Iowa’s final monthly report of 2022 showed a drop in legal sports betting, as figures recently released by the Iowa Racing and Gaming Commission noted that the Hawkeye State took in $229.9 million in retail and online sports bets in December 2022.
The $229.9 million represents a 7.2% decrease compared to November’s $247.5 million for sports betting in Iowa, but the good news is that the state’s retail sportsbooks and online sports betting sites saw a sharp month-over-month jump in taxable revenue.
December's $20.7 million was nearly four times greater than November’s $5.8 million and slightly higher than October’s $19.4 million.
The difference? The hold percentage.
From their nearly $230 million in wagers, Iowans collectively took home $209 million, meaning the sportsbooks kept 9% of the bets. The nearly double-digit hold was huge compared to the bleak 2.3% win rate in November.
Higher holds didn’t translate to more taxes
While revenue rebounded, state coffers only received $1.35 million, a meager increase compared to November’s $1.2 million.
The reason? Overall state revenue was wildly affected last month from Mattress Mack and his Houston Astros wagers that cashed in November. Notably, the two Iowa sportsbooks that took his massive bets were Betfred and Unibet.
In the hole by millions of dollars, those sportsbooks dragged down the revenue figures and did not pay any tax. However, on any regular month (like December), Betfred and Unibet don’t really see enough action to impact tax revenue by any major figure.
In December, both sportsbooks had a combined handle of under $1.8 million with revenue of about $52,000.
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2022 year in review
The past six months have shown mixed results for Iowa’s betting landscape. Year over year, there has been increased betting in the summer. However, once football season started, Iowa residents have been less interested.
| Month | 2021 Handle | 2022 Handle |
|---|---|---|
| December | $266.5 million | $229.9 million |
| November | $287.4 million | $247.5 million |
| October | $285.5 million | $238.7 million |
| September | $216.1 million | $200.2 million |
| August | $109.1 million | $122.5 million |
| July | $89.9 million | $108.5 million |
