The Sunflower State showcased its maturing sports betting market during a typically slow summer month.
The Kansas Lottery reported a 55.7% year-over-year handle increase as $146.9 million was wagered in August. A sports betting month dominated mostly by MLB, NFL preseason, and early college football included the Olympics this year, which likely helped lead to the surge in action.
Gross revenue of $10.6 million for Kansas’ six online sportsbooks and four retail sports betting operators spiked 38.1% compared to Aug. 2023. Adjusted revenue jumped 35.7% year-over-year to $6.6 million.
However, the hold from gross revenue for sports betting operators only reached 7.2%, down nearly a point from Aug. 2023.
The Sunflower State filled its coffers with $657,288 and tax revenue for 2024 is approaching $7 million heading into the bulk of football season.
Month-over-month woes
The final month of summer produced a 20.4% increase in handle compared to July, but bettors held up well against the sportsbooks as the win rate fell nearly four points month-over-month.
Gross revenue was down 21.3% from July’s $9.2 million, and the state’s tax share was $260,000 less in August. It might just be a July-August thing for Kansas sports betting operators. Adjusted revenue went from $6.8 million in July 2023 to $4.8 million the following month.
DraftKings, FanDuel dominate
| Operator | August Handle | Gross Revenue |
|---|---|---|
| DraftKings | $67.7 million | $4.9 million |
| FanDuel | $43.8 million | $3.9 million |
| BetMGM | $10.5 million | $798,000 |
| ESPN BET | $7.7 million | $274,000 |
| Fanatics Sportsbook | $7.2 million | $352,000 |
| Caesars | $6.1 million | $398,000 |
Online sports betting accounted for $142.9 million of the total amount wagered in August, while all of the positive gross revenue landed with mobile operators - despite being charged with nearly $4 million combined in promotional deductions.
DraftKings generated a Kansas-best handle of $67.7 million, up 58% year-over-year, and the highest online revenue total of $4.9 million. FanDuel was second with $43.8 million wagered and nearly $4 million in gross profits behind an 8.9% hold that was tops in the Sunflower State in August.
BetMGM held onto the third spot and was the only other operator with a handle of over $10 million, but the online sportsbook couldn’t get to $1 million in revenue like it did in July.
ESPN BET came in fourth with a handle of $7.7 million, slightly ahead of Fanatics Sportsbook and about $1.5 million more than Caesars, which produced a 6.5% hold that was better than the two operators ahead of it.
Bad month for retail
August was a real struggle for brick-and-mortar sportsbooks. Retail operators combined suffered a $14,471 gross revenue loss behind a $4.1 million handle, which was up 7.9% year-over-year. August marked the second month this year that casino-based sportsbooks finished in the red after Super Bowl losses ate up revenue in February.
Hollywood Casino led all brick-and-mortar shops with a handle of $2.7 million, but the operator paid out over $2.8 million to bettors, leading to a loss of $124,725 for the month.
