Projection: MA Sportsbooks Need To Make $32 Million To Be Profitable

Written By Matthew Bain on March 2, 2023
How much money Massachusetts sportsbooks needs to make to be profitable, from

In order to become profitable in Massachusetts, sportsbooks will need to own at least 7-8% of the sports betting market.

That’s according to Eilers & Krejcik Gaming, an independent consulting firm in the gambling space. The information was part of the firm’s free newsletter, The EKG Line. It included thoughts and analysis on Massachusetts, Ohio and the industry at large.

Based on Play MA‘s projections for a fully mature market, 7-8% would be $32-$36.6 million in annual revenue. Again, that’s not in 2023. That’s for whenever the Massachusetts market is fully mature.

Eilers & Krejcik arrived at its estimation based on the $5 million licensing fees, server costs and 20% MA online sports betting tax rate. For companies such as DraftKings, FanDuel and BetMGM, 7-8% is a cake walk. It’s attainable for Caesars Sportsbook, too, and perhaps even Barstool Sportsbook in the home state of Barstool founder Dave Portnoy.

But for Massachusetts sportsbooks outside those top couple tiers, 7-8% is a steep climb.

That’s why BetRivers didn’t even apply in Massachusetts, and why PointsBet pulled its application at the 11th hour. It’s also why WynnBET is so fortunate the state’s most popular casino, Encore Boston Harbor, is a Wynn property. Bet365 pulled out of the running, too.

“We have chosen this path to emphasize our continued focus on our 14 live states of the US (plus Ontario) and how we can best optimize those markets which provide an immense (Total Addressable Market) for us to go after,” Patrick Eichner, PointsBet director of communications, told Play MA in regards to why PointsBet isn’t launching in Massachusetts.

Can this actually help smaller sportsbooks?

Fledgling sportsbooks like Betr and Fanatics Sportsbook could benefit from all this. With companies like BetRivers and PointsBet opting to pour their resources elsewhere, Betr and Fanatics likely see more room to carve out a market share as they debut their online sports betting products.

Still, getting 7-8% will be close to impossible. But, for a sportsbook just beginning to launch in the US, profit isn’t going to be the main goal. Brand recognition and getting established in the market — that’s all much more important.

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Matthew Bain

Matthew Bain started as Content Manager at Play MA in 2022. Before that, he spent six years as a sports reporter and then deputy sports editor for the Des Moines Register, during which time he won nine statewide journalism awards, including the Genevieve Mauck Stoufer Outstanding Young Iowa Journalists Award. As deputy sports editor, Matthew oversaw the Register’s recruiting coverage while also innovating the outlet’s high school sports coverage. Matthew graduated from San Diego State and grew up in California, but he’s somehow a Boston Celtics fan. Long story. Matthew also led coverage of Prop 26 vs. Prop 27 in the California sports betting election battle for Catena Media.

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