Massachusetts sports betting revenue fell sharply in January despite an increase in overall player wagers, highlighting a shift in market dynamics as online operators continue to dominate the state’s gaming landscape.

According to the Massachusetts Gaming Commission, taxable revenue from sports betting totaled $82.4 million in January, down 12.7% year-on-year from $94.4 million in January 2025, and 16.4% below December’s record $98.5 million haul. The decline occurred even as bettors spent more overall, signaling tighter margins for operators.

Online Dominates, Retail Lags

Online sportsbooks accounted for nearly the entirety of taxable revenue, generating $82.1 million, while retail sportsbooks contributed just $302,716. Gross revenue before deductions for the month stood at $84.4 million. Player handle — the total amount wagered — reached $808.9 million, up 6.1% from January 2025 but 4.3% below December’s total. Online bets comprised $797.1 million of this figure, with $11.8 million wagered in retail locations. The statewide hold — the percentage of wagers retained as revenue — was 10.19% for January.

In the online sector, DraftKings remained the dominant operator, generating $44.8 million in revenue from $418.3 million in bets, resulting in a 10.71% hold. FanDuel, the closest competitor, recorded $23.2 million in revenue from $199.7 million in bets, representing an 11.62% hold. Third place went to Fanatics with $5.7 million from $62.5 million (9.12% hold), followed by BetMGM with $4.5 million from $57.1 million (7.88% hold), and theScore Bet with $1.8 million from $22.7 million (7.93% hold).

Retail sportsbooks were led by Encore Boston Harbor, which generated $209,263 in taxable revenue from $5.9 million in bets, resulting in a 3.57% hold for the month.

Land-based casinos in Massachusetts posted gross gaming revenue of $96.6 million for January, a slight decline of 1.3% both year-on-year and month-on-month. Slot machines contributed $69.8 million, with table games accounting for $26.8 million. Encore Boston Harbor again led the market with $59.7 million in revenue. Combined gambling tax revenue for the month reached $44 million, with $16.5 million generated by sports betting and $27.6 million from land-based casino activity.

 

Despite a 6.1% increase in player wagers, Massachusetts sports betting revenue fell 12.7% in January, highlighting tighter margins and DraftKings’ continued dominance in the online market.

Market Insights

Despite increased player activity, lower revenue suggests that tighter margins or stronger promotional activity may be reducing taxable profits for sportsbooks. DraftKings’ dominance highlights the concentration of market power in the online sector, while retail sportsbooks continue to account for a small fraction of overall revenue.

The data also signals that land-based casinos maintain a stable revenue base, though year-on-year growth remains modest. As Massachusetts continues to expand sports betting and online access, the balance between operator profitability, player engagement, and tax revenue will remain a key focus for regulators and industry stakeholders.