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.
