In October 2023, the Iowa Racing and Gaming Commission released its latest sports betting figures, revealing a total handle of $238.7 million. While this marked a 16% increase from September’s handle of $200.2 million, it also represented a 15% drop compared to October 2021’s impressive figure of $280.9 million. The majority of consumer spending took place online, accounting for $212.7 million, while retail facilities saw $26 million in wagers. Despite the surge in betting activity, sports betting revenue experienced a 24% decline from the previous month, settling at $19.4 million, with online sports betting contributing $16.4 million and retail betting contributing $2.7 million.
Online Dominance:
The rapid growth of the online sports betting sector in Iowa continues to be evident, with consumers showing a strong preference for placing their bets through digital platforms. Accounting for a staggering 89% of the total handle, online sports betting amounted to $212.7 million in October 2023. This trend highlights the convenience and accessibility that online betting offers, making it a compelling choice for sports enthusiasts across the state.
Retail Betting Resilience:
While online betting takes the lion’s share, retail betting remains a significant aspect of Iowa’s sports betting landscape. Retail facilities recorded $26 million in wagers, showcasing that there is still a demand for in-person betting experiences. However, the revenue generated from retail facilities was notably lower at $2.7 million, indicating a lower hold rate compared to online platforms.
Decline in Revenue:
Despite the substantial increase in sports betting handle, sportsbooks in Iowa experienced a decline in revenue in October 2023. The total revenue of $19.4 million represented a significant 24% drop from the previous month’s revenue figures. This downturn can be attributed to various factors, including bettors’ choices and outcomes of sporting events during the period.
Sportsbook Performance:
Examining the performance of specific sportsbooks provides insights into the competitive landscape in Iowa. Diamond Jo in Dubuque, in partnership with FanDuel, led the pack with $4.7 million in revenue from $51.1 million in wagers. Following closely was Diamond Jo in Worth, also featuring a FanDuel sportsbook, with $3.1 million in revenue from a $26 million handle. Wild Rose in Jefferson, affiliated with DraftKings, reported revenue of $2.2 million from $34.9 million in bets. These figures indicate the dominance of well-known sports betting platforms in the state.
Tax Contributions:
As sports betting continues to thrive in Iowa, it also has positive implications for the state’s economy. In October 2023, the 19 casinos and 19 mobile partners collectively contributed $1.29 million in taxes to the government. While this figure represented a slight decrease from the previous month’s $1.7 million, it still highlights the economic benefits of a flourishing sports betting industry.
Iowa’s sports betting market experienced robust activity in October 2023, with a total handle of $238.7 million. The surge in betting was primarily driven by online platforms, which accounted for an overwhelming 89% of the handle. However, despite the increased betting volume, sportsbook revenue witnessed a decline of 24% from the previous month. Notably, prominent sportsbooks such as FanDuel and DraftKings demonstrated their dominance, while tax contributions from the industry continued to support the state’s economy. As sports betting evolves, it remains a compelling sector to watch, with both opportunities and challenges shaping its future in Iowa.