Massachusetts Sports Betting Sets New Record

Massachusetts residents set a new sports betting record in October, with total wagers reaching $748.1 million, surpassing the previous high of $678.7 million in September by 10.2%. This marked a 30.8% increase compared to $571.8 million in October 2023, according to data from the Massachusetts Gaming Commission. The surge in betting activity highlights the growing popularity of sports wagering in the state, with online betting continuing to dominate.

Of the $748.1 million wagered in October, $735 million came from online platforms, while $13.1 million was placed at retail sportsbooks. Despite the overall increase in wagers, operators experienced a decline in taxable revenue, which totaled $48.3 million—20.3% lower than the $60.6 million generated in October 2023. This was also a significant drop from the record $75.4 million in September 2024. Online betting was the main contributor to the state's revenue, while retail sportsbooks accounted for only a small fraction, with just $5,286 in revenue. The state's overall hold for October stood at 6.46%, with Massachusetts collecting $9.7 million in tax revenue from sports betting, almost entirely from online wagers.

 

The Sports Betting Initiative

When it comes to operators, DraftKings continues to hold a dominant position in Massachusetts' online betting market. In October, the company reported $24.5 million in taxable revenue from $383.4 million in bets, with a 6.39% hold. FanDuel, part of Flutter Entertainment, ranked second with $15.1 million in revenue from $215.5 million in bets, achieving a slightly higher hold of 7.01%. BetMGM followed in third place, earning $3.5 million from a $49.7 million handle, which resulted in a 7.04% hold. Other operators such as Fanatics, ESPN Bet, and Caesars each posted more modest results. Despite a crowded field of operators, DraftKings' consistent performance emphasizes its continued dominance in the state, supported by its significant market share and tailored offerings for Massachusetts players.

Retail sports betting continued to lag behind online wagering. The segment generated just $13.1 million in total bets in October, a sharp contrast to the billions wagered online. MGM Springfield was the standout in this sector, reporting $5,286 in taxable revenue from $1.5 million in bets. While Encore Boston Harbor took the highest retail handle with $6.9 million, it was unable to produce positive revenue. The low yield from retail sportsbooks suggests that consumers prefer the convenience and accessibility of online platforms. As a result, the state’s reliance on digital betting for tax revenue is expected to grow, while the physical sportsbook market may struggle to remain relevant.

Massachusetts' land-based casino market experienced a slight decline in revenue year-over-year. Gross gaming revenue for October was $94.2 million, a 2.6% decrease from the same month in 2023, though it was a 2.3% increase over September's total. Slot revenue totaled $66.3 million, while table games generated $27.9 million. Encore Boston Harbor led the casino market with $57.9 million in combined revenue from slots and table games, followed by MGM Springfield with $22.1 million and Plainridge Park Casino with $14.3 million. Casino gaming tax revenue amounted to $27.0 million, contributing to the total tax revenue of $36.6 million for the month.

 

Massachusetts continues to see strong growth in sports betting, with online platforms driving the majority of wagers and revenue.

 

The Future

Looking ahead, Massachusetts' gaming market, especially its sports betting sector, is poised for continued growth. The state is seeing an influx of tax revenue from both online sports betting and traditional casino gaming, although the recent dip in taxable sports betting revenue suggests that operators may need to adjust their strategies to maintain momentum. Increased competition from both established operators like DraftKings and newer entrants could also influence market dynamics in the coming months. Moreover, as neighboring states expand their sports betting offerings, Massachusetts may face additional pressure to ensure that it remains a competitive and attractive market for consumers and operators alike.

Massachusetts' sports betting market continues to show strong demand for both online and retail options. Despite a dip in revenue for operators, the increase in wagering volume underscores the state's expanding sports betting landscape. As DraftKings and other major operators solidify their positions, the future of Massachusetts' gaming sector looks promising, with more robust tax revenues and industry competition likely in the coming months. However, challenges such as the performance of retail sportsbooks and fluctuating revenue levels may impact the market's long-term trajectory. The next few months will be critical in determining whether the state can sustain its upward trend.