Massachusetts sports betting market blew past tax revenue projections in first year
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Massachusetts collected nearly twice as much in taxes during its first year of sports betting as lawmakers projected.
Why it matters: Online sportsbooks have kept the money flowing into the state's coffers in their first year despite concerns about Massachusetts wading into an oversaturated market.
Driving the news: Sportsbooks reported more than $542 million in taxable revenue between February 2023, when retail sportsbooks launched, and last month, per regulatory data.
- Massachusetts collected more than $108 million in sports betting taxes in that time frame.
- More than 98% of the revenue and taxes come from online sportsbooks, which launched a month later in March 2023.
Flashback: Before legalizing sports betting, lawmakers who supported the move cited projections that the state would bring in at least $60 million annually in tax revenue.
Zoom in: Like in many states, Massachusetts sportsbooks saw the highest activity during the NFL season.
- Their collective monthly revenue peaked last month, reporting more than $71 million in taxable revenue in the weeks before the Super Bowl.
- Again, the vast majority of the revenue came from online sportsbooks.
Reality check: Massachusetts' sports betting taxes make up a small share of the state's tax revenue.
- The state relies on tens of billions of dollars in tax revenue.