Massachusetts sports betting brings in $127.1 million in tax revenue

SPRINGFIELD, Mass. (WWLP) – The numbers are in Wednesday morning for total tax revenue generated for the state by legal sports betting since it launched in early 2023.

There are arguments to be made about the negative societal effects and personal financial consequences of legal sports betting, but this new report from the American Gaming Association paints a clear picture for the state, the tax revenue is a huge score.

Since in-person betting launched on January 31st last year, followed by online betting on March 10, more than $127 million in tax revenue directly from sports wagers have poured into state funds. That money is split between five different state funds, the largest chunk ($57M) going to the General Fund, the default bank account of the commonwealth.

Nearly $35 million was sent to the Gaming Local Aid Fund, which is distributed to cities and towns as general aid. About $22 million has gone to the Workforce Investment Trust Fund. The Public Health Trust Fund gained more than $11 million that money will go towards research for gambling prevention, treatment, and recovery services. The Youth Development and Achievement Fund collected over a million dollars to support financial aid for students and out-of-school activities.

All that money is generated by huge participation in sports betting, retail, and online books combined to settle more than $654 million in bets in just March of this year alone.

The specific formula for distribution is murky, though, local governments aren’t told how much of their unrestricted aid is coming from gambling revenue, they just see the increase, and it’s appreciated.

“The senate number is a $128,000 increase to our unrestricted local aid. It’s for everything to help offset the general funding of the town. Police funding, fire, library health everything, senior center. It all goes into the pot that helps pay for services in the community,” said Mayor Will Reichelt of West Springfield.

All the fresh funding, of course, comes at a cost to the consumers. According to an analysis from the Milken Institute, the average American sports better loses about seven cents for every dollar spent. Better than most casino games, but still a loss.

Eleven of the $127,000 was sent to the public health trust fund, which contributes to funding projects to help offset those negative societal outcomes of sports betting, including the state’s problem gambling helpline, which has seen an increase in call volume lately.

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Duncan MacLean is a reporter who has been a part of the 22News team since 2019. Follow Duncan on X @DMacLeanWWLP and view his bio to see more of his work.

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