Ohio Notices Sports Betting Activity Climbs 5% Year-Over-Year but Drops Month-Over-Month

The February earnings report from the Ohio Casino Control Commission has been released, showing a slight increase in Ohio sports betting compared to the previous year. However, there was a double-digit percentage drop from January, despite the Super Bowl, one of the biggest sports betting events in the U.S., occurring during the month.

In the 14 months since Ohio legalized sports betting in January 2023, the handle and revenue figures for February were average compared to other monthly statistics.

February handle of $672 million

In February, Ohio sports betting apps and retail providers generated a total handle of $672 million, with contributions from Ohio sportsbook promotions.

The figure shows a 20.8% decrease from the previous month’s reported total of nearly $806.2 million in January, but marks a 5% increase compared to the $635.4 million reported in February 2023, which was the second month of legal sports betting in Ohio.

In February, Ohio sports betting apps accounted for over $657 million of the state’s total handle, with retail betting bringing in $13.4 million and betting kiosks generating $892,000.

Nearly $68 million in adjusted gross sports betting revenue

In February, Ohio sportsbooks saw a total of $67.7 million in adjusted gross sports betting revenue, with a 10.1% hold. This marked the 12th time in 14 months that Ohio sportsbooks have exceeded a 10% win rate, surpassing the national average of 8% for sports betting providers.

In comparison, Ohio saw a sportsbook win rate of 14.1% in January and 12.7% in February 2023.

Ohio sportsbooks generated over $67 million in revenue, marking the ninth-best monthly haul in the 14 months since operation began. This figure represents an 18.4% decrease from the previous year’s revenue of $80.95 million in February 2023, as well as a 40% decline from January’s revenue of nearly $113.4 million.

Promotional spending by Ohio sportsbooks sharply decreased in February 2024, dropping by 52.2% compared to the previous year’s frenzied efforts to attract bettors to the state’s legal sports wagering platform. The reported promotional spending totaled over $23 million.

Tax revenue spikes

The increase in Ohio sportsbook taxes has resulted in a significant boost in tax revenue for February compared to the same month in 2023. Governor Mik DeWine raised the state’s sportsbook tax rate to 20% in July, leading to increased funds in the tax coffers.

In February, Ohio saw a decrease in handle ad revenues, but still received over 13 million in tax revenue. This is $5.2 million more than February of the previous year, although it is a decrease from the record $22.7 million received in January.

FanDuel and DraftKings dominate

In February, FanDuel and DraftKings dominated the Ohio sports betting app market, accounting for almost 80% of total revenue during the 29-day reporting period.

In Ohio, FanDuel reported a February handle of $222.2 million, just slightly edging out DraftKings, which saw $222 million in wagers. Together, the two companies held a 66.2% market share in the state’s legal sports betting industry.

FanDuel generated $28.1 million in revenue in Ohio, achieving a win rate of 12.6%. Meanwhile, DraftKings reported earnings of $24.2 million with a hold rate of 10.9%.

In Ohio sports betting sites, bet365 ranked third with a February handle of $44.6 million, followed by BetMGM in fourth place with $42.6 million in accepted wagers, and ESPN BET came in fifth with $40.9 million in bets.

Retail drags numbers down

According to the American Gaming Association, Ohio’s retail sports betting industry experienced a lackluster February, despite the Super Bowl being the most bet on and widely watched event.

During the February reporting period, retail sportsbooks in Ohio reported a loss of $122,288. Betting activity at the state’s four stadium wagering facilities resulted in over $1.5 million in payouts, exceeding the $1.2 million in revenue they generated. The hold rate for retail in February varied between 1.6% and 1.7%.