Published on: June 23, 2026, 09:31h.
Updated on: June 23, 2026, 09:31h.
- Massachusetts sees a drop in sports betting year-over-year during May 2026
- This trend reflects a wider decline across key states, including New York, New Jersey, and Pennsylvania
- Regulatory bodies and industry groups suggest that federally approved prediction markets like Kalshi are diverting bettors from state-licensed sportsbooks
Prediction markets are drawing players away from established legal sportsbooks, with Massachusetts recently reporting a notable decrease in betting activity.
On Monday, the Massachusetts Gaming Commission (MGC) announced that their three casinos collectively earned about $105.9 million in May from slot machines and table games. Furthermore, the state’s seven online sportsbooks and three physical sports betting venues reported gross revenues of $70.6 million.
Sportsbooks reported a reduction in wagers in May, totaling $632.1 million, which marks a nearly 4% decrease compared to May 2025. This figure also reflects a 7% dip from April, despite April featuring one fewer day.
The seven online sportsbooks operating in Massachusetts include Bally Bet, BetMGM, Caesars Sportsbook, DraftKings, Fanatics, FanDuel, and theScore Bet. Additionally, the Commonwealth’s three casinos—Encore Boston Harbor, MGM Springfield, and Plainridge Park—also house retail sportsbooks.
Online sportsbooks accounted for nearly $625 million of the sports betting activity in May 2026.
Decline in Sports Betting
So far this year, sports bettors in Massachusetts have wagered approximately $3.45 billion. This statistic represents a 1.35% decrease compared to the same period in 2025, when the total was nearly $3.5 billion.
Although a 1.35% drop may seem minor, there has been a significant decline in handle in recent months following a record-setting January. Reports from the MGC indicate that betting volumes have decreased in February, March, April, and May relative to their 2025 equivalents.
Massachusetts joins the ranks of several high-volume states experiencing a dip in betting handles.
In New York, the leading sports betting state, reports indicate a handle decrease of around $100 million, or roughly 1%, through May. Meanwhile, New Jersey has observed a 5.5% decline, with a notable 9% drop in May alone. Pennsylvania’s sportsbooks report a 2.4% decrease in handle.
Despite the decreasing handles, sportsbooks across the nation are witnessing revenue growth. With Missouri now entering the legal sports betting landscape, gaming analysts note that the trend of bettors favoring parlay bets has enabled oddsmakers to enhance their hold percentages from approximately 9% to over 11%.
Parlay betting allows gamblers to merge two or more wagers into a single bet, offering potentially higher returns, albeit with longer odds.
Impact of Prediction Markets?
Individuals across all 50 states can currently place sports wagers on federally regulated prediction markets like Kalshi. These platforms claim that their betting is akin to trading in commodity futures.
Unlike traditional sportsbooks, prediction markets do not fall under state gaming regulations or taxation. Therefore, advocates argue they can present more attractive odds for bettors. With the state’s betting handles declining in 2026, evidence is steadily mounting that prediction markets may be drawing funds away from sportsbooks.
According to the American Gaming Association, since the introduction of sports event contracts on prediction markets late last year, over $1.1 billion in state gaming tax revenue has been lost.
“Prediction market platforms facilitate illegal sports betting across the nation, circumventing state and tribal regulations that safeguard consumers. They undermine voter decisions, override crucial consumer protections, disregard state and tribal statutes, and evade licensing requirements and taxes,” asserts the AGA.