Overview of Massachusetts Sports Betting Sector
Massachusetts has become a key state in the U.S. sports betting sector. Governor Charlie Baker signed House Bill No. 5164 on August 10, 2024, which moved to legalize sports betting in the state. The Massachusetts Gaming Commission oversees licensing and regulation of the industry.
The state has a rich sports culture and dedicated fans who have made sports betting an instant success. Massachusetts has seen significant market growth. There are currently seven online sportsbooks and three retail sportsbooks located at the state’s casinos: Encore Boston Harbor, MGM Springfield, and Plainridge Park Casino.
State law has a tax rate of 15% for retail sportsbooks and 20% for mobile operations, ensuring significant contributions to state funds. These taxes go to support five state funds: the General Fund, the Gaming Local Aid Fund, the Workforce Investment Trust Fund, the Public Health Trust Fund, and the Youth Development and Achievement Fund.
Annual Sports Betting Growth in Massachusetts
Monthly Sports Betting Growth in Massachusetts
Massachusetts Sports Betting Handle and Revenue
In its first full year (2023), the Massachusetts Gaming Commission reported a sports betting handle of $4.97 billion, generating $483.67 million in Gross Gaming Revenue (GGR) with an 8.47% hold rate. Taxes collected for the year totaled $93.88 million.
Between January and September 2024, the market continued to grow. The total handle reached $5.09 billion, already surpassing the previous year’s total. Gross sports wagering revenue stood at $478.36 million, with an average hold rate of 9.4%. Tax revenue totaled $93.39 million, matching 2023’s full-year total within nine months.
2024 Highlights:
- Highest Monthly Handle: September, with $678.75 million
- Highest Monthly Revenue: September, generating $75.35 million
- Highest Monthly Tax Revenue: September, contributing $14.63 million to state programs
Allocation of Sports Wagering Tax Revenue in Massachusetts
Massachusetts distributes tax revenue generated from sports wagering to five state funds:
- General Fund (45%)
The largest share of sports wagering tax revenue is allocated to the General Fund, which supports state services, including education, public safety, and infrastructure projects. - Gaming Local Aid Fund (27.5%)
The Gaming Local Aid Fund provides financial assistance to cities and towns across Massachusetts. This helps municipalities fund community programs and services. - Workforce Investment Trust Fund (17.5%)
This includes job training programs, skills development, and employment opportunities focused on gaming and hospitality. - Public Health Trust Fund (9%)
Dedicated to addressing problem gambling and promoting responsible gaming, this fund supports public health initiatives, addiction prevention programs, and treatment services for those affected by gambling disorders. - Youth Development and Achievement Fund (1%)
A smaller allocation is set aside to support programs that promote youth development, achievement, and education in Massachusetts.
Betting Market Performance
Massachusetts has become a major sports betting market in the United States, with both mobile and retail options. Since the market's launch in 2023, it has shown consistent growth and economic benefits for the state.
2023
Massachusetts entered the sports betting sector with a strong first year. The state recorded a total handle of $4.97 billion, generating $483.67 million in gross gaming revenue (GGR). Tax contributions reached $93.88 million, with an average hold percentage of 8.47%. These figures demonstrated a high level of engagement among residents, particularly during major sporting events like the NFL playoffs and March Madness.
2024
Massachusetts’s sports betting market has continued to grow throughout 2024. From January to September, the state reported a total handle of $5.09 billion, passing 2023 totals in just nine months. Gross gaming revenue for the period reached $478.36 million, while tax revenue contributions totaled $93.39 million.
Key Growth Factors
Massachusetts’s retail and mobile sports betting model has provided accessibility for all residents. Retail sportsbooks at Encore Boston Harbor, MGM Springfield, and Plainridge Park Casino have complemented mobile platforms operated by brands like DraftKings, BetMGM, and FanDuel, creating a competitive market.
Professional Sports Teams in Massachusetts
Massachusetts is home to iconic sports teams, and with the legalization of sports betting, many have partnered with top sportsbooks. These collaborations offer in-stadium promotions, exclusive content, and unique betting experiences for fans while solidifying sportsbooks' presence in the state.
- Boston Bruins (NHL): In March 2023, the Bruins have a multiyear partnership with FanDuel, which is their official sports betting partner. This agreement includes FanDuel's branding at TD Garden and content on the Bruins' digital platforms. (Flutter Entertainment, 2023)
- Boston Red Sox (MLB): The Red Sox partnered with BetMGM, giving the sportsbook branding opportunities at Fenway Park, including on the Green Monster and a BetMGM suite within the stadium. (MLB.com, 2023)
- New England Patriots (NFL): The Patriots are partnered with a casino platform (Aristocrat Gaming) that gives them branding opportunities within Gillette Stadium. (Aristocrat Gaming, 2023)
- Boston Celtics (NBA): The Celtics have a daily fantasy sports partnership with DraftKings, involving promotions on the team's social media platforms and web-based content. (DraftKings, 2023)
- New England Revolution (MLS): The Revolution is part of the Youth Sports Betting Safety Coalition, a public-private partnership aimed at addressing the harms of youth gambling in sports.
State Sports Wagering Rules in Massachusetts
Massachusetts has implemented a detailed framework for sports betting to ensure fairness, compliance, and consumer protection. Below are the key rules governing sports wagering in the state:
Collegiate Sports Betting Restrictions
- Wagering on collegiate teams in Massachusetts is prohibited unless the team participates in a tournament. This includes NCAA championships (March Madness) or other approved multi-team events.
Prohibited Sports and Events
- Wagers on any sports or sporting events overseen by Russian or Belarusian governing bodies, leagues, events, or players are strictly prohibited.
