Audit Found Inequities in Massachusetts Liquor Licensing
A new state report highlights thousands of unused alcohol permits and a restrictive system dating back to 1933.
Updated on Oct. 13, 2026 in Cocktails
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State Auditor Diana DiZoglio released a report showing that Massachusetts liquor license distribution is uneven across municipalities. The audit identified 3,466 unused alcohol permits statewide while 64 cities and towns face license shortages.
Why it matters
The current licensing framework is based on population quotas established in 1933, creating challenges for restaurants and small businesses. Legislators are now debating the need for checks and balances to improve equity in the state system.
A 172-page audit based on fiscal 2024 data found that 238 municipalities are not using their full license allotments. These restrictive policies have resulted in 500 fewer restaurants and 9,500 fewer jobs in Massachusetts compared to neighboring states.
The players
Diana DiZoglio
She serves as the Massachusetts State Auditor and led the investigation into the state's liquor licensing practices.
Alcoholic Beverages Control Commission
This state regulatory agency is responsible for reviewing and approving liquor licenses that are granted at the local level.
The details
Municipalities currently must rely on home-rule petitions at the State House to request additional licenses, a process that limits local autonomy. While 26 communities have secured local control since the late 1970s, many other areas remain constrained by a system that requires state intervention for basic food service expansions.
Timeline
The state liquor framework was originally established in 1933.
Local license control was granted to 26 municipalities between 1978 and 1984.
The recent auditor report analyzed liquor licensing data from fiscal year 2024.
Culture Shift
This audit signals a growing move toward decentralization, challenging the century-old 1933 liquor framework that has long dictated nightlife in Massachusetts. It highlights a widening cultural divide between legacy administrative control and the modern demand for business growth.
Residents in the 64 municipalities facing license shortages may see more limited dining options as business owners struggle to navigate the permit process. The high cost of entry, with some licenses reaching $125,000, ultimately influences the diversity of restaurants available in local communities.
The takeaway
The audit underscores how outdated administrative hurdles can suppress the local restaurant industry and limit regional job growth. Aspiring business owners should monitor upcoming state legislative sessions for potential changes to how municipal license quotas are calculated.
Further reading
For more on the state’s evolving alcohol regulations, visit Massachusetts Cocktails.
Source note: This article includes information reported by The Boston Globe.
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Should local cities and towns have the power to control their own liquor licenses?
