Sports betting surges in Tennessee, Connecticut and Louisiana
The US sports betting market delivered a mixed performance in March 2026. Tennessee posted a record handle, Connecticut saw unprecedented operator parity, and Louisiana benefited from a dramatic tax revenue surge driven by legislative changes.
Tennessee hits record March handle
Tennessee’s online sportsbooks recorded their strongest March to date, with total wagers reaching $562.59 million, up 2.55 per cent year-on-year. Betting volume growth remained modest, but there was a sharp improvement in operator margins. The state’s hold rate rose to 11.19 per cent, up nearly two percentage points compared to March 2025. This increase pushed adjusted gross income to $51.76 million, broadly in line with revenue growth despite slower handle expansion.
Tax contributions also remained strong. Under Tennessee’s 1.85 per cent handle-based tax model, operators paid $10.35 million, marking the third consecutive March above $10 million.
Connecticut sees closest operator race
Connecticut reported one of its most competitive months ever, with total handle reaching $217.12 million and gross gaming revenue at $17.62 million, up around 10.5 per cent year-on-year. The headline story, however, is the razor-thin gap between the state’s two leading operators.
According to US-based sports media platform RG.org, FanDuel led March with $81.00 million in wagers, narrowly ahead of DraftKings at $77.90 million, a difference of just $3.10 million, or less than 2 per cent. Fanatics Sportsbook rounded out the market with $50.73 million, maintaining a solid third-place share.
Connecticut’s tightly regulated structure limits the market to just three operators, creating a level of competitive balance rarely seen elsewhere in the US. FanDuel and DraftKings typically dominate other states with wide margins, but Connecticut’s tribal partnerships and regional dynamics keep the competition close.
The state collected $2.42 million in taxes, applying a flat 13.75 per cent rate on revenue. This model supports returns for the state’s General Fund. Online betting continues to dominate, accounting for more than 96.5 per cent of total wagers, while retail betting declines steadily.
Louisiana tax revenue jumps
Louisiana delivered the most dramatic financial shift among the three states, with tax revenue soaring to $9.43 million, a 130.8 per cent increase year-on-year. This surge comes despite handle rising only 1.58 per cent to $392.52 million. Total betting handle for the month reached $392.5 million, up 12.1 per cent from the same month last year.
The sharp increase follows the implementation of Act 298, which raised the online sports betting tax rate from 15 per cent to 21.5 per cent in August 2025. At the same time, operator margins improved significantly. The hold rate climbed to 11.51 per cent, up from 7.21 per cent a year earlier, driving gross gaming revenue up 62.01 per cent to $45.17 million.
For the year 2025, the total amount handled in sports betting in the state exceeded $4.24 billion, which represents an increase of 15 per cent compared to the previous year. Most of this volume came from online, $3.97 billion in mobile bets and $274.5 million in retail bets.
Shift to online betting accelerates
Online betting now accounts for nearly 95 per cent of all wagers, while retail handle continues to decline sharply. This shift benefits state revenue, as online bets are taxed at a higher rate than retail wagers.
A notable feature of Louisiana’s new framework is the SPORT Fund, which directs 25 per cent of incremental tax revenue towards college athletics. Based on March figures, this equates to roughly $2.4 million allocated for the month, supporting scholarships, facilities, and athlete programmes.
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