Massachusetts Reports Significant Increase in Sports Betting Handle and Revenue in June

In June, Massachusetts witnessed a significant rise in sports betting handle and taxable gaming revenue compared to the previous year. Despite this, the state faced notable losses within its retail market, underscoring the complex dynamics of the gambling industry.

A Detailed Look at the Sports Betting Handle

June saw Massachusetts punters spend a sum of $509.4 million on sports betting, marking a substantial 57.5% boost from the $323.5 million wagered in June 2022. This impressive growth comes amidst a broader trend of increasing interest in sports betting across the state. However, the June figures also reflect a 13.3% decline from the $587.3 million recorded in May 2023, highlighting the fluctuating nature of the market. Notably, June’s handle is the lowest monthly total since August 2023, when $314.9 million was bet.

A closer look reveals that online betting dominated the market, with $500.7 million in player spending, while retail betting ed for just $8.6 million. This stark contrast underscores the growing preference for online platforms among bettors, driven by convenience and accessibility.

Despite the overall increase in betting handle, the revenue figures tell a more nuanced story. In June, operators across both online and retail sectors reported a combined revenue of $40.5 million. This represents a 25.8% increase from the $32.2 million reported in June 2022. However, it is a 29.0% drop from the $57.0 million recorded in May 2023, and the lowest monthly revenue since August 2023, when the figure stood at $22.7 million.

Online sports betting generated $41.0 million in income. However, the retail sector suffered a significant setback, reporting a loss of $588,965, which brought down the overall revenue for the month. The overall hold across the Massachusetts market stood at 8.30%, with online hold at 8.44% and retail at a mere 0.01% due to the losses. Additionally, the sports betting tax for June amounted to $8.2 million, with the majority of this revenue coming from the online sector.

Within this competitive market, DraftKings emerged as the leader, generating $19.3 million in revenue from $263.7 million in bets, and posting a 7.58% hold for the month. This performance solidifies DraftKings’ position as the dominant player in Massachusetts’ sports betting landscape.

FanDuel, owned by Flutter Entertainment, followed closely behind, with $16.5 million in revenue from a $141.4 million handle, resulting in an impressive 11.9% hold. BetMGM secured third place, reporting $2.3 million in earnings from $34.0 million in bets, achieving a 7.09% hold.

Other notable performances came from Fanatics, which reported $1.7 million in revenue from $20.2 million in bets, with an 8.63% hold, and ESPN Bet, which saw $1.2 million in revenue from $21.8 million in wagers, resulting in a 5.72% hold. Conversely, Caesars faced challenges, reporting a $16,588 loss from $19.6 million in bets, with a hold of just 0.15%.

The State of Retail Betting

In the retail sector, Encore Boston Harbor was the only operator among the state’s three licensed retail venues to post any revenue in June. The venue generated $146,565 from a $4.7 million handle, resulting in a 3.40% hold. On the other hand, Plainridge Park Casino reported a $186,969 loss from $3.0 million in bets, with a negative hold of 6.09%. MGM Springfield also faced difficulties, with a loss of $548,561 from a $1.0 million handle, translating to a 2.21% hold.

The Massachusetts online betting market saw the entry of a new player, Bally Bet, earlier this month. Bally Bet, which had held a temporary license for around 18 months, became the seventh betting option in the state following the exits of Betr and WynnBet earlier this year. The new operator officially launched on July 2, and its performance will be closely watched in the coming months.

Shifting focus from sports betting, the Massachusetts casino market experienced declines in both year-on-year and month-on-month revenue. Gross gaming earnings from slots and table games fell by 4.5% year-on-year to $96.1 million, down from $98.0 million in May 2023. Slots ed for $66.2 million of the total revenue, while table games contributed $29.9 million. The tax revenue from casino gaming in June amounted to $27.3 million.

Encore Boston Harbor led the casino market with $60.4 million in total revenue, including $34.9 million from slots and $25.5 million from table games. MGM Springfield followed with $31.9 million, ahead of Plainridge Park Casino, which reported $13.8 million in revenue.

Source:

”Massachusetts reports sports betting growth despite retail loss in June”, igamingbusiness.com, July 16, 2024.