Massachusetts Gaming Revenue Dips Despite Sports Betting Surge

Massachusetts witnessed a remarkable surge in sports betting activity during the month of November, with sports bettors placing wagers totaling $654.4 million. This marked a substantial 15% increase compared to the previous month's $571.8 million. The surge even outperformed the state's previous best month in April 2023 when $579.3 million was wagered.

However, despite the record-breaking handle, the sports betting revenue saw a decline of over 16% compared to the previous month. November's revenue hold was just 7.72%, down from October's 10.5%. In May, Massachusetts achieved a record handle of $61.0 million.

DraftKings continued its dominance in the Massachusetts betting market by breaking the state's monthly handle record in November, with players contributing $320.0 million in bets. This surpassed the previous record set in October when $304.8 million was wagered. Nevertheless, revenue dropped from $34.3 million in October to $27.2 million in November, following a trend seen throughout the state.

The most notable development was Penn Interactive's remarkable growth. In October, the company recorded only $13.9 million in wagers with a revenue hold of 10.65%. However, in just one month, this picture changed dramatically. Penn Interactive handled $39.1 million in wagers in November, an increase of nearly $16 million, resulting in taxable gaming revenue of $5.7 million. Their revenue hold also increased to 14.86%, the highest in Massachusetts.

ESPN Bet, a product of Penn's partnership with Disney-owned ESPN, made a significant impact since its launch across 17 states in November. The app was downloaded over a million times within the first six days of its launch. DraftKings' CEO, Jason Robins, expressed interest in ESPN Bet's progress, and only DraftKings and FanDuel surpassed Penn Interactive in total wagers settled in November.

While the future remains uncertain, these early signs suggest that Massachusetts' sports betting market is evolving rapidly, with Penn Interactive playing a notable role in its growth.