Indiana Sports Betting Feels Pinch From New Wager Neighbors

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Indiana sports betting

Indiana sports betting suffered losses in October, with neighboring states including Kentucky and Ohio likely the biggest culprits.

The latest state report showed handle reached $429.7 million, down 4% from October 2022.

Revenue for Indiana sportsbooks took a hit, too, landing at $45.2 million last month. That is down from $46.9 million during the same month the previous year.

Outside influence on Indiana sports betting

The Buckeye State has already chewed into handle for the Hoosiers since its January launch. Indiana sports betting handle for 2023 through October is down about 7.5% compared to the same period last year.

Kentucky is likely to cut into Indiana’s handle as it matures. Online betting began in the Bluegrass State on September 28.

Despite the handle declines to begin 2023, IN sports betting revenue is up $20 million compared to last year. That led to $30.7 million in taxes paid so far, up from $28.9 million through October last year.

In-person sports betting declines

Indiana betting declines in October were also felt at two retail sportsbooks along Indiana’s border with Kentucky and Ohio.

The retail sportsbook at the Hollywood Casino in Lawrenceburg accepted $1.7 million in bets last month. In October last year, handle there was $11.9 million.

It marked back-to-back months of substantial declines to begin the NFL betting season. Before Ohio or Kentucky launched, Lawrenceburg drew heavily from the nearby Cincinnati metro area.

It was widely regarded as one of the country’s most popular in-person sportsbooks before legal sports betting was available in all three states.

Declines along the border elsewhere, too

Caesars Southern Indiana was the other in-person sportsbook that dealt with October declines. It sits on Indiana’s border with Kentucky, just outside Louisville.

Last October, before sports betting was available in Kentucky or Ohio, it handled $3.7 million in bets. This October, in-person bets there totaled $838,000.

Battle for Indiana sports betting lead

DraftKings Sportsbook accepted the most Indiana sports betting dollars for the fourth consecutive month.

Its $172.8 million handle was 40% of the market and outpaced last October’s figure by nearly $20 million.

FanDuel Sportsbook also posted year-over-year increases in October. Between online and in-person betting, it handled 34% of the market with $147 million. The total was up more than $11 million over October 2022.

Revenue run in Indiana

Despite conceding the handle lead over the last four months, FanDuel generated more monthly revenue online than DraftKings in three of those months.

October$18.1 million$17.5 million
September$15 million$15.1 million
August$8.5 million$7.6 million
July$8.5 million$7.4 million
Total$50.1 million$47.6 million

In a recent call with investors, Peter Jackson, CEO of FanDuel’s parent company Flutter, said its NBA product separates it from the competition. NBA betting tipped off in October.

The company recently shared with investors that more accurate pricing for its same-game parlay product has produced better margins.

Most Indiana operators saw declines

Unibet joined DraftKings and FanDuel as the only Indiana sports betting apps to post year-over-year handle gains last month.

The decline was spread out among the remaining books, with Barstool Sportsbook taking a big hit. Penn Entertainment launched a rebranded app with new partner ESPN on November 14.

Barstool took in $7.7 million in bets last month, down from September’s $8.9 million and down nearly 50% from last October’s $14.7 million. A lack of brand promotion following the summertime split between Penn and Barstool likely contributed to the decline.