BOSTON — Massachusetts’ sports wagering industry took more than $323 million in bets last month, continuing a decline in revenue amid a summer slump of major sporting events.
A report issued by the Massachusetts Gaming Commission last week shows that retail and online sports betting operations drummed up about $33 million in revenue for their businesses and more than $6.4 million in taxes for the state.
Sports wagering analysts noted the June handle — or how much in bets were placed during the month — was 27% lower, or about $120 million, than the previous month. It’s also down by about 50% from May’s nearly $455 million haul.
Most analysts attributed to the shortage the summer slump of major sporting events and a drop in promotional ads following the industry’s launch earlier this year. They expect the market to heat up this fall, when football season begins.
“The handle decline in June was expected given the cutback in promotional spend since mobile betting began and the changes in the sports calendar,” said Bill Speros, a senior analyst with Bookies.com. “The Boston Celtics missed out on the NBA Finals, which caused a major loss in potential handle and income for the books.”
Despite the slump, Speros points out that the state is on pace to hit a milestone this month by reaching $2 billion in wagers.
“As the market matures and stabilizes, operators expect a significant boost in September with the onset of the NFL regular season after two more months of smaller numbers in July and August,” he said.
In June, the majority of sports bets were placed online, according to the commission’s report, with DraftKings, FanDuel and six other mobile sportsbooks authorized to take online wagers battling it out for a piece of the market.
DraftKings reported the largest amount of wagers, totaling more than $159.3 million, or nearly half of all wagers placed online, according to the report. FanDuel reported the second highest amount, or more than $96 million in wagers.
“Not only is DraftKings still the market leader in Massachusetts, but it continues to build its lead over FanDuel,” Matthew Bain, an analyst with the industry affiliated PlayMA website, said in a statement. “In June, DraftKings took in 49.3% of the overall $323 million sports betting handle — nearly a full 20% more than FanDuel, which had a market share of 29.7%.”
As in previous months, the sports-betting handle collectively eclipsed revenue from table and slots games at the state’s casinos in June, which totaled more than $35.2 million.
Massachusetts lawmakers authorized sports wagering for adults 21 years of age and older last year, and set up a system to tax and regulate the multibillion-dollar industry.
In-person sports betting began at the end of January, with three casinos licensed to accept wagers on professional and out-of-state collegiate games. In March, mobile bets got underway with six sportsbooks authorized to accept online bets through websites and apps on smartphones and other electronic devices.
Beacon Hill leaders estimate the state stands to get about $60 million a year in tax revenue from the new industry, in addition to upward of $80 million in licensing fees from operators. Analysts say the latest tax revenue collections show the state is on track to meet, or possibly exceed, those projections.
To date, the state has collected more than $40 million in taxes from sports wagering, according to the commission.
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.
Christian M. Wade covers the Massachusetts Statehouse for North of Boston Media Group’s newspapers and websites. Email him at cwade@cnhinews.com.