Why PointsBet Sportsbook Chose Not To Launch In Massachusetts

PointsBet surprised many last week by pulling out its application for an online sportsbook in Massachusetts. In an email to Play MA, the rapidly growing sportsbook and online casino company explained their reasons for not pursuing a launch in the state.

Patrick Eichner, PointsBet director of communications, expressed that the reason for choosing this direction is to highlight our unwavering concentration on our 14 live states in the US, along with Ontario. These markets offer a vast Total Addressable Market for us to target and optimize. We extend our gratitude to the Massachusetts Gaming Commission for carefully reviewing our application, conducting comprehensive hearings, and determining PointsBet as a suitable candidate for licensure prior to the introduction of legalized sports wagering in the Commonwealth of Massachusetts.

Although there are ample opportunities to profit from sports betting, it remains a low-profit industry. Given the anticipated dominance of FanDuel and DraftKings in the online sports betting market in Massachusetts, PointsBet decided that investing in the Bay State would not generate a significant return on investment. This decision is rational and understandable.

What PointsBet leaving Massachusetts means

Nevertheless, it is quite surprising to observe that PointsBet and BetRivers, which are among the leading sportsbook operators apart from the dominant quartet (DraftKings, FanDuel, BetMGM, Caesars), have not made any effort to enter the Massachusetts market. This situation sheds light on the current condition of sports betting in the United States, where the established players continue to thrive. Additionally, it signifies the greater profitability potential offered by online casinos.

Interpreting the situation is not difficult. PointsBet’s choice to forgo investment in Massachusetts not only enables it to focus on states where it already operates but also grants the opportunity to allocate more resources towards enhancing its online casino product. Ultimately, this decision will lead to greater profitability for the company’s online casino offering.

Looking for evidence? In the Q3 investor presentation of BetRivers, it was disclosed that their online casino customers spent 6.4 times more than their sportsbook customers. This pattern is not exclusive to BetRivers, except for DraftKings and FanDuel.