Ohio sports betting handle tops $1bn in debut month as FanDuel dominates numbers
US market leader accounts for 45% of all handle in Buckeye State following January launch
Ohio has enjoyed a blockbuster start to life as a regulated sports betting market with operators racking up $1.09bn in handle during January, according to the Ohio Casino Control Commission (OCCC).
Releasing its debut report on sports wagering activity, the OCCC confirmed the 17 licensed operators generated $205.7m in taxable revenue over the period.
The high activity levels are similar to New York, which broke the $1bn handle barrier in its own debut month, reporting $1.67bn in January 2022.
A whopping $319.9m in promotional monies were spent by licensed operators over the first month of sports betting in the Buckeye State, with firms keen to generate market share.
Operators are, however, barred from deducting promotional expenditure from their taxable revenue for accounting purposes during the first four years of operation of the state’s regulated market.
US market leader FanDuel led the way in January, taking in almost half (45%) of the month’s handle total ($494.1m) and half of the state’s revenue ($103.2m).
DraftKings took second spot in the early running in Ohio, generating just over 31% of the state’s January handle ($343.9m) and 26% of revenue ($55.1m) in the market.
BetMGM and Barstool Sports were left with third and fourth spots in the Ohio standings during January, racking up handle of $82.1m and $45.8m, respectively, during the month.
Ohio’s sports betting tax rate is set at 10%, meaning the state generated $20.5m in tax during January.
State Governor Mike DeWine has already proposed raising this 10% tax rate to 20% as part of Ohio’s forthcoming budget, something which could potentially hamstring operator growth in the state.
The numbers cap an impressive debut for the Buckeye State, despite some of the most restrictive advertising standards in the US market.
Several operators have already felt the wrath of the OCCC in the early stages since launch, with Barstool Sports, BetMGM, Caesars, and DraftKings all targeted for breaches of advertising standards.
DeWine’s recent budgetary proposals also include a prohibition on operators using terms such as “free bets” and “risk-free” in their advertising, terms which have been linked to at-risk gambling.
The launch of legalized sports betting in Ohio on January 1 brought with it a marked spike in calls to the state’s gambling helpline.