March Madness: Sports bets topped $568M last month

Massachusetts casinos and sportsbook apps raked in hundreds of millions of dollars in bets in March, the first month of online wagering on games. That bodes well for the state's tax coffers.

A report issued by the Massachusetts Gaming Commission on Tuesday shows that retail and online sports betting operations took more than $568 million in wagers during the previous month, drumming up more than $48 million in revenue for the businesses. 

That translates into more than $9.3 million in taxes for the state, the commission said. 

The sports-betting handle collectively eclipsed revenue from table and slots games at casinos in March, which totaled more than $105 million. 

The majority of sports bets were placed online, according to the report, with DraftKings, FanDuel and four other sportsbooks authorized to take online wagers reporting $548 million in current and future bets last month.

DraftKings reported the larger amount of wagers, totaling $257.6 million, or nearly half of all wagers placed online, according to the report. FanDuel reported the second highest amount, or $181.1 million in wagers.

Of the state's three casinos, Encore Boston Harbor reported the highest monthly haul in slots and table game revenues — $13 million — with taxable revenue of $668,198, according to the commission.

Plainridge Park Casino roped in more than $4.8 million and reported just more than $614,482 in taxable revenue for the month. MGM Springfield took in $1.6 million in wagers and generated about $172,264 in taxable revenue, the commission said. 

The sports-betting revenues were boosted by the March Madness basketball competition, which was promoted by sportsbooks in a massive marketing blitz with TV and digital ads featuring celebrities and former athletes, most offering sign-up bonuses for players.

Experts say the numbers suggest that Massachusetts is on its way to becoming a titan in the sports betting industry. 

"Multiple industry operators expected Massachusetts to be among the top states in the nation in both per-capita and overall wagering," said Bill Speros, a senior analyst with Bookies.com. "These numbers show that the Commonwealth is on its way to doing just that."

Speros said he expects sports betting revenues to "ebb slightly" in coming months, but said playoff runs by the Celtics and Bruins could generate more activity.

The industry affiliated PlayMA.com website called Massachusetts' sports betting haul for March "staggering" and said it "helps set the tone for what should continue to be a robust betting market."

"Massachusetts bettors went all-in on March Madness, betting without a local team in the mix," the group wrote in a blog post.

Massachusetts lawmakers authorized sports wagering for adults 21 years of age and older in August, and set up a system to tax and regulate the multibillion-dollar industry.

Under the system, sports-betting operators are taxed 15% of gross retail wagering sales and 20% for online and fantasy sports wagers. To date the state has collected more than 9.5 million in taxes from sports betting, according to the Gaming Commission. 

In-person sports betting began at the end of January with three casinos — Plainridge Park Casino in Plainville, MGM Springfield and Encore Boston Harbor in Everett — licensed to accept wagers on professional and out-of-state collegiate games.

On March 10, mobile bets got underway with six sportsbooks authorized to accept online bets through websites and apps on users’ smartphones, tablets and other electronic gadgets. Several other sportsbook apps are expected to be authorized in coming months. 

Beacon Hill leaders estimate the state stands to get about $60 million a year in revenue from bets, in addition to upward of $80 million in licensing fees from operators.

At least 35 states and the District of Columbia have authorized betting on sports, with wagers collectively hitting a record of more than $57.2 billion last year.

Supporters of betting say it will raise much-needed tax revenue for state and local governments, and help eliminate illegal bookmaking operations.

Critics say the state’s foray into betting on professional sports comes with the risk of increasing problem gambling, particularly among young bettors.

Christian M. Wade covers the Massachusetts Statehouse for North of Boston Media Group’s newspapers and websites. Email him at [email protected].