Massachusetts Casinos See Revenue Boost in July 2024

August 21, 2024 — In a month where many casinos across the United States reported declining revenues, Massachusetts' gaming industry stood out by achieving a notable increase. The state's three licensed casinos collectively earned $99.5 million in revenue for July 2024, a 3.5% rise over June, according to the latest data from the Massachusetts Gaming Commission (MGC).

This surge in revenue is particularly significant given the broader national context. Many casino markets struggled in July, facing the typical summer slowdown exacerbated by macroeconomic pressures, inflation, and changing consumer spending habits. Massachusetts' ability to not only maintain but grow its revenue highlights the state's strong market fundamentals and the ongoing appeal of its gaming offerings.

 

• evenue Growth Amid National Decline: While many U.S. casino markets saw declines in July 2024, Massachusetts' three casinos collectively increased their revenue by 3.5% compared to June, reaching $99.5 million.
• Strong Performances by MGM Springfield and Plainridge Park: MGM Springfield and Plainridge Park were major contributors to the state's revenue growth, with MGM posting a 7.5% increase and Plainridge Park a 4.5% rise in July.
• Potential for Online Casino Legalization: Discussions about legalizing online casinos in Massachusetts are gaining traction, with a bill possibly being introduced in 2025. If passed, it could generate over $80 million in monthly revenue, further boosting the state's gaming industry.

 

Drivers of Growth: MGM Springfield and Plainridge Park

Two of the state’s casinos played pivotal roles in July's revenue increase. MGM Springfield reported $23.6 million in revenue, a 7.5% jump from June, marking its third-highest monthly total over the past 12 months. This performance is a testament to the casino’s robust draw, bolstered by a mix of strategic marketing, diverse entertainment options, and perhaps an uptick in regional tourism.

Plainridge Park, Massachusetts' only racino, also posted impressive results. The facility generated $14.4 million in revenue, representing a 4.5% increase from the previous month. This figure is particularly strong considering the typically slower summer months and reflects Plainridge Park’s ability to maintain a loyal customer base through both its gaming and racing offerings.

Encore Boston Harbor, the largest of the three casinos, contributed the bulk of the revenue at $61.5 million. While this was not among its highest earnings in the past year, it still represented a 1.8% increase over June, reinforcing Encore’s status as a key driver of the state's gaming economy.

 

A Broader Context: Year-Over-Year Comparisons and Market Resilience

When placed in a broader context, the July 2024 numbers indicate more than just a month-over-month recovery. Compared to July 2023, this year’s figures reflect a 0.8% increase, signaling steady year-over-year growth despite the challenges facing the industry. This contrasts sharply with the 1.9% monthly decline observed in July 2023, suggesting that Massachusetts’ gaming industry has found ways to adapt and thrive even in less-than-ideal economic conditions.

Part of this resilience can be attributed to the diversified gaming options offered by the state's casinos, as well as their ability to attract a wide demographic of patrons. The consistent performance of these venues indicates that Massachusetts remains a competitive market within the broader U.S. gaming landscape.

 

The Potential for Online Casinos in Massachusetts

As Massachusetts' land-based casino industry continues to perform well, discussions about the potential legalization of online casinos in the state are gaining momentum. Representative David Muradian has expressed intentions to file a bill in January 2025 that could pave the way for Massachusetts to become the eighth U.S. state to legalize iGaming.

The potential revenue from online casinos is substantial. According to an analysis by PlayUSA, Massachusetts could generate more than $80 million in monthly revenue from online gaming, based on comparative data from other states with similar population sizes and market dynamics. Such a development would not only bolster the state’s gaming revenue but also provide an additional layer of resilience against seasonal fluctuations and economic downturns.

However, the path to legalization is far from straightforward. One potential obstacle is opposition from the Massachusetts Lottery, which could argue that online casinos might cannibalize its customer base and reduce the funds it contributes to various public programs, including education and veterans' services. Additionally, concerns about problem gambling and the impact of increased accessibility to gaming options will likely fuel debates as the bill progresses through the legislative process.

 

A Look Ahead:

July 2024’s revenue growth in Massachusetts offers a glimpse of the state’s potential as a leader in the U.S. gaming industry. The consistent performance of MGM Springfield, Plainridge Park, and Encore Boston Harbor underscores the strength of the market, even during periods when other states are experiencing declines.

Should online casinos become a reality in Massachusetts, the state could see a significant expansion in its gaming revenue base, potentially establishing itself as a major player in the national iGaming market. For now, the state’s land-based casinos have demonstrated their ability to not only weather economic storms but also achieve growth in challenging times.

As the legislative debate around online gaming unfolds, Massachusetts' casino industry will likely continue to be a focal point, both for its current successes and its potential future contributions to the state's economy. Whether through land-based or online avenues, the Bay State appears poised to maintain its upward trajectory in the gaming sector.