The experts at BetMassachusetts.com have assembled this guide to provide the latest updates on Massachusetts sports betting financial figures, which include handle, revenue and tax collections.
The sports betting market in Massachusetts is relatively new. Sports wagering was legalized in the commonwealth in 2022. In-person sports wagering began in January 2023, and online/mobile wagering began in March 2023.
In Massachusetts, there are three categories of sports wagering licensees: Category 1, licensed casinos; Category 2, racetracks and/or simulcast centers, and Category 3, online/mobile operators.
Financial figures are specified by either retail licensees or online licensees. They also include data from Massachusetts sportsbook promos.
In Massachusetts, bettors have shown already they will wager hundreds of millions of dollars each month, and the vast majority of the sports gambling action is on online or mobile, via computers or mobile devices.
Sports wagering is taxed as follows: Category 1 & Category 2 Sports Wagering Licensees are taxed on 15% of gross sports wagering revenue, and Category 3 Sports Wagering Licensees are taxed on 20% of gross sports wagering revenue.
No doubt spurred by the beginning of the NFL season, Massachusetts enters September with considerable gains in handle as official August monthly figures for sports betting and gaming were released Sept. 15 by the Massachusetts Gaming Commission (MGC).
August’s total sports betting handle came in at more than $314.92 million, up a nice 6.8% from July ($294.9 million). Mobile sports betting handle posted at more than $307.24 million, up 6.6% from July ($288.12 million). Retail sports betting handle was up a significant 12.8% from July ($6.8 million). The state opened three retail sportsbooks on Jan. 31 and launched mobile wagering on March 10.
However, both revenue and taxes show a decrease for the month. The state’s sports betting taxable gaming revenue recorded more than $22.7 million ($22,551,158 online, $157,782 retail), down 22.8% from July’s $29.4 million. Sports betting taxes came in at more than $4.54 million ($4,510,231 online, $32,356 retail), down 21.8% from July’s $5.81 million.
Retail sports betting in the state began on Jan. 31, 2023. Massachusetts betting apps launched on March 10, 2023.
The tax rate for Massachusetts sports wagering is 15% of gross sports wagering revenue for Category 1 & Category 2 Sports Wagering Licensees, and 20% of gross sports wagering revenue for Category 3 Sports Wagering Licensees.
The Massachusetts Gaming Commission reports its figures for sports betting once a month.
Tax proceeds from sports wagering are used for a variety of purposes. The largest portion (45%) goes to the General Fund, but money also goes to a Gaming Local Aid Fund, Workforce Investment Aid Fund, public health, and youth development.
The Massachusetts Gaming Commission regulates all legal sports betting operators, including DraftKings Massachusetts, BetMGM, FanDuel and others.
Mobile sports betting handle refers to the amount of money wagered on mobile or online apps, using phones, laptops, or other online devices. In Massachusetts, total handle refers to the combined handle of both online wagering and sports betting done in-person.
In common financial vernacular, handle is simply the total of all wagers placed on sports in the jurisdiction. In Massachusetts, handle is officially called “Current & Future Wagers Settled.” The term revenue means handle minus the payout of winning wagers. In Massachusetts, what is broadly known as revenue is officially called “Accrual Win by Licensee.” And “taxable revenue” is the total figure minus certain deductions.
The veteran team of Massachusetts sports betting experts behind BetMassachusetts.com.
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