January may not have been the best month for Louisiana sportsbooks, but after December's massive haul, it was always a high bar to surpass.
Louisiana’s Gaming Control Board announced that online and physical sportsbooks accepted $346.2 million in wagers last month, down from December’s $377 million.
Revenue also came down as December’s 14.9% hold was, as expected, unsustainable. Instead sportsbooks in the Pelican State enjoyed a 11.2% hold, which is still a number that operators should aim for, despite the month-over-month decline.
Net revenue came in at $38.8 million, well below December’s $55.7 million. Profits would have been much higher if the operators kept their promotional spend in line with their previous months. But when playoff football is in full swing, sportsbooks are focused on customer acquisition and retention. In January, promotional deductions hit $13.8 million, which is more than the past four months combined.
Louisiana’s tax bill still came in at a solid $5.6 million.
Retail woes as mobile markets gain
In most betting states, the retail markets fall well short of their online counterparts. But when it comes to Louisiana sports betting, the separation is getting worse.
Physical operators posted a year-over-year decline in both their revenue and handle for the past six straight months. Online operators on the other hand are on a six-month streak of improved revenue and handle versus this time in 2023.
Bettors improved their chances across the board
Coming off a month of 14% hold, online bettors saw more winnings in January. But, more importantly, they improved in every tracked category.
Football bets helped save the mobile sportsbooks’ bottom line as bettors increased their winnings by just 12%. In basketball, profits fell 45% for the house, while parlays dropped by 27%. Soccer was the worst with a 64% month-over-month decline. However, less than $1 million was wagered on the sport.
On the retail side, football profits fell by 86% compared to December. On top of that, baseball and soccer were net losers for the operators.
