Massachusetts is the most recent state to report a decline in sports betting activity as prediction markets continue to steal play from legitimate, licensed sportsbooks.

The Massachusetts Gaming Commission (MGC) said on Monday, June 22, that the combined winnings from its three casinos' slot machines and table games in May were approximately $105.9 million. Additionally, the commonwealth's three physical sports betting locations and seven internet sportsbooks brought in $70.6 million in gross revenue.

With $632.1 million in wagers, which is an almost 4% decrease from May 2025, the oddsmakers recorded fewer bets in May. Even though April had one fewer day, the May 2026 handle likewise showed a 7% decline from April.

The seven online sportsbooks that are active in Massachusetts are Bally Bet, BetMGM, Caesars Sportsbook, DraftKings, Fanatics, FanDuel, and theScore Bet. Retail sportsbooks are also available at the three casinos in the state: Encore Boston Harbor, MGM Springfield, and Plainridge Park.

Nearly $625 million of all sports betting activity in May 2026 came from online licensees.

Sports Betting Is Slow

Massachusetts sports bettors have wagered over $3.45 billion so far this year. That is a 1.35% decrease from January to May 2025, when wagers totaled about $3.5 billion, according to Casino.org's count.

Although 1.35% may not seem like much, after a record January, the year-over-year handling has significantly decreased in recent months. According to the MGC's data, compared to their 2025 counterparts, betting volume decreased in February, March, April, and May.

The most recent high-volume sports betting state to experience handling decreases is Massachusetts.

According to sources, New York, the wealthiest state for sports betting, had a decline of roughly $100 million, or 1%, through May. Sports wagers in New Jersey have decreased by 5.5%, with the handle falling by 9% in May alone. The oddsmakers' handle for Pennsylvania is down 2.4%.

Sportsbook revenue is increasing nationwide despite the decline in handle in certain states. In addition to welcoming Missouri into the legal sports betting market, gaming analysts claim that oddsmakers' hold percentages have increased from roughly 9% to over 11% as a result of bettors' continued fondness for parlay bets.

When gamblers combine two or more wagers into one position, it's known as a parlay, and it gives them a higher return at much longer odds. 

Squeeze on Predictions? 

Today, federally authorized prediction markets such as Kalshi allow anyone in all 50 states to wager on sports. Similar to the purchase and sale of commodities futures, the prediction markets assert that the wagers constitute trades.

State gambling regulations and taxes do not apply to prediction markets. As a result, some claim they can provide more enticing sports prices. There is mounting evidence to back up allegations that prediction markets are cannibalizing bookmakers, given the decline in sports betting handle in 2026.

More than $1.1 billion in state gaming tax revenue has been lost since prediction markets started providing contracts for sporting events late last year, according to the American Gaming Association.

“Prediction market platforms are offering illegal sports betting nationwide outside the state and tribal regulatory frameworks that protect consumers. They override voter decisions, bypass key consumer protections, ignore state and tribal laws, and avoid licensing and taxes,” the AGA contends.