Kentucky Sees Sports Betting Revenue Drop in November and December

The Kentucky Horse Racing Commission was slow to release sports betting revenue figures for November and December, but we finally received an update on Wednesday regarding the performance of Kentucky sports betting since its launch.

The past couple of months have been a rollercoaster for the top sports betting sites in the latest legal sports wagering jurisdiction in the country. Both November and December saw a decrease in wagering activity compared to October, with December marking the lowest sports wagering output in the state thus far.

Since launching in September, Kentucky sports betting apps have accepted $855.7 million in bets, while retail sports wagering providers have contributed $36.6 million. Despite the abundance of Kentucky sportsbook promotions, the decline in betting revenue in the Bluegrass State has not been halted.

Final 2023 betting handle disappoints

The top sports betting apps in Kentucky collected a combined total of $546.6 million in the final two months of 2023, with November bringing in $282.5 million and December bringing in $264.1 million, both below anticipated figures.

Since the widespread launch of Kentucky sports betting sites and retail casinos, wagering activity has decreased month-over-month for three consecutive months. In October, $294.95 million was wagered in the state, but this figure dropped by nearly $13 million in November and by just over $18 million in December at the state’s best sportsbooks.

Could this be a concern? It’s possible, as other states have experienced a surge in betting activity during the initial months of legalization, only for it to decrease over time. For instance, Ohio saw a handle of over $1 billion in its first month of legal sports betting.

Revenues up and down in Kentucky

Underscoreg revenues in Kentucky fluctuated over the last two months of 2023, primarily because of a significant disparity in win rates among state providers.

In Kentucky’s first month of widespread legal wagering, sportsbooks generated $54.5 million in revenues, thanks to an impressive 18.5% win rate for state providers.

In November, Kentucky’s top sports betting sites experienced a slight setback, with only $22.2 million in profits generated from a disappointing hold rate of under 8%. However, in December, the hold rate rose to 12.4%, leading to a significant increase in sportsbook revenues to $32.7 million for the month.

During the November/December period, Kentucky’s state and local tax revenues received a boost of $7.6 million – with $4.5 million collected in December and $3.1 million in November. This total nearly equals the amount that Kentucky sportsbooks paid in October taxes, which was the first full month of legal sports betting in the state.

Kentucky’s top sportsbooks have generated $15.5 million in tax revenue since September.

FanDuel and DraftKings dominant

It came as no shock that FanDuel and DraftKings were the top choices for Kentucky sports bettors, capturing a commanding 72% market share in the state’s emerging sports betting market.

FanDuel was the top Kentucky sports betting site in November with a $102 million handle, leading DraftKings by $50K. However, DraftKings took the lead in December with a $98.5 million handle, just $5.5 million ahead of FanDuel.

In November, ESPN BET ranked fourth in the Kentucky market with approximately $17 million in wagers, while bet365 came in third with $17.6 million. However, in December, ESPN BET surpassed bet365 with a state handle of $19 million.

In both November and December, Caesars Kentucky placed fifth in overall handle, while BetMGM came in sixth, and Fanatics Kentucky ranked last among the seven sports betting sites in Kentucky.