You’re wrong Dorothy. You are in Kansas, and the view from there for sports betting looks just fine, even to Toto. After 12 months, four retail sportsbooks and six mobile ones produced a handle of $1. 85 billion, generating gross revenue of $166.4 million which gave the state almost $7 million in taxes.
Kansas operators may deduct promotional play and carry over monthly losses. Still the whole system impressed.
Introductory offers in September cut into adjusted gross revenue as did heavy losses from betting on the Chiefs Super Bowl play in February.
Kansas was just one of three states to report a monthly loss in gross revenue in 2023 so far.
“The first year of sports betting in Kansas was an overall success. Thanks to the hard work of so many people across agencies and organizations, we were able to launch in time for the professional football season,” said Cory Thone of the Kansas Lottery in an email to Sports Handle.
DraftKings, FanDuel, and BetMGM accounted for 92.5 percent of the nearly $91.8 million in credits awarded to bettors from September through August. DraftKings led the mobile operators in handle with $753.5 million and gross revenue $67.8 million, but also in promotional outlay at close to $38.7 million.
While FanDuel was second in spending at $25.3 million, that total also represents less than half its $56.1 million gross revenue. BetMGM was willing to pay the price to be the clear-cut No. 3 option in Kansas, as its promotional outlay of $20.9 million nearly matched its $21.9 million in gross revenue claimed.
While the big three did what the big three expected to do, when year two is in the books two other companies may have a say. Fanatics bought PointsBet, and PENN Entertainment switched from Barstool Sportsbook to ESPN Bet.
Fanatics has a tough road as PointsBet accounted for 1.2 percent of mobile handle. PENN should be able to control brick-and-mortar handle share. The Kansas Speedway accounted for 76 percent of the $81.2 million handle in the first 12 months of wagering in Kansas.
It also took the biggest hit of any sportsbook, retail or mobile, in February when it reported payouts of more than $1.8 million above the $8.2 million worth of accepted wagers. PENN dug itself out of that deficit in three months’ time, but it has a hold of just 2.4 percent through the first eight months of the year, claiming $845,000 from $34.9 million handle.
