October Casino and Sports Betting Revenues Drop Year-on-Year in Massachusetts

In a report from the Massachusetts Gaming Commission (MGC), data illustrated that gross gaming revenue (GGR) dropped by 2.5% year-on-year. That revenue drop results in the state collecting under 1% less in taxes. The report also revealed that online sports betting operations collected 18% less in revenues year-on-year, with two operators shutting down and another opening.

Encore Boston Harbor Drags MA Numbers Down

Three land-based casinos are operating in Massachusetts, and two of these operators generated higher revenues year-on-year in October. Plainridge Park Casino, which doesn’t operate table games, increased its GGR by over 11%. Plainridge is taxed at 49% compared to 25% at the other two casinos, and Plainridge’s revenue growth is why taxes dropped by a smaller percentage than overall state-wide revenues. 

MGM Springfield also posted positive gains in revenue, jumping up 2.7% from $21.5 million to $22.1 million. However, Encore Boston Harbor accounted for 61.3% of the total revenue for October 2024, so growth at the two other locations couldn’t cover the decline. Encore Boston Harbor saw revenues fall from $62.3 million to $57.8 million, a 7.2% decline. 

New Sports Betting Operators Can’t Stop Revenue Slump

The results were less positive for Massachusetts’ sportsbooks, which reported an 18.3% drop in revenues last month compared to the previous October. Three of the seven licensed online sportsbooks operating in MA reported year-on-year declines, with the most significant coming from DraftKings. The sportsbook collected around $9.0 million less revenue this October.

The revenue total also marks a 52.1% decrease compared with the $73.5 million collected by sportsbooks in September 2024.

Betr and WynnBET withdrew from the Massachusetts market in a year, with Betr departing in February 2024 and WynnBET in March 2024. Wynn Resorts reduced its impact in MA significantly during 2024, also halting $400 million expansion plans for Encore Boston Harbor. 

It’s worth noting that the Penn Sports Interactive numbers were generated by Barstool Sportsbook, the previous sports betting brand operated by Penn Entertainment. Penn Entertainment shut down Barstool Sportsbook in November 2023 and used the same license to launch ESPN BET, which is why these figures appear under ESPN BET.

Changes For MA Sportsbooks

As of October 2024, the MGC licenses seven sportsbooks to operate in the state. And under a new development, these sites are now required to display an official seal of approval to confirm their legitimacy. But what does this mean for the future of the MA sports betting market?

The MGC hopes that the development of the seal will draw bettors to these safe and legal platforms, as opposed to unregulated, offshore sites, which pose risks. For instance, the MGC highlights that such sites may refuse to honor winning bets.

MGC Commissioner Eileen O’Brien commented, “Massachusetts residents who choose to gamble on sports deserve to know their data, personal and financial information are protected, and only the legal marketplace offers those protections. By locating this seal, users will be able to easily identify a legal sportsbook from an illegal operator.” 

If the plan works, the MGC could be reporting stronger sports betting results moving forward, by protecting unsuspecting players from offshore operators and redirecting revenue from unlicensed operators to licensed platforms.