The latest monthly numbers for sports betting in Louisiana were dealt a big blow by the massive wagers made in the state by the notorious “Mattress Mack.”
Figures recently released by the Louisiana State Police’s Gaming Enforcement Division show there was $268.6 million wagered with the state’s retail and online sports betting sites during November, up around 5% from October and a new monthly record.
November's handle for Louisiana was chiefly driven by online activity, as the state's mobile sportsbooks took $233.7 million in bets. However, it was the online side of the state's sports-betting industry that was walloped by the World Series futures placed by Houston furniture salesman Jim “Mattress Mack” McIngvale.
A womping
The Houston Astros’ World Series win clinched an approximately $75-million payout for Mack, who was using the wager as a hedge against a promotion at his furniture stores. McIngvale also got his wagers down, at least in part, via mobile sports betting in Louisiana, such as a $3-million bet on the Astros to win, at +1,000 odds, using Caesars Sportsbook.
According to the Louisiana State Police figures, the state's mobile sportsbooks took a $27.6-million loss in November, compared to nearly $26 million in net proceeds during October. What's more, the online bookmakers took a $59.3-million loss on baseball during November, compared to an almost $1-million gain during October. Those losses were driven by Mack's wagering.
As a result, the win rate for the mobile books in Louisiana last month was -11.8%, well down from October's 11.9%. Business on the retail side was a bit better for Louisiana's operators in November, as they turned nearly $35 million in wagers into about $2 million in net proceeds, good for a hold of 5.7%. Still, when it came to baseball, the brick-and-mortar books reported a $1.4-million loss.
Thanks for the money
Yet Mack's win didn't seem to take a huge toll on the overall tax revenue earned by Louisiana.
After accounting for winning payouts and deductions for free bets and other promotions, Louisiana's operators paid about $4.2 million in tax to the state for November's action, down only slightly from the $4.3 million owed in October. Louisiana had 17 brick-and-mortar sports betting sites and eight mobile sportsbooks taking bets during November.
Louisiana Gaming Control Board Chair Ronnie Johns said during the regulator’s meeting last week that Mack had an "impact" on two or three of Louisiana's mobile sportsbooks.
Johns also noted that he had recently met McIngvale at the recent grand re-opening of the Horseshoe Lake Charles casino, during which Mack placed a $1-million bet on the Houston Cougars to win the NCAA men’s basketball tournament at +800 odds.
“He thanks the state of Louisiana very much for allowing him to come in and make $75 million,” Johns said.