- Betting on Summer and Winter Olympic competitions, including trials and similar judged events such as the Commonwealth Games, X Games, World Athletic Championships, and other international athletic or skiing competitions, is not allowed when the outcome is primarily based on evaluation or assessment by judges.
Allowed Events and Drafts
- Wagering is permitted on awards and special approved events.
- Bets on drafts, such as the NFL Draft or NBA Draft, are allowed for all approved leagues.
Massachusetts Sportsbooks and Operators
Licensed Online Sportsbooks in MA
Massachusetts Snapshot
| Key Aspect | Details |
|---|---|
| Population | Approximately 7.02 million residents as of 2024. (World Population Review, 2024) |
| Political Affiliation | Predominantly Democratic, with Democrats controlling the governorship and both legislative chambers. (270towin.com, 2024) |
| Year Sports Betting Legalized | Sports betting was legalized on August 10, 2022, when Governor Charlie Baker signed it into law. |
| Number of Sportsbooks Operating | Seven online sportsbooks, including Bally Bet, BetMGM, Caesars, DraftKings, ESPN BET, Fanatics Sportsbook, and FanDuel, and three retail locations. |
| Gross Gaming Revenue (GGR) 2023 | $483,666,398 |
| Sports Betting Handle 2023 | $4,967,511,977 |
| Professional Sports Teams | Boston Bruins (NHL), Boston Celtics (NBA), Boston Red Sox (MLB), New England Patriots (NFL), New England Revolution (MLS) |
FAQs on Massachusetts Sports Betting Revenue
General Questions About Massachusetts Sports Betting
When did sports betting launch in Massachusetts?
Massachusetts sports betting officially launched on August 10, 2022, after Governor Charlie Baker signed House Bill No. 5164 into law. Retail sportsbooks began operations shortly after, followed by online sports betting platforms in early 2023.
Who regulates sports betting in the state?
The Massachusetts Gaming Commission oversees the regulation, licensing, and operations of both retail and online sports betting in the Bay State, ensuring compliance and consumer protection.
What types of operators are available in Massachusetts?
The state offers a mix of casino gaming and online sports betting platforms. Seven licensed online sports betting operators operate in the state, including Bally Bet, BetMGM, Caesars Sportsbook, DraftKings, ESPN BET, Fanatics Sportsbook, and FanDuel. Additionally, retail sportsbooks operate at Encore Boston Harbor, MGM Springfield, and Plainridge Park Casino.
Massachusetts Sports Betting Revenue
What was the total revenue for Massachusetts sports betting last year?
In 2023, Massachusetts reported $4.97 billion in handle and $483.67 million in gross sports wagering revenue, with $93.88 million in total taxes collected. These figures highlight the success of the Massachusetts sports betting market in its first full year.
How has revenue grown in 2024?
From January to September 2024, the market surpassed its 2023 totals, with a handle of $5.09 billion, generating $478.36 million in taxable gaming revenue. Taxable revenue contributions have already reached $93.39 million, matching the previous year’s total in just nine months.
How are Massachusetts sports betting taxes allocated?
Revenue from sports betting taxes is allocated as follows:
- 45% to the General Fund
- 27.5% to the Gaming Local Aid Fund
- 17.5% to the Workforce Investment Trust Fund
- 9% to the Public Health Trust Fund
- 1% to the Youth Development and Achievement Fund
This allocation supports state programs, public health initiatives, and local development projects.
Betting Market Performance
What are the key growth figures for Massachusetts sports betting in 2024?
In September 2024, Massachusetts achieved its highest monthly handle of $678.75 million and highest monthly revenue of $75.35 million, resulting in $14.63 million in taxes for that month alone. The total revenue for the first nine months of 2024 already indicates another record-breaking year.
How does Massachusetts compare to neighboring states like Connecticut?
The Bay State has taken the top spot in the New England region for sports betting revenue, surpassing Connecticut and other nearby states due to its larger population and passionate Massachusetts sports culture.
Massachusetts Sports Teams and Sportsbooks
Which Massachusetts sports teams have partnerships with online betting platforms?
Several Massachusetts sports teams have partnered with top sportsbooks:
- Boston Bruins (NHL): Partnership with FanDuel for branding at TD Garden.
- Boston Red Sox (MLB): Collaboration with BetMGM, including a suite at Fenway Park.
- New England Patriots (NFL): Branding opportunities with Aristocrat Gaming at Gillette Stadium.
- Boston Celtics (NBA): Fantasy sports partnership with DraftKings.
How does the market leverage these partnerships?
These collaborations enhance fan engagement with promotions, exclusive content, and online sports betting experiences, making Massachusetts sports betting an integral part of the state’s rich sports culture.
Regulatory and Market Rules
What restrictions apply to collegiate sports betting?
Wagering on Massachusetts collegiate teams is prohibited unless the team is participating in a multi-team tournament, such as NCAA March Madness.
What sports and events are prohibited for wagering?
Wagers on events overseen by Russian or Belarusian governing bodies or judged events, such as the Olympics and Commonwealth Games, are not allowed. However, bets on awards and sports drafts like the NFL Draft are permitted.
Are there age restrictions for sports betting?
Yes, individuals must be 21 years or older to participate in casino gaming or online sports betting in the Commonwealth of Massachusetts.
Future of Massachusetts Sports Betting
What is the future outlook for Massachusetts sports betting?
With consistent growth in online gambling and retail sports betting, Massachusetts is expected to continue its upward trajectory, driven by Massachusetts sports culture and increased participation. The state’s taxable revenue is poised to fund more public programs while offering competitive options for bettors.
How do tax rates impact operator contributions?
The tax rates for sports betting are set at 15% for retail operators and 20% for mobile operators, ensuring significant contributions to state funds. These funds are used for public education, workforce development, and problem gambling prevention.