Indiana Enjoys Record November Sports Betting Handle Spike But Revenue Drop

Indiana has joined the list of states breaking monthly sports betting handle records this fall. Despite the launch of Kentucky’s legal sports betting platform and Ohio’s rise to the top five wagering jurisdictions in the country, it seems that the Hoosier State remains loyal to its favorite sports betting apps.

The Indiana Gaming Commission’s November earnings report revealed a new record for sports betting activity in the Hoosier State for the month.

Despite a surge in sports betting activity in Indiana in November, revenues did not keep pace with the increased handle. Due to a lower-than-usual hold rate for both online and retail sports betting providers in the state, revenues were largely disappointing and did not reach record levels.

November marked the debut of ESPN BET in the Indiana market, as Disney’s new sports betting product launched on Nov. 14. However, despite high anticipation, the product did not have a significant impact on the Indiana sports betting scene by the end of the month.

$513.6 million handle for Indiana sportsbooks

In November, Indiana’s top sportsbooks saw a remarkable $513.7 million in total wagers, marking the second instance that the state exceeded the $500 million milestone and establishing a new record for sports betting activity. It is likely that numerous bettors in Indiana benefited from the various promotions offered by the sportsbooks.

In January 2022, Indiana sportsbooks set a new record with $500.1 million in total wagers, surpassing the previous record.

The figure represents a nearly 20% increase from the $429.6 million wagers taken in October, with November seeing a slightly higher year-over-year leap to $452.3 million in Indiana wagers reported in November 2022.

During a 30-day period, Indiana sports betting apps dominated the state’s overall wagering activity, accounting for $469.8 million in bets, while retail sites made up the remainder.

Revenues down

Despite Indiana sportsbooks having a record handle, the state’s sportsbook revenues did not reach new highs. The Indiana Gaming Commission reported just $30.7 million in taxable revenue for November.

There was a significant decrease in taxable revenues from October to November, with a drop of over $15 million from $45.2 million to $30.7 million. This is nearly $10 million less than the revenues reported in November 2022.

In November, Indiana sports betting providers generated $2.9 million in tax revenue, a decrease from $4.2 million in October and almost $3.8 million in November 2022.

Hold rate is the culprit

In November, Indiana sportsbooks only retained 5.2%, the lowest percentage since February 2022. This decrease negatively impacted sportsbook profits and state tax revenue for the month.

The sportsbook win rate in Indiana was 10.7% in October and 8.9% in November 2022.

Last month, bettors in Indiana had a successful run, causing losses for the top sportsbooks in the Hoosier State.

DraftKings tops again, ESPN BET lags

DraftKings Indiana emerged as the top performer in the competition to become the leading sportsbook in Indiana for the month of November. DraftKings captured approximately 36% of the state’s total handle, amounting to $188 million. November proved to be DraftKings’ most successful month to date in the Indiana market.

In November, FanDuel Indiana claimed the second spot with $175.6 million in bets, accounting for approximately 34.1% of the total state sports betting handle. BetMGM Indiana came in third, significantly behind, with $37.2 million in wagers, representing about 7.2%. Bringing up the rear in the Top-4 was Caesars Indiana with $27.9 million.

ESPN BET Indiana ended the month in fifth place for handle, which was somewhat disappointing. However, the sportsbook performed well in terms of revenues. Despite only being active for 16 days in the Indiana market, it managed to earn $2.6 million in November. This surpassed the profits of the third and fourth-place handle finishers.