June is always a slow month for sports betting, but that didn’t make it any easier for Indiana sportsbooks to digest.
Indiana sports betting registered $224 million in June wagers, down 21% from the $283.5 million in May. The market’s total revenue dropped from $33.8 million to just $19.5 million, resulting in a painful 42% month-over-month decline.
The sharp drop in revenue comes after May’s 11.8% hold, the second-largest since 2020. June’s 8.7% still outperformed the industry average (around 8%), but it was not enough to limit the damage from a lower betting volume.
DraftKings pulls ahead of FanDuel
The nation’s two primary sportsbook operators, DraftKings and FanDuel, have held a stronghold on Indiana’s sports betting market and jockeyed for the top spot. The two combined for 70% of all June wagers, up from 67% in May.
In June, DraftKings Indiana dominated FanDuel Sportsbook Indiana in total handle, $87.8 million (+21% YoY) to $69.4 million (-13% YoY). FanDuel brought in more revenue, however, with $8.4 million (+51% YoY) compared to DraftKings’ $5.8 million (+64% YoY).
June marked DraftKings’ ninth month in the last year with a higher betting volume. However, FanDuel has held the higher hand in total Indiana sportsbook revenue by a significant margin every month since February 2022.
Outside the two giants, only BetMGM Sportsbook IN ($20.3 million handle; -40% YoY) reported a seven-figure monthly profit. Its $1.9 million revenue total fell by 40% YoY, showing how much DraftKings and FanDuel have grown in the past year.
Caesars IN fell just as far. Its $15.7 million handle also was down 40% YoY, but its $751K revenue only declined by 2%.
Other sportsbooks with handles above $1 million included:
- BetRivers: $6 million handle; $530K revenue
- Barstool: $4.4 million handle; -$103K revenue
- PointsBet: $4.3 million handle; $416K revenue
- Hard Rock: $2.7 million handle; $205K revenue
- WynnBET: $1.6 million handle; $80K revenue
Parlay me out to the ballgame
Hoosiers wagered $82 million on parlays in June, more than one-third of the $224 million handle. The Indiana Gaming Commission reports on parlays separately since they can include wagers across multiple sports.
As for individual sports, baseball brought the most action with $65 million in wagers. The NBA wrapped up its season in early June, with The Finals contributing to basketball’s $24 million monthly handle.
Football, the only other individually reported sport, accounted for $1.6 million in wagers.
The remaining $51 million came from all other sports, presumably led by the PGA Tour’s US Open and the National Hockey League’s Stanley Cup Finals.
The new normal for Indiana sports betting
Indiana sports betting revenue has been down year-over-year, primarily due to neighboring Ohio entering the market. June was no different, registering a 13% YoY drop from $256 million in June 2022.
Sportsbooks fared better this time, though, seeing a 24% YoY revenue increase. June 2022’s 6.1% hold generated just $15.7 million.
Looking back to June 2021, sportsbooks had $246 million in betting volume, with a 10.9% hold generating $26.7 million in revenue. The month’s handle was only $10 million below June 2022 after exploding in 2021.
Annual Indiana sports betting volume:
- 2020: $1.77 billion
- 2021: $3.82 billion (+215% YoY)
- 2022: $4.44 billion (+16% YoY)
A 16% YoY gain is significant, but the numbers suggest the market was trending toward maturity in 2023, even before sports betting became legal in Ohio.
Sportsbooks on pace for a $4 billion handle in 2023
April through August represent the slowest sports betting months of the year, bringing lower revenue for sportsbooks nationwide.
A lack of Ohio customers has compounded that effect, and more of the same will come with Kentucky legalizing sports betting in March. Although the Bluegrass State represents a smaller market, it will still take from Indiana’s bottom line.
Still, sportsbooks in the Hoosier State are on pace to record a $4 billion handle in 2023, a healthy figure considering its new competition from Ohio and, soon, Kentucky. These numbers fall within the margin of error for PlayIndiana’s start-of-year $4.1 billion projected handle.