Massachusetts Sports Betting Sets Record

Massachusetts sports betting is off to a rollicking start to the 2025 calendar year.

The Massachusetts Gaming Commission (MGC) just released The Bay State’s sports gambling revenue figures for the month of January. (As a reminder, these reports usually go public anywhere between one and two months after the fact.) And as it turns out, this will go down as the most profitable month ever for sports betting in Massachusetts.

The operative word here is “profitable.” Typically, you see record-breaking sports betting handles, which encompass the total amount of money wagered. Sportsbook revenue, on the other hand, is more dependent on how bettors fare. If Massachusetts sports betting users win on a large share of their wagers in a given month, the state’s handle can rise while their profits decline. In this case, though, it seems that Massachusetts sports bettors had a tough January.

According to the MGC, the state reported almost $19 million in total tax revenue to open the New Year. This mark easily outstrips the previous high, which was reset this past November.

Full Breakdown of Massachusetts Sports Betting Report for January 2025

Here is Robert Linnehan of Sports Betting Dime with the full breakdown of Massachusetts sports betting’s record-breaking January:

“Massachusetts sports betting started 2025 on an extraordinarily profitable foot. The Massachusetts Gaming Commission reported more than $18.8 million in sports betting tax revenues for January, the most profitable month the commonwealth has ever had since its sports betting launch in 2023. Massachusetts sports bettors wagered more than $762 million in the month. The Massachusetts Gaming Commission reported $18,836,028 in total sports betting tax revenue for January, topping the previous record of $16.04 million in revenue set in November 2024.”

The increase from $16 million to $18.8 million represents an uptick of roughly 17.5 percent. That is a pretty monster margin, all things considered.

Naturally, the question is: Why did sportsbooks fare so well in January? Or rather, why weren’t Massachusetts sports bettors more successful?

Plenty of factors shape this kind of a tax-revenue bump. However, more likely than not, betting on the NFL playoffs.

Super Bowl Betting Likely Played a Role in Maximizing Massachusetts Sportsbook Profits

In particular, the surprising postseason run by the Washington Commanders probably skewed the results of games that were popular to bet on.

The Commanders entered the 2025 NFL playoffs as the No. 6 seed. They proceeded to pull off two major upsets, including a victory over the No. 1 Detroit Lions, en route to making the NFC Championship.

This type of singular run can throw NFL betting returns for a total whirl. And the results can be even more dramatic in January, which is no worse than the second most popular month in which to bet on the NFL.

Beyond this, the results of Super Bowl LIX between the Kansas City Chiefs and Philadelphia Eagles may be a factor as well. While the game was played in February, the matchup was set in January. Bets that rolled in on the Kansas City Chiefs Super Bowl moneyline as well as the Kansas City Chiefs Super Bowl point spread wound up being total flops. And given that they were favored entering the game, it stands to reason a majority of action

Online Sportsbooks in Massachusetts Remain Kings of the Market

With the popularity of online sports betting in the United States still on the rise, operators such as FanDuel and DraftKings continue to see their business dominate individual market shares. This has been the case for Massachusetts sports betting basically all along. Nothing changed in January, either. As Linnehan writes:

“The three retail sportsbooks and eight online sportsbooks generated approximately $94.37 million in taxable gaming revenue in January. Online sports betting accounted for the vast majority of taxable gaming revenue with $93,595,928…In total, Massachusetts sports bettors wagered $762,506,666 in January. Online sports betting apps accounted for the vast majority of the monthly handle, reporting $751,428,398 in total bets.”

At this point, to say Massachusetts online sportsbooks are dominating the market is an understatement. Based on these figures, online sports betting apps in The Bay State accounted for over 99.8 percent of the January handle. As a result, they also made up around 99.2 percent of the total reported revenue.

This is an extreme imbalance relative to retail operators, even when you factor in the larger number of online betting apps in Massachusetts (eight) compared to on-site operators (three). Most will be quick to note this is also standard fare nowadays. If we had to estimate, over 95 percent of all legal sports bets placed in the United States are probably processed through an online operator.

The consequences of this continued trend aren’t yet clear. In all likelihood, it will result in officials calling for higher online sports betting tax rates. The Massachusetts Gaming Commission, in fact, has already proposed legislation that would more than double the current tax rate for online sportsbooks.

Operators, of course, are staunchly opposed to the hike. But when market shares are this lopsided, tax increases feel inevitable—at least in highly desirable states such as Massachusetts.

Take a look at this list of the top online sportsbooks so you can find one that works for all of your sports betting needs: