Overview of Massachusetts Sports Wagering Excise Tax
Massachusetts Cigarette, Alcohol & Miscellaneous Tax Rates Sports wagering tax enacted. The law imposes an excise tax on sports operators in Massachusetts at the following rates:
Excise Tax Rates
- 15% of the operator’s adjusted gross sports wagering receipts from the operation of in-person sports wagering.
- 20% of the operator’s adjusted gross sports wagering receipts from the operation of sports wagering through mobile applications and other digital platforms.
- 15% of the adjusted gross fantasy wagering receipts of a person or entity that offers fantasy contests.
Additional Key Details
- The tax is in lieu of all other state and local taxes and fees imposed on sports wagering.
- The tax is due and payable in monthly installments on or before the 15th calendar day following the calendar month the adjusted gross receipts were received.
- The tax due must be remitted by electronic funds transfer simultaneously with the electronic filing of the return.
Summary
The Massachusetts excise tax on sports wagering creates distinct rates for in-person, mobile, and fantasy sports operations. Compliance requires monthly electronic reporting and payments.
Frequently Asked Questions
What is the sports wagering excise tax in Massachusetts?
The sports wagering excise tax in Massachusetts is a state-imposed tax on operators offering sports betting services. It applies to in-person, mobile/digital, and fantasy sports wagering, with different rates based on the method of operation.
How are tax rates determined for different types of sports wagering?
Massachusetts imposes a 15% tax on adjusted gross receipts from in-person sports wagering, 20% on mobile and digital sports wagering, and 15% on fantasy sports wagering receipts. These rates are designed to capture revenue proportionally based on the platform used.
Is the sports wagering excise tax in addition to other taxes?
No. The excise tax is imposed in lieu of all other state and local taxes and fees related to sports wagering. This simplifies the tax obligations for sports wagering operators.
When and how is the tax due?
The tax must be paid monthly, no later than the 15th day of the month following the month in which the receipts were received. Payments must be made electronically along with the electronic filing of the tax return.
Who is required to pay the Massachusetts sports wagering excise tax?
Any operator conducting in-person, mobile/digital, or fantasy sports wagering within Massachusetts is subject to the excise tax. This includes traditional sportsbook operators and fantasy contest providers.