Share 
State of Play’s TL;DR
- Massachusetts Gov. Maura Healey wants a bigger slice of casino tax revenue directed into a tourism trust fund to boost local marketing and regional visitor programs.
- This policy change – proposed in her $63 billion budget – would double the casino share to 2%.
Massachusetts Gov. Maura Healey’s budget includes a policy rider to reallocate a larger portion of taxes collected from MGM Springfield and Encore Boston Harbor into the Massachusetts Tourism Trust Fund.
The proposal would double the casino portion to 2%. It’s a change the administration estimates will generate an additional $2.5 million for regional tourism councils and marketing. The state’s Tourism Trust Fund already receives $10 million annually from the lodging tax.
Economic Development Secretary Eric Paley framed the move as a response to an industry that brings more than 50 million visitors and about $24 billion in spending to Massachusetts each year. He calls the current tourism support “wildly underfunded.”
State senators raised questions about how the funds are distributed across the 16 regional tourism councils. Agency officials said they are working to refine the distribution formula after temporary federal COVID-era funds expired.
Move could increase casino attendance
The change is indirect but meaningful. More tourism marketing can translate to higher foot traffic at casino resorts, fuller hotel rooms, expanded live events and promotions, and stronger demand for on-site sportsbooks – all of which can improve the experience and variety of wagering opportunities.
Operators like MGM Springfield and Encore Boston Harbor won’t see direct revenue increases from this shift. Rather, the state diverts a larger portion of gaming tax receipts into tourism promotion rather than other state priorities.
From an operator and market perspective, the move is modest relative to the industry’s size, but it signals state willingness to reinvest gaming tax dollars into local demand drivers. Expect continued talks between regional tourism councils and the economic development office over how the extra funds are allocated, and likely engagement from operators who monitor how marketing spend affects visitation and gaming volumes.
The proposal will move through legislative budget hearings this spring as both chambers craft their own versions of the spending bill.
Based on reporting by Katie Lannan for GBH.
