Ohio Reported $113 Million in January Sports Betting Revenue

On Thursday, the Ohio Casino Control Commission (OCCC) reported the state generated $113 million for total sports betting revenue in January. This resulted in a 45% decrease from Jan. 2023, when the figure stood at $208 million.

Albeit, the significant increase in the January revenue of the preceding year is influenced by the fact that legal sports betting in Buckeye State commenced on Jan. 1, 2023, typically driving traffic to the new market.

While this year’s revenue number was a deficit compared to the same period last year, it was quite impressive growth when compared with Dec. 2023 revenue, which stood at $87.4 million, resulting in around 34% growth.

Since the introduction of Ohio sports betting in Jan. 2023, the total revenue has surpassed $1 billion within just 13 months, marking a significant milestone for the state. Ohio thus became the 11th state to achieve this feat, surpassing the previous record held by Arizona, which took 25 months to reach the same milestone. In comparison, New York managed to reach the $1 billion threshold in 10 months after launching sports betting apps in Jan. 2022.

Tax revenue in Buckeye State for the year 2023 was $187 million, and the month of Jan. 2024 saw $22.6 million, making it a total of about $102 million since the inception of sports betting in the state. However, it is important to note that the tax rate got this high due to Gov. Mike DeWine doubling the tax rate to 20% from July 2023.

OH Online Sports Betting Generates 97% of Total Handle

The total amount wagered exceeded $810 million, combining bets made both in-person at retail sports betting locations and through online platforms.

From this figure, online sportsbooks in Ohio amassed a total of $792 million in bets or about 97% of the total. The retail sportsbooks in Ohio contributed a small percent of $18 million in bets, summing to $2.5 million in the revenue it generated.

The 16 retail venues in Ohio performed admirably as a group, collectively achieving a hold of 13.7% and amassing $2.5 million in winnings from a total handle of $18.4 million. The approximately 850 kiosks operated by the Ohio Lottery accepted bets totaling $1.2 million and yielded $213,000 in winnings.

For the mobile sector, Ohio has about 20 online service providers, including heavyweights like DraftKings, Fanatics, bet365, FanDuel, Betway, BetMGM, ESPN BET, Betr, Betfred Sports, and others.

FanDuel Ohio Takes the Lead on 20 Mobile Sportsbooks

FanDuel solidified its position as the top choice for mobile sports betting enthusiasts in Ohio, establishing itself with a promotional expenditure of $168.7 million last year. This investment resulted in a revenue of $103.2 million. Meanwhile, in Jan. 2024, the operator achieved an adjusted gross revenue of $52.9 million, driven by a handle of $282.7 million. This marked its 12th consecutive month with a hold above 11%, demonstrating consistent success in its first 13 months of operation in the state.

DraftKings closely followed with a handle of $254 million and revenue approaching $34 million, showcasing its formidable presence in the market. These industry giants, FanDuel and DraftKings, have consistently dominated the top two positions. However, it’s worth noting that DraftKings has surpassed FanDuel’s handle on only four occasions and its revenue just once.

Despite experiencing a 17.9% decline from the previous month, ESPN BET successfully retained its position as the third-leading platform in terms of handle, recording a total of $59.8 million. Despite the decrease in handle, ESPN BET managed to capture a mobile market share of 7.6%, slightly surpassing its initial goal of 7% within its first year of operation.

Due to the doubling of the tax rate, FanDuel’s payment of $10.6 million in levies to the state marked an unprecedented monthly high for any mobile operator.

In the meantime, the OCCC took action last month by prohibiting sportsbooks from providing player-specific prop bets on intercollegiate athletics. These bets constituted approximately 1.35% of the total volume of sports wagers in Ohio during 2023.