How Boston Sports Betting Will Compare To Other Markets

Once Massachusetts introduces sports betting, Boston is expected to emerge as a prominent sports betting hub due to its possession of major sports teams such as the Patriots, Red Sox, Celtics, and Bruins. The passionate fan base of these teams presents a valuable audience for sportsbook advertising. Although specific statistics on sports betting per city are not available, it is logical to anticipate a considerable number of enthusiastic sports bettors among the fervent sports fans in Boston.

Stadiums in major cities, where sports betting is legal, have transformed into bustling centers of sports betting activity. GeoComply’s research reveals that NFL stadiums rank among the top venues for online sportsbook logins in terms of volume. A notable instance was during the Cardinals/Chiefs game earlier this year, when State Farm Stadium witnessed a staggering 66,100 sportsbook logins according to GeoComply’s data.

Due to its popularity as a social activity, legal sports betting experiences high engagement at stadiums, making these venues prime locations for betting during games. Consequently, Fenway Park and TD Garden are anticipated to transform into bustling hubs for betting.

Massachusetts And Boston Sports Betting 

The revenue generated from sports betting in Boston will depend on the policies implemented by Massachusetts. In addition to allowing retail betting at local casinos, the state will also permit online sports betting, making it a convenient option for users.

Nevertheless, spectators will continue to attend games where they will encounter promotional advertisements within the stadiums. The limited time frame for these bonuses will entice both seasoned bettors seeking to capitalize on these offers and novice bettors eager to explore sports betting for the very first time.

Earlier this fall, GeoComply assessed the stadium check-ins during the first two weeks of the NFL season and compiled a list of the top five stadiums based on GeoComply volumes.

• The location is Lincoln Financial Field in Philadelphia, PA.
• The venue for events, known as State Farm Stadium, is located in Glendale, AZ.
• Located in Detroit, MI, Ford Field is a prominent venue.
• The location of MetLife Stadium is in East Rutherford, New Jersey.
• The venue in Pittsburgh, PA is called Acrisure Stadium.

During the first two weeks of the NFL season, two games held at MetLife Stadium in New Jersey recorded the fourth and fifth highest geolocation volumes.

Included at the bottom of the chart were stadiums located in Denver, Nashville, Buffalo, Chicago, and New Orleans. These cities are home to significant sports franchises. It is not unexpected to anticipate the inclusion of Boston in a future top ten list of sportsbook logins. However, the extent of Boston’s sports betting activity will rely on the level of enthusiasm for sports betting in Massachusetts.

Additionally, make sure to check out: Could Any of the 15 Massachusetts Sports Betting License Applications Face Rejection?

Sports Betting In Massachusetts

Massachusetts sportsbooks possess numerous advantages. Unlike New York and Rhode Island, which levy a hefty 51% tax rate on their sportsbooks, Massachusetts imposes a significantly lower tax rate of only 15%. State Senator Eric Lessor predicts that this favorable tax structure could generate approximately $60 million in annual tax revenue for Massachusetts.

It is likely that the estimate is slightly inflated. Comparing the population of Indiana to Massachusetts, both states have a similar number of residents. Moreover, Indiana boasts a prosperous sports betting industry. In the fiscal year 2022, Indiana managed to generate $31.2 million in tax revenue from a total handle of $4.5 billion. With a tax rate of 9.2% imposed on sportsbooks, it is anticipated that Indiana’s tax revenue will be less than that of Massachusetts.

Indiana’s taxable sports betting revenue for FY 2022 reached $328 million, with $31.2 million accounting for 9.2% of this total. Notably, $328 million represents 7.3% of $4.5 billion, which closely aligns with the national average sportsbook hold.

To generate $60 million in tax revenue with a 15% tax rate and a 7.2% hold, Massachusetts sportsbooks would need to generate a handle of $5.3 billion, surpassing even the highly lucrative sports betting industry of Indiana, one of the most profitable in the northeast.

If Indiana applied the same tax rate as Massachusetts to its taxable sportsbook revenue, its sports betting tax revenue would have amounted to slightly less than $50 million. Therefore, it is logical to lower the tax estimates. A more accurate estimate for Massachusetts sports betting tax revenue would likely be between $45-50 million, rather than $60 million.

Massachusetts is projected to remain a significant and thriving sports betting market, with the city of Boston following suit. However, unless there are specific factors in the northeastern United States that boost engagement in sports betting, surpassing Indiana’s sports betting handle will prove challenging for Massachusetts.