Louisiana’s sports betting industry has been making waves since its launch in October. In July, the state saw a handle of $118.3 million, marking the sixth consecutive month of steady growth. Despite the monthly decline of 10% compared to June, Louisiana remains optimistic about the potential of its sports betting market.
I. The July Performance:
July’s sports betting handle of $118.3 million may have seen a slight dip from the previous month, but it remains a promising sign for Louisiana. Of this amount, online sportsbooks claimed the lion’s share, with $103.3 million in bets, while retail sportsbooks contributed $15 million. Interestingly, the gross revenue surged to $20.6 million, almost double that of June, resulting in an impressive hold rate of approximately 17.4%.
II. Tax Revenue Surge:
One of the most significant highlights for the state is the substantial increase in tax revenue. In July, Louisiana collected $2.48 million in taxes, representing a staggering 71.8% growth from the $1.4 million collected in June. Since the retail sports betting launch on October 31, the state’s total sports betting tax revenue has reached nearly $17 million. This boost in revenue offers great promise for the local government’s early childhood education initiatives.
III. Factors Influencing Performance:
Several factors have contributed to the state’s successful sports betting industry. One key factor is the rise of mobile sports betting, which launched on January 28. With seven online sportsbooks, including major brands like BetMGM, Caesars, DraftKings, and FanDuel, the convenience of betting through mobile apps has attracted a significant number of users.
IV. Louisiana’s Sports Betting Journey:
The journey of sports betting in Louisiana has been impressive, starting with the launch of land-based casinos offering sports betting in October. The opening weekend saw an astounding 3.4 million geolocation transactions, indicating a high level of interest and participation from sports enthusiasts. This enthusiasm has persisted throughout the first half of 2022, with nearly 1.1 million wagers placed through retail sportsbooks and mobile apps combined, resulting in net revenue of almost $85.4 million.
V. Future Projections:
Looking ahead, Louisiana’s sports betting industry shows no signs of slowing down. The Chairman of the Louisiana Gaming Control Board, Ronnie Johns, believes that the state could potentially exceed the $30 million tax revenue estimate projected by the Legislative Fiscal Office for the first full year of betting. With the upcoming football season, a time when sports betting tends to thrive, revenue is expected to remain strong.
Louisiana’s sports betting industry has proved itself to be a game-changer for the state’s economy and education sector. Despite a slight decline in July, the overall performance remains impressive, with an upward trend in tax revenue and consistent growth in handle and gross revenue. The success of mobile sports betting, along with the presence of major operators, has been pivotal in attracting bettors and ensuring a promising future for Louisiana’s sports betting market. As the state continues to develop and refine its sports betting offerings, it solidifies its position as a prominent player in the thriving US sports betting landscape.