Ohio’s Sports Betting Market Shows Resilience in February Revenue Report

The combined adjusted gross sports betting revenue for the month reached $67.7 million, achieving a notable double-digit hold and reflecting the dynamic nature of Ohio’s sports wagering landscape.

Steady Growth Amidst Seasonal Fluctuations

February’s handle amounted to $672 million, marking a 5% increase from the same month in the previous year. This growth is particularly impressive considering February 2023 was just the second month following the launch of sports betting in Ohio.

The breakdown of the handle reveals a dominant preference for sports betting apps, which accounted for $657.7 million, with retail handle and kiosk betting contributing $13.4 million and $892,000, respectively.

Despite a 20.8% decrease from January’s figures, the consistent double-digit hold rate, standing at 10.1% for February, underscores the market’s stability. This rate has hit double figures 12 times in the past 14 months, highlighting the enduring appeal of sports betting among Ohioans.

Promotional Strategies and Tax Contributions

The report also sheds light on the promotional expenditures within the state, which have seen a significant reduction. Operators spent $28.3 million on promotions and bonuses in February, a sharp decrease from the previous year’s $59.1 million. This strategic adjustment in promotional spending reflects a maturing market that is finding its equilibrium after the initial launch phase.

The state of Ohio has benefited from an increase in tax revenue from sports betting, with $13.5 million collected in February. This is a substantial increase from the previous year, thanks in part to Governor Mike DeWine’s decision to double the tax rate to 20% at the start of the fiscal year. Since the implementation of the new tax rate, Ohio’s coffers have been bolstered by $115.5 million in sports betting taxes.

Our Comment on the Article

Ohio’s sports betting market continues to demonstrate resilience and growth, navigating through seasonal fluctuations and regulatory changes with notable success. The February revenue report not only highlights the steady demand for sports wagering in the state but also showcases the effective management and strategic adjustments made by operators and regulators alike.

As the market matures, the focus on sustainable growth and responsible gaming will be key to maintaining the positive trajectory. The increased tax contributions also signify the important role that sports betting can play in supporting state-funded programs, marking a win-win for both the industry and the community at large.