Despite a dip in handle compared to previous months, Kentucky sportsbooks reported strong revenue figures, highlighting the state’s burgeoning betting ecosystem.
Kentucky’s May 2024 Performance
Kentucky sportsbooks collectively amassed a handle of $181.3 million in May 2024. This total, while indicative of a slight month-over-month decline, showcased the state’s robust betting interest. The state’s online sportsbooks were responsible for the majority of this handle, contributing $175.5 million, whereas retail sportsbooks added $5.8 million. The online sector’s dominance is consistent with trends observed in other states where mobile betting has overtaken brick-and-mortar establishments in popularity and convenience.
In terms of revenue, Kentucky’s sportsbooks generated $21.25 million in May, reflecting an 11.9% hold for online sportsbooks and an 11.2% hold for retail sportsbooks. These figures underscore the efficiency and profitability of Kentucky’s betting operations. Notably, the month saw a 5.1% increase in earnings compared to March, attributed to a higher statewide win rate of 12.4% versus March’s 8.6%.
Comparison with Other States
To better understand Kentucky’s performance, it’s essential to compare these figures with those from other states. Tennessee, a neighboring state, offers a useful benchmark. In June 2024, Tennessee’s handle stood at $342.20 million, a 9.8% decline from May’s $379.22 million. Despite this drop, Tennessee’s handle represented a significant year-over-year increase of 48.6% from June 2023’s $230.33 million. Tennessee’s tax revenue also followed suit, rising 36.2% year-over-year to $6.32 million in June 2024.
Kansas provides another interesting point of comparison. Over the 2024 fiscal year, Kansas saw its handle rise to $2.36 billion, a 41% increase year-over-year. For June 2024 specifically, Kansas recorded a handle of $140.1 million, up 42.8% from the previous year. Kansas’ revenue in June reached $9.4 million, reflecting a significant 129.3% increase year-over-year.
Kentucky’s Unique Market Dynamics
Kentucky’s performance is particularly noteworthy given its market dynamics. The state’s top operators, DraftKings KY and FanDuel KY, continued their intense competition. DraftKings led in total handle with $238.8 million over the March to May period, while FanDuel edged out in revenue with $27.9 million. This rivalry has spurred innovation and attractive promotions, further driving bettor engagement and market growth.
Additionally, the state’s regulatory framework and taxation policies play a crucial role. Since the legalization of sports betting in September 2023, Kentucky has maintained an 11.9% hold on wagers, which is competitive when compared to national averages. The state collected $17.6 million in year-to-date tax revenue by May 2024, underscoring the significant financial impact of sports betting on state coffers.
Kentucky’s sports betting market in May 2024 stands as a testament to the state’s growing influence in the industry. The impressive revenue figures and strong hold percentages highlight the market’s maturity and potential. When compared to Tennessee and Kansas, Kentucky’s performance aligns well with broader industry trends of increasing handles and robust revenues.
Kentucky’s handle of $181.3 million in May 2024, alongside a revenue of $21.25 million, not only underscores the state’s strong betting culture but also reflects strategic market positioning and effective operator competition. As the state continues to expand and refine its sports betting offerings, it is poised to further solidify its position in the U.S. sports betting landscape.
