As Massachusetts rounds out a full year since the introduction of live digital sports betting, figures released by the state regulator reveal a remarkable $5.98 billion in wagers placed online since March 10, 2023. As February ended, there were eight digital platforms in operation. However, the selection has since dwindled to six, following Betr and WynnBET’s decisions to exit the digital scene in the Bay State.
Just last week, the Massachusetts Gaming Commission broadcasted their anticipation for Bally Bet to join the digital fray by the end of June, which would further expand bettors’ options. Currently, the market sustains six active online platforms: BetMGM, Caesars Sportsbooks, DraftKings, ESPN Bet, Fanatics Betting & Gaming, and FanDuel, all catering to the desires of Massachusetts’ sports wagering aficionados.
Despite a lackluster February, traditionally the first month without the frenzy of NFL games since September, the Massachusetts three brick-and-mortar sportsbooks alongside their digital counterparts amassed $52.55 million in adjusted gross gaming revenue (GGR). From this, a generous tax contribution of $10.5 million was made to state coffers. Comparatively, since January 31, 2023, when physical sports wagering spots became operational, the state has reaped an impressive $118.6 million in taxes from these establishments.
The win rate amongst operators in February slightly dipped, falling just short of the 10% hold goal, with a reported 9.93% hold across the industry. This figure represents a decrease from January’s hold rate of 11.2%. Digital outlets managed a slightly better hold rate at 10.03%, whereas their physical counterparts lagged behind at an average 6.2% hold.
Of February’s total handle, online bets were responsible for $530.3 million while retail sportsbooks contributed $12.2 million. Notably, the tax regime sees online entities taxed at 20% of their GGR, whereas the brick-and-mortar locations remit 15%.
Leading the digital pack, DraftKings continues its dominance, pulling in $269.8 million in bets with a solid 11.7% hold, while its closest rival, FanDuel, managed $158.9 million in wagers at a 9.1% hold. Trailing but maintaining a significant market presence, BetMGM accepted $34.7 million in bets, achieving a 9.8% hold. Notably, Caesars, despite capturing a $18.3 million handle, had the modest hold rate of only 3.8% among active sportsbooks in the state.
February also saw the closure of WynnBET’s digital platform on February 12, which reported a loss of $196 million at a negative hold of -5.34%. The company continues to operate its physical sportsbook at the Encore Boston Harbor. Similarly, Betr ceased operations on February 16 but managed to turn a minor profit, earning $5,044 on $86,865 in wagers for a hold of 5.8%, although it does not maintain a physical sportsbook in the state.
On the retail side of the equation, Plainridge Park led the pack in terms of handle, with $5.6 million in wagers originating from its location near the Rhode Island border. In terms of hold percentages, nothing surpassed MGM Springfield’s impressive 15.6% on a handle of $1.6 million. Despite MGM Springfield’s lower handle, it ranked second among retail casinos in contributing GGR and subsequent tax payments to the state.
As these dynamics illustrate, Massachusetts is playing a dynamic and increasingly popular role in the world of sports betting. With digital and physical sportsbooks contributing hefty tax revenues to the state and a variety of operators vying for bettor loyalty, the landscape of sports wagering within the Commonwealth is both competitive and lucrative. Though the scene may have shifted slightly with departures and forthcoming arrivals, the market’s robust performance points towards continued growth and interest in the world of sports betting.
