Massachusetts Underscoregs Set New Revenue Record in January

In January, the Massachusetts Gaming Commission reported record revenues from the state’s top sports betting sites, along with nearly reaching a monthly handle record.

In January, Massachusetts sports betting apps, along with the state’s retail providers, achieved record revenue highs thanks to the second-highest hold rate ever despite a reduced NFL schedule.

The sports betting activity in Massachusetts was the second-best ever witnessed in the state, propelling the total lifetime handle past $5 billion in just 13 months of operation.

Once again, the Boston-based DraftKings, a popular sportsbook in its home state, dominated as the top choice among bettors last month.

$651.7-million handle

The top Massachusetts sportsbooks offering the best promotions recorded a total of $651.7 million in bets in January, which was a slight decrease of 1.1% or approximately $7 million from the record-breaking $658.7 million in bets placed in December.

In January 2023, live betting sites were not yet available in Massachusetts, with only retail sports betting being legal at that time.

Last month, Massachusetts sports betting sites dominated the sports wagering market, with 99.4% of all accepted bets coming from the top sportsbook promos in the state.

Revenue record set in January

The Massachusetts market reported approximately $72.7 million in gross sports betting revenue for January, marking a 17% increase from the previous record. This growth can be attributed to an 11.1% hold rate for state sportsbooks.

The win rate for Massachusetts sportsbooks in May 2023 is second only to the 13.6% win rate in the state. This number has increased by 1.7% from the record handle month of December, resulting in all-time high revenues despite a decrease in the handle.

In January, Massachusetts state and local governments collected approximately $14.2 million in taxes from the $71.1 million in adjusted gross revenue.

Massachusetts’ top sportsbooks have contributed a total of $108 million in lifetime tax revenue.

DraftKings flexes home-turf muscle

Homegrown DraftKings and its popular DraftKings promo codes remained the top player in the state’s legal sports betting market. In January, they collected $311.4 million in wagers, accounting for almost half of all sports bets made in the state. With a hold rate of 13.4%, they set a new record for monthly revenue by a single provider, bringing in $36.9 million. This marked the fourth month in the past year that DraftKings exceeded $30 million in profits in the state.

DraftKings now controls over half of the mobile sports betting handle in Massachusetts, with gross revenues of $274.5 million, making up nearly half of the total revenue generated by all sports betting sites in the state.

FanDuel experienced its most successful month in the Massachusetts market, coming in second place with $194 million in reported bets and $25.6 million in revenue for January. They achieved a state-best 13.2% hold.

In Massachusetts, ESPN BET ranked third among sportsbooks in January with a $45.4 million handle, showing a 9.2% decrease from December. Despite a low 4.5% hold rate, the provider only generated $2 million in gross revenue.

In January, BetMGM ranked fourth in accepted bets with a total of $36.8 million. The company earned $4 million in revenue, thanks to a strong 10.8% hold.

Fanatics secured the top 5 spot with a $15.5 million handle and $1 million in profits in January, driven by a 7.1% hold. The company saw a 13.6% month-over-month rise in wagering activity in the state.

During the month, WynnBET and Betr, the two sportsbooks exiting the Massachusetts market, faced difficulties with only $12.3 million in combined wagers.