The Massachusetts Gaming Commission recently released its gaming revenue report for September, showcasing robust growth in gross gaming revenue (GGR) across Plainridge Park Casino, MGM Springfield, and Encore Boston Harbor. The three casinos collectively generated $94 million in GGR, marking a significant 6.8% year-on-year increase and a 2% rise from August 2022’s figures. Additionally, with the approval of in-person and online sports betting, the state’s gaming industry is poised for further expansion and economic benefits.
Impressive Casino Revenue Growth:
In September, Plainridge Park Casino, MGM Springfield, and Encore Boston Harbor contributed to the state’s thriving gaming industry, reporting individual GGR figures of $12.1 million, $20.5 million, and $61.5 million, respectively. Together, the casinos generated $26.5 million in tax revenue during August, with Encore Boston Harbor contributing $15.3 million, MGM Springfield $5.1 million, and Plainridge Park $5.9 million. The cumulative GGR increase of 6.8% year-on-year demonstrates the industry’s resilience and potential for further growth.
Tax Revenue Contributions:
Since their respective openings, PPC, MGM, and Encore have contributed a total of approximately $1.208 billion in taxes and assessments to the Commonwealth. Each casino operates under specific tax structures: PPC, a category 2 slots facility, is taxed on 49% of GGR, with 82% of the taxed amount allocated to Local Aid and 18% to the Race Horse Development Fund. On the other hand, category 1 resort casinos, MGM Springfield, and Encore Boston Harbor are taxed on 25% of GGR, with these revenues distributed to various state funds as determined by gaming statutes.
Excitement for Sports Betting:
The Massachusetts Gaming Commission’s approval of in-person sports betting launching in late January, followed by online betting in early March, has generated significant anticipation within the state. The commission’s 4-0 vote with one abstention sets the stage for sports wagering to begin ahead of major events like the Super Bowl and the NCAA March Madness basketball tournament. Notably, the commission has the flexibility to adjust the timeline if necessary.
A Competitive Field of Applicants:
42 companies have expressed their interest in applying for a sports betting license in Massachusetts, showcasing the high level of competition in the market. Industry giants such as MGM Resorts, Bally’s, 888, Caesars, Rush Street, FanDuel, and DraftKings are among the respondents. The applications cover the existing casinos, MGM Springfield, Plainridge Park Casino, and Encore Boston Harbor, along with Suffolk Downs and Raynham Park.
The Potential of Sports Betting:
The recent legalization of sports betting in Massachusetts, through the signing of House Bill 5164 by Governor Charlie Baker, opens up new opportunities for revenue generation and market expansion. With sports betting set to commence during prime sporting events, the industry expects to experience a surge in interest and participation, benefiting both the state’s economy and sports enthusiasts.
Massachusetts’ gaming industry is experiencing robust growth, as evidenced by the impressive revenue figures reported by the three casinos. The future looks promising, with the imminent launch of in-person and online sports betting further elevating the state’s gaming landscape. The potential for increased tax revenue and job opportunities signifies a prosperous path for the gaming sector, promising significant economic benefits for Massachusetts.