Ohio’s sports betting landscape witnessed a notable financial dip in March, with revenue falling by 3.8% in comparison to figures reported in February of the same year. The recent financial records depict a more substantial, 33.1% year-on-year decline from the $95.3 million revenue posted in March of the preceding year. This downturn in revenue is particularly striking given that March 2023 marks only the third month since the introduction of Ohio’s sports betting market.
Despite the decrease in revenue, the state observed an impressive amount of bets placed, known as the handle, which reached $808.2 million in March. This shows a significant month-over-month increase from February’s $671.1 million. Contributing to this surge in handle was the March frenzy generated by the NCAA Division 1 basketball tournaments, which consistently serve as prime catalysts for betting activity across the United States.
When examining the numbers from a year-over-year perspective, there’s also an observation of growth, with a 9.6% increase on the $737.2 million in bets recorded the previous year. Nevertheless, after accounting for promotions and payouts, the taxable revenue for March stood at $64 million, which reflects how much of the handle was retained by the operators after $738.8 million was returned to bettors as winnings and $22.5 million was accounted for in promotional offers.
The overwhelming majority of the betting handle came through online platforms, with $784.8 million or 97.1% of the total bets placed digitally. From this digital interaction, online sports betting revenue constituted $62.1 million, leaving a modest $1.7 million to the retail sector.
A crowded field of online betting operators vies for the top spot in terms of handle and revenue, with FanDuel taking the lead by reporting a handle of $265.9 million. DraftKings was a close second with a handle of $260.6 million. In terms of revenue, FanDuel came out on top again with $27.0 million, while DraftKings generated $20.3 million.
Another noteworthy report comes from Bet365, which displayed robust performance for the month. In March, they managed a handle of $57.3 million, representing a 28.5% increase from the $44.6 million in bets they took in February. This growth may corroborate data from YouGov earlier in the week pointing to Bet365’s popularity among bettors aged 21-24.
An important regulatory development occurred this March with the Ohio Casino Control Commission (OCCC) enacting a ban on player prop bets on college sports beginning March 1st. This move arrived after the National Collegiate Athletic Association (NCAA) advocated for such wagers to be forbidden, citing the need to protect collegiate athletes from harassment and the threat of match-fixing. Ohio becomes the 25th state to introduce limits or a complete prohibition on player prop bets, which includes specific performance statistics like a quarterback’s passing yards.
Governor Mike DeWine expressed support for the OCCC’s swift action, recognizing the importance of shifting betting focus from individual student athletes to team performance in order to improve the marketplace and safeguard collegiate competitors.
While sports betting revenue suffered a setback, Ohio’s casino revenue showed signs of recovery. Following the lowest revenue in nearly three years reported in January, casinos bounced back with stronger performance in February and continued the upward trend in March. Casino revenues reported for March amounted to $94.7 million, surging past February’s $83.5 million, and also noted a 1.3% increase from the $93.5 million figure from the same period in the previous year.
Amongst the highest earners in the casino sector, Hollywood Columbus took the revenue lead with $25.6 million. Jack Cleveland Casino claimed the runner-up spot at $24.5 million, closely followed by Hard Rock Cincinnati and Hollywood Toledo Casino, which posted revenues of $22.2 million and $22.5 million respectively. These figures indicate a positive trajectory for the casino industry in Ohio, even as the newly minted sports betting market experiences growing pains under the weight of fresh regulatory constraints.
