Kentucky Underscoregs Accept a Combined $465.5 Million in Wagers in January and February

The Kentucky Horse Racing Commission has gained a reputation for being sluggish in reporting its legal sports betting revenue since its inception. However, this week we were able to see the numbers for January and February, and the outcomes for our top sports betting sites are a combination of positive and negative.

The positive highlight of the reports was the strong hold rate of Kentucky sportsbook apps, but the disappointing trend was the decreasing overall handle in both months. Sports betting activity in the Bluegrass State has consistently declined each month since the launch of mobile betting in October.

Nonetheless, we can conclude that January was a successful month for the U.S. legal sports betting market. The total gross gaming revenue reached a record high of $1.47 billion, surpassing the previous record of $1.31 billion achieved in December.

$465.5 million two-month handle

In January and February, Kentucky sports betting saw a total of $465.5 million in accepted bets, with $257.1 million in January and $208.4 million in February.

Both monthly totals show a decrease compared to the previous month, following the trend of consecutive declines in sports betting activity in Kentucky since the launch of sports betting sites in October.

In January, the total amount wagered was $257.1 million, which was 2.6% lower than December’s total of $263.36 million. February saw a significant decrease, with only $208.4 million wagered, representing a 19% drop from January. The hope is that March Madness will bring a surge in betting activity, as seen in other areas, boosting Kentucky’s sportsbooks. Residents likely made use of promotions offered by Kentucky sportsbooks during this peak time for sports betting.

Combined $59.7 million in adjusted gross revenue

Kentucky sportsbooks saw a total of $59.7 million in adjusted gross revenue during the combined January and February wagering period. In January, there was $38.2 million in adjusted taxable revenue from a $257.1 million handle. February saw $21.5 million in AGR from a $208.4 million in bets placed.

Kentucky sportsbooks have consistently enjoyed a high hold rate, with only one month seeing a win rate below 10%. In January, sportsbooks in the state secured a sportsbook-friendly 14.9% win rate, while in February, providers held a solid 10.3%.

In January, Kentucky sports betting apps contributed $5.4 million in taxes to support state and local needs, with an additional $3 million added in February.

Kentucky sportsbooks fared well in January

Kentucky sportsbooks have benefitted greatly from the consistently high hold rate since their launch. In January, all but one of the seven Kentucky sports betting apps experienced a hold rate of at least 10.9%, with FanDuel Kentucky surpassing DraftKings Kentucky in state provider revenue.

FanDuel achieved $15.3 million in revenue in the Kentucky market in January, thanks to an impressive 18% hold. Despite this success, FanDuel came in second place for monthly handle with $85.3 million.

In January, DraftKings Kentucky received the highest number of bets in the state, totaling $92 million. Despite a win rate of 15%, it still managed to earn $13.8 million in winnings.

In January, Caesars Kentucky ranked third with $21.8 million in wagers and $2.8 million in revenue from a 13% hold. ESPN BET Kentucky came in fourth with $15.9 million in bets and $1.1 million in revenue, with a win rate of only 6.7%, the lowest among the top providers.

In January, bet365 Kentucky ranked fifth with $14.8 million in accepted bets, followed by BetMGM Kentucky with $11 million in wagers, and Fanatics Underscoreg Kentucky coming in last with approximately $5 million in accepted wagers.

What about February?

In February, Kentucky sportsbooks did not experience the same level of betting activity, revenues, or combined hold rate as they did in January. The overall hold rate for February was 10.3%, with only three sportsbooks – DraftKings, FanDuel, and Caesars – managing to achieve a double-digit hold.

DraftKings emerged as the top Kentucky sports betting app in terms of both handle and revenues. In February, DraftKings Kentucky recorded $78.8 million in bets and $8.3 million in revenues with a win rate of 10.6%.

FanDuel Kentucky reported $66.1 million in bets and $7.7 million in revenue with an 11.7% hold. Caesars Underscoreg Kentucky had a 12.5% win rate in February, generating $2.1 million in revenue from a $17 million handle.

In February, bet365 Kentucky led with $13.1 million in bets, followed by ESPN BET with just under $10 million, BetMGM with $9.2 million, and Fanatics Underscoreg Kentucky with $4.4 million.