Massachusetts Expecting Big Early Returns from Online Sports Betting
The eagerly anticipated moment has arrived in the Bay State, and Massachusetts is poised to quickly demonstrate to the sports betting industry why it is a thriving market.
Massachusetts officially launched legal online sports betting on Friday, with experts predicting that the market could see over $200 million in wagers during the upcoming March Madness college basketball tournament. This will be the state’s first major sporting event to occur while online sports betting is available.
According to the Boston Herald, the majority of these wagers are expected to come from Massachusetts mobile sports betting sites that are launching today. The event is estimated to bring in up to $60 million in bets from mobile users alone.
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On January 31st, when retail sports betting became available in Massachusetts, bettors in the Bay State wagered more than $500,000 in just one day. The Department of Administration and Finance predicts that by 2024, sports betting in Massachusetts could generate nearly $5 billion in wagers, resulting in over $100 million in revenue for the state. This includes an estimated $60 million in taxes and over $40 million in licensing fees.
The introduction of online sports betting in Massachusetts ahead of March Madness enables bettors to capitalize on exclusive sportsbook promotions from top providers.
Final details for MA online launch
On Friday, six mobile sportsbooks will be launching in Massachusetts.
During its Thursday meeting, the Massachusetts Gaming Commission (MGC) officially approved all six through separate 5-0 votes.
Betr was granted a license by the MGC to participate in the MA online sports betting market, but MGC Chair Cathy Judd-Stein announced during the commission’s meeting on Wednesday that the microbetting-focused company would not be prepared to launch on Friday as initially anticipated. The company stated in a press release that they intend to launch within the next month, potentially causing them to miss out on the March Madness arbitrage opportunities that other operators are sure to capitalize on.
The introduction of a new market inevitably leads to a surge in advertising as companies compete for customers. Massachusetts has some of the toughest advertising rules for sports betting in the country, with a focus on preventing marketing to individuals under 21. This could pose a challenge for BetMGM’s recent partnership with the Boston Red Sox.
Adam Greenblatt, CEO of BetMGM, has acknowledged the difficulties of enforcing certain requirements in the real world. He mentioned the challenge of having the company’s signage on display at Fenway Park’s Green Monster as part of their partnership. BetMGM has recently pledged to enhance its responsible gaming messaging in advertising, and the Massachusetts sports betting market will serve as a test of their commitment.
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The MA online sports betting landscape
Day 1 of online sports betting in Massachusetts saw a lineup of top contenders, giving bettors in the state a wide array of options to choose from.
After launching its online product in Massachusetts, FanDuel quickly partnered with the NHL’s Boston Bruins and dominated the Ohio sports betting market by capturing 45% of the online handle share in January. DraftKings, based in Boston, only managed to secure just under 32% of the handle share in the same market.
When Maryland’s online sports betting market launched in November 2022, FanDuel dominated with nearly 50% of the online handle in December, while DraftKings held 33%. Bally Bet and Fanatics are set to enter the Maryland online sports betting scene in May, with Betway aiming for a launch in the first quarter of 2024.
It is projected that sports betting in Massachusetts has the potential to rival the success of New Jersey and Arizona in terms of total handle and revenue. The presence of legal sports betting in Massachusetts is advantageous because it will prevent the state from losing significant revenue to neighboring markets like New Hampshire and New York, which is currently the leading state in terms of total handle.
MA online sports betting home-cookin’
The launch of online sports betting in Massachusetts is highly anticipated, and two leaders of major sports betting brands are especially thrilled.
DraftKings, based in Boston, is preparing to launch a new sports betting product. CEO Jason Robins reflected on the company’s growth, noting that DraftKings started in a spare bedroom in Watertown over a decade ago. He expressed pride in being able to offer a safe and legal sports betting option to Massachusetts sports fans.
Barstool’s founder Dave Portnoy, originally from Boston, expressed that he has been anticipating this moment for two decades since starting his highly successful media platform as a gambling newspaper in Beantown.
As competition intensifies in the rapidly growing sports betting market, these two brands will leverage their strong local reputations to seize opportunities for growth.
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