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As of 2026, New Hampshire is considered one of the leaders in New England’s gaming industry with a commitment to innovation. The state was the first in the region to create a modern lottery (launched in 1964), as well as having a digitally based, state-of-the-art sports betting market (launched in 2018). The NHLC operates under a hybrid monopoly model that has elements of both a monopoly and a partner-based relationship with private companies.
The market has become more relevant after the 2025-2026 legislative sessions due to many movements toward legalizing ‘iGames’ (internet casino gaming). New Hampshire has traditionally relied on charitable gaming and a single partner for sports betting; now, it is transitioning from a sports-only iGaming landscape to an overall digital space. States like Massachusetts and Maine are becoming more established, and New Hampshire’s ability to continue having one of the highest per capita gaming revenues will be contingent upon the upcoming regulatory changes and continued partnership with DraftKings.
Market Overview
The iGaming and digital lottery industry in New Hampshire has been growing rapidly through 2025 and into early 2026. The market is primarily driven by mobile sports betting and iLottery, which are driving growth in the state as it looks to legalize online casinos fully.
Table 1: Annual Market Performance (2022–2025)
| Year | Total Handle (Wagers) | Gross Revenue (GGR) | Average Hold % |
|---|---|---|---|
| 2025 | $845.1 Million | $98.87 Million | 11.6% |
| 2024 | $796.3 Million | $79.07 Million | 9.9% |
| 2023 | $822.1 Million | $80.04 Million | 9.7% |
| 2022 | $891.7 Million | $66.71 Million | 7.5% |
Market Size and Revenue
The New Hampshire gaming market is currently valued at approximately $500 million in annual revenue (excluding traditional lottery sales). The state’s unique model—prioritizing high revenue shares for public education—has allowed it to rank third in the U.S. for per-capita state revenue from sports betting.
- Sports Betting: In the full year 2025, the state recorded a massive $880.6 million in total handle (amount wagered), a 11% year-over-year increase. This generated nearly $100 million in Gross Gaming Revenue (GGR), with roughly $40 million directed to the Education Trust Fund.
- iLottery & Traditional Lottery: The New Hampshire Lottery reached an all-time high in FY 2025, contributing $209 million to public education. The iLottery segment alone has seen monthly contributions to the state reach nearly $3 million in early 2026.
- Charitable Gaming (HHR): Often considered the “retail” counterpart to iGaming, Historical Horse Racing (HHR) and “games of chance” saw revenue soar to $250 million in 2025, with state projections suggesting this sector could hit $1.1 billion by 2028.
Table 2: 2025 Monthly Revenue Snapshot (Sports Betting)
| Month (2025) | Handle (Wagers) | GGR | State Education Share |
|---|---|---|---|
| January | $78.9 M | $11.1 M | $5.6 M |
| March | $77.4 M | $6.7 M | $3.4 M |
| May | $61.4 M | $8.0 M | $4.1 M |
| September | $75.3 M | $6.7 M | $3.4 M |
| November | $86.5 M | $12.5 M | $6.3 M |
| December | $85.4 M | $10.5 M | $5.3 M |
Popular Game Types
While “iGames” (online slots and table games) are still awaiting full legislative approval for a wider rollout, the New Hampshire player exhibits clear preferences:
- Mobile Sports Betting: Dominated by the NFL, NBA, and NHL. Live/In-game betting now accounts for over 50% of the total handle, driven by the high-speed mobile infrastructure in the state.
- e-Instants (iLottery): These digital “scratch” games are the most popular lottery-style products, offering slot-like mechanics that bridge the gap for casino enthusiasts.
- Historical Horse Racing (HHR): At retail locations, HHR terminals—which function similarly to slot machines—are the fastest-growing vertical, with over $60 million collected by the state in 2025 alone.
Player Demographics and Preferences
New Hampshire bettors are becoming younger and are more familiar with technology than in the past:
- Age: By early 2026, the average New Hampshire gambler will be approximately 41.9 years old (down from 43.6 in late 2020), which reflects a continued trend of younger individuals participating in gambling for at least five years.
- Gender: The majority of the state’s gambling participants are men, making up roughly 64% of the total market; however, women participate at a much higher rate in iLottery than they do in sports betting.
- Behavioral Trends:
- Mobile Dominance: Approximately 80% of all New Hampshire wagers are made on a mobile phone or tablet.
