The Kentucky Horse Racing Commission reported $12.1 million in gross sports betting revenue for August on Thursday, as sportsbooks totaled $283.6 million in overall winnings in their first 12 months of operations in the Bluegrass State.
Kentucky began taking wagers at retail sportsbooks on Sept. 7, and mobile operators followed suit three weeks later. Handle peaked at nearly $288 million in October, when digital sportsbooks flooded the marketplace with introductory promotional offers.
To wit, the seven online operators combined to spend $99.8 million in credits and bonuses the first five weeks they were live. Handle topped $250 million on five occasions, the last coming in March at $256.2 million.
The top revenue haul also occurred in October, when the house reaped $54.6 million in gross revenue, posting an eye-watering 19% hold. The surge in action expected for March got short-circuited when the third-seeded Wildcats were upset by Oakland in the first round of the NCAA men's basketball tournament.
Handle was up 17.1% compared to July, but August revenue plunged 21.3% as the hold was nearly four percentage points lower. To that end, the $12.1 million was the lowest recorded total in a full month of wagering.
The state was eligible to levy taxes on $11.8 million in adjusted gross revenue, redirecting nearly $1.7 million of that into its coffers. Kentucky totaled $39.2 million in tax receipts for the first 12 months, with $23.6 million coming in the 2024 calendar year.
Race for No. 3 Remains Interesting
Kentucky had a mass mobile launch, putting the seven operators — Circa Sports did not enter the state until May — on equal footing. While it is no surprise that DraftKings and FanDuel quickly separated themselves by accumulating nearly 75% of the $2.3 billion mobile market share, bet365's aggressive spend in the early months paid dividends.
The England-based sportsbook emerged as a clear No. 3 for mobile market share with more than 8% in the first 12 months, boosted by a promotional outlay of $21.4 million in September and October. That spend trailed only FanDuel ($42.5 million) and DraftKings ($28.8 million) among the seven operators.
Bet365 was also helped in that PENN Entertainment launched before transitioning its mobile sportsbook brand from Barstool to ESPN BET, as PENN spent less than $80,000 in credits and bonuses in that span.
While ESPN BET did launch aggressively in mid-November, the overall 5.1% market share in its 10 months of business is projecting to fall short of the 7% target PENN Entertainment CEO Jay Snowden established as a first-year goal. ESPN BET had a 4.2% mobile market share for August with $6.4 million handle, beating out only Fanatics Sportsbook and Circa.
Caesars was able to edge BetMGM for the No. 4 spot overall, though BetMGM has gained ground over the last five months. BetMGM's $47.6 million handle since April is 24% more than the $38.4 million in bets Caesars has accepted in that span.
In terms of mobile sportsbook revenue, FanDuel amassed a slight edge over its eternal rival DraftKings despite generating almost 9% less handle. FanDuel had a 13.3% hold in claiming $108.8 million in gross winnings from $819.4 million worth of wagers, while DraftKings posted $103 million in revenue against $899.1 million handle — good for an 11.5% win rate.
After four straight months with 14%-plus holds, bettors finally dragged FanDuel down into single digits, as it recorded an 8.7% hold in August while accruing $3.9 million in gross revenue from $45.2 million worth of bets placed. DraftKings, meanwhile, came within $7,000 of $5 million, as it fashioned an 8.8% hold from $56.7 million handle.
Bet365 also took the final podium spot for revenue in the first 12 months, accumulating $22.5 million thanks to an 11.9% hold on $188.9 million handle. Caesars ($12.7 million), BetMGM ($11.6 million) and PENN ($11 million) also reached eight figures, as each sportsbook had a hold of at 9.5% or better.
Retail Sportsbooks Hold Their Own
Kentucky's eight brick-and-mortar sportsbooks — Kentucky Downs began taking wagers in August — combined for $9.2 million in gross revenue while notching a 10% hold from $92.3 million handle. Churchill Downs saw the most action among the group, as its Kambi-powered venue accepted $35.5 million in wagers while attaining a 7% hold to claim $2.5 million in winnings.
Caesars' sportsbook at Red Mile took top honors for revenue with more than $3.9 million, hitting the public with a 14.7% hold on $26.6 million. Red Mile has been feast or famine for sports bettors this year, posting a 10.5% win rate or better in five months while being held under 6.7% in the other three.
