Projection: MA Sportsbooks Need To Make $32 Million To Be Profitable

Written By Matthew Bain on March 2, 2023 - Last Updated on June 22, 2023
How much money Massachusetts sportsbooks needs to make to be profitable, from

In order to become profitable in Massachusetts, sportsbooks will need to own at least 7-8% of the sports betting market.

That’s according to Eilers & Krejcik Gaming, an independent consulting firm in the gambling space. The information was part of the firm’s free newsletter, The EKG Line. It included thoughts and analysis on Massachusetts, Ohio and the industry at large.

Based on PlayMA‘s projections for a fully mature market, 7-8% would be $32-$36.6 million in annual revenue. Again, that’s not in 2023. That’s for whenever the Massachusetts market is fully mature.

Eilers & Krejcik arrived at its estimation based on the $5 million licensing fees, server costs and 20% MA online sports betting tax rate. For companies such as DraftKings, FanDuel and BetMGM, 7-8% is a cake walk. It’s attainable for Caesars Sportsbook, too, and perhaps even Barstool Sportsbook in the home state of Barstool founder Dave Portnoy.

But for Massachusetts sportsbooks outside those top couple tiers, 7-8% is a steep climb.

That’s why BetRivers didn’t even apply in Massachusetts, and why PointsBet pulled its application at the 11th hour. It’s also why WynnBET is so fortunate the state’s most popular casino, Encore Boston Harbor, is a Wynn property. Bet365 pulled out of the running, too.

“We have chosen this path to emphasize our continued focus on our 14 live states of the US (plus Ontario) and how we can best optimize those markets which provide an immense (Total Addressable Market) for us to go after,” Patrick Eichner, PointsBet director of communications, told PlayMA in regards to why PointsBet isn’t launching in Massachusetts.

Can this actually help smaller sportsbooks?

Fledgling sportsbooks like Betr and Fanatics Sportsbook could benefit from all this. With companies like BetRivers and PointsBet opting to pour their resources elsewhere, Betr and Fanatics likely see more room to carve out a market share as they debut their online sports betting products.

Still, getting 7-8% will be close to impossible. But, for a sportsbook just beginning to launch in the US, profit isn’t going to be the main goal. Brand recognition and getting established in the market — that’s all much more important.

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Matthew Bain is currently the Content Manager at Catena Media’s national online lottery site, PlayiLottery. He used to be the News Content Manager at Catena Media, overseeing news content for the network’s highest-priority regional sites. Massachusetts is a young, promising gambling market, so PlayMA was one of his focuses. Prior to joining Catena Media in 2022, Matthew won 10 statewide and national journalism awards during six years as a reporter and editor for the USA TODAY Network. Matthew's work primarily appeared in the Des Moines Register, but he was also featured in the Detroit Free Press, Indianapolis Star, Arizona Republic, Milwaukee Journal Sentinel, and USA TODAY. Throughout his career, Matthew's bylines have also appeared in the Atlanta Journal-Constitution, Seattle Times, and Orange County Register.

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