September 2023: A Milestone Month for Legal Sports Betting in Massachusetts
With the passing of each month, the legal sports betting landscape in Massachusetts has continued to evolve, but September 2023 marked a definitive high point for the industry. This month saw sports wagering operators reaching an unprecedented $73.5 million in taxable revenue, as reported by the Massachusetts Gaming Commission. This remarkable achievement speaks volumes about the burgeoning interest in sports betting within the state and hints at the potential for even greater expansion in the future.
Record-Breaking Revenue and Wagers
In comparison to previous months since legal betting began in early 2023, September 2023 emerged as the best month thus far. The reported revenue of $73.5 million surpassed the previous high of $71.13 million recorded in January 2024. This surge in revenue was accompanied by an impressive amount of wagers—nearly $678.75 million was staked on various sporting events throughout the month. This not only sets a new record for the state, but it also eclipses the former month’s record of $658.7 million from December 2023.
The dramatic rise in betting activity highlights Massachusetts’ status as a rapidly growing market for sports wagering, reflecting not only a thriving engagement among bettors but also the allure of the online betting platforms. A significant 97 percent of wagers for the month were made via mobile apps, showcasing the strong preference for mobile betting among users. DraftKings, a prominent player in the sector, accounted for more than half of all bets made, indicating its dominant position in the Massachusetts sports betting scene.
Tax Revenue Contributions to the State
The remarkable performance in September has also translated into substantial tax revenues for the state. Approximately $14.63 million in total was generated from sports wagering activities for Massachusetts, a reflection of the state’s commitment to levying taxes on legal gambling operations. Online wagers, taxed at a rate of 20 percent, contributed significantly to this revenue, while bets placed at physical sportsbooks—such as those at Plainridge Park Casino, MGM Springfield, and Encore Boston Harbor—were taxed at a slightly lower rate of 15 percent.
When combined with the revenue from traditional casinos, September proved to be a financially lucrative month for the state. The three major casinos in Massachusetts reported gross gaming revenue just over $92 million, which resulted in approximately $26.24 million in tax income. Altogether, state commission licensees generated an impressive total of over $165.55 million in revenue, leading to about $40.87 million in taxes owed to the state.
Cumulative Impact of Legal Gambling
Since the legalization of casino-style gaming in Massachusetts in 2015, the state has amassed a staggering $1.878 billion in taxes and fees from these operations. The recent experiences with sports betting, which only became legal in 2023, have already yielded $187.88 million in taxes from related operations. These figures underscore the significant economic impact that both the casino and sports betting sectors have had on Massachusetts’ economy.
Future Reporting Changes
Looking ahead, the Gaming Commission has announced some changes in its reporting schedule aimed at improving efficiency. Starting next month, the commission will report its monthly casino and sports betting revenues on the 20th of each month, instead of the 15th. This adjustment is designed to afford the commission’s finance department additional time to process the reports submitted by operators, thereby enhancing the accuracy and timeliness of the information disseminated to the public.
Conclusion
September 2023 stands out as a landmark month for legal sports betting in Massachusetts, characterized by record revenue, unprecedented wagering activity, and meaningful contributions to state coffers. As interest in sports betting continues to grow, the implications for state revenue and the gaming industry as a whole could be substantial. With the groundwork now set, future months will be pivotal in determining the trajectory of sports wagering within the Commonwealth. Whether this momentum can be maintained and further built upon remains to be seen, but for now, September serves as a shining example of what is possible in the rapidly evolving landscape of legal sports betting.
