Kansas has reported a dismal sports betting handle for the month of June, with the overall figure reaching an all-time low of just $98 million. This worrying number reflects a significant decline of over 50% since the peak in March when the handle was at an impressive $206.3 million. The revenue also experienced a substantial drop of 53% compared to the previous month, settling at just under $4.2 million for both retail and online combined.
Sharp Decline in Handle Linked to American Sports Betting Focus
Experts have attributed this sharp decline in handle to the country’s tendency to focus mainly on betting on major American sports, leading to reduced betting activity in other areas. However, despite this explanation, the magnitude of the drop has raised concerns among industry experts and regulators alike.
In June, online betting continued to dominate the market, accounting for a staggering 96.7% of all bets placed on Kansas sports events. Retail betting, on the other hand, lagged significantly, with only $3.2 million in wagers. Among the retail sportsbooks, Barstool’s sportsbook at Hollywood Casino emerged as the clear winner, capturing a substantial 71% of all retail wagers for the month. FanDuel’s book at Kansas Star followed closely behind, while Caesar’s and DraftKings struggled to attract a significant share of the retail handle.
DraftKings and FanDuel Dominate Online Betting
The online landscape was dominated by a fierce battle between two major players, DraftKings and FanDuel. DraftKings managed to secure 45% of all online wagers, but their reported revenue, after accounting for promotional deductions, amounted to a mere $1.3 million, equivalent to 32.5% of the total revenue for online wagering. In contrast, FanDuel captured 27.4% of the handle, amounting to an impressive $26.3 million in revenue, representing 49.3% of the state’s total revenue from online bets.
BetMGM and Caesar’s were vying for the third and fourth positions in the online betting arena. However, due to promotional activities during the player acquisition period, BetMGM has yet to report net positive revenues.
Kansas Betting Handle also Dropped in May
Kansas also saw a decline in its overall betting handle in May, reaching $120.3 million, a nearly 10% drop from April’s $132.9 million. However, despite the dip in the handle, revenues and tax revenues for the state remained relatively strong, with DraftKings leading the online betting market in May. Kansas faces competition from several tribal casinos in Northeastern Oklahoma.
Nevertheless, the legalization of sports betting, which was launched on September 1, 2022, gave Kansas a legislative advantage over its neighboring state, Oklahoma, in the sports betting and online casino markets as Oklahoma’s Rep. Ken Luttrell’s proposal to legalize sports betting, including mobile wagering, failed to gain approval in the Senate in April.