With the roll of dice and the cheers of winning bets, Kentucky’s sports betting industry has rocketed to an impressive start. Since Kentucky began legal online betting on September 28, 2023, followed by the retail market opening its doors on September 7, the state has seen a remarkable $1.36 billion wagered in the initial six months.
Published figures from the Kentucky Horse Racing Commission reveal the inner workings of this booming enterprise in the time leading up to February’s end. A lion’s share of the action has taken place online, with $1.30 billion of the total bets being made electronically, and $57.3 million being placed at physical, retail sportsbooks.
The bustling market has not only offered entertainment to the masses but also turned into a revenue-generating engine, with total regulated market earnings striking $169.3 million during the first half-year. Breaking down this figure, online betting revenue stands at a substantial $163.8 million, with retail wagers contributing an additional $5.6 million to the pot.
Bettors have seen their fair share of success, walking away with a total of $1.35 billion in sports betting winnings. Meanwhile, the state’s coffers have been duly padded, with tax collections from the sporting activities amounting to a sum of $23.8 million.
A closer inspection of the operator landscape introduces us to market leaders and industry dynamics. FanDuel, in partnership with Turfway Park, has asserted dominance in the online sector, boasting a revenue of $62.8 million from an impressive $478.6 million in wagers. DraftKings, synonymous with the name Cumberland Run, trails closely—albeit with a twist. Despite generating a substantial revenue of $61.1 million, it has processed more bets than FanDuel, with figures reaching $499.0 million.
Other players such as Bet365 and Sandy’s Racing and Gaming have posted solid performances with $15.4 million in online revenue from $93.6 million in bets. BetMGM, partnering with Sandy’s as well, reported gains of $6.6 million off a handle of $56.6 million. Diving deeper into the pool, we find Caesars and Red Mile with a revenue of $8.9 million from $81.6 million in total bets, ESPN Bet and its partner Ellis Park notching $7.2 million off $65.3 million, with Fanatics and Oak Grove capping off the online market with revenue of $1.9 million, wrested from a $25.2 million handle.
The retail arena paints a slightly different picture of dominance with Caesars and Red Mile claiming the top spot with revenue of $3.2 million from a handle of $19.3 million. Following suit are Churchill Downs and Kambi with $1.2 million from $20.2 million, and then another Kambi retail partnership with Turfway Park, garnering $451,185 from an $8.8 million handle.
Reflecting upon the most recent accounting, total spending in February alone surged to $208.4 million, with $198.6 million bet online and an additional $9.8 million retail. The total market revenue for the month ascended to $28.5 million, which encompasses $20.8 million from online revenues and $722,390 from retail bets.
DraftKings and Cumberland Run emerged as the standard-bearers of the online market for February, generating revenue of $8.3 million from bets worth $78.9 million. FanDuel and Turfway Park again clinched second place with $7.7 million from $66.0 million in bets. Looking at the retail space, Caesars and Red Mile emerged as unassailable with a revenue of $749,423 and a handle of $3.4 million, leaving Churchill Downs and Kambi in a rather distant second place with $61,977 from $3.2 million.
The figures speak volumes, illustrating not just a thriving industry but also a burgeoning relationship between Kentuckians and their newfound legal pastime. The prospects look bright, and as the numbers steadily rise, industry insiders and state officials alike await the full impact of Kentucky’s foray into the sports betting world.
