Massachusetts sports betting boom despite setbacks in June

In June, Massachusetts witnessed a notable rise in sports betting activity, with significant gains in both the betting handle and taxable gaming revenue. This positive trend emerged despite a downturn in the retail betting sector.

Significant Growth in Sports Betting

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Online betting was the primary driver, with $500.7 million spent, while retail betting lagged with only $8.6 million. Combined revenue from online and retail betting reached $40.5 million, up 25.8% from last June's $32.2 million but down 29.0% from May's $57.0 million. This month’s revenue was the lowest since August 2023, which saw $22.7 million.

Online sports betting brought in $41.0 million in revenue for June. However, this figure was slightly diminished by a $588,965 loss in the retail sector. The overall hold percentage across the market was 8.30%, with online betting at 8.44% and retail at a mere 0.01%.

Tax revenues from sports betting amounted to $8.2 million, mostly derived from the online sector.

DraftKings continued to lead the market, earning $19.3 million in revenue from $263.7 million in bets, resulting in a 7.58% hold. FanDuel followed with $16.5 million in revenue from a $141.4 million handle and an 11.9% hold. BetMGM placed third, generating $2.3 million from $34.0 million in bets, with a 7.09% hold. Fanatics reported $1.7 million in revenue from $20.2 million in bets, and ESPN Bet earned $1.2 million from $21.8 million in wagers. Caesars, however, faced a loss, reporting a $16,588 deficit from $19.6 million in bets, with a 0.15% hold.

Challenges

In the retail betting arena, Encore Boston Harbor was the sole operator to report positive revenue, earning $146,565 from a $4.7 million handle, achieving a 3.40% hold. Plainridge Park Casino experienced a $186,969 loss from $3.0 million in bets, with a negative 6.09% hold, and MGM Springfield saw a $548,561 loss from a $1.0 million handle, resulting in a negative 2.21% hold.

The Massachusetts online betting landscape expanded with the addition of Bally Bet earlier this month. Holding a temporary license for the past 18 months, Bally Bet became the seventh operator in the state following the exit of Betr and WynnBet. Bally Bet's performance will be featured in the next set of monthly results.

While sports betting thrived, the Massachusetts casino market faced a decline. Gross gaming revenue from slots and table games dropped 4.5% year-on-year to $96.1 million, down from May's $98.0 million. Slots accounted for $66.2 million, and table games contributed $29.9 million. Casino gaming taxes for June amounted to $27.3 million.

Encore Boston Harbor led with $60.4 million in total revenue, followed by MGM Springfield with $31.9 million, and Plainridge Park Casino with $13.8 million. Overall, Massachusetts’ total gaming revenue in June was $136.5 million, generating $35.6 million in taxes for the state.

Conclusion

Massachusetts' sports betting sector is experiencing substantial growth, driven primarily by online betting. The introduction of Bally Bet could further invigorate the market, even as the retail sector and casino market face challenges that need addressing to sustain overall gaming revenue growth.