Indiana Enjoys March Madness Sports Betting Bump

Indiana had a profitable March Madness in terms of sports betting, with participation from a wide range of people.

The Indiana sports betting industry saw a surge in handle and revenues in March, largely due to the NCAA men’s basketball tournament. Despite Indiana teams performing poorly in the tournament, this led to a higher hold rate for the state’s providers, resulting in an overall increase in taxes collected compared to the previous month.

Unfortunately, the Indiana sports betting scene is not all positive, as the March report from the Indiana Gaming Commission revealed a decline in year-over-year performance for the basketball-loving state. With college basketball season over and the Pacers struggling, it is unlikely that things will improve for Indiana sportsbooks until the NFL season starts up again in September.

A look at the handle

In March, Indiana sports betting sites saw a significant increase in revenue, bringing in a total of $433 million. This marked a 21.6% jump from the $356.1 million reported in February. The boost in revenue was a welcome turnaround from the previous month. Notably, basketball accounted for $224.3 million of the total handle, with the majority of bets placed on college basketball games.

In comparison to last year, Indiana sportsbooks brought in $476.8 million at this time in March 2022, which was 9.2% higher than the previous month. The highest handle record for Indiana was set in January 2022, with a staggering $500.14 million wagered with the state’s legal providers.

Revenues rose, too

In March, the Indiana Gaming Commission reported a total of $42.8 million in adjusted gross sports wagering revenues, a notable increase from the $27.7 million generated in February 2023 and the $32.3 million earned in March 2022.

Indiana’s tax revenues saw a boost from the increase in profits and hold rate, collecting $4.1 million from the state’s legal sports betting providers – a 44% increase from February.

The Underscoreg hold rate rose to 9.8% in March, up from 7.7% in February. This increase can be attributed to top ranked Purdue being eliminated in the first round of the NCAA tournament and the beloved Indiana Hoosiers having a disappointingly short March Madness run.

DraftKings ruled the roost

For the second consecutive month, DraftKings maintained its position as the top sportsbook in Indiana. DraftKings IN contributed $144.1 million to the total March handle of $433 million. FanDuel closed the gap with DraftKings by generating $136 million in revenue, surpassing its rival with earnings of $16.2 million compared to $13.4 million.

The two sports betting giants collectively held an impressive 69.3% share of the market in Indiana.

In terms of handle, Caesars ranked third with $40.8 million, followed closely by BetMGM at $40.1 million. BetMGM also demonstrated the highest month-over-month growth, with a 27.7% improvement from its performance in February.

As April arrives, we can expect a slowdown in sports betting as the transition from spring to summer begins. With football season over and basketball winding down, the Pacers’ performance likely won’t have a significant impact on the state’s overall betting activity. It will be interesting to see if Indiana sportsbooks will rely on promotions to maintain interest and attract bettors during this period.

Baseball will likely be the focus until September, when the NFL season boosts betting activity. Indiana saw a $116 million drop in legal sports betting handle from March to April last year, and a similar decrease is expected this year.