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US Sports Betting Update – legal sportsbooks have generated $10bn since 2018

US Sports Betting Update – legal sportsbooks have generated $10bn since 2018

American sportsbooks have generated more than $10 billion in revenue since the Supreme Court overturned a federal sports wagering ban in June 2018. The sportsbooks hit that milestone this week following the release of June trading figures from Pennsylvania and Michigan. The industry has handled $141 billion over the past four, holding 7.1% in revenue. That led to $1.51 billion in taxes for states at an average rate of 15.1%.

New Jersey was the driving force behind the decision to overturn the Professional and Amateur Sports Protection Act of 1992 (PASPA). Nevada was exempt from the federal ban, and the Garden State argued that it gave Las Vegas an unfair advantage over Atlantic City. The Supreme Court finally ruled in its favor, deeming PASPA to be unconstitutional, and New Jersey was the first state to roll out an online sports betting industry.

Garden State sportsbooks have now handled more than $1.9 billion since then, from a handle of $28.5 billion. Nevada is in second place in the post-PASPA era, with a handle of $24.7 billion and revenue of $1.4 billion. Pennsylvania and Illinois round out the top four. New York has only had online sports betting since January 2022, but it is already up to No. 5 in the list, ahead of mature markets like Indiana, Colorado and Michigan. Its sportsbooks have already handled $8.9 billion and generated revenue of $648.7 million. New York charges a far higher tax rate than other states, so it has already earned $311.3 million in tax revenue, which is more than any other state, followed by Pennsylvania and New Jersey.

Quiet Month for Sports Bettors

June was nevertheless a quiet month for sportsbooks, which is always the case in June, with only Major League Baseball running throughout the 30-day period. The Pennsylvania Gaming Control Board reported that Keystone State sportsbooks handled $393.5 million, which was down 20.2% compared to the $493.4 million in May. It was also a 6% decline compared to June 2021.

Total revenue was $22.9 million, which amounted to a below average hold of 5.8%. Sportsbooks invested $10.1 million in bonuses and promotions, which they can deduct before paying tax on the remaining revenue. It resulted in $4.3 million in taxes for the month. FanDuel held onto its position as the top sportsbook in the state, ahead of DraftKings, with $158.2 million handled.

Michigan sportsbooks enjoyed a 12.7% year-on-year increase in June. The handle reached $292.4 million. It was an 18% decrease compared to May. Sportsbooks held 5.4% of the handle, generating revenue of $15.8 million. They deducted $10.8 million in bonus credits before paying tax, leaving the state with $367,487. FanDuel led the way in Michigan too, with $79.1 million handled and revenue of $6 million. DraftKings was a close second, followed by BetMGM.

DraftKings Grows Revenue in New Hampshire

DraftKings has an exclusive contract to run online sports betting in New Hampshire. It has reported that handle for the 12 months to June 30, 2022, reached $861.1 million. That represents a 65.4% increase on the previous year. Of that total, $670.3 million was wagered online at DraftKings and $190.8 million was placed at retail sportsbooks.

It generated revenue of $51.6 million. The New Hampshire Lottery reported that the state earned $23.9m in taxes from sports betting during the 2022 financial year. The handle in June was $53.6 million. New Hampshire benefited from Boston sports fans heading over the border to bet on the Celtics during their run to the NBA Finals, as sports wagering is not yet available in Massachusetts.

DraftKings Announces Responsible Gaming Collaboration

DraftKings has teamed up with BetBlocker, a leading responsible gaming charity, to promote BetBlocker’s software. In a first for the global gambling industry, bettors using BetBlocker are able to set restrictions on their gaming activities across all of their devices at no cost to them, and these restrictions can apply across thousands of gaming sites, whether regulated or not, anywhere in the world. It was designed in Edinburgh and it has been met with high acclaim in Britain’s mature online gambling market.

“BetBlocker’s contributions to safer play are commendable and DraftKings is pleased to team up with this enterprising and disruptive not-for-profit that is advancing responsible gaming in a comprehensive and consumer friendly way,” said Chrissy Thurmond, senior director of responsible gaming at DraftKings. “We share BetBlocker’s vision that technology and innovation are critical to promoting safer play, and we extend a warm welcome to BetBlocker as they build their footprint in North America, following widespread success across the pond.”. BetBlocker technology allows users to download the software anonymously without having any of their personal data stored. Consumers are empowered to use BetBlocker to manage how long or in what capacity they choose to play, with a range of restriction lengths – 1-5 days, 1-3 weeks, 1-6 months or 1-5 years – or by using the calendar blocking functionality on certain days.

“BetBlocker is thrilled to have the support of sports betting and gaming industry giant, DraftKings, to extend our software outside of the U.K. and Europe, to players in the United State and Canada,” said Pedro Romero, chief of safer gambling partnerships at BetBlocker. “We’ve been impressed with DraftKings’ leadership in responsible gaming and we are grateful for their collaboration and financial support as we look to expand awareness of safer play technology. We encourage other operators to follow DraftKings’ example of going above and beyond what is required region by region, to ensure all players have the knowledge and tools to bet responsibly.”

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