- High Level of Engagement: In FY 2025, New Hampshire residents placed over 27 million individual wagers, indicating that residents have formed a culture of frequent, small-stakes betting.
Table 4: Player Demographics & Preferences (2026)
| Demographic Segment | Profile / Statistic | Primary Preference |
|---|---|---|
| Core Age Group | 21–34 (Fastest Growing) | In-play/Micro-betting |
| Secondary Age Group | 45–60 | iLottery & e-Instants |
| Gender Split | 64% Male / 36% Female | NFL/NBA (M) / Lottery (F) |
| Device Usage | 92% Mobile / 8% Retail | Native Apps (iOS/Android) |
| Payment Method | 65% Digital Wallets | Apple Pay & PayPal |
Regulatory Landscape
New Hampshire has a highly centralized regulatory structure because the State is both the Regulator and the Primary “Owner” of the Gaming Marketplace, having what is referred to as a “Lottery-Run” Model that is different from the “Open-Licensing” Models used by states near New Hampshire.
Table 3: iGaming Legislative Framework (SB 168 Proposal)
| Feature | Proposed Requirement (SB 168) |
|---|---|
| Number of Licenses | 3 to 6 Operators |
| Tax Rate (GGR) | 45% |
| License Fee | To be determined by the NHLC bid process |
| Mandatory Partnership | Must partner with a physical NH Charitable Gaming site |
| Revenue Allocation | 25% Education, 25% Municipal Tax Relief, 50% General Fund |
Regulatory Authorities and Licensing
The New Hampshire Lottery Commission (NHLC) is the sole regulator of all forms of legal betting on games of chance. The NHLC Investigations and Compliance Division is responsible for ensuring that the integrity of the betting market is maintained.
- Monopoly: Currently, the NHLC has been given the authority by law (RSA 287-I) to contract with a limited number of vendors. Since 2019, DraftKings has been in an exclusive contract with NHLC to offer mobile sports betting.
- Retail Partnerships: Operators are required to partner with an existing charitable gaming facility in order to offer a sportsbook. There are no commercial or tribal casinos in New Hampshire.
- iLottery: The iLottery is regulated by a separate statute from the normal lottery; the iLottery is operated directly by the NHLC in partnership with NeoPollard Interactive.
Taxation and Compliance
New Hampshire’s gambling laws use a “revenue share” approach instead of traditional taxes on gambling revenue, which has resulted in one of the highest taxes on gambling revenue in the United States.
- Revenue Share: The state receives 51% of Gross Gaming Revenue (GGR) from mobile sports betting, but if there are two operators in the same market, the GGR will drop to 21%. Therefore, New Hampshire has an incentive to keep its monopoly on sports betting operations.
- Use of Proceeds: The lottery and sports betting proceeds are required by the state constitution to be placed in the state’s education trust fund to fund local school districts.
- Age Requirement: New Hampshire is one of the few states in the country with an age limit of 18 to place bets on sports and engage in lottery operations. A proposal was also made to change the age requirement to 21 so that it is consistent with other vices such as alcohol, but the proposal was defeated in committee at the beginning of 2025 due to the economic implications on lost revenue and the protection of individual freedom.
Upcoming Changes: The iGaming Push (2026)
A major regulatory issue concerning SB 168 is that it focuses on legalizing iGaming (internet games). There are several proposed pieces of legislation before the CA legislature regarding the regulation of iGaming:
- The “Competitive monopoly plan” which allows only 3-6 Liq. nered iGamers to operate legally;
- A 45% tax on GGR revenue from iGaming (online slots & table games);
- A distribution plan for those taxes between the Education Trust Fund at 25%.
- a new fund set up for tax exemptions for the elderly and/or disabled, also at 25%, and ultimately the General Fund at 50%.
Competitive Landscape
New Hampshire’s iGaming and sports betting environment is defined by a strategic monopoly structure for digital operations, contrasted by a rapidly consolidating and highly competitive retail charitable gaming sector.
Key Market Players
- DraftKings (The Digital Leader): DraftKings holds an exclusive monopoly on mobile and retail sports betting in New Hampshire. In December 2025, the NHLC exercised a contract extension option, securing DraftKings as the state’s sole provider through June 30, 2028.
