SPORTS BETTING
US – Indiana sportsbooks back to growth in May
By Phil - 14 June 2021
Bettors at Indiana’s retail and online sportsbooks were more active in May compared to April, a welcome result after April’s month-over-month slowdown. But even with the market advantages that helped spur the positive turn, Indiana’s sports betting industry will have to wait until football season kicks off before betting volume returns to the highwater marks hit earlier this year.
“Even with the expected slowdown over the last two months, no Midwestern state has held its ground better than Indiana,” said Nicole Russo, analyst for PlayIndiana.com. “Some of that can be attributed to local events driving interest, including the Indy 500. But the market’s structural advantages that were built in before sports betting launched is also paying dividends.”
Bettors placed $254.4m in wagers in May at Indiana’s retail and online sportsbooks, according to official reporting released Friday. That is up 7.6 per cent from $236.4m in April, even as May’s handle remained well shy of the $316.7m handle in March.
May’s bets produced $18.9m in adjusted gross revenue, down 6.1 per cent from $20.1m in April while yielding $1.8m in state taxes. In May 2020, online retail and sportsbooks generated just $3.2m in revenue on $37.3m in bets.
The Indianapolis 500 in May helped drive wagering in Indiana more than in most legal jurisdictions. Secondly, Indiana sportsbooks have been aggressive in finding ways to take advantage of opportunities, such as aggressive promotional offerings for the Indiana Pacers’ play-in tournament appearance. That helped push basketball betting to $82.4m in May.
“In open and competitive betting markets such as Indiana, sportsbooks have significant incentive to find alternative events to fuel bettor interest even while the sports calendar is slower,” said Jessica Welman, analyst for PlayIndiana.com. “Whether that means heavy promotion of a Pacers play-in game or future innovations built around the upcoming Olympics, operators will do what they can to hold their market position. And ultimately, that’s good for the entire market.”
Online betting accounted for 89.8 per cent, or $228.4m, of the state’s handle, an increase from 88.4 per cent in April.
DraftKings narrowly held its grip on the online market lead with $81.8m in online bets, yielding $2.9m in gross receipts. FanDuel was just behind with $79.3m in bets and topped the market with $7.6m in gross receipts.
Penn National’s Barstool-branded online sportsbook launched on May 18 and produced $6.3m in wagers, the sixth-highest betting volume among Indiana operators.
“Barstool is the most anticipated launch since the opening few months of the market, and for good reason,” Welman said. “In states where Barstool operates, including Pennsylvania, Illinois, and Michigan, Barstool has proven to be a market disruptor, even if it hasn’t overtaken the likes of FanDuel or DraftKings. May’s results are a small sample size, but there is enough to envision that a similar dynamic is building in Indiana.”
On the retail side, Hollywood Casino – Lawrenceburg, nearest to Cincinnati, led the retail market again with $8.4m in wagers, even with $8.4m in April.
“The retail market is beginning to show new life as pandemic concerns wane,” Russo said. “Out-of-state bettors remain the lifeblood of the retail market. So long as Ohio and Kentucky resist legalizing sports betting, and pandemic-related restrictions don’t return, retail sportsbooks should continue to return to health.”
