The economic advantage derived from sports betting in Massachusetts is significantly overshadowed by the casinos, according to recent studies.
In the first year of legal sports betting in Massachusetts, the sector generated $90.8 million in state tax revenue, accounting for 22% of all non-lottery gaming tax revenue. However, the economic impact of sports betting on job creation and in-state spending has been modest compared to commercial casinos.
Thomas Peake, the Research Manager at the UMass Donahue Institute, shared these findings with the Gaming Commission during a presentation held on Thursday. According to the research, sportsbooks paid $70.8 million to Massachusetts firms, representing just 4% of national business-to-business activity in that sector.
The rollout created a net total of about 118 jobs, including indirect ones, but the number of jobs directly attributed to online sportsbooks is too small to be reliably measured, as these operators did not need to hire many new employees locally due to their scalable business models across multiple states.
In contrast, commercial casinos tend to have a more significant economic impact on job creation and local spending, as casino operations are more labor-intensive and integrated with other in-person services and amenities. The 2023 sports betting economic impact report did not separately include jobs or revenue from sportsbook operations at Massachusetts casinos, due to the close intertwining of casino gaming and betting activities.
The presentation was made by Colin A. Young, from the State House News Service. The UMass Donahue Institute was involved in the research regarding the economic impact of sports betting in Massachusetts.
While sports betting has contributed a substantial boost to state tax revenues and some in-state business spending, its impact on job creation and broader local economic activity is relatively limited compared to the traditionally larger footprint of commercial casinos in Massachusetts. The sports betting industry in Massachusetts had comparatively scant in-state spending, contributing little to the local economy beyond tax revenue.
In Massachusetts, the first year of sports betting was slightly positive but largely a wash for the economy. The UMass Donahue Institute's research did not show a significant negative impact on the Massachusetts economy from sports betting, but it also did not indicate a significant positive impact. The research did not indicate that sports betting had a major impact on the state's economy, either positively or negatively.
[1] Source: UMass Donahue Institute's 2023 economic impact report on sports betting in Massachusetts.
The UMass Donahue Institute's 2023 economic impact report on sports betting in Massachusetts has revealed that Massachusetts firms received $70.8 million from sportsbooks, which constitutes a small fraction (4%) of national business-to-business activity in the sector. Consequently, job creation and local spending resulting from sports betting has been minimal compared to commercial casinos.
