Massachusetts is reaping the benefits of a regulated sports betting market.
According to recent data provided by the American Gaming Association, the Bay State has collected more than $127 million in tax revenue from sports betting since its tiered launch in 2023. Last January, the Massachusetts Gaming Commission (MGC) authorized retail sportsbooks to accept wagers. Two months later, online betting went live in the state.
Tax revenue from sports betting in Massachusetts is disbursed into five separate state funds, with the state’s General Fund receiving the bulk of proceeds. Since the launch of sports betting, the Massachusetts General Fund has received $57.2 million in tax revenue.
The Gaming Local Aid Fund has collected $34.8 million in tax revenue since the launch of wagering while the Workforce Investment Trust Fund has received $22.2 million.
About $11.4 million of the proceeds have been allocated toward the Public Health Trust Fund with $1.3 million deposited into the Youth Development and Achievement Fund.
Massachusetts levies a 15% tax rate on retail gaming revenue and a 20% rate on online.
In March, the MGC reported a $654.9 million sports betting handle compared to $542.4 million for the month prior. The results in March 2024 were also a 15.3% increase year-over-year. Retail and online operators generated $51.8 million in taxable revenue in March.
That month, DraftKings emerged as the state’s top sportsbook in handle and revenue.
The Boston-based company reported a $323 million March handle and $23.5 million in revenue. FanDuel closed with the second-highest handle at $190.4 million with revenue reaching $15.7 million.
Revenue concerns in Massachusetts
The popularity of sports betting in Massachusetts and the pouring of cash into state funds has led to questions and concerns regarding access, according to a Boston 25 report.
Massachusetts is receiving additional tax revenue from sports betting but many residents are unsure when local communities will benefit from statewide regulated sports betting.
“Every month it’s supposed to go to the comptroller and they’re supposed to distribute it,” Rep. Jerry Parisella told Boston 25. “So, whether or not they’re just waiting to do that big lump sum of money, that comes to the cities and towns, that could be possible, but they will get it.”
Massachusetts is home to six online sportsbooks and three brick-and-mortar facilities. Approximately 1.6 million sportsbook accounts have been active in the Bay State since 2023, making it one of America’s top emerging sports betting markets.
