Massachusetts Law Allows For 15 Sportsbooks. Will That Ever Happen?

Massachusetts presently boasts six online sports betting operators, but this number will soon increase with the addition of Betr, Bally Bet, and Fanatics Sportsbook. Furthermore, Betway will enter the scene in January, making a total of 10 sportsbooks available in the state.

However, state law permits a maximum of 15 licenses for online sports betting.

Newly emerging markets often take pride in their openness, and more often than not, they live up to this claim. Colorado, for instance, currently holds 23 active sportsbook licenses, even though they had to let go of a few due to tough competition and limited profitability. Similarly, it is not far-fetched to envision at least 15 sportsbook licenses being granted in Massachusetts.

Imagining Maryland allocating all 60 mobile licenses to eligible applicants requires a creative mindset. As of now, only 14 out of the 60 potential mobile licenses have been granted by Maryland’s Sports Wagering Application Review Commission.

Nevertheless, it is not guaranteed that Massachusetts online sports betting will obtain 15 licenses in actuality.

Why sports betting markets are limited

The sports betting industry is constrained by two factors that restrict its maximum size.

Launching and sustaining a sportsbook can be challenging due to various factors. Sports betting is a business with relatively low profit margins, relying on a substantial customer base to generate profits in the long run and withstand economic downturns.

Furthermore, only a limited number of companies are eligible to obtain a sportsbook license in any given state due to strict criteria. Startups face challenges in meeting the financial requirements necessary to assure customers’ funds. However, Sporttrade managed to overcome this hurdle in New Jersey by implementing a strategy where market makers engage in the buying and selling of customer trades.

It should be anticipated that new companies attempting to launch traditional sportsbooks will face challenges in meeting the necessary state license requirements.

Market saturation could keep Massachusetts from ever having 15 apps

Predicting the precise number of Massachusetts sportsbook licenses is challenging.

It is highly probable that, following the initial surge of sportsbook licenses, the number of sportsbooks in the market will gradually decrease. FanDuel, DraftKings, and BetMGM have already saturated the sports betting market, in that specific order.

The remaining companies in this sector are prominent gambling brands that leverage their existing customer base from other parts of their business. For instance, Ceasars Sportsbook and WynnBET, both affiliated with successful casinos in Las Vegas, have a unique advantage. They can easily tap into their loyal customers and members, making them ideal targets for their sportsbook apps.

By prioritizing their own digital customer lists, certain companies have the potential to sustain their success in the field of sports betting.

Nevertheless, many companies are reassessing the worth of venturing into fresh markets. PointsBet, for instance, withdrew its application in Massachusetts as it concluded that dedicating resources to cultivate existing customer bases would yield greater value. Similarly, BetRivers opted not to pursue a license in Massachusetts due to comparable reasons.

In the upcoming years, certain license holders in Massachusetts might choose to prioritize alternative states or business sectors, such as online casinos, due to perceived higher value. Consequently, they may withdraw from the Massachusetts market.

The intriguing aspect regarding Massachusetts is not the number of sportsbook licenses the state will grant.

The question pertains to the number of licensees who will exit the industry within the upcoming 3-5 years.

Which online sportsbook in Massachusetts will launch next?