Small Size of Massachusetts Sports Betting Limits Diversity Efforts

A Compact Industry with Limited Reach

In 2023, Massachusetts’ sports betting sector employed just 1,185 mobile wagering workers quarterly and 51 retail staff, a fraction of the national industry’s 10,000-plus employees, per the report. Vendor spending, at $50 million annually with over 100 suppliers, is dwarfed by the U.S. industry’s $1.75 billion.

This small size curbs opportunities for diverse hiring and contracting. For example, operators’ diversity policies lack standardized goals or metrics, often relying on vague corporate responsibility statements. The report notes that Category 3 (mobile) operators struggle to define measurable targets, limiting accountability.

Vendor diversity is particularly weak, with no contracts to minority-owned (MBE) or veteran-owned (VBE) firms among Category 1 operators in 2023, and women-owned (WBE) firms at a mere 4.3%. Category 3 operators direct 12% of spending to minority-owned firms, but overall engagement remains low. The industry’s reliance on specialized, sole-sourced vendors, outside of advertising and marketing, narrows chances to diversify.

However, the report identifies marketing as a key area where operators could engage more diverse firms, though few do so currently.

Barriers to Inclusion

The industry’s small size exacerbates recruitment challenges. Its perception as a young, white, male-dominated field, costly background checks, and language barriers deter diverse applicants, especially for retail roles.

While Massachusetts operators hire more minorities than comparable industries, they trail in employing women. Meanwhile, the MGC outperforms its own diversity goals, achieving 34% spending with minority-owned firms (vs. 8% target) and 30% with women-owned firms (vs. 14%) in 2023, but only 0.4% with veteran-owned firms (vs. 3%). These gains hinge on a few large contracts, risking setbacks if not renewed.

Certification processes for MBE, WBE, and VBE status, plus MGC vendor registration, are complex and resource-intensive, blocking small firms from participation.

Thus, the report suggests streamlining these processes and partnering with the Massachusetts Supplier Diversity Office (SDO) to connect operators with diverse suppliers.

Steps Toward a More Inclusive Industry

To counter the industry’s size constraints, the report recommends using $70 million in 2023 sports betting tax revenue to fund workforce development and diverse businesses.

Proposals include a marketing directory to promote minority-, women-, and veteran-owned firms, subsidizing background checks, and supporting ESOL programs for diverse applicants.

Additionally, the MGC could set clear diversity metrics for operators and encourage enrollment in the Small Business Purchasing Program to ease entry. Commissioner Nakisha Skinner confirmed ongoing audits of Category 1 licensees to refine these efforts.