Home Blog April Sees a Steep Drop in Iowa's Sports Betting Revenues

April Sees a Steep Drop in Iowa's Sports Betting Revenues

Last update: May, 2024

The latest financial report on sports betting for Iowa in April 2023 reveals a downturn. Post the frenzy of March Madness, revenues took a nosedive in April. Is it a sign of difficult times ahead? Only time will reveal. online casino Following a lucrative March with $232.6 million in bets, Iowa's sports betting spots saw a reduction to just $172.5 million in April, as per the Iowa Racing and Gaming Commission. This marks a notable monthly decrease of 25.8%.

The report highlights that sportsbooks earned a modest $14.1 million after dispensing $158.4 million in wins to bettors. The total winnings for the state in April reached $172.5 million. Although the hold percentage slightly dipped to 8.2% from 8.5%, it remains higher than February's 6.1%.

As expected, net betting gains reduced by 28.8% to $14.1 million. Moreover, tax collection slumped to $958,605, down from March's $1.29 million, reflecting on Iowa’s reduced tax inflow.

Despite trends, online betting remains paramount in the state; under 9% of bets were placed in physical locations.

From the $14.1 million amassed, online platforms contributed $13.4 million, and retail centers recorded $675,249. While there was an increase from $12.4 million the previous year, there's still a 29.2% drop compared to March.

Leading Betting Giants Continue Their Market Dominance

Despite decreased statewide figures, DraftKings and FanDuel retained a robust market hold. DraftKings took in a total of $55.8 million in wagers and secured $5.6 million in revenue, placing it at the forefront in Iowa. FanDuel followed closely with $41.9 million in bets and $5 million in income. Together, these titans accounted for 75% of the state's earnings, up from 59% in March.

The Iowa regulator ranked Caesars as third in profit-making with a $1.5 million gain, and BetMGM came next with $1.3 million. Other notable betting apps with substantial figures included PointsBet with $341,938 and BetRivers with a culmination of $231,699.

It's noteworthy that Iowa currently hosts 18 legally recognized sports betting operators, with only one seeing deficits in March. However, this time around, up to six operators reported operating below profit.

Should this report be indicative, both the state regulator and betting operators have their challenges cut out. Meanwhile, other states, such as New York, have shown revenue growth in April.

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