Massachusetts Sees Gains from Regulated Sports Betting

Massachusetts has reported financial benefits from its regulated sports betting market. According to the American Gaming Association, the state has accumulated over $127 million in tax revenue since the launch of sports betting in 2023.

The Massachusetts Gaming Commission (MGC) initiated retail sportsbook operations in January 2023, followed by the introduction of online betting in March 2023.

Allocation of Tax Revenue

The tax revenue generated from sports betting in Massachusetts is distributed across five state funds:

  • General Fund: Receives the largest share, amounting to $57.2 million.
  • Gaming Local Aid Fund: Has collected $34.8 million.
  • Workforce Investment Trust Fund: Received $22.2 million.
  • Public Health Trust Fund: Allocated $11.4 million.
  • Youth Development and Achievement Fund: Deposited $1.3 million.

Tax Rates and Monthly Performance

Massachusetts imposes a 15% tax rate on retail gaming revenue and a 20% rate on online betting revenue. In March 2024, the MGC reported a sports betting handle of $654.9 million, an increase from $542.4 million in February and a 15.3% year-over-year rise. Retail and online sports betting operators generated $51.8 million in taxable revenue for March.

DraftKings emerged as the top sportsbook in Massachusetts for both handle and revenue in March 2024. The Boston-based company reported a handle of $323 million and revenue of $23.5 million. FanDuel followed with the second-highest handle of $190.4 million and revenue of $15.7 million.