Tennessee, Connecticut, and Louisiana Markets Show Surge In Sports Betting Activity

The US sports betting market delivered varied results in March 2026. Tennessee recorded its highest March handle, Connecticut saw tight competition between operators, and Louisiana posted a sharp rise in tax revenue following policy changes.

This data highlights how tax structures, competition and operator performance are shaping outcomes at the state level.

Tennessee records strongest March with improved margins

Tennessee reported its highest March betting handle on record, reaching $562.59 million, which represents a 2.55% increase from last year. Growth in betting volume remained modest, but operator performance improved significantly. 

The hold rate rose to 11.19%, up nearly two percentage points year-on-year. This increase pushed adjusted gross income to $51.76 million, reflecting revenue growth despite lesser wagering activity.

Tax revenue remained stable under the state’s 1.85% handle-based system. Operators contributed $10.35 million, marking the third consecutive March where collections exceeded $10 million.

Connecticut market sees tight operator competition

Connecticut reported a handle of $217.12 million and gross gaming revenue of $17.62 million, up around 10.5% year-on-year.

The key development was the narrow gap between the two leading operators. According to RG.org, FanDuel led the market with $81.00 million in wagers, closely followed by DraftKings at $77.90 million. The difference of $3.10 million represents less than 2% of total wagers. Fanatics Sportsbook held third position with $50.73 million in wagers.

Connecticut’s structure limits the market to three operators, creating a level of competition unseen in larger states. Tribal partnerships and market dynamics ensure a more balanced distribution of betting activity.

The state collected $2.42 million in tax revenue, applying a flat rate of 13.75% on operator revenue. Online betting dominates, accounting for more than 96.5% of total wagers, while retail activity tanks.

Louisiana tax revenue surges after policy changes

Louisiana reported the largest financial shift among the three states. Tax revenue rose to $9.43 million, a 130.8% increase compared to March 2025.

The surge follows the implementation of Act 298, which raised the online sports betting tax rate from 15% to 21.5% in August 2025. Total monthly betting handle reached $392.52 million, a 12.1% boost from the prior year.

Furthermore, the hold rate increased to 11.51% from 7.21% a year earlier, pushing gross gaming revenue up 62.01% to $45.17 million. For 2025, the state’s total handle surpassed $4.24 billion, a 15% increase year-on-year. This volume was driven mostly by $3.97bn in mobile bets and $274.5m in retail bets.

Online betting accounts for nearly 95% of wagers, while retail handle keeps declining. This shift supports higher state revenue, as digital bets are taxed more heavily than retail wagers.

Louisiana has also introduced the SPORT Fund, which directs 25% of incremental tax revenue toward college athletics. Based on March figures, this equates to approximately $2.4 million supporting scholarships, facilities and athlete programmes.

Three of the top betting markets in the US have experienced increases in user activity over the past year. While Tennessee posted record revenue, Connecticut revealed stiff competition between its prominent operators. For Louisiana, legislative reforms led to a significant rise in tax revenue.