Ohio’s Sports Betting Flourishes in November 2023 Despite Revenue Dip
Ohio has witnessed a significant increase in its sports betting handle, reaching $864.2 million in November, a 15.8% jump from October. This surge positions November as the second-highest month in Ohio’s 11-month sports betting history, only trailing January 2023.
The growth is attributed to the full range of legal sports betting options available to Ohioans, who actively bet on a variety of sports including NFL, college football, MLB, NBA, college basketball, and NHL.
Mixed Outcomes: Revenue Decline Amidst Handle Growth
Despite the impressive handle, Ohio’s sports betting market experienced a 15% drop in gross revenue, falling to $68.2 million in November. The state’s sportsbooks faced the lowest hold in Ohio’s history at 7.9%, indicating that bettors had an advantageous month.
The month saw a 52% increase in promotional credits, with a significant contribution from ESPN BET, PENN Entertainment’s latest platform that launched on November 14 and handed out $29 million in promotional credits.
Year 1 Review and Tax Revenue
As Ohio’s first year of legalized sports betting nears completion, the average win rate remains above 12% for 2023, despite November ending the consecutive months with revenue over $80 million. The state has accumulated nearly $850 million in taxable revenue and around $120 million in tax revenue for the year.
The state’s sportsbooks are on the verge of reaching $7 billion in wagers in the first year of legalized sports betting, demonstrating the market’s robust growth.
Online Sports Betting Dominance
Online sports betting accounted for 97% of November’s handle. FanDuel led with $293.2 million in wagers, followed closely by DraftKings with $275.8 million. ESPN BET made a notable debut, securing the third-highest amount wagered at $70.8 million.
The retail sportsbook handle saw a slight increase from October, with Hollywood Columbus exceeding $4 million in wagers for the second month in a row. Other retail locations like Hollywood Gaming at Dayton Raceway, Hollywood Toledo, and MGM Park Northfield also reported handles over $2 million.
Our Comment on the Development
Ohio’s sports betting market in November showcases a dynamic and evolving landscape. The significant handle indicates a strong consumer engagement, while the decline in revenue highlights the competitive nature of the industry and the impact of promotional strategies.
The state’s ability to generate substantial tax revenue from this sector is a promising sign for future growth and sustainability. As online platforms continue to dominate, Ohio is setting a precedent in the burgeoning U.S. sports betting market.
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