US Sports Betting Pushes Ahead: State Handles Rise and Policy Shifts Ripple Through Midwest and Northeast

Pennsylvania’s online sports betting handle fell nearly 10% in January 2026 to $747.8 million, largely due to the Philadelphia Eagles’ playoff elimination, according to Yahoo Sports. Despite the drop in wagering volume, sportsbooks’ revenue surged 37.5% year-over-year, boosting tax receipts for the state, with FanDuel maintaining its market leadership despite slight declines in its handle and revenue.

In neighboring Illinois, lawmakers are advancing legislation to ban local governments from imposing separate sports betting taxes, aiming to create a unified state regulatory framework. The proposed bill responds to recent tax increases in Chicago and has strong backing from major operators concerned about the risks posed by a fragmented tax landscape, according to Yahoo Sports.

Massachusetts saw a 6.1% year-over-year growth in sports betting handle for January 2026, reaching $808.9 million, with DraftKings leading online wagering and sustaining a double-digit win rate for the third month. The state’s expanding market reflects rising player interest and consistent sportsbook performance, as reported by Yahoo Sports.

Connecticut continues to develop a competitive sports betting environment with online and retail sportsbooks such as DraftKings, FanDuel, and Fanatics operating since October 2021. The market emphasizes user incentives like bet-and-get offers and first-bet insurance, alongside regulations restricting college sports betting on in-state teams like UConn, according to Fox Sports.

Meanwhile, Wisconsin’s House approved a bill to legalize statewide online sports betting, potentially granting an exclusive operational monopoly to tribal entities if the Senate also approves the measure. The bill faces opposition over revenue sharing concerns linked to the Indian Gaming Regulatory Act, and its fate will depend on upcoming Senate deliberations, reports Yahoo Sports.

Key developments to watch include Illinois’ legislative progress on tax policy, the Wisconsin Senate’s decision on the online betting bill, and how Pennsylvania sportsbooks balance handle declines with revenue growth. These shifts will influence market dynamics and regulatory approaches across the Midwest and Northeast.