Summer Sports Betting Slump Ends in August for Massachusetts

Boston Red Sox fans enter the stadium as Massachusetts experienced better sports betting results in August. — Boston Red Sox fans enter the stadium on Opening Day before playing the Baltimore Orioles at Fenway Park. Photo by Paul Rutherford/Getty Images/AFP

The latest revenue report from the Massachusetts Gaming Commission shows that the seasonal slowdown in summer sports betting has come to an early end. Similar to other jurisdictions that have released their August earnings, the Bay State saw a decline in sports betting activity during the summer months.

Unfortunately, Massachusetts legal sports betting providers did not receive entirely positive news. Due to a disappointing win rate, the revenues generated were the lowest since the introduction of mobile sports betting six months ago.

Handle climbs over $300 million again

July marked the lowest point in Massachusetts’ legal sports betting industry, with only $286.1 million wagered during the month. This was the first time since the launch of sports betting in Massachusetts that the total amount wagered was below $300 million.

In August, sportsbooks in Massachusetts saw a strong recovery, with a total of $314.9 million in bets, an increase of 6.8% from July. Mobile providers accounted for $307,246,295.33 of the total, while retail outlets contributed $7,677,546.27.

August’s total is nearly $270 million lower than the record of $584,476,649 posted in March, the state’s first full month of online betting.

Revenues fall

In August, revenues in Massachusetts took a hit as the betting public had a successful month against them. With a low 7.5% hold rate, only $23.5 million in gross revenues were reported.

This marks a 22.1% decrease from July, representing the lowest revenue total for Massachusetts legal sports betting since the introduction of the best sports betting apps in March.

The $4.5 million in tax revenue generated from the 20% tax on Massachusetts sports betting sites and 15% tax on retail providers has pushed the total year-to-date tax contribution past the $50 million mark after seven months of operation, benefiting state and local coffers in need.

DraftKings stands tall

Unsurprisingly, DraftKings, the home-state company, was the clear leader in the race for the most popular sports betting app in Massachusetts. In August, DraftKings accounted for over half (52.75%) of all sports betting activity in the Bay State, marking the second consecutive month and the third time in six months of operation that it achieved this feat.

In Massachusetts, DraftKings saw an impressive 11.8% increase from July with a $161.9 million handle in August. The sportsbook is the only provider in the jurisdiction to have surpassed $1 billion in wagers to date. Despite reporting $11.2 million in revenues for August, DraftKings had a less-than-ideal 6.9% win rate.

In August, FanDuel remained a popular choice as the second-highest performing sports betting app in Massachusetts. The app generated $79.4 million in wagers and reported $7.6 million in revenues for the month.

BetMGM placed third with $21.2 million in bets, Barstool came in fourth with $16.4 million in wagers, Caesars ranked fifth with $14.3 million, WynnBET reported $9 million in wagers, Fanatics Massachusetts saw its highest monthly total ever with $4.4 million, and Betr Massachusetts ended last among the eight mobile sportsbooks in the state with slightly over $150,000 in wagers.

Impact of the NFL

Massachusetts residents now have the opportunity to place mobile bets on the popular NFL games. The Bay State will be closely watched to see the impact this will have on the sports betting industry.

Last week, GeoComply released a report revealing that Bay State bettors showed strong participation during Week 1 of the NFL season. Between September 3rd and 10th, there were 9.2 million geolocation checks reported by GeoComply, with 59,000 new sports wagering accounts created in that time period.

Get ready, Massachusetts legal sports betting industry. August was just the calm before the storm. With the state’s record-breaking $584,476,649 monthly handle in jeopardy, September is shaping up to be a game-changer.

Make sure to watch out for the best Massachusetts sportsbook promotions of the season.

Written By:
Perry Sandra

Perry Sandra and betting go hand-in-hand. Both are characterized by “odds”. Dave fancies himself as one of the most dedicated sports and pop-culture junkies around, to the chagrin of his family and friends. Following sports for 50 years and writing about it for 20, Dave hasn’t found a sport yet that can’t contribute to 2-3 straight hours of couch time. That search remains ongoing. As a good old Canadian boy, hockey is in Dave’s heart, as is curling sadly. But evolution is a real thing and that’s why football, baseball, and just about every sport on the planet has become a passion. Dave isn’t afraid to kill some time obsessing over politics or the far-too-frequent awards shows the consume the airwaves.