Are Massachusetts Sports Bettors Actually Leaving The State To Bet?

There is no doubt that Massachusetts has lost potential revenue by not participating in sports betting. However, the extent to which neighboring states have benefited from this decision is a matter of discussion.

While Massachusetts lawmakers are diligently crafting a sports betting bill, it is evident that bettors from the state have ventured beyond its borders to partake in sports wagering. The available data indicates that the location and significant events play a significant role in determining when and where Bay Staters choose to cross state lines in order to place their bets.

Out of the five neighboring states of Massachusetts, four have legalized sports gambling. Connecticut, New Hampshire, New York, and Rhode Island have provisions for both retail and online sports betting. However, Vermont is the only state among Massachusetts’ bordering states that has not yet legalized this activity.

Follow the people to follow the money

Play MA contacted the 10 mobile sports betting operators in Connecticut, New Hampshire, New York, and Rhode Island. Out of these, eight operators either declined to be part of this article or stated that they lacked data regarding the number of Massachusetts residents who placed bets outside of their state.

To determine the most accessible location for legal sports betting in Massachusetts, one simply needs to examine the population center of the commonwealth.

According to the U.S. Census Bureau, the combined population of Boston and Cambridge is approximately 772,000 individuals, which accounts for around 11% of Massachusetts’ total population of 6.985 million. It takes less than an hour to drive from downtown Boston to the New Hampshire border, and the distance decreases the further north you reside from downtown Boston.

Diehard sports fans in the Boston area have the advantageous position of being in close proximity to the New Hampshire betting market, which grants them convenient access to legal sports betting, particularly for major events.

Bay Staters betting in New Hampshire

DraftKings, headquartered in Boston, has been providing legal sports betting services in New York, Connecticut, and New Hampshire. They have reported that Massachusetts bettors constitute 35% of all Celtics bets placed in New Hampshire during the team’s journey to the NBA Finals.

In March Madness and the Super Bowl, bettors from Bay State made up 28% of DraftKings’ New Hampshire handle. DraftKings stands as the sole mobile operator in the state and also manages three retail sportsbooks within the region.

According to the data provided by New Hampshire, the total amount wagered on the Super Bowl in the Granite State reached $7.7 million. Out of this sum, Massachusetts residents accounted for approximately $2.156 million in wagers placed within New Hampshire’s borders.

The state of New Hampshire recently revealed that March Madness generated close to $23 million in wagers. Among these wagers, Massachusetts residents contributed approximately $6.4 million.

A New York-New Jersey scenario?

Before New York introduced mobile sports betting in January, there was a lot of speculation about how bettors from the Empire State contributed to the success of the sports betting market in New Jersey.

According to Legal Sports Report, it was reported that New York bettors accounted for approximately 18.3% of New Jersey’s impressive $4.58 billion handle in 2019. Despite the introduction of New York’s mobile launch, New Jersey’s handle has continued to experience growth.

In April, the sportsbooks in the Garden State experienced a handle of $926.9 million, reflecting an impressive growth of almost 24% compared to April 2021, a period when New York did not have legalized sports betting.

According to Politico, GeoComply, a company specializing in geolocation solutions and collaborating with various gambling operators, revealed that merely 9% of players from New York had placed bets in New Jersey.

Estimates about New Yorkers flocking to the Garden State and Massachusetts to place bets may have been exaggerated.

According to Play MA, FanDuel, the company offering legal mobile sports betting in New York and Connecticut, has stated that it has not observed significant numbers of bettors from Massachusetts in either of these states.

Between April 25 and May 25, Play MA was informed by GeoComply that they observed extremely low transaction and user counts in Connecticut, specifically within a 5-mile radius of the Massachusetts border. Further investigation conducted by GeoComply at various establishments such as gas stations or rest stops beyond the initial exit upon leaving Massachusetts did not yield any significant findings.

How are neighboring states faring?

Since 2018, legal sports betting has been available in the neighboring states that share a border with Massachusetts. Let’s delve into the specifics of sports betting in these four states.

	Connecticut	New Hampshire	New York	Rhode Island
Launch date	Sept. 30, 2021 (retail); Oct. 12, 2021 (online)	Dec. 30, 2019 (online); Aug. 12, 2020 (retail)	July 16, 2019 (land based); Jan. 8, 2022 (online)	Nov. 26, 2018 (retail); Sept. 4, 2019 (online)
Tax rate	13.75% on all sports gambling revenue	51% online and 50% retail	51% online and 10% land based	51% on all sports gambling revenue
All-time handle	$867.4 million through April	$1.2 billion through March	$6.6 billion through April	$1.1 billion through March
All-time revenue	$65.4 million through April	$81.8 million through March	$65.9 million through April	$94.8 million through March
All-time taxes	$5.7 million through April	$37.9 million through March	$220.5 million through April	$48.3 million through March

Connecticut

• The license fees for online operators consist of an initial fee of $250,000 and an annual fee of $100,000. For lottery retailers, the license fee is $20,000 each.
• Betting on colleges: Indeed, with the exception of in-state institutions.
• There are six retail sportsbooks available for bettors: Bobby V’s Restaurant and Sports Bar in Windsor Locks, Bobby V’s Restaurant and Sports Bar in Stamford, Foxwoods Resort Casino, Mohegan Sun, Shea’s Pizzeria and Sports Bar, and Sports Haven.
• Some of the online operators are DraftKings, FanDuel, and PlaySugarHouse.
• Where is state money allocated? It is divided between lottery operations and the General Fund, with the only exception being payments made to the Connecticut Teachers’ Retirement Fund Bonds Special Capital Reserve Fund.

New Hampshire

• License fees: None
• Is college betting allowed? Yes, but it does not include in-state colleges and events.
• There are three retail sportsbooks available: The Brook’s DraftKings Sportsbook, Manchester’s DraftKings Sportsbook, and Filotimo Casino’s DraftKings Sportsbook.
• Online operator: DraftKings
• What is the destination of state funds? Education programming.

New York

• There are no license fees required for land-based operations, while a one-time fee of $25 million is applicable for online activities.
• Yes, betting on college sports is allowed, except for in-state colleges and events.
• There are a total of 11 retail sportsbooks available, namely Rivers Casino & Resort Schenectady, Tioga Downs Casino Resort, Point Place Casino, Turning Stone Resort Casino, Yellow Brick Road Casino, Del Lago Resort & Casino, Resorts World Catskills, Akwesasne Mohawk Casino, Seneca Allegany Resort & Casino, Seneca Buffalo Creek Casino, and Seneca Niagara Casino & Hotel.
• The following are some of the online operators available: BetRivers, BetMGM, Caesars, DraftKings, FanDuel, PointsBet, Resorts WorldBET, and WynnBett.
• State money is allocated towards education programs, local municipal and county governments, and providing property tax relief.

Rhode Island

• License fees: None
• Yes, betting on colleges is allowed, except for in-state colleges and events.
• There are two retail sportsbooks, namely Twin River Lincoln Casino and Twin River Tiverton Casino.
• Sportsbook Rhode Island is an online operator.
• What is the destination of state funds? The General Fund.