MGC Publishes Q1 Sports Betting and Casino Report

The Massachusetts Gaming Commission has published information about the performance of the local gambling industry, highlighting a decline in taxable sports wagering revenue.

Whereas the state’s eight mobile and three in-person sports betting licensees reported $58.9 million in revenue in April 2023, they now generated only $49.12 million. Despite an increase in player spending, the final figure represents a decline of roughly 17%.

For further context, the state’s three Category 1 sports wagering operators, which operate retail betting, reported a loss of $256,600, down 2% year-on-year. The licensees’ handle for the period stood at $11.7 million.

Category 1 operators include Encore Boston Harbor, MGM and Plainridge Park Casino, which are taxed on 15% of their revenue. As a result, the three operators paid out a total of $42,900 in taxes.

The Category 3 sports betting operators include BetMGM, Caesars Sportsbook, DraftKings, ESPNBet, Fanatics Betting & Gaming and FanDuel. The eight licensees recorded revenue of $49.4 million and a total handle of $591.5 million.

Since Category 3 sports betting operators are taxed on 20% of their revenue, the online operators paid $9.87 million in taxes.

Of the total taxed amount for all operators, 45% is allocated to the General Fund, the Massachusetts Gaming Commission noted. Additionally, 17.5% goes to the Workforce Investment Fund. In the meantime, 27.5% is allocated to the Gaming Local Aid Fund. Finally, 1% and 9% are allocated to the Youth Development and Achievement Fund and Public Health Trust Fund, respectively.

Massachusetts has collected a total of $137.69 million in taxes since the launch of legal sports betting on January 31, 2023 and the launch of online wagering on March 10, 2023.

The MA Casinos Recorded Almost $100M in GGR

In the meantime, the state’s three casinos, Plainridge Park Casino, MGM Springfield and Encore Boston Harbor generated approximately $97.5 million in gross gaming revenue.

PPC, which is a Category 2 slots facility, is taxed on 49% of GRR, 82% of which goes to Local Aid. The remaining tax money is allotted to the Race Horse Development Fund.

MGM and EBH, on the other hand, are Category 1 resort casinos that are taxed on 25% of GGR. The proceeds are allocated to a variety of state-specific funds.

The three casinos have collectively generated approximately $1.73 billion in taxes since their launch.