Q1 2024 Results: DraftKings & FanDuel Top The Massachusetts Sports Betting Charts

Written By TJ McBride on June 13, 2024
Q1 2024 Massachusetts Sports Betting

Now that the first quarter of 2024 has come to a close, sports betting operators have reported to the Massachusetts Gaming Commission on their success.

All operators reported in, but there was no denying the two that stood above the rest: DraftKings MA and FanDuel MA.

Virtually all of the Massachusetts sports betting market share is owned by DraftKings or FanDuel and the first quarter financials proved that once again.

Both DraftKings and FanDuel generated more revenue individually than all other operators combined

Six sports betting operators exist in Massachusetts, though DraftKings and FanDuel consistently stand above the rest when it comes to total revenue.

In the first quarter of 2024, DraftKings generated $91.9 million in revenue, while FanDuel accumulated $54.4 million to take the top two spots in the Massachusetts sports betting market. Combined, those two operators generated $146.2 million of revenue, which accounted for 86.4% of the statewide revenue total.

Even if all other operators’ revenue totals are combined, it does not even come close to either FanDuel or DraftKings. Here are all six operators ranked by revenue:

  1. DraftKings: $91.9 million
  2. FanDuel: $54.4 million
  3. BetMGM: $10.1 million
  4. ESPN BET: $6.6 million
  5. Fanatics Sportsbook: $3.15 million
  6. Caesars Sportsbook: $3.13 million

DraftKings, FanDuel thrive in Massachusetts & beyond

Both DraftKings and FanDuel are thriving beyond Massachusetts as well.

Despite less-than-ideal weather and unexpected outcomes during March Madness, FanDuel Q1 revenue resulted in a 16% growth overall for its company-wide Q1 2024 results. That led to FanDuel announcing on its Q1 Earnings Call that its projections for the rest of 2024 would remain the same.

“We remain confident in our financial year 2024 guidance provided at the financial year 2023 results announcement on March 26, 2024, despite unfavorable US sports results in the last two weeks of March, and there is, therefore, no change to previously communicated ranges.”

DraftKings was so successful in the first quarter of 2024 that it actually raised its projections for the rest of the year. Chief Financial Officer Alan Ellingson outlined the new DraftKings 2024 projections on the company’s Q1 2024 earnings call.

“We are raising the midpoint of our fiscal year 2024 revenue guidance to $4.9 billion from $4.775 billion and the midpoint of our adjusted EBITDA guidance to $500 million from $460 million as a result of our excellent first-quarter results and improved outlook on customer acquisition and engagement for the rest of 2024.”

FanDuel & DraftKings also led Massachusetts sportsbooks in tax contributions

Massachusetts received $35.7 million of tax dollars from sports wagering in the first quarter of 2024, according to figures from the June 3 MGC meeting.

About half of that tax contribution total came from DraftKings alone, with $17.9 million of taxes paid in Q1 2024. FanDuel paid another $10.9 million in taxes.

For perspectives’ sake, both DraftKings and FanDuel paid more in sports wagering taxes during Q1 2024 than any other operator generated in total revenue.

Here are the six operators in the Massachusetts sports betting market ranked by taxes paid:

  1. DraftKings: $17.9 million
  2. FanDuel: $10.9 million
  3. Caesars Sportsbook: $3 million
  4. BetMGM: $2 million
  5. ESPN BET: $1.3 million
  6. Fanatics Sportsbook: $603,625

Massachusetts sports betting is growing at a rapid pace & some lawmakers want a bigger cut

Sports betting may be dominated by two operators, but the market as a whole is thriving.

According to the American Gaming Association, Massachusetts commercial gaming revenue jumped up by a staggering 47.3% from 2022 to 2023. That is a jump in annual gaming revenue from $1.1 billion in 2022 to $1.7 billion in 2023. The reason for such a massive leap in gaming revenue was the legalization of sports wagering, which launched in early 2023.

Now, some Massachusetts lawmakers are feeling like they would want a bigger slice of the pie. Ohio, New Jersey and Illinois likely inspired that desire for more tax dollars. Such states are all taking steps to carve out a bigger chunk of sports betting revenue.

The Massachusetts Senate rejected the sports betting tax increase proposal. Clearly, some level of desire to increase the sports betting tax rate remains, however. Thus, if Massachusetts lawmakers elect to go that route, there will be pushback.

In Illinois, the Senate has approved a sports betting tax increase, and operators responded through the Sports Betting Alliance, a coalition featuring almost all major operators. In its statement, the Sports Betting Alliance issued a threat and a warning.

“This tax hike will mean worse products, worse promotions, and inevitably, worse odds for Illinois customers – not to mention provide a massive leg up to dangerous, unregulated and illegal offshore sportsbooks who pay no taxes and adhere to none of Illinois’ sports betting regulations.”

“Sportsbooks across the industry will have no choice but to reevaluate their level of investment and participation in the state should this become law.”

If Massachusetts attempts to go in a similar direction because of the success of its sports betting market, expect similar pushback from operators.

Photo by PlayMA
TJ McBride Avatar
Written by
TJ McBride

T.J. McBride lives in Denver, Colorado and is best known for his work covering the Denver Nuggets for outlets such as FiveThirtyEight, ESPN, Bleacher Report, and other major outlets. After a decade covering the NBA, T.J. has now stepped into the gaming space and now reports and writes on gambling news across the nation.

View all posts by TJ McBride
Privacy Policy