5 Things We Learned From One Day of Massachusetts Sportsbook Revenue

Massachusetts Gaming Commission recently disclosed that the three casino retail sportsbooks in the state generated a total sports wagering handle of $510,948.04 on January 31st, marking the day when sports betting was officially legalized in Massachusetts.

Due to the sportsbooks’ opening on the last day of January, only a single day’s revenue data was reported. However, we can anticipate receiving a comprehensive month’s worth of numbers on March 15th, when the revenue for February will be posted, allowing us to analyze it thoroughly.

However, there are still significant insights to be gleaned from the figures of January 31st.

From a single day of revenue from retail sportsbooks in Massachusetts, we have gathered five valuable insights.

WynnBET Sportsbook is going to be the most popular

The WynnBET Sportsbook at Encore Boston Harbor surpassed the total money accepted on sports bets by a significant margin compared to the other two retail sportsbooks.

On January 31, WynnBET accounted for 72.6% of the total Massachusetts sports betting handle, with reported sports bets amounting to $370,881.75.

It should come as no surprise that Encore Boston Harbor is situated in Everett, although in reality, it feels like it’s part of Boston, just a mere 6 miles north of downtown. Positioned as “Boston’s only sportsbook,” it is likely to attract the majority of sports bettors from the Boston area.

Thanks to its strategic location at Encore Boston Harbor, WynnBET enjoys a significant advantage. Although the WynnBET Massachusetts app may not rank among the top five most popular apps in the state, its Boston retail presence ensures it will still achieve success in Massachusetts.

This is why sample size matters

The revenue hold of a sportsbook refers to the percentage of handle it retains.

Wow, the revenue holds on Jan. 31 were incredibly different.

On January 31st, Encore Boston Harbor experienced a loss of $74,230.15, resulting in a negative revenue hold of 19.8%. Meanwhile, BetMGM Massachusetts at MGM Springfield managed to retain $12,152.56 from its handle, achieving a revenue hold of 21%. Additionally, Plainridge Park Casino held onto $53,554.26 of its handle, resulting in an impressive revenue hold of 64.9%.

One day of data can exhibit a wide range of inconsistency, as seen in the variance of 84.7% from -19.8% to 64.9%.

PPC bettors had an unfortunate day, while MGM bettors experienced an ordinary day, and EBH bettors had a remarkable day.

Throughout the duration of a complete month, however, the three casino sportsbooks will ultimately reach a balance. Days of misfortune for PPC bettors will not persist indefinitely, just as EBH will not consistently distribute more money than it accumulated.

Let’s put it like this: We are absolutely certain that the 84.7% variance will never be surpassed.

There can be a huge difference between revenue and handle

Now you are aware that a sportsbook can report a negative revenue for a month, in case you didn’t know.

At EBH, the WynnBET Sportsbook rewarded bettors with a total payout of $444,184.70, surpassing its intake of $370,881.75. Despite its impressive handle, which exceeded other Massachusetts sportsbooks significantly, WynnBET Sportsbook recorded the lowest revenue of negative-$74,230.15 compared to its competitors.

This is why monitoring revenue is crucial. A sportsbook may receive a large amount of sports wagering handle, but if all those bets result in wins, it won’t profit at all. In fact, it will incur significant losses.

Check out the top Massachusetts sportsbook bonuses arriving in March.

Tax payments depend on how lucky bettors are

The extent to which Massachusetts receives tax revenue from sports betting relies heavily on the consistent luck of the state’s sports bettors.

The state government received $9,861.02 from sports betting as of January 31st.

If you multiply that by 30 days, the total would be $295,830.60. And for the entire year, it would amount to $3,549,967.20.

If WynnBET gamblers have a less successful Jan. 31, the numbers would significantly differ. Assuming EBH had a revenue hold of 21% like MGM Springfield, Encore would have generated approximately $77,885 in January. Considering a retail sports betting tax rate of 15%, this would have resulted in an additional payment of $11,682.78 to the state government.

Instead of $9,861.02, the January sportsbook tax payments would have amounted to $21,543.80.

If you multiply that amount by 30 days, the total would be $646,313.85. And for the entire year, it would amount to $7,755,766.24.

With just 17 days remaining before the launch of Massachusetts online sportsbooks, there are still 17 unanswered questions to consider for the future.

It is evident that this example is flawed, as the law of averages will inevitably come into play during a 30-day month. Consequently, both revenues and tax payments are expected to be higher over this duration.

However, it serves as a prime illustration of how significantly luck can influence tax revenue.

Things won’t continue at this rate

Massachusetts will witness sustained popularity in retail sports betting, as observed during the Super Bowl, and this trend is expected to continue during the upcoming March Madness tournament.

However, it should be noted that not every day will be as successful as the day of the launch. Generally, the combined sports wagering handle of the three casino sportsbooks in the state will not exceed $500,000 on a daily basis. It is important to mention that there are exceptions to this, such as during events like the Super Bowl or March Madness.

Once we have a few complete months of revenue data and bettors establish a consistent routine, we can expect to observe more consistent trends in MA in-person sports betting. The initial frenzy of launch day will subside, allowing for a more reliable analysis.