Kansas Sports Betting in October Hits Record High Despite Revenue Decline

Kansas sports betting reached new heights in October 2024, with a handle of $275.9 million. The Kansas Lottery reported a 10.5% year-over-year (YOY) increase, breaking the previous record of $260.9 million set in November 2023. The surge was attributed to the busy sports calendar, including NFL and college football seasons, MLB’s World Series, and the NBA’s return.

This marked the 11th month since the market’s September 2022 launch that Kansas bettors wagered over $200 million. Compared to September 2024, the handle rose 10.9%, signaling a consistent upward trend as sports betting enters its third operational year in the state.

Online Operators Dominate the Market

Online sportsbooks ed for an overwhelming majority of the wagers, contributing $266.3 million to October’s total handle. This figure represents a significant rise from $240 million in October 2023, underscoring the dominance of mobile betting in the Kansas market.

Retail sportsbooks, while smaller contributors, also saw growth. Wagers at physical locations reached $9.6 million, an increase both YOY and month-over-month. This dual growth reflects the broad appeal of Kansas’ sports betting offerings, with online platforms driving the bulk of the activity.

DraftKings emerged as the top performer, handling $122.8 million in wagers, its all-time high. This sured its previous record of $119.3 million in September 2024. FanDuel followed with $85 million, a 21.8% increase from the prior month, while BetMGM secured the third spot at $23 million. Other operators, including ESPN BET, Caesars, and Fanatics, trailed, with less than $1.5 million separating their handles.

Despite the record handle, October’s revenue figures fell dramatically. Operators reported $12.97 million in gross revenue, down 49% YOY and a steep 62% from September’s $34 million. The decline was largely due to a 4.7% hold rate, much lower than the 14% recorded in September.

Adjusted revenue, which s for promotional deductions, dropped to $4.9 million with an exceptionally low win rate of 1.8%. Retail sportsbooks fared even worse, reporting a hold below 1%. As a result, tax revenue fell sharply, with Kansas collecting only $498,355 compared to $1.8 million in September.

DraftKings, despite leading in handle, saw its gross revenue fall from $16.7 million in September to $4.3 million in October. FanDuel fared slightly better, recording $5.9 million in gross revenue thanks to a stronger hold rate.

Sports Calendar Fuels Betting Surge

October’s robust handle aligns with the high-interest sports calendar. The NFL and college football seasons were in full swing, the MLB postseason concluded with the World Series, and both the NBA and NHL began their regular seasons. Such diverse sporting events created ample betting opportunities, driving record-breaking activity.

The Kansas City Chiefs, a regional fan favorite, also played a significant role. Their dominance in the NFL, led by quarterback Patrick Mahomes, heightened local betting interest. The Chiefs’ performance has cemented them as Super Bowl favorites, keeping Kansas bettors engaged and optimistic.

Kansas’ sports betting growth could face new challenges as neighboring Missouri prepares to launch its market. Missouri voters ed an amendment on November 5, legalizing sports betting, with operations expected to begin before the 2025 football season.

Kansas City, a metropolitan area split between Kansas and Missouri, could see a shift in betting activity. Currently, many Missourians cross the border into Kansas to place wagers. With Missouri entering the market, Kansas may experience competition for these bettors.

While revenue remains volatile due to customer-friendly outcomes, Kansas’ sports betting market continues to expand. The October handle highlights the state’s strong demand for legal sports wagering, driven by its -friendly online platforms and a sports calendar packed with high-profile events. With a solid foundation, Kansas remains a key player in the growing U.S. sports betting industry, even as regional competition intensifies.

Source:

”Kansas sports betting record handle rises 10.5% year-over-year in October”, cdcgaming.com, November 15, 2024.