Ohio sports betting handle tops $1.01 billion in January

Ohio’s Sports Betting Market Hits $1.01 Billion in January 2024

In a remarkable show of consumer engagement, Ohio saw a staggering $1.01 billion (£788.6 million/€946.0 million) wagered on sports in January 2024, marking the third-highest monthly total in state history. This reflects a robust 24.6% increase compared to January 2023 and a 5% rise from December 2024. However, it is important to note that this figure is still 9.3% below the record $1.12 billion achieved during the inaugural month of legal sports betting in Ohio in January 2023.

Data released by the Ohio Casino Control Commission on March 4, 2024, reveals that online betting dominated the landscape, accounting for $992.2 million of the total wagers, while retail sports betting contributed $19 million.

From a fiscal perspective, the total taxable revenue for January reached $81.1 million. While this represents a 28.6% decline compared to the same month last year, it shows a remarkable recovery, boasting a 42% increase from the $57.1 million generated in December 2023. The all-time monthly revenue record for Ohio remains at $209 million, established in January 2023.

Breaking down the revenue sources, online betting generated $80.7 million in taxable revenue, while retail operations contributed a modest $468,017. Ohio’s total hold for the month was an industry-standard 8.02%, indicative of the competitive market dynamics at play.

FanDuel Maintains Market Leadership in Ohio

FanDuel continues to dominate Ohio’s online sports betting sector, securing the top position with $38.9 million in taxable revenue derived from a $358.6 million handle, resulting in an impressive hold of 10.85%. DraftKings and Hollywood Toledo followed, raking in $22 million from $321.9 million at a 6.83% hold. Bet365, partnered with the MLB’s Cleveland Guardians, rounded out the top three operators, earning $6.3 million from $83 million and achieving a 7.59% hold.

Other noteworthy performances include BetMGM, in partnership with MGM Northfield Park, which generated $4.1 million from a $71.9 million handle at a 5.7% hold. Fanatics, working with the NHL’s Columbus Blue Jackets, earned $3.5 million from $37.9 million, resulting in a 9.23% hold. ESPN Bet and Hollywood Columbus followed up with $2.3 million from a handle of $35 million, reflecting a 6.57% hold, while Caesars and Scioto Downs marked the only other collaboration to exceed $1 million in revenue, posting $1.6 million from a $33.7 million handle at a 4.75% hold.

In the retail betting sector, BetMGM and MGM Northfield Park set the pace with $155,551 in revenue from just $353,841 in wagers, achieving an extraordinary hold of 43.96%. BetJack and Cleveland Park were the only other notable retail partnership, recording revenue of $134,773 from $2.3 million in bets for a hold of 5.74%.

Bouncing Back from December’s Challenges

January’s strong performance comes after a challenging December in Ohio, affected by a series of customer-friendly sports outcomes. The taxable revenue for December was reported at $57.1 million, reflecting a significant 34.7% drop year-over-year and a staggering 51.2% decline compared to November. Nonetheless, the handle increased by 15.9% compared to the previous year, reaching $963.2 million—indicating that interest in sports betting was still robust.

The hold during December was notably lower at 5.93%. FanDuel and Belterra Park were the leaders in the online segment that month, generating $24 million from $336.7 million in wagers, resulting in a 7.13% hold.

Ohio’s Potential Tax Increase on Operators

In economic news, discussions surrounding a potential tax increase for Ohio’s sports betting industry gained traction in February. Governor Mike DeWine’s recent budget proposal includes a plan to increase the tax on sports betting operators to 40%. If approved by the state legislature, this change would mark the second increase since July 2023, when the tax rate was raised from 10% to 20%.

A hike to 40% would position Ohio as the second-most taxed state for sports wagering operators in the U.S., trailing only New York, which imposes a 51% tax rate. This potential increase could significantly impact the competitive landscape for operators in Ohio, prompting a reevaluation of business strategies moving forward.

As Ohio continues to navigate the complexities of a burgeoning sports betting market, it showcases a dynamic environment ripe for continued growth and innovation. Stakeholders and regulators alike will be closely monitoring these developments as they unfold in the coming months.