Louisiana Experiences 17.3% Legal Sports Betting Drop in June

In June, the U.S. legal sports betting industry and top sports betting apps in Louisiana continued to see a decline in wagering activity compared to the previous month.

Louisiana experienced the typical trend seen across the country of a decrease in both total handle and revenue from top sportsbooks during the summer season.

The Louisiana Gaming Control Board report shows that betting activity, including on online betting sites, has increased since June 2022. This has resulted in higher revenues and tax contributions to support state and local needs.

About that month-over-month dip in handle

Louisiana sports betting (both mobile and retail sports wagering facilities) recorded $160 million in bets during June, according to the Louisiana Control Board. This marks the second consecutive month and the third time in the past five months that sports wagering activity in the state has fallen below the $200 million threshold.

June’s handle is approximately $159.6 million, which is 17.3% less than May’s handle of just under $193.6 million. Additionally, it is about $122 million lower than the record $282.3 million handle that sportsbooks in the Pelican State took in during January.

The positive update from Louisiana’s legal sports betting in June is that it has increased by 28% compared to the previous year, surpassing the disappointing $132.4 million in wagers seen in June 2022.

Mixed numbers with revenues too

The anticipated decrease in handle resulted in a decline in revenue for Louisiana sports betting apps and retail providers.

In June, Louisiana sportsbooks reported net profits of $11.3 million, which was lower than expected due to lower hold rates. The hold rate for Pelican State wagering providers dropped to 7.8% in June from 15.3% in May.

Louisiana sportsbooks reported $25.5 million in net revenues in May, which was more than double the $11.3 million reported in June due to gamblers in the state experiencing greater success.

Despite month-over-month declines in Louisiana’s June sports wagering numbers, revenues actually increased from June 2022. Net profits for Louisiana providers saw a 7.5% rise in June 2023 compared to June 2022.

Retail takes a hit

Although overall sports betting numbers decreased month-over-month, there were some positive year-over-year trends, with the exception of the retail sector. Retail sports betting numbers in June 2023 saw a significant 23% decrease compared to June 2022, marking the lowest month on record since sports wagering was legalized in Louisiana in November 2021.

In Louisiana, retail sports betting providers generated only $14.3 million in bets and $1.1 million in net profits.

Louisiana sports betting apps did not experience significant growth in June, but it was clear that retail locations were the main obstacle to the success of the legal sports betting industry in the state.

LSU College World Series win helps the bottom line

According to Ronnie Johns, chairman of the Louisiana gaming control board, LSU’s victory in their first College World Series in 14 years led to an increase in year-over-year wagering activity. The high number of hometown bets on the Tigers may have also contributed to the low hold rate for the state’s sportsbook.

Johns stated during a meeting of the gaming control board that he believed the win ratio had decreased, indicating that many individuals had placed bets on LSU to win, for which he expressed gratitude.