The Iowa Racing and Gaming Commission reported a combined sports betting handle of $303.3 million to start the new year. The figures were released on Friday, and the numbers were due to online registration skyrocketing in its first year of sports betting.
Iowa’s New Sports Betting Handle Record in January
One reason is that there is no requirement for in-person registration to place wagers on an online betting platform. Iowa has also proven to be a strong market in the industry as it became the 10th state to surpass the $3 billion total handle mark in the post-PASPA era.
Approximately 75 percent of the total handle that exceeded $3.1 billion in wagers took place in the last 13 months after the in-person registration provision was lifted. The numbers certainly reflected it as the sports betting handle increased 13.8 percent from December’s total of $266.5 million.
The previous record-setting handle was recorded in November 2021, which brought in $287.2 million. The year-to-date comparison is also astonishing as the handle noted a sharp increase of 103 percent in a year.
Iowa sportsbooks generated $14.3 million in revenue, which was good for a 4.7 percent hold. This was the second-highest revenue total in the state’s history as the revenue total fell way short of the record-setting figures that hit $19.7 million that was set back in November 2021.
January’s sports betting revenue total saw an increase of 6.7 percent from December’s $13.4 million, which was good for a five percent hold. This is the sixth straight month; sportsbook operators failed to hit the seven percent hold mark. Seven percent is considered to be the industry’s standard.
Iowa has a low tax rate that is slated at 6.75 percent on adjusted gross revenue. The state collected $964,525 in taxes, which means the Hawkeye State barely missed the $1 million mark once again. November was the only month the state surpassed the $1 million mark as the state brought in over $2 million for that month.
Sports Betting Will Continue to Increase in 2022
Sportsbooks that received the license approvals to operate in the state waited out in-person registration requirements. In December 2020, there were only eight operators that accepted wagers at the time. Now, the number has increased to 18 sportsbooks.
Mobile sports betting made up 90.9 percent of the overall handle for January. William Hill was the clear leader in the state, but Caesars acquired the company and relaunched it in August 2021. Caesars kept a commanding lead for the month as the mobile provider brought in a handle of $112.7 million, which was good for a market share of 40.8 percent.
DraftKings brought in $68.9 million, which made up 25 percent of the market. FanDuel was the last sportsbook to have a market share that exceeded 10 percent as it brought in $44.1 million or a market share of 16 percent.
BetMGM came in fourth place but was the last sportsbook on the list to have a handle that surpassed $10 million. The online provider brought in $21.7 million and had a market share of 7.9 percent.
The next sportsbook operators on the list included PointsBet, BetRivers, Elite, Betfred, and Circa. Betfred and Circa both posted negative revenue for the month.
Iowa’s 19 retail sportsbooks posted a better hold that hit 8.2 percent. The combined total of wagers was $27.5 million, which generated $2.3 million in revenue.