Massachusetts Study Shows Sports Betting Legalization Didn't Impact the Illegal Market
The launch of sports betting in Massachusetts in January 2023, followed by the introduction of online betting in March 2023, marked a new era in the state's gambling industry. However, a recent study by the UMass School of Public Health and Health Sciences indicates that this legislative shift has not affected the illegal sports betting market.
BetMGM sports betting kiosks inside the MGM Springfield casino in Massachusetts. (Source: Karen Brown/NEPM)
LISTEN TO THIS ARTICLE:The survey, conducted in both 2022 and 2023, shows that the proportion of monthly gamblers participating in illegal betting activities remained unchanged over the two years. Contrastingly, the study observed a rise in the number of monthly gamblers engaging in legal online sports betting.
"Now, taken together, these data suggest that there has not been, or had not been in 2023, a substantial recapture of illegal sports betting revenues in Massachusetts between 2022 and 2023. However, as many jurisdictions internationally have found, it can take a substantial period of time for sports bettors to migrate fully from non-regulated to regulated providers."
This increase suggests that while the illegal market persists, the legalization has provided gamblers with a sanctioned alternative. The research, forming part of the broader Social and Economic Impacts of Gambling in Massachusetts study, also probed whether respondents would have continued to gamble if the state had not legalized online sports betting.
A significant 53% affirmed that they would have, as reported by University of Massachusetts Research Professor Dr. Rachel Volberg to the Massachusetts Gaming Commission (MGC). Dr. Volberg is also the author of recent research that proved that the introduction of legalized gambling has not led to an increase in problem gambling in the state.
More Business News
Legal Market Delivering Rewards
Despite the persistence of illegal betting, the state has successfully established a new revenue stream through the taxation of legal sports wagering. Since the legalization of sports betting, Massachusetts has seen a steady increase in its revenue, particularly after the introduction of online betting.
In the first few months following the launch of online sports betting, the state's revenue surged. By the end of 2023, over $500 million in taxable revenue was reported.
The sports betting handle, which is the total amount wagered, in Massachusetts has also been substantial, with over $5 billion in bets placed by the end of last year. This is indicative of a strong engagement from bettors within the state, driven perhaps by the presence of major league teams and a passionate sports fanbase. The tax revenue collected from sports betting, over $120 million, has contributed to the state's finances.
Comparatively, states like New York and New Jersey have been leading in sports betting revenue, with New York generating a significant amount of revenue in 2023. However, Massachusetts' performance is impressive, considering the size of the state and the recency of its sports betting market's establishment.
The findings of the UMass study are crucial for understanding the impact of sports betting legalization on gambling behavior. While the legalization has not curtailed illegal betting, it has expanded the state's fiscal resources and provided a regulated environment for gamblers.
RELATED TOPICS: Business
Latest News
Most Read
Must Read
Interviews
Review this New Post
Leave a Comment
User Comments
Comments for Massachusetts Study Shows Sports Betting Legalization Didn't Impact the Illegal Market