According to the Massachusetts Gaming Commission (MGC), Massachusetts sportsbooks handled $764 million in wagers, a significant increase from the $636.7 million reported in November 2023. The revenue surge reflected a robust 10.6% hold, generating $79.5 million in taxable gaming revenue, up from $48.5 million the previous year.
This explosive growth also translated into a record $16 million in tax revenue for the state, underscoring the economic benefits of legalized sports betting. DraftKings, the Boston-based industry leader, accounted for $384.1 million in wagers and $44.1 million in revenue, with an impressive 11.7% hold.
“You provide a great service to the commonwealth of Massachusetts,”
noted MGC Chair Jordan Maynard during a recent hearing evaluating DraftKings’ application for a full five-year license.
FanDuel followed as the second-largest operator with a handle of $225.6 million and $24.5 million in revenue. Emerging brands like Fanatics Sportsbook and ESPN Bet are also carving out niches, though their lower holds highlight competitive challenges in the market.
Controversy Surrounding Sports Betting Kiosks
Despite the success of MA online sports betting, the idea of introducing kiosks in retail locations has faced scrutiny. A comprehensive 116-page study commissioned by the MGC and conducted by Spectrum Gaming Group advised against implementing kiosks in venues like restaurants and bars.
The report found that kiosks offered
“essentially no economic benefit”
while presenting significant financial and societal costs, including underage gambling risks and heightened regulatory burdens.
In Ohio, for example, kiosks generated just $305,000 in revenue annually, compared to $650,000 spent on oversight. This de minimis return raised doubts about the viability of similar programs in Massachusetts.
“Although kiosks could provide modest economic benefits to some small businesses, it is uncertain whether program participants would experience the economic benefit needed to justify the costs and efforts,”
the study concluded.
Still, the state remains open to exploring new avenues in gaming, driven by its historical enthusiasm for legalized gambling.
The MGC’s decision on kiosks could shape the future direction of Massachusetts’ gaming laws, which have expanded significantly since the approval of the 2011 Expanded Gaming Act and 2022’s legalization of sports betting.
Looking Ahead
Massachusetts’ sports betting ecosystem is growing rapidly, but its evolution is not without challenges. DraftKings, currently operating under a temporary license, is undergoing a detailed review process for a permanent five-year license.
While recommended for approval, the operator must address several regulatory concerns, including internal control deficiencies and its history of regulatory violations.
This process will likely be replicated for other operators like FanDuel, BetMGM, and Caesars Sportsbook, ensuring a high standard of accountability across the market. Meanwhile, state officials and industry stakeholders must weigh the potential risks and benefits of expanding wagering options, such as kiosks, to meet consumer demand responsibly.
Massachusetts has demonstrated a keen ability to balance innovation with regulation, and its trajectory suggests a promising, albeit measured, future for sports betting in the state.
