Iowa Sportsbooks Continue to Prosper
Iowa Sports Betting Revenue Settles at $182.4M in May
Iowa betting totals dropped in May, with operators collecting $182.4 million in handle. That comes on the heels of record-setting performances in each of the previous two months.
Despite the continued decrease, operators came out feeling good about their returns. Sportsbooks took home $16.69 million in winnings, as the hold percentage dropped to 10.9%. That figure, as reported by Iowa’s Racing and Gaming Commission, represents an increase from 3% in April.
The total payout for May was $165.7 million, down from $192.9 million in April.
What does Iowa’s sports betting revenue figures mean for the state? Here’s more.
Year-to-Date Growth
Legal sports betting has been available in Iowa since 2019. Prior to 2021, bettors were required to sign up at an on-site location before placing their first legal official wager.
Iowa sports betting revenue is up year-to-date in Iowa. The betting handle rose to $2.46 billion through May, with total revenue ($199.76 million) and state tax ($13.49 million) also increasing. This comes after the Hawkeye State collected $1.12 million in tax revenue over the previous month.
Industry leaders DraftKings and FanDuel were easily the most profitable operators in May. Both surpassed $6 million in revenue while generating more than $61 million in handle throughout online and brick-and-mortar locations.
Third in handle behind DraftKings ($72.4 million) and FanDuel ($61.3 million) was Caesars at $22.4 million. BetMGM ($16.7 million), ESPN BET ($9.3 million) and bet365 ($8.5 million) rounded out the list.
Caesars and BetMGM were the only sportsbooks besides DraftKings and FanDuel to surpass $1 million in revenue. ESPN BET ($900.5K) and bet365 ($648k) lagged behind.
Tax revenue for the state has increased from $12.8 million to $13.4 million.
Clark Effect
What’s next for the Hawkeye State? It’s far from surprising that betting totals were down from March and April. Both tend to be prosperous months for sportsbooks, with the NCAA Tournament accounting for a bulk of the action thanks to sportsbook promos.
That’s especially true in Iowa, where operators experienced a betting surge thanks to Caitlin Clark. The state’s betting handle jumped 17.1% to $272.4 million in March, a nearly $40 million increase. Altogether, it marked the sixth-highest handle ever in Iowa and the fifth above $250 million over a six-month span.
Led by Clark, the NCAA’s all-time scoring leader, Iowa’s women’s basketball team advanced to the national championship game, where they lost 87-75 to South Carolina. The two-time national player of the year scored 30 points.
The final was the highest-rated telecast on record for the women’s tournament, averaging 18.7 million viewers on ABC and ESPN. That surpassed many notable events, including every game of the 2023 World Series and NBA Finals.
It also set several betting records. FanDuel was among the biggest beneficiaries with a 155% increase in handle on the odds calculator compared to the 2023 title game between Iowa and LSU.
Numbers should continue to grow as sports betting becomes more prevalent throughout the U.S.
Stay tuned for more updates on Iowa’s sports betting revenue.
For sports betting news, odds, analysis and more, visit Point Spreads Sports Magazine
