The Massachusetts Gaming Commission (MGC)’s latest report reveals that the state’s gaming industry generated a total of $153.1 million in taxable revenue for February.
Casino wagering contributed the largest part to the overall revenue, with a total of $100.5 million generated from traditional casino games such as table games and slots. Notably, Encore Boston Harbor emerged as the top performer in this category, reporting a gross gaming revenue of $64.4 million. Following behind were MGM Springfield with $22.9 million and Plainridge Park Casino with $13.2 million in revenue.
The casinos saw a 7.5% increase in revenue compared to January 2024, marking a positive trend in the gaming sector. Encore Boston Harbor, MGM Springfield, and Plainridge Park Casino collectively generated around $7 million more in revenue than the previous month.
As for sports betting, despite a strong start in January, Massachusetts sportsbooks experienced a decline in revenue for February. Total revenue for the month dipped by approximately $11.5 million compared to January, primarily due to fewer betting days and a significant drop in sports betting revenue.
The MGC reported a total sports wagering handle of $542.5 million for February, with $530.2 million placed online and $12.2 million at physical casino locations. The state has seen steady growth in sports betting activity since its legalization, with a total tax revenue of $118.56 million collected since sports wagering began in person on January 31, 2023, and online on March 10, 2023.
While the decline in sports betting revenue for February may raise concerns, it is essential to consider the seasonal nature of sports betting, particularly with the conclusion of the NFL season, which drives most betting activity in the US.
The taxation structure for sports wagering operators in Massachusetts varies based on their category. Category 1 operators, including Encore Boston Harbor, MGM Springfield, and Plainridge Park Casino, are taxed at a rate of 15% of Total Sports Wagering Revenue (TSWR). They are allowed to operate a retail sportsbook at their respective property.
In contrast, Category 3 operators, such as FanDuel, DraftKings and BetMGM, face a higher tax rate of 20%. Their licenses allow them to operate a mobile or online sportsbook.
The tax revenue generated from gaming and sports betting activities is allocated to various funds aimed at benefiting the community. These include the General Fund (45%), Workforce Investment Trust Fund (17.5%), Gaming Local Aid Fund (27.5%), Youth Development and Achievement Fund (1%), and Public Health Trust Fund (9%).
Additionally, February’s revenue marked a yearly increase of approximately $2.5 million compared to February 2023.
Original article: https://www.yogonet.com/international/noticias/2024/03/20/71355-massachusetts-gaming-revenue-hits-1531-million-in-february
