Which sports betting stock performed the best?
Sports betting in Massachusetts set a monthly record in January, as sportsbooks brought in $94.4 billion in taxable revenue last month, according to the Massachusetts Gaming Commission.
That was up 64% from December’s haul and 32% year over year. It also easily surpassed the previous revenue record set in November 2024 by 17%. Online sports gambling was legalized in the state in March 2023 but real money online casinos are still not legal.
Overall, $751.6 million was bet in January in the state, with a 12.7% hold rate, which is the percentage of money a sportsbook keeps on the wagers.
The handle, or amount bet, was lower than both December and November, but the high hold rate accounted for the record setting revenue. The hold rate was just 7.6% in December and 10% in November.
DraftKings dominates
DraftKings (NASDAQ:DKNG), which is headquartered in Boston, once again led the way in taxable revenue with $51.8 million, up from $29.6 million in December and $44.2 million in November. The company had a handle of $377 million, which was below November, but it had a much higher hold rate of 14%.
FanDuel, which is owned by Flutter Entertainment (NASDAQ:FLUT), was next with $28.8 million in revenue, up from $18.8 million in December and $24.5 million in November. FanDuel had a handle of $217.3 million and a hold rate of 13.5% in January.
Seven sportsbooks are licensed to operate in Massachusetts, with DraftKings and FanDuel dominating.
Which sports betting stock has performed the best?
BetMGM, owned by MGM (NYSE:MGM) was third with $5.5 million in revenue, followed by Fanatics with $3.5 million. ESPN Bet, owned by Penn Entertainment (NASDAQ:PENN) was next with $2.3 million, followed by Caesars (NASDAQ:CZR) with $1.2 million in revenue in January. Bally’s (NYSE:BALY) was last with $494,000 in revenue.
DraftKings and FanDuel had the highest hold rates, followed by Bally’s at 10.7%. Caesars had the lowest hold rate at just 5.5%.
Also, Massachusetts’ three casinos, Plainridge Park Casino, MGM Springfield, and Encore Boston Harbor generated $98 million in gaming revenue in January. This was down from $103 million in December and $101 million in November. Encore had roughly $546,000 in revenue, followed by Plainridge Park with $336 million.
Of the sports betting stocks that trade on the stock market, DraftKings has been the best performer this year, with the stock up 14.3%. Caesars is next with a 4.3% YTD return.
