Consistency has been the motto of Kansas’ sports betting market since the launch began. On Wednesday, the Kansas Lottery released its December monthly handle as sportsbook operators registered a handle of $182 million.
Kansas is Making a Name for Itself in the Industry
The numbers noted a 2.3 percent from November’s $186.3 million. Despite that, Sunflower State finished the year on a high note as the market accumulated $718.8 million since the launch began in September.
With 95 percent of the wagers placed online, mobile sports betting has become second nature in the state. The House continues to post solid numbers against the public, but the average hold rate for the bookmakers dropped from 11.7 percent in November to 9.3 percent in December. The national average for the industry is situated at 7.2 percent.
In adjusted revenue for the month, the state was eligible to tax $10.3 million, but when losses and carryovers were counted, the total came to $9.6 million. In spite of that, the state was able to post its first $1 million in terms of tax receipts. This nearly doubled the amount of taxes collected to approximately $2.1 million.
Surprisingly, This Operator Led in Market Spending in Kansas
Sunflower State keeps outperforming expectations when it comes to consistency in the sports betting industry. Promotional spending is the name of the game, as acquiring customers is how one sportsbook differentiates itself from the rest.
BetMGM spent more than $2.6 million, while no other competitor reached the $2 million mark as FanDuel secured the second position with $1.9 million in spending. However, massive spending comes at a cost as BetMGM has been dealing with a negative adjusted gross revenue of $675,000.
DraftKings registered a handle of $65.1 million in December and led the market with a win rate of 11.7 percent. The company has done well in Kansas, as the average hold rate is situated at 9.2 percent.
On the other hand, FanDuel struggled against the public with a hold rate of 7.9 percent. Compared to November, the win rate declined by at least six percent. The sportsbook posted a monthly handle of $54.3 million, which led to $4.3 million in gross revenue.
Hollywood Kansas Continues to Lead the Retail Space
The three locations currently open handled $10.8 million in retail wagering, with Hollywood, Kansas accounting for the majority of it. Backed by Barstool, the brick-and-mortar location brought in a total of $8.5 million in wagers for the month.
Despite the positives, the win rate declined to 5.2 percent for the month (nearly a six-point drop), which translated to $440,000 in revenue. Kansas continues to showcase consistency, while lawmakers in Missouri will try to bring sports betting to the Show-Me State in 2023.