Kentucky Sports Betting Hits $2.39 Billion in First Year

Kentucky’s first year of regulated sports betting has concluded with players spending over $2.39 billion on sports wagers. The Kentucky Horse Racing Commission has published data covering the 12 months leading up to August, detailing the spending habits and revenue generated in the Bluegrass State.

The state launched retail sports betting on September 7, 2023, and expanded to online betting three weeks later. During the first year, online betting dominated the market, with $2.3 billion wagered online. Retail sportsbooks saw $87.1 million in bets.

Revenue from these wagers shows a similar pattern. Online betting generated $264.3 million in adjusted gross revenue, while retail betting brought in $7.8 million. Adjusted gross revenue represents revenue after deducting player winnings and federal excise taxes.

In terms of tax contributions, Kentucky collected $37.7 million from online sports wagering and $756,517 from retail betting. The overall hold for the year stood at 9.28%, with online betting holding at 11.5% and retail at 8.91%.

FanDuel, owned by Flutter Entertainment, led the online betting market in Kentucky during the first year. FanDuel reported $105.9 million in adjusted gross revenue from $817.0 million in bets, resulting in a 12.96% hold. DraftKings followed closely with $100.9 million in revenue from $895.0 million in wagers, giving it an 11.27% hold.

BetMGM also performed well, earning $18.9 million from a $143.6 million handle, with a hold of 13.16%. Bet365 reported $13.5 million in revenue from $157.3 million in bets, with an 8.58% hold. ESPN Bet, previously known as Penn Sports Interactive, made $10.6 million from $104.3 million, resulting in a 10.16% hold. Caesars reported $9 million in revenue from a $117.5 million handle, with a 7.66% hold. Fanatics rounded off the list with $3.7 million in revenue from a $51.6 million handle and a 7.13% hold.

Retail betting was led by Churchill Downs and its partner Kambi, with $2.5 million in revenue from $35.1 million in bets, resulting in a 7.06% hold. Turfway Park, also partnered with Kambi, earned $920,878 from $14.7 million in bets, with a 6.25% hold.

In August, the final month of the 12-month period, players bet $151.4 million, an increase of 17.1% from July. Online wagers accounted for $147 million, while retail betting totaled $4.4 million. However, adjusted gross revenue for August fell to $11.8 million, down from $15.1 million in July. Online betting brought in $11.5 million of that revenue, and retail betting accounted for $265,547.

The hold rate for August was 7.79%, with online betting at 7.82% and retail at 6.07%. DraftKings led the online market in August with $4.9 million in revenue from a $56.7 million handle. FanDuel came in second, generating $3.8 million from $45.2 million. BetMGM earned $889,558 from $8.8 million in bets. In the retail sector, Red Mile and Caesars were the leaders, with $68,281 in revenue from $1.3 million in bets.