Kansas Lottery has reported a 16.1% reduction in handle from June 2023 to July 2023 coupled with substantial revenue growth of 42.2%
The state conformed to the seasonal US sports betting trend, with disappointing July handle but significant revenue growth. Overall sports betting revenue (before federal excise tax and promotional deductions) rose 42.2% from $8.3 million in June to $11.8 million in July.
Retail sportsbooks handled $2.2 million in bets, with Barstool at the Hollywood Casino capturing 77.3% of all retail bets. This marked a 31.2% drop from June 2023, when $3.2 million was wagered and Barstool held 68.8% of the retail market share by bet volume. Revenue for June also fell by $0.1 million in retail, highlighting Kansas online sports betting as the main driver of revenue growth.
Despite a 16.6% drop in handle from $95.0 million in June to $79.7 million in July, revenue before federal excise and promotional deductions from online sportsbooks rose by 50.6% to $11.5 million from $7.9 million. This was due to a higher overall hold, with the total hold for July reaching an impressive 14.4%, compared to a typical June hold of 8.7%.
Tax delivered to the state was also up 70.8%, at $683k from $400k. Total tax contributions in FY22 were $5.9 million from Kansas sports betting.
DraftKings showed dominance in July’s market share figures. The handle breakdown for online sportsbooks in KS was as follows:
- DraftKings: $35.2 million (45.4% market share)
- FanDuel: $22.7 million (29% market share)
- BetMGM: $7.6 million (9.8% market share)
- Caesars: $7.6 million (9.8% market share)
- Barstool/Penn: $3.7 million (4.8% market share)
- PointsBet: $0.6 million (0.8% market share)
Six months ago, DraftKings held 39.8% market share, and FanDuel 37.7%. FanDuel’s market share has evidently dropped significantly in Kansas, with Caesar’s and DraftKings the two operators gaining most market share in the period.