- Aristocrat Interactive (NeoGames/NeoPollard): Following the 2024-2025 merger activities, Aristocrat Interactive now serves as the sole provider for the state’s iLottery solution. A new seven-year agreement, which commenced July 1, 2025, integrated advanced player management (PAM) and “e-Instant” game studios to drive digital lottery growth.
- Churchill Downs Incorporated (CDI): CDI has emerged as the dominant force in the “hybrid” gaming space. In early 2026, CDI announced the redevelopment of Casino Salem into the Rockingham Grand Casino, a $200 million project featuring over 1,000 gaming positions, including Historical Horse Racing (HHR) terminals.
- Delaware North: Operating the Boston Billiard Club & Casino, Delaware North is a major player in the retail gaming space, focusing on integrating HHR machines and high-end hospitality to compete with Massachusetts commercial casinos.
Table 6: Market Share Distribution
| Vertical | Lead Operator | Market Share |
|---|---|---|
| Mobile Sports Betting | DraftKings | 100% |
| iLottery | Aristocrat Interactive | 100% |
| Charitable Gaming (Retail) | CDI / Delaware North / ECL | Fragmented (Consolidating) |
Partnerships and Strategic Alliances
The “New Hampshire Model” relies heavily on public-private synergy. The NHLC acts as the hub for all partnerships:
- DraftKings & Retail Venues: DraftKings does not own its physical sportsbooks; instead, it partners with charitable gaming facilities like The Brook (Seabrook) and The Nash Casino (Nashua). This creates an “omnichannel” experience where players can bet via app or at a self-service kiosk.
- iLottery & Retail Integration: The NHLC’s partnership with INTRALOT (extended through 2033) ensures that digital lottery players can use retail “Dream Touch” vending machines and PhotonX terminals, bridging the gap between home-based iGaming and in-store purchases.
- Local Non-Profits: Unique to NH, every gaming operator must partner with registered 501(c)(3) charities. In 2025, these partnerships generated over $64 million for local non-profits, a critical factor in maintaining public and legislative support for the industry.
Note for Investors: The mobile sports market is not accepting new business until 2028, but potential new iGaming legislation (SB 168) could create 3-6 new licenses available to online casinos by late 2026, allowing international operators back into New Hampshire for the first time in more than 5 years.
Consumer Trends
By 2026, consumers in New Hampshire’s iGaming will have a high level of digital literacy and expectations for “on-demand” (acting as soon as possible) gaming. Players are moving away from traditional monetary gambling in favor of forming a lifestyle that involves consistently engaging in gambling when they want to or need to, rather than being limited to events.
Player Behavior and Game Preferences
Granite Staters have a strong love for rapid, high-volume engagement with gambling.
- Growth of Micro-Betting: With the help of the limited access provided by DraftKings to its customers and its existing technology stack, micro-betting has gained significant acceptance among bettors. Instead of betting on the winner of an event, bettors are now utilizing in-play micro-markets (e.g., the outcome of the next pitch or the outcome of each play in an NFL game). In-play betting accounted for a little over 54% of total mobile handle in February 2026.
- Gamified iLottery: Players using the NH iLottery platform prefer a type of instant play game called “e-Instant,” which reflects the same randomness found in a casino game. In addition, these games provide immediate and ongoing win/loss feedback to players, and as a result, the amount of time that players spend on these games has increased by 15% over the previous 12 months, as they are using them as a type of casual mobile entertainment.
- Cross-Vertical Engagement: The acceptance of a growing number of new bettors wagering on sporting events on weekends, and engaging with their iLottery or social gaming applications during the week, is known as “dual-players.”
Payment Methods and Technological Trends
The main factor for platform loyalty in New Hampshire is efficiency in the cash-in-to-cash-out processing cycle.
- The lead nodes of payment methods have shifted to digital wallets: Apple Pay, Google Pay, and PayPal usage have surpassed all other traditional forms of payment in New Hampshire, making up 65% of the total deposit activity. They can be used immediately with added speed due to their biometric security features.
- Many New Hampshire players have migrated to using Direct Bank Transfer (DBT) as a means of payment for compliance with KYC regulations, which will be enforced in 2026. DBT allows members of regulated companies to withdraw their funds almost instantly, thus providing a significant competitive advantage for regulated operators over offshore “gray market” operators.
