By Tom Joyce, Dec. 9, 2025
A recent report from the Massachusetts Budget and Policy Center says the state has grown heavily dependent on gambling revenue at the same time problem gambling continues to rise among vulnerable residents.
The study examined revenue from the Massachusetts Lottery, casinos, and sports betting. Together, they now generate about $1.5 billion per year, making gambling the state government’s fourth-largest revenue source, behind only the income tax, sales tax, and corporate taxes. The Lottery remains the largest contributor, though its value has dropped by roughly one-third since 2002 when adjusted for inflation.
The report notes that Lottery spending is highest among lower-income residents, who also experience the greatest financial harm from gambling losses. It cites national and state research showing that problem gambling rates are significantly higher among lower-income and non-white residents. At the same time, gambling operators generate much of their profit from a small group of frequent bettors.
Phineas Baxandall, MassBudget’s director of research and policy analysis and the report’s author, said the findings show the state is facing a difficult balance.
“The report found that the Commonwealth has come to significantly rely on gambling revenue to support a wide range of public programs,” Baxandall told NewBostonPost via email. “It identified tradeoffs between, on one hand, the public benefits of these programs, and on the other hand, the significant gambling harms suffered by individuals and families. The recommendations pointed to potential policy changes that could reduce those gambling harms and increase the portion of gambling profits directed to public programs.”
