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In the bustling month that saw unprecedented consumer activity, Massachusetts reported a six-month low in sports betting revenue for March, indicating a complex interplay between market dynamics, operator performance, and overall handle. An insightful look at the month's earnings reveals a steep fall of 20.6% from February's revenue, amounting to just $52.1 million - a figure last seen in October 2024, with earnings of $48.3 million.
While online betting dominated the market with a whopping $761.8 million handle and contributing $51.9 million of the revenue, retail sportsbooks managed only modest $265,536 in revenue from $10.6 million in bets. This low hold rate of 6.74% for the month indicates a greater payout ratio to bettors, typifying a declining revenue trend.
DraftKings, the homegrown leader, reigned supreme in the Massachusetts market, posting $28.4 million in online revenue from a $375.2 million handle, resulting in a high hold of 7.57%. FanDuel followed suit with $13.8 million in revenue and a $208.4 million handle, translating to a 6.62% hold. Other notable performances included BetMGM ($4.1 million in revenue, 5.69% hold), Fanatics ($2.1 million, 4.35% hold), and Caesars ($1.7 million, 6.49% hold).
ESPN Bet and Bally Bet rounded out the online market, with holds of 5.66% and 3.49% respectively. Notably, Bally Bet's low hold mirrored that of retail leader, Encore Boston Harbor, which also reported a 3.49% hold on $5.6 million in wagers. Plainridge Park Casino and MGM Springfield contributed minimally to the retail scene.
Interestingly, the monthly report also shed light on the performance of land-based casino gaming. Combined revenue from Encore Boston Harbor, MGM Springfield, and Plainridge Park Casino amounted to a total of $105.1 million in March, down 5.4% YoY. Slots remained the primary revenue driver at $76.6 million, while table games contributed $28.5 million.
Despite these fluctuations in revenue, gambling taxes remained a consistent source of income for the Commonwealth. Massachusetts collected a total of $40.7 million in gambling-related taxes for March, including $10.1 million from sports betting and $30.2 million from casino gaming. The figures suggest that while growth in handle remains robust, maintaining consistent revenue performance may prove challenging amid increased competition and market saturation.
In a maturing sports betting market, the disparity between rising betting activity and declining revenue underscores the market's volatility. Operator margins can fluctuate significantly based on bettor success and promotional spend. As Massachusetts enters its third year of legal betting, these figures hint that the growth in handle will continue, but sustaining consistent revenue may prove difficult.
- The six-month low in sports betting revenue for March in Massachusetts, despite an increase in online casino activity, highlights the complex interplay between market dynamics.
- Online casino games, including sports betting and poker, contributed significantly to the total handle in Massachusetts, as indicated by the $761.8 million handle in March.
- DraftKings, a prominent online casino, showcased the highest hold rate among operators in Massachusetts, with a 7.57% hold in March.
- The low hold rate for sports betting in March, at 6.74%, suggests a greater payout ratio to bettors, potentially indicative of declining revenue trends.
- The combined revenue from casino-and-gambling activities at Encore Boston Harbor, MGM Springfield, and Plainridge Park Casino was $105.1 million in March, down 5.4% YoY.
- Despite fluctuations in revenue, gambling taxes remain a taxable source of income for Massachusetts, with $40.7 million collected in March, including $10.1 million from sports betting and $30.2 million from casino gaming.