- Some platforms are currently utilizing real-time data to provide players with “Predictive Convenience” by sending them customized odds or lottery picks based on their historical betting behaviour just before game time.
Social and Cultural Influences
- The educational nature and exposure to gambling revenue are why the public is so aware of where that money goes in this state. In the marketing process, emphasizing the Education Trust Fund reduces the social stigma associated with gambling and allows the public to perceive it as a voluntary tax that benefits local schools.
- For individuals aged 18 to 30 years old, sports betting has become a major part of their overall enjoyment of being fans of particular teams. Sports betting is no longer an isolated event but serves as a conduit for interacting with peer groups via Discord and social media betting circles.
- As a result of the digital surge, the physical sportsbooks located at The Brook and similar establishments have become social cathedrals. Customers can interact with their communities and experience good hospitality when they place their bets at these locations.
Table 7: Consumer Trend Summary (2026)
| Trend | Impact on Market | Consumer Driver |
|---|---|---|
| Micro-Betting | High | Demand for instant gratification |
| Digital Wallets | Very High | Need for security and payout speed |
| iLottery Growth | Medium | Preference for casual, “bite-sized” gaming |
| Social Betting | High | Integration with peer groups and fan identity |
Opportunities & Challenges
Opportunities
- Expansion of iGaming: With the passage of SB 168 to allow complete online access to slots and table games, we anticipate market revenue to triple over the next 2 years from the current state of players who currently play at sea or travel out of state to play at casinos in Massachusetts.
- Hyper-Personalized: AI-driven data gathered from Lottery and Sports Betting apps can generate “Hyper-Personalized” benefits, demonstrating an ability to retain players longer in the very high MGD taxed state of NH.
Challenges
- The “Monopoly” Risk: The scarcity of competition can produce less aggressive odds compared to a situation in which there is more than one operator, and provides for a slower pace of innovation, as multiple states may have multi-state operators.
- Regional Competition: Both Massachusetts and Maine are aggressive in their marketing spend, and New Hampshire must depend upon its “no state income tax” and “highly accessible (user-friendly) apps” to keep residents from wagering in other states.
- Responsible Gaming Compliance: The implementation of a 21+ requirement will require a significant investment in re-verifying the existing database on current players due to the need to ensure that those under the age of 21 are not allowed to gamble, thus creating an operational burden for the current monopoly holder.
Conclusion & Recommendations
New Hampshire remains a “small but mighty” player in the U.S. iGaming sector. Its success is built on a high-margin, low-competition model that maximizes revenue for the state’s Education Trust Fund.
Strategic Recommendations:
- Investors should monitor SB 168 closely for operational changes. If they choose to implement a 3-6 operator type structure for iGaming, the operators entering the space first will have a major advantage as they can easily integrate into existing charitable gaming establishments.
- For operators specifically, delivering a digital product that maintains some resemblance to the HHR style of digital gaming (the local HHR player) means that the player has become accustomed to charitable gaming, and the marketing that focuses on local community impacts will be successful vs. national “big brand” style marketing.
The future looks bright for DraftKings to maintain its position as a top provider of legalized sports betting in NH. However, we expect the regulated online casino gaming market to open with limited access in late 2026 or early 2027. This will provide a way to recover lost revenue as competition increases within New England.
Data and Sources:
- New Hampshire Lottery Commission (NHLC): Confirmed FY 2025 record of $39 million delivered to education from sports betting and 27 million total wagers.
- New Hampshire Secretary of State: Documentation of the DraftKings contract extension through June 30, 2028, and the increase of retail promotional deductions to 40%.
- American Gaming Association (AGA): Verification of the 51% tax rate on mobile sports wagering and the competitive impact of neighboring states (ME, VT, MA).
- LegiScan & BillTrack50: Status of HB 83 (raising the betting age to 21), which was indefinitely postponed/tabled in Feb 2025, and SB 188/SB 168 regarding iGaming expansion.
- Business NH Magazine: Reports on the $60.2 million collected by the state from charitable gaming/casinos in 2025 and the role of Historical Horse Racing (HHR).
- Covers.com: Specific 2025 handle totals ($845.1 million) and hold percentage (11.6%) verified through late 2025 audits.
- World Lottery Association: Details of the Aristocrat Interactive (NeoGames) seven-year agreement starting July 1, 2025, to provide the state’s iLottery solution.
