Massachusetts Launches Online Sports Gambling, Six Operators Initiate Services
Massachusetts has taken the leap into online sports betting, becoming the 24th state in the USA to legally offer this service. On Friday morning at 10 am EST, six online sportsbooks commenced operations in the state, with DraftKings, a Boston-based daily fantasy sports firm turned sports betting company, leading the charge. After a five-year wait, DraftKings is finally able to take sports bets in its home state.
The US Supreme Court's decision in May 2018 to overturn the Professional and Amateur Sports Protection Act of 1992 (PASPA) paved the way for states to establish their own sports gambling rules. It took Massachusetts lawmakers four years to reach a consensus, but in July 2022, they approved a bill for sports betting. The bill, signed into law by then-Governor Charlie Baker (R), allows sports betting at the three commercial casinos, two horse racetracks, and online.
In addition to DraftKings, FanDuel, BetMGM, WynnBet, Barstool Sportsbook, and Caesars Sportsbook are available for sports bettors over 21 and physically located within Massachusetts. Betr, BallyBet, and Fanatics are expected to launch their online sportsbooks later this year, having gained approval from the Massachusetts Gaming Commission.
In-person sports betting started at Encore Boston Harbor, MGM Springfield, and Plainridge Park on January 31. Unlike the grand opening ceremonies for retail sportsbooks featuring star athletes, celebrities, and politicians, the online launch was subdued.
Caesars Sportsbook announced that its first online wager in Massachusetts was a $15 stake on Alabama A&M University's men's basketball game against Texas Southern. Their first parlay was a $1,000 two-leg college basketball wager on Purdue and Alabama's moneylines.
Massachusetts, with its seven million residents, is a Sports-loving state. It boasts the second-highest median household income in the US, with about $116K in 2022, trailing only New Jersey and DC households. The state is home to five professional sports teams - the New England Patriots (NFL), Boston Red Sox (MLB), Boston Celtics (NBA), Boston Bruins (NHL), and New England Revolution (MLS).
Massachusetts will take 20% of each online sportsbook's gross revenue, compared to 15% for in-person sportsbooks. Almost 90% of the betting action in states where retail and online wagering are allowed takes place online. College wagering is prohibited when a game involves a state-based university; however, sportsbooks can take action when a state college is participating in a tournament involving a minimum of four teams.
