As the state of Massachusetts is working towards hopefully approving sports betting, one of the significant issues has been how to apply tax percentages to operators. One place to look for some ideas and potential increased revenue would be the current casino revenue. The state is getting a significant sum, and it is publically released information.
The most recently released number for May is $93 million in gaming gross gaming revenue. The gross gaming revenue comes from the state’s three retail casinos: Plainridge Park Casino, Encore Boston Harbor, and MGM Springfield.
How Massachusetts Tax Revenue is Used
Plainridge Park Casino facility is taxed 49% of its gross gaming revenue as a category 2 slots facility. Of the money being taxed, 82% goes to local aid, with the other 18% being portioned to the race horsing development fund.
Encore Boston Harbor and MGM Springfield are category 1 casino/resort facilities. Category 1 establishments are taxed 25% of their GGR. That tax money is portioned to several state funds, including local aid, transportation infrastructure fund, education fund, debt, long-term liability reduction trust fund, accelerated debt and defeasance, economic gaming development fund, community mitigation fund, public trust fund, local capital improvements fund, race horse development fund, Massachusetts cultural council, and Massachusetts tourism fund.
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Breaking Down Gross Gaming Revenue Numbers
Since the first of these three venues opened in Massachusetts, the state has taken in $1.127 billion in tax revenue from the three facilities. All of this information is available through public records via the commonwealth of Massachusetts.
Looking at June, the three facilities break down as follows:
MGM Springfield: Took in a total of $21,146,007.52 in GGR, which resulted in $5,286,501.88 in taxes collected.
Plainridge Park Casino: Took in a total of $11,967,439.63 in GGR, which resulted in $5,864,045.42 in taxes collected.
Encore Boston Harbor: Took in a total of $60,057,315.58 in GGR, which resulted in $15,014,328.90 in taxes collected.
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Massachusetts Gaming License Holder Requirements
Here are several of the critical requirements that Massachusetts Gaming License holders must abide by:
- Must provide detailed monthly summary reports of finances of their GGR.
- The Massachusetts Gaming Commission will make these reports available to the public on a regular schedule via MassGaming.com.
- Any category 1 gaming facility will be taxed at 25% of their GGR.
- Any category 2 gaming facility will be taxed at 49% of their GGR.
These are just the main areas. There are many more detailed reports, tables, charts, and detailing of all regulations the Massachusetts Gaming Commission has set forth. Included is important information about how games, slots, and casinos must operate.
There is also information about how the state’s horse racing must operate as well. One would think many of the details could be applied to the sports betting legislation that is currently stuck in place.
AP Photo/Charles Krupa
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