Massachusetts Governor Wants To Allocate More Casino Tax To Tourism Initiatives
Massachusetts Governor Maura Healey has proposed changes to the allocation of casino tax in the Bay State. Gov.
Healey wants to double the casino tax handed over to the Massachusetts Tourism Trust Fund, from 1% to 2%.
The initiative would not increase the total taxes paid by casinos, but it would benefit them and the rest of the tourism industry.
During a budget hearing at Barnstable Town Hall, Economic Development Secretary Eric Paley said: “We are increasing it.
"A 25% increase is not nothing. It’s kind of nothing compared to the amount of tax revenue that comes from the industry, but we are also thinking about how we grow that over time more effectively because, again, I think we’re massively sub-optimizing.”
A Summer Of Sport… And Tourism
Tourism has taken centre stage in the state’s budgetary planning, especially as it prepares to host FIFA World Cup matches this summer.
Seven matches will be played at Boston Stadium, although the matches had been under threat.
This week, Foxborough, Kraft Group, and Boston Soccer 2026 came to an agreement that will see the issuance of a license to allow the games to proceed.
Officials hope that the influx of visitors will give the state’s tourism industry a significant boost - an industry already worth approximately $24billion to the local economy and that brings in 50 million visitors per annum.
Many of those visitors visit the state’s three casinos. Casino gambling was regulated in Massachusetts in 2011, and the state now has three full-service casinos.
Two of the venues are situated close to Boston, one to the North and one to the South, while a third is located in Springfield.
"Placing prohibitively high taxes on sportsbooks would lead to increased costs, reduced sportsbook bonuses, and a migration of players to prediction platforms like Kalshi and Polymarket."
Potential Tax Increase And Strict Problem Gambling Rules
While the budget doesn’t propose any casino gambling tax rise, Massachusetts lawmakers are debating Senate Bill 302.
The bill would impose a massive tax hike on sportsbooks, potentially pushing the tax rate up to a national high of 51%.
SB 302 passed a Senate committee vote 5-0, despite failing previously. It will now go to the Senate Ways and Means Committee for further deliberation.
The bill also calls for substantial sportsbook requirements designed to curb problem gambling.
As well as banning prop bets, it would prohibit in-game betting and restrict advertising to timeslots outside live events.
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Customers would see their spending limited to $1,000 a day or $10,000 per month, and any customer looking to wager more than 15% of their bank account funds must undergo affordability checks.
It looks very unlikely that the bill will pass, as the seemingly draconian terms have led sportsbook operators in the state to threaten to leave.
Meanwhile, prediction markets continue to gain traction.
These platforms offer an intuitive design that is easy for first-time bettors while effectively circumventing local sports betting taxes.
Placing prohibitively high taxes on sportsbooks would lead to increased costs, reduced sportsbook bonuses, and a migration of players to prediction platforms like Kalshi and Polymarket.
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