Massachusetts Hits Record Gaming and Sports Wagering Revenue in September 2024

In a significant milestone for Massachusetts’ gaming and sports betting industry, the Massachusetts Gaming Commission (MGC) reported impressive figures for September 2024. The state saw a remarkable boost in both its casino and sports wagering revenues, with a combined gross revenue of approximately $165.55 million. This figure marks one of the most profitable months since Massachusetts legalized sports betting and casino gaming.

Record Casino Gaming Revenue

According to the MGC, the state’s three major casinos—Plainridge Park Casino (PPC), MGM Springfield, and Encore Boston Harbor—generated a total of $92.06 million in gross gaming revenue (GGR) during September. The revenue comes from slot machines and table games across these establishments.

PPC, operating as a Category 2 slots facility, is taxed on 49% of its GGR. Of this taxed amount, 82% goes toward Local Aid, with the remaining 18% allocated to the Race Horse Development Fund. Meanwhile, MGM Springfield and Encore Boston Harbor, both Category 1 resort-casinos, are taxed at 25% of their GGR, which is distributed to various state funds as mandated by Massachusetts gaming statutes. Since the opening of these casinos, the Commonwealth has collected nearly $1.875 billion in taxes and assessments from their operations.

In addition to the robust casino revenue, the state’s sports betting sector also experienced a record month. In September, Massachusetts saw an unprecedented surge in sports wagering activity, with a total taxable sports wagering revenue (TSWR) of $73.49 million. The figure includes revenues from both mobile/online sports betting platforms and in-person sports wagering operators.

Encore Boston Harbor, MGM Springfield, and Plainridge Park Casino hold licenses as Category 1 Sports Wagering Operators, allowing them to manage retail sportsbooks at their respective locations. These operators are taxed at 15% of their TSWR. Additionally, seven mobile sports wagering operators, including industry leaders like DraftKings, FanDuel, and Caesars Sportsbook, are licensed as Category 3 operators, subject to a 20% tax on their TSWR.

Since the launch of legal sports betting in January 2023, Massachusetts has collected approximately $187.88 million in taxes and assessments from these operators.

DraftKings Continues to Dominate the Market

DraftKings solidified its position as the leading online sports wagering operator in the state. In September, the company reported a handle of $355.2 million, with $38.8 million in taxable revenue, achieving a 10.92% hold. Long-time rival FanDuel followed in second place with $182.4 million in handle and $22.5 million in taxable revenue, yielding a higher hold of 12.34%. Other competitors, such as BetMGM and ESPN Bet, trailed behind with $5.6 million and $2.2 million in revenue, respectively.

Massachusetts posted an overall hold rate of 10.83% for September 2024, based on taxable revenue. The state’s sports wagering activities generated around $14.6 million in taxes, with $14.4 million coming from online operators. The state’s taxation structure ensures that 45% of sports wagering taxes go 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.

Although Massachusetts’ casino gaming sector achieved $92.06 million in September, this figure represented a 10.8% decrease compared to the $103.2 million earned in August. Despite the monthly dip, the casino industry still saw a year-on-year increase of 1.9%, reflecting overall growth.

Encore Boston Harbor continues to dominate the casino market, contributing $57.7 million of the state’s total gaming revenue. Slot machines across all casinos generated $62.8 million, while table games ed for $29.2 million of the GGR.

Starting in October, the MGC plans to adjust its monthly reporting schedule, releasing revenue reports on the 20th of each month or the next business day. This change will give the commission more time to process the data submitted by operators.

With impressive gains across both sectors, Massachusetts continues to see substantial growth in its gaming and sports betting industries, positioning the state as a major player in the national gambling market.

Source:

”The Massachusetts Gaming Commission Releases September 2024 Casino and Sports Wagering Revenue”, massgaming.com, October 15, 2024.