The Massachusetts Gaming Commission (MGC) reported a year-over-year decline in sports betting hold in October as the NFL reached the midpoint of its season.
According to data provided by the MGC, the state’s online sports betting operators accepted $734.9 million in wagers in October 2024, up from $555.7 million for the same month last year. Last month, the MGC reported $50 million in accrual wins by licensees with taxable gaming revenue closing at $48.2 million for a 6.8% hold. By comparison, accrual wins in October 2023 closed at $59.5 million with taxable revenue at $58.1 million.
That month, licensed online operators in Massachusetts reported a 10.7% hold. Category 3 license holders in the Bay State are taxed at a 20% rate on gross gaming revenue. The Category 3 licensees include DraftKings, Caesars, ESPN Bet, FanDuel and Fanatics.
Fanatics makes push in Massachusetts
DraftKings continued its reign as Massachusetts’ most popular sportsbook with the Boston-based operator closing October 2024 with a $383.3 million handle. In October, DraftKings saw taxable revenue reach $24.4 million with $4.8 million in taxes collected. By comparison, DraftKings posted a $304.7 million handle in October 2023 with taxable revenue at $33.5 million. That month, DraftKings collected $6.7 million in taxes.
FanDuel continued its ranking as the operator with the second-highest handle in Massachusetts. Last month, the Flutter-owned brand accepted $215.4 million in wagers. For the same period last year, FanDuel saw its handle in the state reach $155.5 million.
In October, FanDuel generated $15.1 million in taxable revenue and collected $3 million in taxes. By comparison, the operator closed October 2023 with $15.5 million in revenue.
That month, it collected $3.1 million in taxes for the state and local governments.
Fanatics, which launched operations in Massachusetts in 2023, is emerging as a popular sportsbook in the state with the operator ranking No. 4 in handle for October. Last month, Fanatics reported a $35.2 million handle and $2 million in taxable revenue. For the same period last year, the operator posted a $14.8 million handle and $1.2 million in revenue.
It collected $400,746 in taxes last month compared to $250,675 in October 2023.
ESPN Bet is continuing its fight for market share in the state with the PENN-owned brand closing October 2024 with a $25 million handle ranking No. 5 in the state only ahead of Caesars. Last month, ESPN Bet saw taxable revenue reach $1.5 million with $305,414 in taxes collected. By comparison, its handle in October 2023 was $13.8 million.
In October 2023, ESPN Bet generated $1.4 million in revenue with taxes at $289,074.
Tax revenue in Massachusetts
Over the past year, the Commonwealth has more than doubled the total taxes and assessments it collected from sports betting operations. To date, Massachusetts state and local governments have collected approximately $197.5 million in total taxes and assessments from sports wagering. In October 2023, that figure was $72 million.
Massachusetts law requires 45% of tax revenue from sports wagering to be allocated toward the state’s General Fund. The Workforce Investment Trust Fund receives 17.5% of tax revenue with the Gaming Local Aid Fund given 27.5%. The Public Health Trust Fund receives 9% of revenue while the Youth Development and Achievement Fund gets 1%.
