Massachusetts Gaming Revenue Falls Slightly In August

In August, the gross gaming revenue from the three Massachusetts casinos experienced a slight decline, following a surge in July. The revenue dipped to $92 million.

The revenue of both the Encore Boston Harbor and Plainridge Park Casino was nearly identical to their July totals, with a difference of just $1 million. However, MGM Springfield experienced a decline of $1.9 million in its revenue.

Revenues down but not worrisome

To delve deeper into the revenue breakdown, the primary contributor to the revenue was the Encore Boston Harbor, with an impressive $57.9 million in gross gaming revenue during August. Following closely, the MGM Springfield generated $21.9 million in revenue, while the Plainridge Park Casino brought in $12.7 million, taking the third spot.

Although gaming revenues have decreased since July, they continue to follow an upward trajectory overall since the start of the year. This growth can be attributed to the Massachusetts Gaming Commission’s decision to ease pandemic restrictions in late May.

The commission was pleased to witness the gross revenue exceeding $90 million only in July and August this year, with July reaching a remarkable peak of $96 million. Considering that the year commenced with a modest revenue of just $58 million in January, this surge in earnings is definitely a positive development.

Despite the revenue dip, there is another reason for optimism as August’s revenue closely aligns with the revenue of August 2019, which was $86 million, before the pandemic.

Where does the money go?

The taxes collected by the Commonwealth from the three Massachusetts casinos contribute to various public funds and services, resulting in beneficial revenues for the state.

In the realm of resort-casinos, the Encore Boston Harbor and MGM Springfield fall under the Category One classification, subjecting them to a 25% tax on their overall gaming revenue. Consequently, the two casinos contributed $14 million and $5 million in taxes, correspondingly, during the month of August.

The funds generated from taxes on Category One facilities are distributed among 12 different destinations. Notably, local aid receives 20% of the taxes, the transportation infrastructure fund receives 15%, and the education fund receives 14%.

In contrast, the Plainridge Park Casino falls under Category Two as a slots facility. Unlike the other two casinos, it does not offer table games. Additionally, it is subject to a 49% tax solely on its slots revenue. In the month of August, this generated $6 million in revenue for the state.

Of the tax revenue generated by Category Two facilities, 82% is allocated to local aid, while the remaining 18% is directed towards the Race Horse Development Fund.

Since their establishments, the casinos have collectively produced $869 million in tax revenue. As restrictions are gradually easing, the state and its casinos are poised for their most lucrative year in 2022, with revenues on the rise.