An analysis of state taxes linked to casino revenues reveals Massachusetts brought in $233.27 million in tax revenue in fiscal year 2021, up from $195 million the year prior.

The Plainridge Park Casino in Plainville has been operating since 1999 and predates the official formation of the Massachusetts Gaming Commission that was borne out of the decade-old Expanded Gaming Act.

Two additional casinos have taken root in Massachusetts in recent years: Springfield-based MGM Springfield Casino in 2018 and Everett-based Encore Boston Harbor Casino in 2019.

MGM's and Encore’s presence improved year-over-year casino revenues, even as pandemic protocols were at their heaviest.

Fiscal year 2020 casino tax revenue increased $26.3 million, from the $168.7 million in total revenues recorded the previous year. Total tax revenues in fiscal year 2018 were $170 million, before Encore was operational.

Cathy Judd-Stein, chair of the Massachusetts Gaming Commission, touched on some of the factors that have been in play – including COVID-19 and the additional casinos – in the agency’s most recent annual report.

Speaking to the factors that have been in play in recent years, Judd-Stein in the fiscal year 2021 report said “an unimaginable set of circumstances found the commonwealth’s three licensed casinos, gradually rebuilding to full-scale operations … after about 440 days of unprecedented closure and subsequent compliance with strict public health protocols.”

The Massachusetts Gaming Commission issues monthly revenue reports on each of the three casinos.

According to the recently released July report, the three casinos’ combined $99 million in gross gaming revenues yielded $27.68 million in taxes for the state budget.

Encore, the largest generator, recorded $64.72 million in revenue and, in turn, paid $16.18 million in taxes.

Plainridge brought in $12.49 million in revenue, with $6.12 million in taxes paid, while MGM brought in $21.51 million in revenue and, in turn, paid $5.37 million in taxes.

Based on existing agreements, Plainridge pays 49% in taxes, while Encore and MGM each pay 25% in taxes.

According to data from the commission, casino tax revenue goes toward a variety of purposes within the state budget.

The largest piece of the pie – 20% – is earmarked for local aid. Other allocations include transportation infrastructure (15%), education (14%) and debt reduction (10%).

While a sizable chunk of the commission’s annual reports are focused on hard numbers, the documents also touch on other efforts, including hiring practices.

“The Commission renewed its commitment to build upon diversity efforts underway at the three gaming facilities and with increased internal emphasis,” Judd-Stein wrote in the fiscal year 2021 report.

Speaking to a convened equity and inclusion work group, Judd-Stein said its focus is to “revise and enhance hiring practices to minimize disproportionate negative impact on people of color and achieved a workforce diversity just one percentage point shy of our 25% goal.”

by Dave Fidlin