Growth in Iowa's Sports Betting Market and Maine's Revenue Trends for Fiscal Year 2024

Iowa and Maine, each state telling a unique story of growth, challenges, and opportunities.

Iowa: A Year of Expansion and Leadership

In the heartland of America, Iowa’s sports betting market stood as a beacon of growth and resilience. The numbers spoke volumes: a betting handle of $2.62 billion for the year, marking a 16.4% increase from the previous year’s $2.25 billion. This remarkable growth was fueled predominantly by online wagers, which ed for $2.41 billion, while retail betting contributed $207.1 million.

Revenue also followed this upward trajectory, reaching $212.3 million, a 14.0% rise from the last year. The lion’s share of this revenue, $193.5 million, came from internet betting, with retail sportsbooks adding $18.7 million to the total. This expansion was not just in numbers but in the confidence and participation of bettors across the state.

At the forefront of this surge were key players like DraftKings, FanDuel, and Caesars. DraftKings emerged as the market leader, with a staggering $930.5 million wagered and gross revenue of $76.7 million after player winnings. FanDuel followed with $627.6 million in stakes and $62.0 million in revenue, while Caesars, with $309.9 million wagered, brought in $18.4 million.

The state’s coffers benefited significantly from this activity, collecting $14.3 million in taxes from a 6.75% tax on gross revenue. This financial influx underscored the economic impact of the burgeoning sports betting industry in Iowa.

June was a month of mixed outcomes for Iowa. The state reported a monthly handle of $146.7 million, which was 26.9% higher than June of the previous year but 19.6% lower than May. The breakdown showed $136.7 million bet online and $10.0 million at retail sportsbooks.

Revenue for June was $12.5 million, reflecting a 17.3% increase from the previous year, although it was 25.2% lower than May’s $16.7 million. This fluctuation was partly attributed to the conclusion of the NBA and NHL seasons, which traditionally boost betting activity. DraftKings led the handle with $53.0 million staked, but with a low hold of 7.7%, its revenue stood at $4.1 million. FanDuel, with a higher hold of 12.7% from $33.7 million wagered, reported the highest revenue at $4.3 million.

Maine: A Tale of Resilience Amidst Decline.

Meanwhile, in the northeastern state of Maine, the story unfolded differently. The sports betting market experienced a slight decline in handle for June, which totaled $39.5 million, down from $39.9 million in May. Despite this decrease, adjusted gross receipts saw a marginal rise to $3.4 million, demonstrating resilience in the face of challenges.

DraftKings, partnering with the amaquoddy tribe, outperformed other operators with $3.0 million in revenue from a $33.2 million handle. Caesars, working with the Wabanaki nations, posted $421,713 in revenue from $6.3 million in bets. This performance highlighted the competitive landscape of Maine’s sports betting market, with each operator striving to carve out their niche.

The state collected $300,342 in taxes from its 10% gross revenue tax, illustrating the financial benefits of this burgeoning industry even amidst fluctuations in betting activity.

The fiscal year 2024 ended with a clear message: the sports betting markets in Iowa and Maine are dynamic and evolving. Iowa’s robust growth and leadership contrasted with Maine’s resilience amid slight declines, painting a complex yet compelling picture of the industry. As these markets continue to develop, they reflect broader trends and the shifting landscape of sports betting in the United States. The stories of Iowa and Maine are but chapters in the ongoing saga of sports betting, each adding depth and dimension to this thrilling narrative.

Source:

”US round-up: Iowa FY24 handle tops $2.6bn, mixed June for Maine”, igamingbusiness.com, July 10, 2024.