The Louisiana Gaming Control Board’s latest sports wagering revenue report revealed an unprecedented spike in sports betting activity within the Pelican State in November.
The report showed an astounding leap in the total value of bets placed, reaching an impressive $356.5 million. This spike marks a historic milestone, a record for monthly handle in Louisiana’s sports betting market.
November’s handle unseats the previous record of $308.6 million set in the past month, surging ahead by 15.6%. Also, this figure represents a 32.7% increase compared to the total wagers reported during the corresponding month of the previous year.
Louisiana’s online sports betting operators were responsible for the surge in November. They processed a total handle of $322.9 million, up 16.9% from October’s figures, which stood at $276.2 million. Retail sportsbooks experienced a boost in in-person bets, reaching $33.5 million with a modest 3.4% increase compared to October’s numbers.
Louisiana November Revenue Plummets
The unprecedented handle recorded in November exerted downward pressure on the state’s monthly revenue figures. Both online and retail operators combined to generate a total revenue of $19.4 million.
This was a significant improvement from the $25.6 million loss incurred in the previous year. The loss was influenced by several substantial bets won on the Major League Baseball World Series, placed by American businessman Jim “Mattress Mack” McIngvale.
However, the narrative takes a stark turn when measured against the previous month’s performance. November’s revenue falls drastically short by 55.2% when compared to October’s record-breaking revenue of $43.3 million.
Online operators amassed a revenue total of $18.1 million, while their retail counterparts brought in $1.3 million. The online sportsbooks recorded a deduction of $9.8 million in promotional value, contributing to the notable increase in handle in the month. The retail locations, on the other hand, allocated a more conservative sum of $13,962 towards promotions during the month.
Louisiana Hold Percentage Drops Drastically
Louisiana’s operators faced a significant drop in revenue, primarily due to a low hold percentage reported in November.
Bettors displayed a remarkable improvement in their win percentage during this period, resulting in a considerable drop in the operators’ win rate. October’s promising 14.2% win rate for online operators sharply declined to a mere 5.6% in November. Retail operators were not spared as their hold percentage declined from 10.1% to 4%.
In contrast to the same period in 2022, November witnessed a substantial downturn in revenue for both online and retail operators. Online operators faced a staggering 98.4% decline in revenue. Retail locations experienced a 57.8% drop in revenue.
The impact on the state’s tax revenue was palpable, with Louisiana’s state coffers reflecting a notable decrease. While October contributed $5.3 million in tax revenue, November’s figures dwindled to $3.2 million.
Louisiana Fiscal Year 2023-24 Sees Sports Betting Handle Surpass $1 Billion
Analyzing the fiscal year performance of 2023-24, the cumulative sports betting handle over the initial five months to November surpassed $1.23 billion. This includes a combination of a significant sum of $1.11 billion sourced from online wagering and an additional $124.5 million attributed to retail betting activities.
In terms of revenue, the sum generated during this FY23/24 period reached $138.3 million. Online betting accounted for a lion’s share, amassing $124.1 million, while retail operations contributed $14.2 million to the overall revenue.
About the Author
