While there’s plenty of anticipation about Massachusetts’ digital version of sports betting arriving Friday, operators could find the route to profitability more challenging there than in other states.
The Massachusetts Gaming Commission’s advertising and responsible gambling guardrails are far more strict than in other states and the cost to get up and running is high. While stakeholders believe that Massachusetts will outperform its population size, the Bay State is the 16th biggest in the U.S. and will become the 10th largest with live digital wagering. Its population is about one-third the size of New York’s and about half of Pennsylvania’s, the two biggest states in the U.S. with legal digital wagering.
In the second state to go live in 2023, the Massachusetts commission is set to launch seven digital platforms — Barstool Sportsbook'(Plainridge Park),'BetMGM'(MGM Springfield),'Betr'(standalone),'Caesars Sportsbook'(Encore Boston Harbor),'DraftKings'(standalone),'FanDuel'(standalone), and'WynnBET (Encore Boston Harbor). Ohio regulators launched more than 15 platforms and retail sportsbooks Jan. 1. In-person wagering began at Massachusetts brick-and-mortar casino sportsbooks on Jan. 31.
The challenges of the market are forcing operators to think hard about whether to enter it, and once the decision is made to do so, it seems likely that operators will have to find unique ways to reach customers.