September Sees Record-Breaking Revenue for Massachusetts Sports Wagering Operators
September 2023 marked a historic month for legal sports wagering in Massachusetts, as operators reported an impressive $73.5 million in taxable revenue. This surge not only sets a new record for the state’s sports betting market since its launch in early 2023 but also surpasses the previous monthly revenue high of $71.13 million recorded in January 2024. The Massachusetts Gaming Commission, which oversees these activities, released the data this past Tuesday, revealing an enthusiastic response from bettors across the state.
A Surge in Wagering Activity
Bettors in Massachusetts put their stakes in the game, collectively wagering approximately $678.75 million on various sporting events throughout September. This extraordinary figure eclipses the prior record of $658.7 million, achieved in December 2023. This trend underscores a growing interest in legal sports betting in the state, as residents place increasingly larger bets on their favorite teams and events.
To put this in perspective, nearly 97% of the bets placed last month were conducted via mobile or online platforms, with DraftKings emerging as a clear frontrunner, accounting for more than half of all bets placed. The explosion of mobile betting options has significantly altered the landscape of gambling, making it more accessible for sports enthusiasts to get involved.
Revenue Breakdown and State Earnings
Of the $73.5 million generated in revenue, a staggering 98% originated from online betting activities. This has become a key component of Massachusetts’ overall sports wagering revenue. The state benefitted from this activity, collecting about $14.63 million in tax revenue from sports wagering alone in September. Online wagering is taxed at a rate of 20%, whereas bets placed at physical sportsbooks—located at Plainridge Park Casino, MGM Springfield, and Encore Boston Harbor—are taxed at 15%.
These figures pale in comparison to the broader gambling scene in Massachusetts, where traditional casinos generated a gross gaming revenue of over $92 million in the same month. This resulted in an additional $26.24 million in state taxes from those establishments. Overall, the combined revenue from sports betting and traditional gaming exceeded $165.55 million for the month, with the state raking in more than $40.87 million in total.
Cumulative Contributions to State Revenue
Since the legalization of gambling in Massachusetts back in 2015, the landscape has evolved dramatically. The state has amassed an impressive $1.878 billion in taxes and fees from casino-style gaming. With the introduction of sports betting operations this past year, an additional $187.88 million has been collected from these activities. This money plays a critical role in funding state programs and initiatives, benefitting communities across the Commonwealth.
Looking Ahead: Changes to Reporting
As the Massachusetts Gaming Commission continues to navigate the burgeoning landscape of sports wagering, they have announced a procedural change regarding revenue reporting. Starting in October, the commission will release monthly casino and sports betting revenue reports on the 20th of each month, or the next business day. This shift is designed to provide the commission’s finance department with additional time to process the necessary data submitted by operators.
Conclusion
September 2023 stands out as a landmark month for legal sports betting in Massachusetts, demonstrating not only consistent growth in wagering activity but also a robust return on revenue for the state. With online platforms dominating the market, the state is witnessing a significant transformation in how residents engage with sports wagering. As changes to reporting procedures take effect, the Massachusetts Gaming Commission is well-positioned to continue monitoring and adapting to this fast-evolving sector while ensuring regulatory compliance and maximizing state revenue. The future looks bright for sports betting in Massachusetts, and as the popularity of this pastime grows, so too will its impact on the state’s economy.
