According to a recent report, Bay State bookmakers generated $59 million in May with Boston-based DraftKings maintaining its perch as the state’s most popular sportsbook.
Making It in Massachusetts
It was another solid month for the books in Massachusetts as the mobile and retail sportsbooks generated $59 million in revenue from a collective handle of $587.3 million, an impressive 29.1% increase over the same time last year.
The six mobile operators combined for an average hold of 10.1% but revenue was down 4.9% from last May despite a much higher handle but a hold that was over 3 ½ percent short of May 2023’s all-time high win rate of 13.6%. Nevertheless, the revenue was up 16.6% compared to April but generated a slightly lower handle of 2.7%.
The state levied its 20% tax on the sportsbook’s $57 million in adjusted gross revenues resulting in an $11.5 million monthly windfall. The Bay State tax collectors have raked in $55.3 million over the first five months of the year, an increase of $21.7 million over the same period last year. However, it should be noted mobile betting did not go live until March 10, 2023, which means there were no receipts for the first two-plus months.
Online wagering was responsible for 97.3% of May’s handle and the state has now accepted over $8 billion in bets with a whopping $7.79 billion coming from mobile and online devices.
Where Is the Money Going?
Revenues emanating from sports betting have produced approximately $149.18 million for the state since the March 2023 launch, including all taxes and assessments. The profits to the state’s tax coffers are allocated as follows according to the Massachusetts Gaming Commission:
“45% is allotted to the General Fund, 17.5% to the Workforce Investment Trust Fund, 27.5% to the Gaming Local Aid Fund, 1% to the Youth Development and Achievement Fund, and 9% to the Public Health Trust Fund.”
DraftKings Crowns Competition Again
Bay State sports bettors are staying true to their roots and giving the local entry, DraftKings, plenty of business with over 50% of the market share going DK’s way. May’s financial report shows DraftKings generating nearly $300 million in handle with a 9.7% hold delivering $29.1 million in revenue for the month.
FanDuel took its familiar second spot in the Massachusetts market with a $172.4 million handle but a higher win rate of 11.8%, generating $20.3 million in revenue. The New York-based sportsbook cracked $20 million in revenues for the second straight month, the first time doing so since April and May of 2023.
BetMGM was the best of the rest with a $39.3 million handle and an 8% hold which produced $3.1 million in revenues. Penn Entertainment’s ESPN BET saw $25.9 million in wagers, generating $2.5 million in revenues with the second-highest hold of the six operators at 9.7%, trailing only FanDuel.
Caesars slightly outpaced Fanatics with just over $20 million in handle versus $19.8 million, but Fanatics 8.89% hold produced $1.76 million in revenues compared to $1.58 million for Caesars on a 7.88% hold.
