The order goes into effect 26 December and will continue for at least two weeks.
The capacity reduction comes after Massachusetts casinos suffered a disappointing November that saw revenue drop approximately $24m from the month prior.
MGM Springfield recorded its worst ever full month of operation, earning $10.5m. That was down from $17.5m in October.
Lower occupancy combined with rising Covid-19 cases and a wintery December storm could lead to another poor month for the three casinos as they close out 2020. The casinos are already working under a 9:30 p.m. curfew that began in early November.
The Gaming Commission left out including casinos employees in the reduced capacity ruling with hopes that it would prevent further furloughs and layoffs.
Last month MGM Springfield warned it may have to lay off or reduce hours for several hundred employees, a result of the new nightly curfew.
Massachusetts leaders are forced to walk a fine line between limiting the spread of Covid-19 and keeping the economy running.