Another month brings another downer for the poor cousin of Ohio sports betting: almost 900 stand alone kiosks. Their addition was supposed to bring bars, restaurants, bowling alleys and more into the fold. It did, but at what cost?
The kiosks produced a handle of $954,804, a decrease of 22.75 percent from the previous month, according to PlayOhio.
Adding to the sting for kiosk operators last month was the lower than usual revenue made on the machines.
Combined gross gaming revenue by the five kiosk owner companies was $38,811 in June, turning in 95.91 percent to winners.
The Ohio kiosk hold percentage of 4.09 percent fell way below expected hold of more than 7 percent. As a result, The Ohio Lottery Commission received a record low of $5,350 from the kiosk operators..
Broken down by month, the Ohio sports betting kiosk handle for 2023 stands as follows:
- January: $850,336
- February: $973,208
- March: $1,384,324
- April: $1,127,133
- May: $1,235,984
- June: $954,804
Not everyone is finding the system a difficult one to work with. Considering the total amount wagered at their 733 locations, SportsBet reported more than $483,000 in bets, for a modest profit of $5,693. That’s a payout percentage of 98.81 percent. By contrast, UBet made over $20,000 in revenue on $177,344 in bets.
No other legal sports betting state permits kiosks in this deployment. But any outlet that sells lottery tickets can offer a kiosk.
The Ohio Lottery is not making enough to pay for administration. Administrative costs for regulating the kiosks add up to $650,000 per year, or over $54,000 each month. The largest cut the Lottery has received was $33,283 in March.
There is room for the kiosk market in Ohio to grow, however. Breweries, wineries and distilleries that operate tap rooms will soon be able to host the kiosks. In addition, two large supermarket chains in the state are newly approved and working with kiosk proprietors on roll out plans. Kroger could add kiosks at up to 42 locations, and Giant Eagle has 64 locations approved.
Let’s see if it helps the situation.
