Prediction Markets Squeeze Sports Betting: Massachusetts Is Latest State to Report Handle Slowdown
Posted on: June 23, 2026, 09:31h.
Last updated on: June 23, 2026, 09:59h.
- Massachusetts reported a year-over-year decline in sports betting activity in May 2026
- The slowdown mirrors broader trends across major markets, including New York, New Jersey, and Pennsylvania
- Industry groups and regulators argue that federally accessible prediction markets like Kalshi may be siphoning betting volume from state-licensed sportsbooks
Prediction markets continue to poach play from legal, regulated sportsbooks, with Massachusetts the latest sports betting state to report dwindling action.
On Monday (June 22), the Massachusetts Gaming Commission (MGC) reported that its three casinos combined to win about $105.9 million in May from their slot machines and table games. Additionally, the commonwealth’s seven online sportsbooks and three retail sports wagering facilities generated gross revenue of $70.6 million.
The oddsmakers reported fewer bets in May, with $632.1 million in wagers representing a nearly 4% drop from May 2025. The May 2026 handle also represented a 7% falloff from April, despite April having one fewer day.
Bally Bet, BetMGM, Caesars Sportsbook, DraftKings, Fanatics, FanDuel, and theScore Bet are the seven online sportsbooks operating in Massachusetts. The state’s three casinos, Encore Boston Harbor, MGM Springfield, and Plainridge Park, additionally have retail sportsbooks in operation.
Online licensees accounted for almost $625 million of the total May 2026 sports betting action.
Sports Bets Slow
On a year-to-date basis, sports bettors in Massachusetts have staked about $3.45 billion. According to Casino.org’s tally, that represents a 1.35% decline from January through May 2025, when bets totaled almost $3.5 billion.
While 1.35% might seem insignificant, in recent months, year-over-year handle has dropped considerably following a record January. The MGC ‘s reports show that betting volume cooled in February, March, April, and May compared with their 2025 counterparts.
Massachusetts is the latest high-volume sports betting state to see handle declines.
New York, the richest sports betting state, reports handle being down by approximately $100 million, or about 1%, through May. In New Jersey, sports bets are 5.5% lower, with handle plummeting 9% in May alone. Handle for Pennsylvania’s oddsmakers is down 2.4%.
Despite the slowdown in handle across these states, sportsbook revenue nationwide is up. Along with welcoming Missouri to the legal sports betting market, gaming analysts say bettors continuing to fancy parlay bets has helped oddsmakers increase their hold percentages from about 9% to over 11%.
Parlays are when bettors combine two or more bets into a single position, providing them with a greater return but at much longer odds.
Prediction Squeeze?
People in all 50 states can today place a sports bet on federally regulated prediction markets like Kalshi. The prediction markets claim the bets are trades, not unlike the buying and selling of commodity futures.
Prediction markets are not subject to state gaming laws or taxes. Therefore, some say they can offer more appealing prices for sports. With sports betting handle down in 2026, there is growing evidence to support claims that prediction markets are cannibalizing sportsbooks.
The American Gaming Association says that since prediction markets began offering sports event contracts late last year, more than $1.1 billion in state gaming tax dollars have been lost.
“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.
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