Massachusetts’s casino industry has reported impressive year-on-year growth, despite its lack of tribal or online operations. The three retail casinos active in the state posted an increase of 2.8% in revenue generated in October compared with last year.
Revenue generated by the Encore Boston Harbor casino, the MGM Springfield Casino, and the Plainridge Park Casino rose from $94.2 million in 2024 to $96.9 million this year. These casinos could also see operations improve even further if plans to allow online casinos in the state go ahead.
The Encore Boston Harbor casino had the highest revenue, generating $57.6 million, but this was down by 0.04% from last year’s figures. The MGM Springfield Casino saw the greatest increase, rising 9% to $24.1 million, while the Plainridge Park Casino’s revenue figure of $15.2 million was a 6.4% increase.
At present, online casinos are prohibited from operating in the state, with consumers exploring offshore alternatives as a way of accessing their favorite games. Consumers have been able to find secure offshore betting sites like those on this list with non Gamstop casinos, but this has resulted in the state missing out on valuable tax revenue.
Senator Paul Feeney and Representative Daniel Cahill put forward Senate Bill 235 and House Bill 332, respectively. The purpose of the bills is to legalize online casino betting in the state, granting two licenses per casino that would allow them to work with external online operators.
Two additional licenses have also been proposed that would be granted to non-retail operators, with a license cost of $5 million every five years and a 20% tax rate on earnings. As well as helping to generate greater tax revenue for the state, it has also been argued that consumers would benefit from improved protection from regulators who have power over the operators, which isn’t possible with offshore sites.
Massachusetts’s existing casino industry was launched in 2011 with gaming revenue taxed at 25%. Casinos are also taxed $600 per year for each gaming machine, with slot gaming revenue taxed at 49%, with 40% going to the state and the remaining 9% going to the Massachusetts Race Horse Development Fund.
30.1% of the state’s share goes towards local aid, with 19.4% going to its education fund, 20.6% going to the improvement of its transportation infrastructure. Other funds that also receive a share of the revenue include capital improvement, health, tourism, and cultural initiatives.
The addition of online casinos would be a massive boost to the state’s economy, which already benefits from its strong online sports betting operations. The performance of the 7 online sports betting operators compared to retail operations is stark, generating more than $7 billion in handle compared with the $132 million generated by the 4 retail operators.
The improving performance of retail casinos in Massachusetts has been great for the industry, and could help to strengthen the case for regulatory change regarding online casino betting.
