The Iowa Racing and Gaming Commission has released its latest sports betting figures, revealing a 23% year-on-year decrease in the state’s sports betting handle for January. While the figures indicate a decline from January 2022, there’s a modest 1.6% uptick from December 2022, suggesting a potential stabilization in the market.
Handle and Consumer Behavior:
In January, Iowa’s sports betting handle stood at $236.6 million. This represents a 23% decline compared to the same period last year, where the handle reached $303.3 million. However, there is a positive sign as the handle increased by 1.6% from the $229.9 million recorded in December 2022. Notably, consumers favored online platforms, contributing $207.7 million to the total handle, while $25.9 million was wagered at retail facilities.
Revenue Insights:
Despite the dip in handle, Iowa’s sports betting revenue (across both retail and online channels) experienced a 15.4% year-on-year increase, reaching $16.5 million. However, there was a decline of 19.1% compared to December 2022, when the revenue was $20.4 million. Online sports betting contributed the lion’s share of revenue, generating $15.3 million, while retail facilities brought in $1.3 million.
Key Casino Revenue Contributions:
Notable casinos in Iowa made significant revenue contributions. Diamond Jo in Dubuque, in partnership with FanDuel, reported revenue of $5.8 million from wagers totaling $56.1 million. Wild Rose in Jefferson, collaborating with DraftKings, generated revenue of $2 million from bets amounting to $34.2 million. Diamond Jo in Worth, also featuring a FanDuel sportsbook, followed with $1.7 million in revenue from wagers totaling $25.5 million.
Tax Contributions:
The state’s 19 casinos and 19 mobile partners collectively paid $1.1 million in taxes, indicating their continued commitment to supporting the state’s revenue stream.
Iowa’s sports betting landscape experienced a decline in handle compared to the previous year, attributed to various factors that influence consumer behavior. Despite the challenges, there are signs of stabilization, with a modest increase from the previous month. The revenue growth, even in the face of handle fluctuations, underscores the market’s potential and resilience. As the industry adapts to changing dynamics, both operators and regulatory bodies will likely continue to refine strategies to sustain and enhance the state’s sports betting ecosystem.