The Massachusetts Gaming Commission (MGC) released its first quarterly report on the performance of the state’s recently launched sports betting industry.
While overall player spending increased, taxable sports wagering revenue dipped in the first quarter of 2024 (Q1).
Sports Betting Revenue Breakdown:
- Combined Revenue Decline: Compared to April 2023, the state’s eleven sports betting licensees generated $49.12 million in Q1, down from $58.9 million, representing a 17% decrease in taxable revenue.
- Retail vs. Online: The three Category 1 sportsbook operators (retail betting) reported a $256,600 loss, a 2% year-over-year decline. Their handle (total amount wagered) reached $11.7 million. Category 3 online sportsbooks, however, saw revenue of $49.4 million with a handle of $591.5 million.
- Tax Revenue Breakdown: Category 1 operators face a 15% tax rate, resulting in $42,900 in taxes paid. Category 3 operators, taxed at 20%, contributed $9.87 million.
Tax Allocation:
The MGC report outlines the distribution of sports betting tax revenue:
45% – General Fund
17.5% – Workforce Investment Fund
27.5% – Gaming Local Aid Fund
1% – Youth Development and Achievement Fund
9% – Public Health Trust Fund
Casino Performance Strong:
Despite the sports betting dip, Massachusetts’ three casinos thrived in Q1. Plainridge Park Casino, MGM Springfield, and Encore Boston Harbor collectively generated nearly $97.5 million in gross gaming revenue (GGR).
Taxation of Casinos:
- Plainridge Park Casino (Category 2 slots): taxed at 49% of GGR, with 82% allocated to Local Aid.
- MGM Springfield and Encore Boston Harbor (Category 1 resort casinos): taxed at 25% of GGR, with proceeds distributed to various state funds.
Overall Tax Revenue:
Since the launch of legal sports betting and online wagering in early 2023, Massachusetts has collected over $137.69 million in taxes. Additionally, the three casinos have contributed approximately $1.73 billion in taxes since their opening.
