Press Release: 10/14/2026

State Auditor’s Report Identifies Barriers in Massachusetts Liquor License Process

Provides Data-Driven Insights into Equity and Fairness

FOR IMMEDIATE RELEASE:

10/13/2026

Boston — State Auditor Diana DiZoglio's Office today released a report examining the Commonwealth's system for licensing restaurants, bars, hotels, and clubs to serve alcohol. 

The report highlights how a population-based quota formula, written in 1933, results in an artificial or arbitrary shortage of on-premises liquor licenses in communities where businesses want to open, while pushing prospective business owners into a legislative process and private resale market that favors wealth and connections.

The report, License to Pour: Access and Equity in Massachusetts Liquor Licensing, was produced by the State Auditor's Division of Local Mandates (DLM). It analyzed municipal licensing data, surveyed 260 municipal officials and business owners, and interviewed license holders, municipal officials, legislators, and industry participants. 

According to the report, 2.5 million residents live in municipalities facing liquor licensing constraints due to the state-imposed quota. Twenty-six municipalities were allowed local control due to a limited opportunity between 1978-1984 to opt out of the state-imposed quota, creating an inequitable two-tier system that leaves some municipalities unable to respond to local needs and priorities.

Per the report, license access rises with municipal wealth, with the wealthiest municipalities issuing 58% more licenses per resident than the least wealthy, while securing more licenses through the home rule petition process – which has no written criteria and no complete, readily accessible public record.

Business owners reported paying six-digit sums to purchase licenses in the private secondary market in quota municipalities ($600,000 in Boston, $175,000 in Somerville, and $100,000 in Beverly) compared with acquisition costs of $2,500 in Cambridge, a local-control city. Compared to neighboring states, Massachusetts has fewer full-service restaurants per resident; matching the regional average could mean 490 additional restaurants, 9,500 jobs, $311 million in annual wages, and $56 million a year in state and local meals taxes.

The report recommends eliminating the state-imposed, population-based quota and establishing local control for on-premises liquor licensing; addressing the equity and wealth-access barriers created by the secondary market; and creating a statewide, public licensing data platform to increase information access, equity, and transparency. 

“We need a liquor licensing system that is transparent, fair, and gives all of our local businesses a shot at success,” said Auditor DiZoglio. “You shouldn’t need to have unlimited access to money and all of the right political connections to obtain a liquor license. We need to do better, and our report shines a light on how and why the system is falling short. Massachusetts does not have to choose between responsible alcohol regulation and economic opportunity. Both are possible. This study provides evidence-based insights to increase access and build a system that is more equitable, transparent, and responsive to all local entrepreneurs – regardless of their background, bank balance, zip code or political connections.”

"I support moving toward greater local control, transparency, and equity in the licensing process,” said Holyoke Mayor Joshua A. Garcia. “Massachusetts has an opportunity to modernize the licensing system, give municipalities greater control over decisions that directly affect their local economies, and provide the flexibility to attract investment while creating a more level playing field for entrepreneurs."

“In Fitchburg, we know too well how access to liquor licenses can affect whether a restaurant or hospitality business can open, expand, or invest in our community,” said Fitchburg Mayor Sam Squailia. “This report puts data behind challenges that municipalities and business owners have been navigating for years, particularly in Gateway Cities working to grow their downtowns and commercial districts. I appreciate Auditor DiZoglio bringing greater transparency and attention to a system that has incredible consequences for our local economic development.”

"I am grateful for the Auditor and her staff for their diligence in conducting and delivering this report to measure and remedy the state's current liquor license quota system,” said State Representative Joseph McKenna (R-Sutton). “I have repeatedly made the case that this system creates artificial burdens that inhibit private investment in the restaurant industry, hurting our communities, stalling economic development, and working against our own restaurant entrepreneurs. This report is thorough and carefully considered, including well-positioned recommendations that can be acted on immediately. I am optimistic that this work will help to advance what has become a bipartisan and bicameral reform effort."

“Access to liquor licenses can have a real impact on a community’s ability to attract new businesses, support existing establishments, and create jobs, said North Attleborough Town Councilor Dan Donovan. “As a Town Councilor who has long advocated for economic development, I support giving municipalities greater flexibility to meet their own economic needs rather than being constrained by an outdated, population-based licensing quota. Expanding local control would give communities like North Attleborough another tool to encourage investment and economic opportunity.”

"This report is long overdue,” said Christopher Tkach, founder and president of Idle Hands Craft Ales in Malden. “It shines a light on an outdated licensing system that too often favors wealth and connections while holding back first-time restaurant entrepreneurs and innovative small operators. I hope it sparks meaningful dialogue and legislative action to create a more equitable path to licensure and help Massachusetts’ hospitality industry thrive."

The full report is available at https://www.mass.gov/report/license-to-pour-access-equity-in-massachusetts-liquor-licensing. 

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