Massachusetts casinos and sports betting operations combined for a significant financial milestone in November 2024, generating over $181 million in revenue. The Massachusetts Gaming Commission’s latest report revealed $100.86 million in gross gaming revenue (GGR) from casinos and $80.47 million in taxable revenue from in-person and online sports wagering.

Casino revenue breakdown:

Among the state’s three casinos, Encore Boston Harbor led the pack with $63.1 million in GGR from slots and table games. MGM Springfield followed with $23.1 million, reflecting an increase from $22.1 million in October and the venue’s highest earnings since August. The third venue, Plainridge Park Casino, exclusively a slots facility, contributed $14.6 million in revenue, as reported by MassLive.com.

Casinos in Massachusetts remain subject to taxation under distinct frameworks based on their classification. MGM Springfield and Encore Boston Harbor, categorized as resort casinos, are taxed at a 25% rate, while Plainridge, a slots-only venue, faces a 49% tax rate. To date, taxes from the three casinos have contributed approximately $1.931 billion to state funds, including allocations for local aid and racehorse development.

As the Massachusetts Gaming Commission published in its official press release (pdf), Sports betting also made a significant impact in November, with approximately $80.47 million in taxable sports wagering revenue (TSWR) collected from three in-person licensees and eight mobile/online operators. MGM Springfield’s retail sportsbook reported a $1.5 million handle, consistent with recent months but lower than the $2.9 million recorded in November 2023.

Online platforms like DraftKings, FanDuel, and Caesars Sportsbook, among others, dominated the market as Category 3 operators, which are taxed at a 20% rate. Retail sportsbooks at MGM, Encore, and Plainridge fall under Category 1 and are taxed at 15%. Since the launch of sports betting in early 2023, the Commonwealth has amassed $213.59 million in taxes from sports wagering activities.

Tax allocations and economic impact:

Tax revenues from both casino gaming and sports betting are strategically distributed to various state funds. A portion of casino taxes supports the Gaming Local Aid Fund, Racehorse Development Fund, and other designated programs. Sports wagering taxes are allocated to the General Fund, Workforce Investment Trust Fund, Public Health Trust Fund, and Youth Development and Achievement Fund.

Operators experiencing negative adjusted gross receipts due to high payouts or federal excise taxes are permitted to carry over their losses into subsequent months under Massachusetts law. This provision ensures operators can manage fluctuations in monthly performance.

The gaming and sports wagering sectors in Massachusetts are poised for further growth as new operators consider entering the market. Additionally, the state is exploring ways to enhance regulatory frameworks to attract larger investments. Analysts suggest that expanding the availability of gaming licenses and refining tax structures could bolster revenues even further, making Massachusetts a model for balanced gaming and sports betting regulation.