Just three months ago, Iowa reported a legal sports betting handle of over $230 million. Now with fewer sports to attract the casual bettor, Iowa’s betting market has fallen over 50% in June.
The Iowa Racing and Gaming Commission announced that the state accepted $115.5 million in wagers last month, a 21.8% decrease compared to May. That’s three straight months with a decreasing handle, all by double-digit percentages.
While May’s decrease in action was buoyed by a jump in revenue, June did not see the same luck for retail and online sports betting sites. Last month, operators saw just $7.1 million in net receipts, well short of the $16.6 million that was brought in during May.
There may not have been much to bet on, but Iowans made it count. The hold percentage from Iowa sports betting fell to 6.1%. May, by comparison, saw sportsbooks keeping 11% of the wagers they accepted. This means state coffers were light in June. Sportsbooks collectively paid just $570,976 to the state, a roughly 43% drop off.
However, Iowans who traveled to a brick-and-mortar sportsbook turned their luck around in June. These sportsbooks held just 3.5% of their bets last month, compared to the 13% the month prior.
Limited success for bet365 in joining crowded Iowa market
Despite the weak handle in the Hawkeye State, most of the 19 operators turned a slight profit in June. Only three sportsbooks were in the red, and one of them was most likely by design.
Last month, bet365 entered the crowded Iowa market, with a goal to spend money on customer acquisitions... and it paid off. The bad news is the UK sportsbook lost $1.5 million in June, but their spending spree brought them to fifth place in the state in terms of handle. Their $3.6 million in action was more than Barstool, BetRivers, and PointsBet, among many others.
Still, DraftKings maintained its hold on Iowa’s betting market with $39.8 million in total handle. FanDuel was second with $27.6 million in bets, while Caesars was third with $15.7 million, followed by BetMGM with $9 million.
