WynnBet, which were licensed operators in the Commonwealth from February 2023 through early 2024, chose not to renew their licenses following the expiration of their one-year temporary licenses.
Allocation of Gaming Revenue
The revenue generated from gaming activities is allocated to various state funds, supporting a wide range of initiatives and programs. A significant portion, 45%, is directed to the General Fund, ensuring broad-based support for the state’s financial needs. Additionally, 17.5% is allocated to the Workforce Investment Trust Fund, which aims to bolster workforce development and training programs. The Gaming Local Aid Fund receives 27.5% of the revenue, providing essential support to local communities impacted by gaming activities. Furthermore, 1% is dedicated to the Youth Development and Achievement Fund, fostering opportunities for young people, while 9% is allocated to the Public Health Trust Fund, underscoring the state’s commitment to public health and well-being.
Massachusetts’ gaming industry continues to thrive, driven by strong performances in both casino wagering and sports betting. The state’s comprehensive regulatory framework and strategic allocation of gaming revenue ensure that these funds are effectively utilized for public benefit and infrastructure development. As the industry evolves, Massachusetts remains well-positioned to leverage its gaming revenue to support a wide array of community needs and state initiatives.