The latest Ohio sports betting revenue report for February 2024 was recently released. And, well, the results weren’t so hot. Especially for a month supposed to be buoyed by betting on the Super Bowl.
According to the report from the Ohio Casino Control Commission (OCCC), which oversees sports betting in Ohio, revenue in February fell by over 40 percent compared to January 2024.
Though month-to-month ebbs and flows are not atypical, this drop is raising eyebrows across the industry. February is usually among the most lucrative times for sports betting in the United States. The NFL Super Bowl is the country’s single-most popular annual sporting event. What’s more, many MLB training camps open by the end of February. This means it’s a popular time for betting on baseball futures.
So what, if anything in particular, explains the precipitous drop in Ohio sports gambling revenue? Is it temporary? Or is it a sign of complications the Buckeye State may have to grapple with moving forward?
Ohio Sports Betting Revenue in February was Also Down Year-Over-Year
February 2024 wasn’t just a disappointment for Ohio sports betting revenue compared to January. It also fell off the state’s pace from February 2023. Here is Kyle Goldsmith from iGaming with the full scoop on the latest sports betting revenue report for Ohio:
“Sports betting revenue dropped 41.4 percent to $66.3 million in February from January’s figure of $113.1 million. February’s revenue was also 18.5 percent down year-on-year, with Ohio accumulating $81.3 million in the same month last year, which was the second month of its sports betting market launching. Ohio also saw a 17.2 percent decrease in handle, from $810.4 million in January to $671.1 million in February. However, February’s handle amount was 5 percent more than the $639 million in bets received in the same month last year. $599.7 million was paid out in winnings during February, while $28.3 million was written off as promotions. Taxable revenue amounted to $67.6 million.”
It bodes well for the future of Ohio sports betting that February 2024’s handle (i.e. total dollar amount in bets placed) beat out the same month last year. But that still doesn’t necessarily explain why the revenue dropped so significantly.
Potential Causes for Dip in Ohio Sports Gambling Revenue
Truth be told, February 2024 could end up being a blip in the grand scheme. Remember: We’re talking about sports betting revenue rather than the handle. This stark drop-off, then, is not reflective of the overall interest level in Ohio sports betting.
When all’s said and done, this could simply be a case of casinos and top online sportsbooks in the United States paying out more winning wagers than usual. So, if anything, the slide in revenue could say more about how wisely Ohio sports bettors spent their money in 2024.
Still, there is one other development to consider: The decline of sports betting promotions in Ohio. The Buckeye State is officially in their second calendar year of legal sports betting. During the first 12 months, Ohio online sportsbooks tripped over themselves to offer lucrative, bettor-friendly promotions. This is standard practice when a new market launches sports gambling. Odds providers are attempting to build up–and then retain—a client.
That grace period is now over. The Ohio sports gambling market share is established. (Surprise, surprise: FanDuel and DraftKings remain the most popular Ohio online sportsbooks.) While operators still offer incentives, including reload bonuses, these promotions are typically much less lucrative than market-rollout specials. And because there are fewer uncharacteristically favorable promotions, it invariably means people could be less interested in wagering.
To some extent, we know this isn’t entirely the case. Again: The total amount of bets placed in Ohio was up year-over-year. But it was down month-over-month. And that, in many ways, could be telltale.
Popularity of Online Sports in Ohio Could Also be at Play
Online sports betting in the United States is at an all-time high. Wagerers are more likely than ever to place their legal bets with a mobile gambling site than visit a physical sportsbook. And this trend applies to Ohio sports betting.
In the month of February, $667.4 million of the $671.1 million handle came from online Ohio sportsbooks. That’s more than 98 percent of the entire market share! And when one form of sports betting is this popular, it leaves more beholden to the method’s swings.
That has to be what’s happening here. Think about it: Ohio online sports betting is the majority handle-driver for the Buckeye State. We know that Ohio online betting sites stopped offering as many promotions to start 2024. As a result of that, they likely aren’t going to get as many new customers each month. They may also turn off certain existing clientele with slightly less attractive reload bonuses. So, if online sportsbook deposits are no longer as appealing, it impacts the bottom line. And if the bottom line of online betting is impacted, well, the same goes for the entire Ohio sports gambling market.
Basically, the Buckeye State may want to brace itself for more wild revenue swings. The results from February 2024 are far from a harbinger of doom. But despite initial beliefs, they do show that diminished online sportsbook bonuses will have a wholesale impact, directly or indirectly, on the sports gambling revenue in Ohio.
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