October Turned Out to Be a Record Month for MA Sportsbooks
Massachusetts joined the ranks of many other states reporting higher sports betting handles in October, but slashed revenue numbers as sports bettors in the Bay State had a banner month.
Will this sports betting trend continue in the following months in MA? © Pixabay
10% Growth – Sports Handle Continues to Amaze
The total handle numbers showed the strength of the first full month of NFL betting, with an impressive $748 million in total wagers in October, up a reasonably impressive 10 percent. But compared with the handle of October 2023, which was only $555.7 million, it’s clear that sports betting continues to grow in popularity.
The issue in Massachusetts in October was the same at sportsbooks nationwide: the sports bettors bet the favorites and the favorites won. Online sportsbooks still held on to win $48.2 million or about 6.8 percent hold.
The state’s three retail sportsbooks did even more dismally. Two failed to turn a profit at all, and between the three of them, they earned $5,000 total, for a hold of just over 1%.
The month’s downturn follows September, when online sportsbooks generated $73 million in revenue on $688 million in handle. October’s 34% month-over-month revenue decline closely mirrored other states’ sportsbook results; Pennsylvania reported a similar 43% year-over-year drop in sportsbook revenue. Operators like FanDuel, DraftKings, and Caesars have already cautioned that October’s results nationwide would be underwhelming.
The — so two weekends ago was the — single worst combination of Sports Betting outcomes we’ve seen since we started the business… So yes, so October is not going to look great for anybody relative to what they were expecting, but this is just part of the business that you’re in.– Tom Reeg, Caesars Entertainment CEO, Caesars Q3 Earnings Call
FanDuel and DraftKings Continue to Dominate Massachusetts Market
Massachusetts sports betting continues to be a tale of two markets. FanDuel and DraftKings together booked more than $598 million in bets in October, or slightly more than 80% of all bets.
Third place starts with BetMGM at a mere $49.6 million in the handle, and then the fourth place is usually a race between Fanatics, Caesars, and ESPN BET. Bally’s, which launched in Massachusetts in July, is still struggling to find its footing, with a handle of just $5 million.
While DraftKings and FanDuel battle for supremacy, the middle market players are also engaged in a tooth-and-nail fight for the scraps, especially with Fanatics posting a slight dip in handle, $35.2 million vs. $37.9 million in September.
Interestingly, Fanatics was the only sportsbook to see a decline in handle this month, dropping to $35.2 million from $37.9 million in September. Despite this, Fanatics has seen tremendous growth year over year, with October 2023’s handle at just $14.8 million—a staggering 137% increase.
Whether this growth can continue at such a pace remains to be seen, but November will offer clues about Fanatics’ ability to challenge BetMGM for the third spot.
What November Could Bring for Massachusetts Sportsbooks
November should be a great bounce-back month for Massachusetts sportsbooks. The calendar features five Saturdays of college football action, compared to October’s four. The Thanksgiving holiday weekend will deliver a packed schedule, including NFL games on Thursday, Friday, and Sunday, alongside much-anticipated college matchups on Thanksgiving Day.
Additionally, insights from New York’s weekly sportsbook data, where hold percentages are hovering between 10% and 12%, suggest that Massachusetts could also benefit from improved hold rates. Unless another “bettor blowout” occurs over the holiday weekend, the state is poised for record sports betting handle and significant month-over-month revenue growth.
