Over 20% Drop in Betting Handle in Ohio for February

The Ohio Casino Control Commission reported the state collected $671.1 million in sports betting handle in February, a sharp drop of more than 20% from January’s tally of $811.6 million in wagers. In terms of adjusted gross revenue, the state’s operators managed a profit of $67.6 million, which was well short of January’s record gaming revenue tally of $113.2 million. 

Ohio still recorded 5% year-on-year growth, registering $638.8 million in betting handle in February 2023. Gross receipts from online sportsbooks were $657.7 million, while retail sports betting operators registered $13.3 million in accepted wagers.

In terms of tax collections for the state, Ohio sports betting managed $13.5 million based on the new regime of 20% since last July. Since the tax was doubled by Governor Mike DeWine, Ohio has collected more than $115 million in receipts in eight months. In February 2023, tax collections were a little over $8 million with almost the same betting handle.

FanDuel Leads the Field

FanDuel was comfortably the leading sportsbook in Ohio in February, having collected $222.1 million in sports betting handle. The company paid out $193.1 million to patrons and also spent $8 million on promotional expenses.

After accounting for all expenses, FanDuel’s total taxable revenue was $28 million. In stark contrast, FanDuel’s total taxable gaming revenue in February was $53 million after spending more than double on promos ($16.5 million).

Not too far behind was DraftKings, with betting handle of $222 million. DraftKings paid out $197 million to customers and spent $10.3 million on promos, significantly higher than FanDuel’s promotional spend. In total, taxable sports betting revenue for DraftKings was $24.1 million. Going back one month, DraftKings spent a similar amount on promos ($10.4 million) with total taxable gaming revenue of $34 million.

Other notable companies in the region were bet365, ESPN BET, and BetMGM. All three operators managed online gaming revenue in excess of $3 million. At the top of this second tier of sportsbooks in Ohio was bet365, with betting handle of $44.6 million. After spending $2.6 million on promotional expenses, bet365 finished with $4.2 million in taxable revenue.

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Retail Sportsbooks Struggle in February

In total, retail sportsbooks collected $13.3 million in handle and paid out $13.4 million to customers. Including voided wagers of $86,468, retail sportsbooks finished in the red with a loss of $122,288. Total adjusted gross revenue was $613,206. 

Belterra Park, through their partnership with FanDuel, contributed $41,601 in taxable revenue to the retail sector. Jack Thistledown (BetJack) and Hard Rock Cincinnati (Seminole Hard Rock Digital) were the major positive contributors to the retail gaming sector, with profits above $200,000 each.

Ohio Makes Strong Start to New Year

Sports betting began in Ohio on New Year’s Day in 2023. Since the first month of launch, Ohio’s sports betting appetite has been high. Evidence of that is in their betting handle of $1.1 billion in January last year. For context, handle in January this year was significantly lower at $811.6 million.

In 2023, there was no month with betting handle less than $300 million. That strong appetite led to Ohio collecting $7.65 billion in handle in 2023. At a hold of close to 12%, Ohio’s sports betting operators nearly collected $1 billion in revenue. Tax receipts fluctuated due to the new structure, which doubled in July last year. Eventually, Ohio collected $133.3 million in tax from sports betting operations in the state.

In the first two months of the new year, Ohio has almost kept up year-on-year with a vibrant start to 2023. In two months, sports betting handle has nearly risen to $1.5 billion. That bright start is expected to continue well into this year, with sports betting handle potentially surpassing 2023’s total of $7.65 billion.

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