In the realm of Massachusetts’ gaming industry, the final month of 2022 unveiled remarkable growth, setting an impressive trajectory for the state’s casinos. According to a recent report by the Massachusetts Gaming Commission, Plainridge Park Casino, MGM Springfield, and Encore Boston Harbor collectively generated a staggering $103 million in gross gaming revenue (GGR) during the month of December. This not only represents a significant year-on-year increase of 7.3%, but also a notable 10% surge compared to the figures from November 2022, which stood at $93 million.
Encore Boston Harbor Shines Bright: A Record-Breaking GGR
Among these establishments, Encore Boston Harbor emerged as a standout performer, boasting a record-high GGR of $68.4 million. MGM Springfield contributed $22.4 million to the overall GGR, while Plainridge Park added $12.3 million, forming a triumvirate of financial success for Massachusetts’ gaming landscape.
Contribution to the State’s Revenue: A Win-Win Scenario
The financial boon experienced by the state’s casinos directly translates into a significant source of revenue for Massachusetts. During the month of December alone, the three casinos collectively contributed $28.7 million in tax revenue. Encore Boston Harbor led the way by contributing $17.1 million, followed by MGM Springfield at $5.6 million, and Plainridge Park at $6 million.
Tax Structure and Allocation: Supporting Local Initiatives
It’s worth noting that each casino operates under a distinct tax structure. Plainridge Park Casino, categorized as a slots facility (Category 2), is taxed on 49% of its GGR. Within this framework, 82% of the generated tax revenue is directed towards Local Aid, while the remaining 18% is allocated to the Race Horse Development Fund. In contrast, MGM Springfield and Encore Boston Harbor, both classified as Category 1 resort casinos, are taxed on 25% of their GGR. The revenue derived from these establishments is then earmarked for various state initiatives, in accordance with the gaming statute.
Cumulative Contributions and a Thriving Industry
Since their respective openings, the three gaming facilities – Plainridge Park Casino, MGM Springfield, and Encore Boston Harbor – have significantly bolstered the state’s coffers. Cumulatively, the Commonwealth of Massachusetts has collected an impressive $1.29 billion in taxes and assessments from these casinos. This not only underscores the economic impact of the gaming industry but also provides the state with substantial funds for various essential programs and initiatives.
A Glimpse into the Future: Sports Wagering
As Massachusetts continues to evolve its gaming landscape, the state has embraced the legalization of sports wagering. This forward-looking move took shape in August 2022, with plans for both retail and online/mobile wagering. The dawn of 2023 heralds the launch of retail sports wagering at Encore Boston Harbor, MGM Springfield, and Plainridge Park Casino, set to kick off on January 31. The subsequent launch of online and mobile wagering is slated for March, marking yet another milestone in the state’s ongoing gaming evolution.
Massachusetts’ gaming industry culminated the year 2022 on a remarkably positive note, showcasing substantial growth in gross gaming revenue. The strong performances of Plainridge Park Casino, MGM Springfield, and Encore Boston Harbor reflect not only financial success for these establishments but also underscore the state’s flourishing gaming sector. The consistent contribution of tax revenue from these casinos enriches various state initiatives, leaving an indelible mark on Massachusetts’ socioeconomic landscape. As the state embraces the future with the impending launch of sports wagering, the momentum of growth and opportunity appears poised to persist well into the coming years.