The one-year anniversary of Kansas sports betting ended up being a record-breaking affair.
This past September marked one full calendar turn since sports betting in Kansas went live. Earlier this month, the state released their revenue report for September 2023. Not only did the Kansas sports betting handle improve month over month by a significant margin, but the state accepted more wagers than it ever has before. It also, as a result, eclipsed the $2 billion lifetime sports betting handle marker.
These numbers, at first glance, suggest that The Sunflower State also turned a record profit. But that wasn’t exactly the case. Kansas actually made more from sports betting taxes in September 2022 than September 2023.
How is that possible? Why were so many wagers placed this past September? And does any of this have material bearing on the future of Kansas sports betting? Let’s get into it.
September 2023 was a Banner Month for Kansas Sports Betting
Here is Chris Altrude of Sports Handle will all the pertinent numbers on the latest Kansas sports betting handle:
“The Kansas Lottery reported sports wagering handle totaling $219.3 million for September, a new all-time high as the Sunflower State kicked off its second year of betting.The handle eclipsed the previous record of $206.3 million established in March. Kansas made its legal sports wagering debut in September 2022 with $160.5 million worth of accepted wagers. Last month marked the third time it cleared the $200 million threshold.The Sunflower State also became the 21st to surpass $2 billion in total handle in the post-PASPA era as September’s handle more than doubled the $94.4 million posted for August. This year’s handle was 36.6 percent higher than last year’s debut and also suggests the possibility of a $250 million handle for October considering last year’s handle increased 18.3 percent from September to October.”
Despite taking in a record sports betting handle, the Kansas State Lottery also reports that the gross gaming revenue was down 17.5 percent compared to September 2022. However, as Altrude noted, the “$8.1 million in adjusted revenue, though, was a notable reversal from last year when all the promotional offers resulted in a negative adjusted gross revenue of minus-$12.8 million.”
This tracks fairly well. In most instances, online sportsbooks in the United States as well as retail locations are allowed to write off promotional campaigns. These include all specials such as online sportsbook deposit bonuses or free bets. When states first launch sports betting services, these promotional campaigns are offered in droves. Pretty much every state reports a net minus in adjusted revenue during the opening month—and for sometimes longer.
So while total profits for sportsbooks were down in September 2023, it’s actually encouraging that the adjusted revenue finished in the green.
Why Was the Kansas Sports Betting Handle So High in September 2023?
A few factors contributed to the heightened sports betting action in Kansas during the month and September. Two of them have everything to do with betting on the NFL.
Like always, early September marked the start of the National Football League’s regular season. By extension, this also kicks off the busiest sports betting period in the United States. Not only is football the most popular sport in the country by a wide margin, but Kansas sportsbooks increased their promotional offerings to drive further interest betting on Week 1. Some of those bonus opportunities will last even longer—like for the whole month of September.
Not surprisingly, sportsbooks in Kansas reported running $11.6 million in promotional credits to begin the 2023 NFL. That is the second highest total since The Sunflower State launched sports betting. It is second only to—you guessed it—the debut of Kansas online sports betting last September.
Beyond just the start of the NFL season, awareness is also working in the state’s favor. Online and retail sports betting in Kansas has now been live for more than 12 months. Everyone knows about it by now.
More importantly, more and more people understand their options. It can take some time for new bettors to get comfortable with using online sportsbooks. It can also take time to figure out where retail sports betting options in Kansas are available.
Kansas is Already Projecting Another All-Time-High Sports Betting Handle
Believe it or not, the Kansas State Lottery is already bracing for the sports betting handle in October to reset the record. And, well, this makes sense.
Indeed, as we close out October 2023, NFL online betting remains in full swing. But these projections aren’t just about the popularity of football betting in the United States. It’s also about the overarching sports calendar.
October tends to be the busiest month for sports betting across most states because it’s one of the few times all major leagues are up and running. There’s a rush to bet on MLB playoffs and then to bet on the World Series. The middle of October sees a massive increase in betting on the NBA and betting on the NHL. Both leagues open their seasons around this time. Sportsbook customers rush to not only start wagering on games, but it’s also the most popular time for betting basketball and hockey futures.
On top of all that, there’s still betting on NCAA football—which is a fairly large draw for Kansas, specifically. And finally, the end of October includes betting on Major League Soccer’s playoffs.
With so much going on this month, it’s probably smart to expect the Kansas sports betting handle to set a new record. Of course, we won’t know for sure until sometime in November 2023, when the state lottery releases the results. But it’d be a real surprise if Kansas sports betting doesn’t see another bump in its already-booming business.
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