Why Caesars Finishing Last In Massachusetts Is — And Isn’t — Surprising
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In the initial month of online sports betting in Massachusetts, Caesars Sportsbook recorded a modest handle of $16.4 million, representing a mere 3% of the market share. Unfortunately, this places them in the sixth and final position among all six apps available.
DraftKings Massachusetts, the leading competitor, accounted for 47% of the market and recorded a total handle of $257.6 million.
Caesars’ initial performance in Massachusetts sports betting has been quite challenging, as indicated by these numbers. Considering their position as the fourth major player in the US sports betting market, their performance in March has been underwhelming.
Nevertheless, it shouldn’t come as a major shock.
Caesars has slow start in Massachusetts
The Massachusetts Gaming Commission has recently disclosed the handle and revenue generated from online sports betting for the period of March 10-31.
Out of the six MA online sportsbooks, a collective betting handle of $548.1 million was reported. Caesars ranked last in terms of both handle and revenue among the six.
| Sportsbook | Total Handle | Taxable Revenue | Market Share |
|---|---|---|---|
| DraftKings Massachusetts | $257,634,288.50 | $15,556,827.40 | 47% |
| FanDuel Massachusetts | $181,085,195.57 | $16,002,999.72 | 33% |
| BetMGM Massachusetts | $45,271,182.54 | $7,314,463.61 | 8.3% |
| Barstool Massachusetts | $29,505,722.12 | $2,893,576.49 | 5.4% |
| WynnBET Massachusetts | $18,207,674.09 | $2,023,597.56 | 3.3% |
| Caesars Massachusetts | $16,398,404.60 | $1,814,141.90 | 3% |
| TOTAL | $548,102,467.42 | $45,605,606.69 |
Caesars not only offers mobile betting, but also has a local partnership with Raynham Park’s simulcast center. This collaboration aims to establish a retail Caesars Sportsbook, which is set to become one of the largest in Massachusetts and even across the country.
Conservative marketing budget
Caesars’ overall visibility in Massachusetts will be enhanced by having a physical presence.
Despite the presence of numerous sportsbook ads from DraftKings, FanDuel, and BetMGM, Caesars has been notably conservative in its marketing expenditure in the Bay State. This is evident from recent Celtics and Bruins broadcasts.
Even though Caesars got less screen time, Betway, which is set to launch in Massachusetts in January 2024, received even more attention.
Shrinking welcome promo offer
Caesars, in an attempt to make up for its lack of advertising expenditure, initially offered a generous welcome package of up to $1,500 in bonus bets for its MA sportsbook. However, this strategy did not yield the desired results, leading to a reduction in the welcome promotion to $1,250 in bonus bets.
In Ohio, Caesars had a rather underwhelming February in terms of performance, despite the state launching online sports betting in January. Throughout the month, Caesars managed to generate a total handle of $31.5 million, representing a market share of 2.9%. This placed them in fifth position, surpassing Barstool Sportsbook but trailing behind bet365.
Other sportsbooks outperform expectations
DraftKings, FanDuel, and BetMGM were predicted by industry experts to emerge as the leading platforms in Massachusetts.
Precisely that is what occurred.
It wasn’t surprising to witness Barstool Sportsbook, a Massachusetts brand, surpassing Caesars.
That was quite surprising to see WynnBET, which holds less than 1% of the market share in the US sports betting industry, falling behind.
In the initial revenue report, Barstool Sportsbook secured the fourth position, with a reported handle of $29.5 million, accounting for a market share of 5.4%.
In terms of market share, WynnBET secured the fifth spot with a reported handle of $18.2 million, accounting for 3.3% of the market. The presence of a retail WynnBET Sportsbook at Encore Boston Harbor, the state’s leading casino, presumably contributed to the positive performance in the initial month.
What does this all mean?
Moving forward, it is important to consider the following things:
- Is Caesars planning to change its welcome promotion in Massachusetts?
- Is Caesars planning to increase their advertising budget for Massachusetts?
- Is Caesars prioritizing its online casino product and neglecting its sportsbook as a result?
Despite providing some insights, the March numbers do not fully encompass a whole month. On May 15, the MGC will publish the online sports betting figures for April. This will allow us to gauge Caesars’ performance in a more typical month of sports betting, as opposed to the initial surge of activity during the launch month.
DraftKings emerges victorious over FanDuel, securing the top spot in the Massachusetts market during March.
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