Massachusetts projected to net $70m in annual sports betting revenue
Gaming license fees to generate an additional $70m for state coffers every five years
Legalized sports betting in Massachusetts is projected to result in $70m in annual revenue for the Bay State according to lawmakers.
Participating in a panel discussion at Suffolk University on October 26, the group of lawmakers included Rep. Jerry Parisella, who served as the lead negotiator for sports betting legalization last summer.
Parisella noted that in addition to the yearly revenue generated from wagers, the state also stands to fetch a minimum of $70m in licensing fees twice a decade.
“Massachusetts could bring in about $70-80 million in royalties alone before a bet is placed,” said Parisella. “These licenses have to be renewed every five years, so every five years we’re going to get this royalty income.”
The betting framework passed into law includes a three-tiered licensing structure, with the first category reserved for the state’s three casinos and slot parlors, and the second category encompassing its horse racing tracks. The third allows for up to seven untethered online operators.
Category 1 operators are permitted to partner with up to two online betting platforms while Category 2 operators are each afforded one online skin, creating the potential for as many as 15 online operators.
Bets placed in-person will be taxed at 15%, with online bets subject to a 20% tax rate.
“That will generate a lot of economic development,” Parisella said. “We’re probably going to be one of the most productive states in terms of sports betting revenue.”
Assuming the remaining regulatory steps remain on schedule – which all signs pointed to at the latest meeting of the Massachusetts Gaming Commission on October 27 – retail betting is expected to launch before the Super Bowl, with online sportsbooks following in time for March Madness.