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In Kentucky, sports betting increased by 11% by the end of 2024 over the previous year. December’s total handle of $293 million was the second-highest amount of the year, trailing only November’s $301.7 million, according to the Kentucky Horse Racing and Gaming Corporation. The fact that betting activity topped $250 million for the fourth consecutive month indicates that Kentucky’s sports betting business is steadily growing.
Despite the rise in wagers, Kentucky’s sports betting operators struggled to generate profits. December’s gross revenue was a modest $20.2 million, a 38% drop from December 2023. This marked a significant 45% decrease from November’s revenue. The lower-than-usual hold on gross revenue, at just 6.9%, contributed to the downturn. NFL favorites dominated the betting scene in December, which led to bettors securing favorable returns and further reducing overall revenue.
The adjusted revenue for December stood at $19.5 million, with a 6.7% hold, also a record low for the state. Kentucky’s tax revenue from sports betting reached $2.9 million, down from $5 million in November, reflecting the dip in operator performance.
Despite December’s challenges, Kentucky’s sports betting market has performed impressively overall. The state’s first full year of legal sports betting generated $2.6 billion in wagers and $283.7 million in gross revenue. This performance exceeded initial projections, with Kentucky collecting $39.3 million in tax revenue in 2024—significantly more than the $23 million anticipated. In total, the state has accrued nearly $55 million in tax revenue over the first 15 months of sports betting operations.
DraftKings was the standout operator for December, reporting a handle of $111.7 million, second only to November’s $112.4 million. However, its gross revenue fell from $15 million to $8.7 million month-over-month. With this December performance, DraftKings finished 2024 just shy of $1 billion in total wagers, highlighting its dominance in Kentucky’s sports betting market.
In close pursuit was FanDuel, which generated $9.1 million in income and $95.4 million in wagers throughout the month. With the second-highest handle of $862 million at the conclusion of the year, FanDuel had the largest hold of any Kentucky online operator, at 9.5%.
Retail sportsbooks in Kentucky suffered a downturn, but online sportsbooks prospered. In December, physical store owners recorded a deficit for the second time in three months. A loss of about $52,000 on wagers of $7.6 million was reported by retail sportsbooks, underscoring the ongoing difficulties facing physical sportsbooks in the state.