The Massachusetts Gaming Commission reported that the state collected hundreds of millions in gaming taxes on everything from parimutuel horse wagering to sports betting.
Making It in Taxachusetts
Once upon a time, there was a state tourism slogan whose tagline was, “Making it in Massachusetts”. However, those who live there experience a blizzard of taxes ranging from state income tax of 5% to sales tax of 6.25% and a host of others including a newly installed “millionaires’ tax” which levies an additional 4% on those wealthy residents who qualify.
However, the Commonwealth has found a new revenue stream since allowing casino gambling and sports wagering in the Bay State. And that translated into $374.8 million in FY 2023, which was bolstered by sports betting beginning in March 2023 which saw $44.1 million driven by those who enjoy wagering on sporting events.
Gross gaming revenue reached $1.2 billion, which includes the $228.7 million contributed by sports betting. Now that sports betting has taken hold in the state and mobile sportsbooks are firmly established, the data supports an estimated $100 million being collected in FY 2024 from sports betting alone as the state will have the benefit of 12 full months of sports betting proceeds to collect.
Many of the major online sportsbooks are all operating in Massachusetts including BetMGM, Caesars, ESPN Bet, Fanatics Sportsbook, FanDuel and Boston-based DraftKings. However, two platforms made their respective exits from the Bay State market in February when WynnBet and Betr decided to call it quits.
Problem Gambling Support
As the gaming industry in Massachusetts continues to gain traction, the state has delved more fully into problem gambling support programs. One useful tool for managing gambling budgets is PlayMyWay, which monitors betting activity and furnishes updates on a person’s wagering frequency and amounts. The platform now has 42,616 individuals enrolled which is a marked increase over last year by 37.3%.
Massachusetts has also set up a Gaming Voluntary Self-Exclusion (VSE) program, which encompasses all gaming in the state and saw a rise of 25.3% from the previous year to 1,430 enrollees. A newly installed Sports Wagering VSE has also been established specifically for sports bettors, which now has 130 participants in the program.
Regarding what could be next for the gaming market in the state prompted the MGC to seek bids for studies on the impact of iGaming, which is essentially online casino gambling but has to be approved in Massachusetts.
Mark Vander Linden, director of research and responsible gaming for the commission, said at a public meeting last year, “Sports wagering has grown significantly since 2018. iGaming also is gaining a foothold in the United States.”
Vander Linden commented on the research on sports betting before it made its appearance in Massachusetts. “It was helpful,” he said of the research, “and would have been perhaps even more helpful to the Commonwealth to have an early study on sports wagering dating back to 2018. This is sort of trying to get an understanding of iGaming and potential impacts in Massachusetts.”
Moreover, the state commissioned six gambling-related research programs, which now brings the total to 60 state-funded reports since 2014. Interception of gambling winnings by the Massachusetts Gaming Commission’s Investigations and Enforcement Bureau (IEB) confiscated $3.6 million, which was directed to the Department of Revenue to be redistributed toward outstanding taxes and child support payments.
