Sports betting brought in more than $35 million in both Iowa and Indiana during September, the first full month of legalized sports wagering.
According to the Iowa Racing and Gaming Commission, in September, the first full month of legalized sports betting, gamblers spent $38.5 million in wagers with net revenue of $4.95 million and a hold of 12.9 percent. Nearly $21.8 million, or 56.6 percent, of the casinos’ total September handle came from mobile betting. Prairie Meadows in Altoona accounted for $14.526 million of the state’s sports betting total with $12.963 million, of which 89.2 percent came from mobile betting—nearly four times the handle of the number two casino, Ameristar in Council Bluffs with $3.8 million. It’s not taking mobile wagers yet.
The figures include 15 of Iowa’s 18 licensed casinos that were processing wagers in September. The state’s three Wild Rose properties launched sports wagering earlier this month.
The state of Iowa receives 6.75 percent in tax revenue on casinos’ net receipts. According to IRGC data, the September total for the state was $334,553; for the two weeks sports betting was legal in August, the state netted about $146,000 in taxes.
Iowa Racing and Gaming Commission Administrator Brian Ohorilko said,
“We’re still hearing reports on Saturdays and Sundays that there are lines out the doors of many sportsbooks. So we’ve definitely seen some big days.”
Ohorilko noted under state law, bettors must place a bet in-person at an Iowa casino or register on-site for the casino’s mobile app. That rule could be a contributor to the 7 percent increase in casino revenue so far in the 2020 fiscal year, which began July 1, Ohorilko said. Table game receipts also have grown 6 percent in the past three months, he added. “Iowa is generally a very predictable market, trending a point or two up or down. It’s still early, but it makes you wonder if there is a trickle-in effect, at least so far,” Ohorilko stated.
He also said DraftKings and FanDuel are on the verge of launching daily fantasy sports in the state. Previously it was hoped DFS would be operational prior to the start of the National Football League season. But Ohorilko said DFS operators claimed Iowa’s regulations were tougher than other states. The IRGC brought in a third independent testing lab to do initial testing for the companies’ equipment and systems, leading to delays.
In Indiana, sports betting launched at 10 of the state’s 13 casinos on September 1, just in time for the first game of the 2019-2020 National Football League season. Indiana Gaming Commission figures show the state’s new sportsbooks took in $35.2 million in handle and generated $813,103 in tax revenue. Horseshoe Hammond casino in suburban Chicago led the rest with $8.9 million in handle.
The vast majority of bettors placed $20.7 million in wagers on the NFL and college football. Parlays were the second most popular wager at $9.8 million in handle, followed by baseball at $3.44 million, “other” at $449,000 and basketball at $120,000.
The sportsbooks brought in $8.56 million in taxable revenue; Indiana’s tax rate on sportsbook revenue is 9.5 percent.
The September figures only reflect on-site betting. Indiana’s first mobile app went live October 3 with the launches of Rush Street Interactive’s BetRivers.com and DraftKings’ app.
Harrah’s Hoosier Park figures also included handle from its off-track betting sites in Indianapolis and New Haven, and Indiana Grand’s handle includes wagers placed at its Clarksville OTB.
