Ohio Sports Betting Revenue Increases by 15.8% in April Amid Regulatory Scrutiny

Ohio’s sports betting market saw a notable increase in revenue in April, hitting $73.9 million (£58 million/€68.1 million). This represents a 15.8% boost compared to March, when the revenue was $63.8 million. The year-to-date total for 2024 now stands at $317.1 million, indicating significant growth in the industry.

Detailed Revenue Analysis

Online sports betting dominated the market in April, contributing a substantial $72.8 million, or 98.5% of the total revenue. Retail betting, meanwhile, added $1.1 million to the overall figure. Despite this revenue surge, the total amount wagered—known as the handle—actually dropped by 16.7%, from $808.2 million in March to $673.2 million in April.

Ohio’s betting brands paid out a total of $593.1 million in winnings, with promotional activities ing for $20.1 million. When compared to the same month last year, the handle has increased by 29.3%, and the revenue is up by 16.7%, showcasing a year-on-year upward trend.

In of individual operators, FanDuel continued to lead the pack in April. The company reported an online handle of $226.7 million and generated $34 million in revenue, maintaining its dominant position in Ohio’s sports betting market.

DraftKings was the second-largest operator, with an online handle of $216.8 million and $20.8 million in revenue. Bet365 followed, reporting a handle of $48.9 million and revenue of $5.1 million. BetMGM and ESPN Bet also showed strong performances, with handles of $45.2 million and $35.8 million, respectively.

Regulatory Spotlight: Dave & Busters

In addition to the revenue news, regulatory developments also made headlines in April. Dave & Busters, a popular adult amusement company, revealed plans to allow its adult rewards customers to place bets against each other. This move has prompted the Ohio Casino Control Commission (OCCC) to launch an investigation to determine if such activities would breach state laws.

The OCCC’s scrutiny is centered on whether the six Dave & Busters locations in Ohio would violate gambling laws by introducing wagering. This situation underscores the importance of regulatory oversight in maintaining the integrity of Ohio’s gaming industry.

Ohio’s regulatory environment is mirrored by recent legislative actions in Illinois. Representative Dan Didech has introduced the “Family Wagering Prohibition Act” in Illinois, aiming to ban establishments like Dave & Busters from offering wagering services. This legislative effort highlights the broader regulatory concerns surrounding the expansion of gambling into family-friendly entertainment venues.

April’s significant increase in sports betting revenue in Ohio underscores the state’s expanding market. Leading operators such as FanDuel and DraftKings are driving the majority of this growth, particularly in the online betting sector. However, the decrease in handling and the regulatory scrutiny faced by companies like Dave & Busters indicate ongoing challenges within the market.

The investigation by the Ohio Casino Control Commission into Dave & Busters’ betting plans, along with legislative initiatives in Illinois, reflects a cautious approach to the expansion of gambling activities in family-oriented venues. As Ohio’s sports betting industry continues to evolve, regulatory oversight will remain crucial to ensuring a balanced and legally compliant market.

With substantial year-to-date revenue and a growing list of top-performing operators, Ohio’s sports betting market is poised for continued growth. However, maintaining this momentum will require navigating regulatory landscapes and addressing market dynamics effectively.

Source:

”Ohio sports betting revenue hikes 15.8% to $73.9m in April”. iGamingBusiness. June 03, 2024.