In July 2024, Massachusetts experienced a notable uptick in taxable gaming revenue, reaching $140.6 million, a 3% increase from the previous month’s $136.5 million. This growth reflects a robust performance across both casino and sports betting sectors.
Growth in Casino Gaming Revenue
Casino gaming played a significant role in the state’s revenue growth. The sector generated $99.4 million in July, a substantial portion of the overall taxable revenue. Encore Boston Harbor led the way with $61.5 million in gross gaming revenue from its table games and slots. MGM Springfield followed with $23.6 million, while Plainridge Park Casino contributed $14.4 million. These figures indicate a consistent and strong performance from the state’s major casinos.
To date, Massachusetts has collected $1.82 billion in taxes and assessments from its gaming facilities since their openings. This substantial amount underscores the long-term impact of casino gaming on the state’s economy and revenue streams.
Insights into Sports Betting Revenue
Sports betting also made a significant contribution, generating $41.2 million in revenue for July. The total amount wagered on sports reached $411.8 million, a significant increase from $294.9 million in July 2023, although it was a decrease from June’s $509.3 million. The distribution of wagers was heavily skewed towards online platforms, with $405.2 million wagered online and $6.6 million placed at physical casino locations.
Since the introduction of sports betting in Massachusetts, the state has collected $166.6 million in taxes and assessments. This revenue includes both in-person sports betting, which began on January 31, 2023, and online sports betting, which commenced on March 10, 2023.
Regulatory Framework and Taxation
The Massachusetts Gaming Commission (MGC) has established a regulatory framework that categorizes sports wagering operators into two main types, each subject to different tax rates. Category 1 Sports Wagering Operators, which include Encore Boston Harbor, MGM Springfield, and Plainridge Park Casino, are authorized to operate retail sportsbooks at their facilities. They are taxed at a rate of 15% on their total sports wagering revenue (TSWR).
On the other hand, Category 3 Sports Wagering Operators, which include mobile sportsbook operators like Bally Bet, BetMGM, Caesars Sportsbook, DraftKings, ESPNBet, Fanatics Betting & Gaming, and FanDuel, are taxed at a higher rate of 20% on their TSWR.
Previously licensed operators such as Betr and WynnBet, which held temporary licenses from February 2023 to early 2024, chose not to renew their licenses after the one-year period expired. This reflects the evolving nature of the sports betting market and regulatory landscape in Massachusetts.
Market Trends
The July 2024 revenue figures reveal key trends in the gaming sector. Casino gaming remains a consistent and significant source of revenue, with major casinos showing strong performance. In contrast, sports betting revenue, while higher than the previous year, saw a decline from the previous month, suggesting possible seasonal variations or market adjustments.
The increase in July’s overall taxable gaming revenue, despite fluctuations in sports betting, highlights the ongoing growth and resilience of Massachusetts’ gaming industry. These insights provide a comprehensive view of the state’s gaming economy, helping stakeholders understand the current dynamics and plan for future developments.
The Massachusetts Gaming Commission’s July 2024 revenue report illustrates a thriving gaming sector with positive growth trends. The substantial contributions from both casino and sports betting sectors underscore the sector’s importance to the state’s economy.