Massachusetts Faces Challenges in Reducing Illegal Sports Betting Despite Legalization

A recent study conducted by the UMass School of Public Health and Health Sciences, titled “Gambling and Problem Gambling in Massachusetts: Results of Three Online Panel Surveys”, highlights the persistence of illegal betting in Massachusetts despite the availability of legal options in the state.

Bettors Continue to Use Unlicensed Options

According to the study, 31.9% of bettors in 2023 continued to engage with unlicensed betting providers, only slightly lower than the 33.9% reported in 2022 before the full rollout of legal sports betting.

One of the key findings of the study is that over half of monthly bettors in 2023 stated they would have continued gambling on sports even if Massachusetts had not legalized the activity. Specifically, 53% of respondents indicated they would have used out-of-state operators or other online platforms to place their bets/

A Lengthy Process to Transition from Illegal to Legal Betting

The report shows that the transition from illegal to regulated sports betting markets can take time, a trend seen in other jurisdictions globally. Despite the legal framework in place, the study suggests that the state has not yet significantly reduced its share of illegal betting revenues.

“Taken together, these data suggest that there was not a substantial recapture of illegal sports betting revenues in Massachusetts between 2022 and 2023. However, as many jurisdictions internationally have found, it can take a substantial period of time for sports bettors to migrate fully from non-regulated to regulated providers,” the report explains.