Massachusetts Gaming Industry Contributes $1B in Taxes

Massachusetts Gaming Industry Contributes $1B in Taxes

According to the Massachusetts Gaming Commission, the local gaming properties have been significant contributors to the Commonwealth’s coffers, having collected over $1 billion in gaming taxes.

In the past eleven years, according to Chairperson of the MGC, Cathy Judd-Stein,

“this revenue has and continues to benefit the Massachusetts economy by bolstering local aid, funding transportation, and infrastructure projects, ensuring essential community mitigation initiatives are backed, and that the health and safety of the industry and those who engage with it are a top priority.”

The strategy to further strengthen the local gambling industry continues as Boston’s legislators propose sports betting laws.

Legalizing Gambling: an experiment

An experiment to legalize commercial Gambling was carried out in 2011 by the then Governor Deval Patrick (D). The chance taken by Patrick is paying rich dividends even now.

He used the Expanded Gaming Act to authorize the opening of two resort casinos, one at Encore Boston Harbor and the second at MGM Springfield. An additional slots-only facility was also permitted to launch in Plainridge Park.

The current run-up to eleven years of commercial gambling activities at just three destinations has netted over $1 billion in taxes.

The focus is to further expand this high net worth industry by including a new destination. This time the area or destination will be the southeastern region.

One more destination on the pipes

While MGC already holds one more destination casino license for the southeastern region, several concerns are raised.

One of these is market saturation since Rhode Island’s commercial casinos border the destination along with tribal gaming property in Taunton,

Hence, MGC is in a watchful phase as it considers the situation and yet to permit the licensee to operate.

In 2018, the first destination casino to launch was MGM Springfield costing $960 m as an undertaking. The following year Wynn Resorts commenced operations.

MGC taxes differently for destination casino licenses at $85 million per destination casino for MGM Resorts and Wynn Resorts. On the other hand, Plainridge forked out a single fee of $25 million.

Though sports betting is soon to begin operations in the Commonwealth, the tax income would be minimal since it is a low-margin business compared to slot machines!


About sherlock

Sherlock Gomes loves to write and express his views on anything related to Gaming, Gambling, & Casino. He has been covering Gaming for more than two years now.