Iowa’s sports betting industry reported its performance for May 2023, showing a slight decrease in the total handle compared to the same period last year. However, sports betting revenue in the state exhibited a notable increase year-on-year.
May 2023 Sports Betting Handle:
In May 2023, Iowa’s sports betting handle amounted to $147.7 million, demonstrating only a marginal decrease from the $147.9 million recorded in May 2022. The handle primarily represents the total amount wagered by sports bettors during the month.
Month-On-Month Decline:
The May 2023 handle was 14.6% lower than the significant $172.6 million handle reported in April 2023. This decline marks the second consecutive month of decreasing sports betting activity in the state.
Online vs. Retail Betting:
Out of the total handle, $135.2 million was generated from online sports betting, highlighting the increasing preference of bettors for mobile and digital platforms. Retail sportsbooks accounted for $12.5 million in wagers.
Impressive Revenue Growth:
May 2023 saw a surge in sports betting revenue, reaching $16.6 million. This figure represented a substantial 31.8% increase from the $12.6 million in revenue reported during the same period in 2022. Additionally, it marked a 17.7% boost compared to the $14.1 million in revenue recorded in April 2023.
Breakdown of Revenue:
Of the $16.6 million in total revenue, a substantial $15 million was attributed to online sports betting, emphasizing the revenue-generating potential of digital platforms. Retail sports betting contributed $1.6 million to the monthly revenue.
Notable Operators:
Key players in the Iowa sports betting market included Diamond Jo in Dubuque, which, in partnership with FanDuel sportsbook, reported $4.5 million in revenue from $36.5 million in bets. Wild Rose in Jefferson, in collaboration with DraftKings, recorded $2.3 million in revenue from $22.3 million. Furthermore, Diamond Jo in Worth, also partnered with FanDuel sportsbook, reached $2.1 million in revenue from $17.3 million in bets.
Sports Betting Tax and Payouts:
The state collected $1.1 million in sports betting tax, contributing to government revenues. On the other side, players received payouts totaling $131.1 million during the month.
bet365’s Entry:
Iowa’s sports betting market welcomed another sportsbook in May. bet365 established its presence through an agreement with the Casino Queen Marquette, a riverboat casino in the state. This marked bet365’s fifth market entry in the United States, having previously launched in Colorado, New Jersey, Ohio, and Virginia.
Casino Queen Marquette:
Casino Queen Marquette was granted approval by the Iowa Racing and Gaming Commission to transition from a riverboat casino to a land-based venue. The casino also owns the Q Sportsbook app, further expanding its presence in the state.
The sports betting landscape in Iowa experienced a slight downturn in handle compared to the previous month, but revenues continued to grow substantially. The popularity of online betting platforms remains evident, with digital betting contributing significantly to the state’s revenue. The market also saw a new entrant, bet365, strengthening the competition among sportsbooks in Iowa.