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In 2023, Iowa’s legal sports betting industry will continue to shrink, with another month of lower handling compared to the previous year. Despite this tendency, there have been some encouraging developments, such as an increase in net receipts for bookmakers.
The Iowa Racing and Gaming Commission recorded a total of $147.7 million in bets for May, a 14% decline from the $172.5 million reported in April. Year-on-year comparisons reveal little change, with May 2023 registering only about $200,000 fewer bets than the same month in 2022.
Despite the decrease in handling, Iowa sportsbooks witnessed a modest increase in net receipts. They made $16.6 million in net receipts in May, up from $14.1 million in April. Notably, the hold rate increased significantly from 8.2% in April to 11%. As a result, Iowa’s tax revenue increased by 10% to $1 million
While online sports betting sites continue to be the preferred option for gamblers, the retail market in Iowa saw a tiny increase in bets, now standing at 9.2%. Furthermore, brick-and-mortar stores were more successful for operators, with 13% of their handle remaining.
Four prominent sportsbooks continue to dominate the industry among Iowa’s 18 operators. DraftKings retained its position as Iowa’s most popular sportsbook, with a handle of $49 million and revenue of $5.4 million. FanDuel came in second place with $36 million in bets and $4.5 million in revenue. However, their combined sales share fell to 60% from 75% the prior month.
Caesars took third place with a handle of $21.2 million, followed by BetMGM with $14.6 million. The handle at Barstool Sportsbook was $3.4 million, followed by BetRivers ($2.8 million) and PointsBet ($2.2 million). None of the remaining sportsbooks had a handle more than $2 million.