In November 2024, Massachusetts' casinos and sports betting operations achieved a significant financial milestone, generating over $181 million in revenue.
The latest report from the Massachusetts Gaming Commission shows that the total gaming revenue (GGR) from casinos was $100.86 million, and the taxable revenue from live and online sports betting was $80.47 million.
Casino Revenue Details:
Among the state's three casinos, Encore Boston Harbor led with $63.1 million in GGR from slot machines and table games. MGM Springfield followed closely with revenues of $23.1 million, an increase from $22.1 million in October, marking the highest revenue since August, as reported by MassLive.com. The third casino, Plainridge Park Casino, a slot machine-only facility, contributed $14.6 million in revenue.
Massachusetts casinos are taxed according to different frameworks based on their classification. MGM Springfield and Encore Boston Harbor are categorized as resort casinos with a tax rate of 25%, while Plainridge, which operates only slot machines, faces a 49% tax rate. To date, these three casinos have contributed approximately $1.931 billion in taxes to the state government, including allocations for local aid and horse racing development.
As stated in its official press release (pdf), the Massachusetts Gaming Commission noted that sports betting also made a significant impact in November, generating approximately $80.47 million in taxable sports wagering revenue (TSWR) from three live licensees and eight mobile/online operators. MGM Springfield's retail sports betting reported revenues of $1.5 million, consistent with recent months but lower than the $2.9 million in November 2023.
Online platforms such as DraftKings, FanDuel, and Caesars Sportsbook, categorized as Class 3 operators, dominated the market with a tax rate of 20%. MGM, Encore, and Plainridge's retail sports betting fall under Class 1, with a tax rate of 15%. Since the launch of sports betting in early 2023, the federal government has accumulated $213.59 million in taxes from sports betting activities.
Tax Revenue Allocation and Economic Impact:
The tax revenue from casino gaming and sports betting is strategically allocated to various state funds. A portion of the casino taxes supports the Gaming Local Aid Fund, Horse Racing Development Fund, and other designated projects. Sports betting taxes are allocated to the General Fund, Workforce Investment Trust Fund, Public Health Trust Fund, and Youth Development and Achievement Fund.
Under Massachusetts law, operators are allowed to carry forward losses to subsequent months if they experience negative adjusted total revenue due to high expenses or federal excise taxes. This provision ensures that operators can manage monthly performance fluctuations.
As new operators consider entering the market, Massachusetts' gaming and sports betting industry is expected to grow further. Additionally, the state is exploring ways to strengthen its regulatory framework to attract more investment. Analysts believe that expanding the scope of gaming licenses and refining the tax structure can further increase revenue, positioning Massachusetts as a model for balanced gaming and sports betting regulation.
