Massachusetts Sports Betting Revenue Surges to Four-Month High in May

by Blake Roberts, July 02, 2025

The Massachusetts legal sports betting market recorded $80.7 million in taxable revenue during May 2025, marking the highest monthly total since January.

Market Performance and Key Drivers

The MA sports betting market delivered a strong performance in May, generating $80.7 million in total revenue. That is a 41.6% increase year-over-year and a 22.5% jump from April.

These figures mark the state’s second-highest monthly total since the legalization of sports wagering. They are only eclipsed by the record $94.4 million posted in January 2025.

Online sports betting drove the surge, accounting for nearly $79.9 million, 99% of the total revenue. Retail sportsbooks contributed just $829,605.

The statewide handle reached $655.8 million, representing an 11.7% increase year-over-year. However, this figure did fall about 5% short of April’s handle of $690.3 million.

The operators averaged 12.58%, the third-highest win rate in Massachusetts’ 27-month history. This is partly attributed to unexpected outcomes in professional sports.

The rise in revenue was driven by a combination of factors, including favorable outcomes in the NBA playoffs. Notably, the Boston Celtics, a popular team among Massachusetts bettors, were unexpectedly eliminated by the New York Knicks in the postseason. This led to increased losses for local bettors and higher profits for sportsbooks.

DraftKings Remains the Market Leader in Massachusetts

DraftKings solidified its market leadership. It achieved 50.5% of the statewide handle ($330.8 million) and 51.5% of revenue ($42.4 million), translating to a 12.82% hold rate.

FanDuel ranked second with a $171.9 million handle and $23.1 million revenue. Smaller operators like ESPN Bet ($21.9 million handle) and Caesars ($20.7 million) trailed significantly.

Retail facilities contributed minimally, with Encore Boston Harbor’s sportsbook leading brick-and-mortar venues at $4.99 million in wagers.

Tax Revenue Boost State Funds

The revenue surge delivered $16.1 million in state tax contributions. This was Massachusetts’ second-highest monthly collection after January’s $18.8 million record.

Under current tax structures, mobile and online operators contribute 20% of adjusted gross revenue to state coffers. In comparison, retail venues pay 15%.

Since sports betting’s 2023 launch, Massachusetts has collected approximately $128 million in cumulative sports wagering taxes. These funds are allocated to various state programs, including the General Fund, Gaming Local Aid Fund, Workforce Investment Trust Fund, Public Health Trust Fund, and Youth Development and Achievement Fund.

Regulatory Developments

This revenue peak emerges amid legislative uncertainty. State Senator John Keenan’s proposed “Bettor Health Act” seeks to hike online tax rates from 20% to 51%. It also imposes advertising bans during live games and mandates affordability checks. Keenan argues that the unrelenting industry growth demands intervention.

“It’s a multi-billion-dollar business that is growing every single day. Now, what I’m hearing from people is that they feel that they can’t even watch a sporting event without something come up relative to placing a bet. And they feel that it is too much.”

John Keenan – State Senator

Sports Betting Alliance, a trade association representing sports books such as DraftKings and FanDuel, warned such measures could backfire. They argued that raising sports betting taxes could drive MA bettors to unregulated platforms.

“Offshore online bookies, who pay no taxes, already provide better odds for the same games – this tax increase would make that difference even more drastic.”

Statement from Sports Betting Alliance

The bill remains in committee review as lawmakers balance revenue generation against consumer protection priorities.

Market Outlook

The strong performance in May suggests continued growth for Massachusetts’ sports betting market. The sports calendar is ramping up for a summer featuring major events, like the US Open. Industry observers will watch whether Massachusetts can sustain this growth or even challenge its January highs in the coming months.