The Ohio sports betting market may have its flaws, but the first month of legalized sports betting was a major success for the house. Sportsbook operators combined to accumulate a handle that exceeded $1.1 billion in January 2023.
The Buckeye State Lived Up to the Hype
Although Type C betting using kiosks didn’t perform as well as businesses hoped, many experts believed that the number would only be a fraction of what mobile sports betting would generate. According to the numbers that were reported by the Ohio Casino Control Commission, $1.090 billion came online and $23 million was taken by retail locations.
Due to the universal launch, 16 mobile sportsbooks went live, while 14 brick-and-mortar sportsbooks launched on New Year’s Day. Ohio sports wagering operation was highly anticipated because of many reasons; the eighth most populous state, a plethora of professional sports franchises, and passionate fan bases.
The Buckeye State’s tax rate for the operation is set at 10 percent, which is very business-friendly. Unlike New York’s sports betting market in many categories, the Buckeye State’s market also highlights a low barrier to entry.
Thanks to the sports betting calendar, bettors took advantage of the promotions the bookmakers were releasing as a promotion. However, the public struggled against the house as the first official sports betting report shows.
Can the Public Climb Out of This One Next Month?
The previous revenue haul was in New York and was very short-lived because Ohio registered approximately 60 million more in the specific category. In the post-PASPA era, only 12 states had topped $100 million in sports wagering revenue monthly, including the Empire State with 10, New Jersey with one, and Illinois with one.
The state generated $208.9 million in tax revenue as a result of becoming a member of the $1 billion club. In addition, operators gave out $320 million in free bets for its inaugural month in the state.
Bookmakers in Ohio also registered a hold rate of 18.8 percent, which is more than 2.5 times the industry’s national average of 7.2 percent. Only Delaware has reported January figures among the 24 states and jurisdictions with commercial wagering. FanDuel enjoyed a blistering 20.9 percent win rate, while the state’s smallest mobile operator and two smallest retail books finished in the red.
Sportsbooks that accept bets in the state cannot deduct promotional credits until 2027, which is similar to New York. However, due to the low tax rate, the state collected just $20.9 million in tax receipts for the month. Governor Mike DeWine, who proposed a 20 percent tax rate, will closely monitor the month-to-month handling.
Defeating New York in the monthly handle and tax receipts aspects will be a tall task as no other market could match the tax rate besides New Hampshire. Based on the market size and population density, New Hampshire cannot generate revenue on a massive scale.
Which Sportsbook Operator Was Crowned King of Ohio?
The competitors in the sports betting industry seem to have no answer on how to overtake FanDuel’s reign across the industry. FanDuel led with $494.2 million in accepted bets and $103.2 million in revenue. The main rival, DraftKings, was a distant second, with $344 million in online wagers and $55.1 million in revenue.
BetMGM rounded out the top three in Ohio with $82.1 million in wagers on its platform, which generated $21.7 million in revenue. Even though Betfred entered a key partnership with this year’s AFC Championship contenders, Cincinnati Bengals, the sportsbook has a lot of work to do to reach its full potential in the company’s biggest market.