FanDuel is the most popular online sportsbook in the United States but in Massachusetts sports betting, Boston-based DraftKings reigns supreme.
Kings of the Realm
According to the Massachusetts Gaming Commission (MGC), DraftKings accounted for nearly 50% of the adjusted gross revenue in May and is undeniably the most popular online betting site in the Baystate.
There are eight online sportsbooks in Massachusetts with Betr and Fanatics just breaking into the market last month, combining for a $443.6 million handle in May while the three retail locations accepted $11.4 million in sports wagers.
DraftKings topped all challengers on its home soil with a $221 million handle and led in the gross revenue category with $30 million of which $6 million was sent to the state’s tax coffers due to its 13.85% hold.
The top sportsbook in just about every other state, FanDuel, was once again a bridesmaid in the Massachusetts market with $135.3M million in handle, $19.7 million in gross revenue, a hold rate of 14.8%, and earmarked $3.9 million for the taxman.
Other Sportsbooks Performance
BetMGM was next with $34.95 million in accepted wagers with an impressive 15.68% hold generating $5.39 million in revenue of which $1.07 million went to the state, while Caesars came fourth with $19 million in revenue for $1.3 million in revenue on a 7.28% hold rate which sent $267,488 to the tax coffers.
WynnBET handled $16.4 million in online betting action, producing $1 million in revenue on a 6.4% hold which delivered $201,942 to the state.
Rounding out the six major players was Barstool which was just barely edged by WynnBET in betting handle but beat them in the other three categories. The bookie of the bros did $16.02 million in total bets accepted for May with an 11.42% hold generating $1.78 million of which $356,994 went to the Commonwealth.
Betr and Fanatics are in their infancy in the Massachusetts market and they handled just over $700,000 in bets combined for $86,000 in revenue and together mailed a check for roughly $17,500 to the state.
Getting the Language Right
The Massachusetts Gaming Commission convened in a public session to discuss how to deal with sports betting companies advertising no-risk bets. The issue is that if a sportsbook offers a free bet in a sign-up or loyalty-based promotion then the language could be misconstrued as it is risk-free.
In a typical “risk-free” bet scenario the customer can bet up to whatever the limit is on the promotion which can range from $250 to $3000.The customer must put up their own money for the initial wager and if it wins then nothing more happens other than the customer gets paid.
However, if the bet loses then the customer gets the amount wagered back in credits, not actual cash. Those credits must be bet and if the “credit bet” wins then that money is instantly turned into cash. So, the customer essentially gets their money back from their initial wager.
It gets dicey when the “credit bet” loses because now the customer has lost their initial bet using their cash and lost a chance at getting their money back with the “credit bet” because that too lost. Therefore, the customer still loses the money from their original bet, making the term “risk-free” disingenuous.
MGC Takes Action to Protect Customers
Although the MGC didn’t spell it out like that in the session we did get an explanation from MGC legal staffer Mina Makarious who said:
“Our read of this is, if there is a statement that a bet will be paid win or lose without any further context of what that means… it would be implying a bet being free of risk if there is no other language there,” such as a disclaimer about credits, he told the commission.
Massachusetts Gaming Commissioner Jordan Maynard warned the state’s eight platform providers that any advertising is subject to review by the MGC, “We are going to ensure that the patrons of the Commonwealth are protected and that they get the deals they are signing up for. And any violation … will be seriously dealt with.”
Calculators
