In June 2024, the Massachusetts Gaming Commission (MGC) reported a notable decline in taxable gaming revenue compared to May, shedding light on recent trends and shifts in the state’s gaming sector.
Overview of June’s Revenue
Massachusetts generated $136.5 million in taxable gaming revenue for June 2024, reflecting an 11% decrease from May’s $155 million. This drop signals a shift in the gaming market, prompting an examination of both casino and sports betting revenues to understand the underlying factors.
Casino and Sports Betting Revenue Insights
The casino sector in Massachusetts generated $96 million in wagering revenue for June. Breaking it down, Encore Boston Harbor led with $60.3 million from table games and slots, underscoring its continued dominance in the market. MGM Springfield and Plainridge Park Casino reported revenues of $21.9 million and $13.8 million, respectively. This disparity in revenue among the casinos highlights the competitive nature of the gaming industry in the state.
Sports betting, a significant component of Massachusetts’ gaming revenue, brought in $40.5 million in June. Although this figure represents a decline from May’s revenue, it marks a substantial increase from the previous year. The total amount wagered was $509.3 million, a striking 57.5% rise from $323.5 million in the previous year, though this was 13.3% less than the $589 million wagered in May 2024.
Online sports betting dominated the market, accounting for $507 million of the total wagers, while casino-based sports betting contributed only $8.6 million. This disparity underscores the growing preference for online platforms over traditional in-casino sports betting options.
Licensing and Taxation Impact
The Massachusetts gaming market is regulated through distinct licensing categories, which affect taxation rates and revenue distribution. Category 1 operators, including retail sportsbooks at casinos like Encore Boston Harbor, MGM Springfield, and Plainridge Park Casino, are taxed at 15% on taxable sports wagering revenue (TSWR). On the other hand, Category 3 operators, which include online sportsbooks such as DraftKings, FanDuel, and Caesars Sportsbook, face a higher tax rate of 20% on TSWR.
Recent changes in licensing have also impacted the market. Betr and WynnBet, previously licensed Category 3 operators, chose not to renew their licenses after the initial one-year period, potentially altering the competitive landscape of online sports betting.
Allocation of Tax Revenue
Revenue collected from gaming and sports betting is allocated to various state funds: 45% goes to the General Fund, 17.5% to the Workforce Investment Trust Fund, 27.5% to the Gaming Local Aid Fund, 1% to the Youth Development and Achievement Fund, and 9% to the Public Health Trust Fund. This allocation supports a range of public initiatives, from workforce development to public health.
Trends
The decline in overall taxable gaming revenue from May to June indicates potential market volatility or shifts in consumer behavior. Factors such as seasonal variations, economic conditions, or changes in gaming preferences could be influencing these trends. Despite the decline in June’s revenue, the year-over-year growth in sports betting reflects a robust and expanding market segment. The significant increase in sports betting activity compared to the previous year highlights the sector’s growth potential, though the month-to-month volatility suggests that the market remains dynamic and evolving.
Encore Boston Harbor’s continued leadership in casino revenue reinforces its strong market position, while the varied performance of MGM Springfield and Plainridge Park Casino underscores the competitive nature of Massachusetts’ casino industry.
It will be essential for the Massachusetts Gaming Commission and industry stakeholders to closely monitor these revenue trends. Understanding the factors behind the fluctuations in both casino and sports betting revenue will be crucial for making informed decisions and strategies.
While June 2024’s revenue figures show a decline in overall taxable gaming revenue, they also highlight significant growth in sports betting compared to the previous year. These insights offer a snapshot of the current state of Massachusetts’ gaming sector and underscore the need for continued observation and strategic adaptation.