UMass Donahue Institute

Today, the UMass Amherst Donahue Institute (UMDI) and Gemini Research released their report about workforce diversity of the legal sports betting industry in the Commonwealth and the nation. The report’s findings were presented today to the Massachusetts Gaming Commission (MGC).

Sports betting was legalized in Massachusetts in 2022 with the passage of Chapter 23N, Authorization and Regulation of Sports Betting, and remains the newest sector of legalized gambling in the Commonwealth. Retail sportsbooks at Massachusetts casinos began operations in January 2023, and online sportsbooks launched in March of the same year.  

This study addresses one of the mandated topics of the MGC’s research agenda: a study of diverse workers and vendors within the sports wagering industry. In particular, this study provides findings about the participation of minority, women, and veteran business enterprises and workers.

Through quantitative and qualitative data collection including interviews, UMDI and Gemini Research measured the sports wagering industry against comparison industries and conditions in the broader economy and reviewed relevant policy reports and other literature to identify processes for establishing vendor diversity programs.

Highlighted findings:

Overall sports betting industry: 

• Sports wagering in Massachusetts is a relatively small industry in terms of employment and vendor spending.
• Across the United States, however, the industry employs more than ten thousand well-paid workers, engages nearly 1,200 vendors, and spends nearly $1.75 billion per year on these vendors.

Workforce Diversity:

• Overall, a significant portion of sports wagering industry workers come from diverse backgrounds, both in Massachusetts and in the U.S.
• The national industry compares well to similar industries in terms of diversity and average compensation, though the industry is comparatively less diverse within Massachusetts.

Nationally, participation of minority workers tends to be higher, and participation of women and veterans tends to be lower.

Vendor Diversity

• Overall, sports wagering industry spending is large, with relatively modest levels of spending on Massachusetts firms. However, participation and spending with diverse firms make up a very small portion of engagement and spending with operators.
• The scarcity of certified diverse businesses in the economy generally and in the top spending sectors for sports wagering operators provides one explanation for the very low levels of diverse business participation.
• Spending on advertising and marketing firms by operators highlights an opportunity for increased spending with diverse firms.
•  The MGC far exceeded their FY2023 benchmarks for contracting with women- and minority-owned businesses but fell short on their veteran-owned business benchmark.

Recommendations:

• Workforce Diversity: Encourage workforce diversity goals and metrics for MGC and mobile sports wagering operators.
• Supplier Diversity: Encourage operators to create structured and measurable strategies to increase the participation of diverse vendors.
• Sports Wagering Taxes: Use taxes to support industry workforce development in Massachusetts, towards support of diverse-owned businesses in Massachusetts, and to create a permanent funding stream for small business development technical assistance.
• MGC Procedures: Support businesses to apply for SDO diverse business certification and Small Business Purchasing Program while registering as suppliers in the gaming industry.

"Our study reveals a nuanced picture of diversity within Massachusetts' sports wagering industry,” said Mark Melnik, Ph.D., director of the Economic & Public Policy Research group at the UMass Donahue Institute and co-principal investigator of the study project. “While significant strides have been made in employing minority and women workers, the participation of diverse vendors is negligible. We observed distinct outcomes when comparing sports wagering operators to established casinos. These differences are shaped by variations in operational models and operator strategies to ensure diverse participation.”

"Through our interviews, we learned about the opportunities and challenges faced by prospective employees and vendors seeking to work in this new industry in Massachusetts," noted Rachel Volberg, Ph.D., president of Gemini Research, Inc. and a research professor in the School of Public Health and Health Sciences at the University of Massachusetts Amherst.

"The success of the Massachusetts gaming industry is a direct result of the diverse employees and vendors who operate in this sector, and while sports wagering is new, we are pleased with the results of this report," said MGC Chair Jordan Maynard. "The Commonwealth is fortunate that the Legislature had the foresight to direct this study when legalizing sports wagering, and the Commission remains committed to ensuring our policies support growing a diverse workforce and extend opportunities for a range of vendors across the industry."

Read the full report and snapshot.

The UMass Amherst School of Public Health & Health Sciences has been engaged by the MGC since 2013 to carry out a comprehensive, multiyear research project, believed to be the first of its kind, on the social and economic impacts of introducing casino gambling in Massachusetts. The Economic & Public Policy Research group at the Donahue Institute examines the economic impact side of the state’s casinos.
 

July 01, 2025