Massachusetts-based DraftKings DraftKings 44,26 -1,29% continued to extend its dominance over the rest of the state’s betting operators in its March revenue report. DraftKings pulled up a sensational betting handle of $323 million, more than all other operators combined. DraftKings has excelled in its home state for a while now, and that streak of proficiency is likely to continue well into the immediate future.
DraftKings Generates Solid Win Rate
DraftKings finished March with sports betting revenue at $23.4 million with a hold rate of 7.27%. At a rate of 20%, the company paid $4.5 million in tax to the state on taxable revenue of $22.7 million. DraftKings finished March with the third-best win rate in the state, behind FanDuel and ESPN BET.
They had a terrific 2024 in their home state, with a betting handle of $269.8 million in February and $311.4 million in January in addition to March’s tally, which carried its aggregate to over $900 million in the first three months of 2024. In contrast to February, however, DraftKings had a low hold, bringing it $8 million less in revenue despite generating handle of $54 million more.
FanDuel Leads Massachusetts In Hold
FanDuel Flutter Entertainment 25,46 +0,08% was a distant second in the state, collecting $190.4 million in betting handle. However, the company led the state in win rate, picking up $15.6 million in revenue at a hold of 8.22%. FanDuel paid $3 million in tax on taxable revenue of $15.2 million.
While FanDuel is well off the pace in the race for the top of the Massachusetts sports betting handle board, there are plenty of promising signs, including the hold rate, which has stayed consistent through the last few months. FanDuel had an excellent February, with $158.8 million in handle and $14 million in revenue, down by only about $1.2 million despite significantly lesser wagering.
Rest Of The Field Close Together
The remaining four online betting operators were separated by about $22 million in betting handle. At the top of this bunch was BetMGM MGM Resorts International 36,66 -0,49%, with wagering collections of $45.4 million. At a hold rate of 6.73%, BetMGM retained revenue of just $3 million.
ESPN BET Penn Entertainment 20,74 -2,17% had an efficient month, generating $34.4 million in handle, the fourth highest in the state. However, it also picked up the second-best win rate at 7.5%, which helped the Penn Entertainment-owned brand collect $2.6 million in revenue. ESPN BET ended March by paying close to $500,000 in tax to the state.
Fanatics and Caesars had a comparatively subpar month, with similar figures. Caesars could only manage $25.1 million in handle. At a low hold rate of 5.37%, Caesars picked up revenue of just $1.3 million. Caesars paid $258,073 in tax, less than half of BetMGM’s tax payments.
Fanatics had a state low in almost all metrics, including betting handle collected ($23.7 million), win rate (4.02%), revenue collected ($952,650, the only sub-$1 million operator in the state) and tax paid ($178,986).
Massachusetts Bounces Back From Slow February, Tax Takes Hit
Massachusetts generated $654.9 million in overall sports betting handle in March, the highest this year. The state collected more than $100 million more compared to February’s tally of $542.5 million.
The state’s retail and online operators combined to pick up $46.2 million in taxable revenue, which was the lowest this year. Even the tax collection of $9.2 million was the lowest in 2024.
Handle records indicate ample betting appetite in legal sports betting states. However, if the state’s operators are beaten more by bettors, that subsequently impacts the tax collection as most states levy taxes on gaming revenue, not on handle.
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