The Massachusetts Gaming Commission (MGC) announced today that gaming and sports betting operations in February 2025 contributed significantly to the Commonwealth’s revenue stream, with casino and sports wagering taxes surpassing $2.2 billion cumulatively since their inception.
Impressive Gross Gaming Revenue (GGR) in February
For the month of February 2025 alone, Plainridge Park Casino (PPC), MGM Springfield (MGM), and Encore Boston Harbor (EBH) collectively generated approximately $93.40 million in Gross Gaming Revenue (GGR). These facilities represent critical components of the state’s gaming landscape:
- Plainridge Park Casino (PPC): As a Category 2 slots-only facility, PPC’s gaming operations are taxed at an industry-high rate of 49%. Of this taxed revenue:
- 82% is directed to Local Aid to support community development and public services.
- 18% is allocated to the Race Horse Development Fund to bolster the state’s horse racing industry.
- MGM Springfield (MGM) and Encore Boston Harbor (EBH): These Category 1 resort-style casinos are taxed at a rate of 25% on GGR. The funds derived are distributed across several key state accounts as mandated by Massachusetts gaming statutes.
Since their respective openings, PPC, MGM, and EBH have collectively contributed an estimated $2.015 billion in gaming taxes and assessments.
Sports Wagering Revenue Sets a New Benchmark
In addition to casino revenue, the burgeoning sports wagering industry also reported robust earnings for February 2025:
- Taxable Sports Wagering Revenue (TSWR) across the eight mobile/online sports wagering licensees and three in-person operators reached $65.57 million.
The state has two categories of licensed sports wagering operators:
- Category 1 Operators: EBH, MGM, and PPC offer retail sportsbooks at their physical venues. TSWR for these operators is taxed at 15%.
- Category 3 Operators: Mobile and online operators, including Bally Bet, BetMGM, Caesars Sportsbook, DraftKings, ESPNBet, Fanatics Sportsbook, and FanDuel, are taxed at a higher rate of 20% on TSWR.
Strategic Allocation of Tax Revenue
Taxes collected from sports wagering are allocated to vital state programs, ensuring widespread community benefits:
- 45% directed to the General Fund for essential state services.
- 27.5% allocated to the Gaming Local Aid Fund to support municipalities.
- 17.5% assigned to the Workforce Investment Trust Fund, promoting job training and workforce development.
- 9% deposited into the Public Health Trust Fund for addressing gambling-related impacts.
- 1% invested in the Youth Development and Achievement Fund to support educational and youth initiatives.
Since the launch of sports wagering—retail betting on January 31, 2023, and mobile betting on March 10, 2023—the Commonwealth has collected approximately $254.40 million in total sports wagering taxes and assessments.
Managing Negative Adjusted Gross Revenue
The Massachusetts Sports Wagering Law provides flexibility for operators reporting a negative adjusted gross sports wagering receipt. If winnings paid to bettors and federal excise taxes exceed gross receipts in a given month, operators are permitted to carry over the negative balance to offset future tax liabilities.
Driving Economic Impact and Statewide Growth
The gaming and sports betting industries in Massachusetts have established themselves as powerful economic engines for the state. With over $2.2 billion in cumulative tax revenue, the proceeds have fueled critical public programs, enhanced local communities, and supported ongoing workforce initiatives. As Massachusetts continues to refine its approach to gaming and sports betting, these industries are well-positioned to deliver sustainable growth and community benefits for years to come.
