Massachusetts Sports Betting Handle Drops, Profits Surge in March

Massachusetts sports betting operators experienced an unusual March as the handle dropped below $700 million for just the second time since August 2025, yet profits reached record levels. The Massachusetts Gaming Commission reported a 9.5% year-over-year handle decrease, with sportsbooks generating $699 million during a month filled with major sporting events. Despite the decline in wagering activity, operators thrived by posting $67.1 million in gross revenue from a 9.6% hold. Profits notably spiked 24% year over year, driven primarily by March Madness upsets that favored the house.

Massachusetts Sports Betting Handle Falls Below $700 Million in March

Total sports betting handle reached $701.4 million in March 2026, marking a 10% decline from the previous month. The figure represented a substantial drop from March 2025’s $772.5 million handle, signaling a shift in betting patterns despite a calendar packed with high-profile sporting events.

Online platforms accounted for the vast majority of wagering activity, while retail sportsbooks contributed just over $8 million to the monthly total. The decline in Massachusetts sports betting mirrored broader regional trends, as New York, New Jersey, and Pennsylvania also reported handle decreases during the same period. These states faced similar conditions despite March hosting the NCAA men’s and women’s basketball tournaments, MLB’s Opening Day, and regular-season games across the NBA and NHL.

The $73 million year-over-year drop positioned March 2026 as an outlier in recent performance metrics. February 2026 had produced $619.9 million in handle, making March’s figure a modest improvement on a month-over-month basis. Nonetheless, the year-over-year comparison revealed sustained pressure on betting volumes across Massachusetts sports betting markets.

Category 3 operators, which include mobile and online sportsbooks, face a 20% tax rate on gross sports wagering revenue, while Category 1 operators managing retail locations pay 15%.

How Did Revenue Surge 24% Despite Lower Handle?

The hold percentage, representing the portion of wagers sportsbooks retain as revenue, drove Massachusetts sports betting profitability upward during March 2026. Operators achieved a 9.6% hold, substantially higher than the 7.08% recorded in March 2024. This improvement in win rate directly translated to $65.4 million in taxable sports wagering revenue, despite the reduced betting volume.

Hold percentages fluctuate based on market dynamics and betting outcomes. In March 2025, sportsbooks across multiple states posted historically low monthly win rates when NCAA Tournament games from the Sweet 16 onward produced no major upsets, with higher-seeded teams winning every game. This outcome aligned with public betting behavior and limited operators’ ability to generate hold despite exceptionally high wagering volume.

March 2026 presented different conditions. The 9.6% hold surpassed typical industry benchmarks and demonstrated how game results can favor sportsbooks independent of total wagering activity. In contrast, March 2024’s $45.5 million in taxable revenue came from a higher handle but lower 7.33% hold.

The mechanics of hold depend on various factors, including the specific betting markets available. Less commonly wagered markets typically carry higher hold percentages than popular leagues, affecting overall profitability across different sporting events and betting options.

DraftKings Dominates While Other Operators Compete for Share

DraftKings extended its commanding lead in Massachusetts sports betting during March 2026, capturing $344.50 million in handle. The Boston-based operator won back 9.7% despite a lower hold than February’s 13.75%. This performance represented 55% of total market revenue, up from just below 50% in March 2025 and 35% when the market opened in March 2023.

FanDuel secured second place with a $172.90 million handle, up $27 million from the previous month. The operator led all sportsbooks with an 11% win rate that generated $19 million in gross revenue. Despite these gains, FanDuel’s market share declined to 27% from 33% a year earlier.

Fanatics recorded $70.30 million in wagers but posted the lowest hold at 6.8%. BetMGM narrowly missed a double-digit win rate on its $52.30 million handle while maintaining a 7.9% market share.

The competitive landscape faces potential expansion after the Massachusetts Gaming Commission voted unanimously to reopen the licensing application process following a request from bet365. The U.K.-based operator, now live in 16 states including Missouri, previously explored entering Massachusetts in 2023 before withdrawing.