Kentucky got through the summer and nearly its first year with legal sports betting with higher action in August, but operator revenue took a hit.
The Kentucky Horse Racing Commission recently reported a $151.4 million handle, up 17.2% from July’s lowest-ever amount wagered in the Commonwealth.
Kentucky bettors enjoyed a better month than the previous one as the $12.1 million in gross revenue produced by the online and retail sportsbooks fell 21.3% from July.
It was the second-lowest in profits sports betting operators hauled in since wagering began. September 2023 was the lowest month, and didn’t offer a full month of betting. The 8% hold in August was the third worst sportsbooks produced in the last year and down more than 3.5 points from in July.
Kentucky's tax haul was down nearly half a million dollars from in July as the Bluegrass State filled its coffers with $1.7 million from the operators’ $11.8 million adjusted revenue.
First year in the books
Kentucky wrapped up a successful first 12 months of sports betting with $2.4 billion wagered. Nearly $2.3 billion of the yearly handle came from online sports betting while retail sportsbooks generated $87 million in bets.
From the $277.7 million of adjusted revenue produced by operators, the Bluegrass State hauled in more than $39.1 million in tax revenue, exceeding the $23 million projected for Kentucky before sports betting went live.
Kentucky operators held an 11.8% win rate on gross revenue of $283.6 million for the first year.
DraftKings and FanDuel combined for more than 73% of the market share in Kentucky. DraftKings generated a nearly $900-million handle while FanDuel reached $819 million.
DraftKings’ handle surges
| Operator | August Handle | Revenue |
|---|---|---|
| DraftKings | $56.7 million | $5 million |
| FanDuel | $45.2 million | $3.9 million |
| bet365 | $16.3 million | $872,349 |
| BetMGM | $8.8 million | $910,784 |
| Caesars | $6.8 million | $413,059 |
| ESPN BET | $6.4 million | $361,928 |
DraftKings saw an 18.3% surge in handle as August generated $56.7 million in wagers, most among the $147 million recorded by Kentucky’s eight online operators. DraftKings also led the field with $5 million in revenue, down from the $5.7 million produced in July.
FanDuel’s handle of $45.2 million in August was down $1 million from July while revenue of $3.9 million fell 36% month-over-month. bet365 took home third with a handle of $16.3 million and was the only other operator with more than $10 million in wagers for the month.
BetMGM brought in $8.8 million in bets, $2 million more than Caesars, which rounded out the top five. ESPN BET generated a $6.4-million handle. Fanatics Sportsbook wasn’t too far behind with $5.5 million wagered.
Circa Sportsbook cleared $1 million in handle for August, but no sportsbooks besides DraftKings and FanDuel reached $1 million in revenue. BetMGM had the only double-digit hold in August.
Retail rebounds
Kentucky’s eight retail sportsbooks combined to produce $265,647 of adjusted revenue on a $4.4 million handle, up from July’s $3.8 million.
Churchill Downs led all brick-and-mortar shops after generating $1.5 million in wagers from the Kambi operator. Red Mile’s Caesars-run sportsbook was second at $1.2 million.
For the first 12 months, retail Kentucky sports betting produced a $92.3 million handle and produced $9.2 million in revenue.
