College basketball is big in the Bluegrass State, and so is sports betting.
Key Takeaways
- Kentucky sports betting operators generated $293.2 million in wagers in a college basketball-heavy state.
- Revenue reached just $20.2 million as a 6.9% hold tied for the lowest ever produced.
- From the Super Bowl to March Madness to now the Kentucky Derby, big betting events in the Bluegrass State continue.
The Kentucky Horse Racing and Gaming Corporation reported a March handle of $293.2 million, the third-highest amount wagered in the state since sports betting launched in September 2023. Only November 2024 ($301 million) and October 2023 ($294.9 million), the first full month of online wagering, rank ahead of March 2025.
Wagering on college basketball’s conference and NCAA tournaments was up 14.4% year-over-year and propelled a handle of more than $290 million for just the fourth time ever in Kentucky.
Like in many other sports betting states, however, revenue didn’t follow. Favorites winning and advancing during March Madness led to a good month for bettors and put a damper on Bluegrass State operator profits. Online Kentucky sports betting operators and retail sportsbooks made $20.1 million in gross revenue, an 8.6% decrease from March 2024.
The Bluegrass State hauled in $2.7 million in tax revenue during March.
Low hold
While operators may have relished the additional action March Madness brought to Kentucky, the 6.9% hold tied December 2024 for the lowest win rate for the house since online wagering began.
The Bluegrass State has only produced five holds under 8% in 19 months of operation. March’s low win rate was way down from February’s 13.3% hold. That Super Bowl month produced $29.9 million of revenue from a $224.7-million handle.
Year-to-date, Kentucky sportsbooks have generated $795 million in wagers, a 13.4% increase from the first three months of 2024. Because of the low hold in March, revenue of $82.6 million during that period is only up 6.5% from the previous year.
DraftKings leads the way
| Online Operator | March Handle | Revenue |
|---|---|---|
| DraftKings | $104.7 million | $8.7 million |
| FanDuel | $98.6 million | $6.6 million |
| bet365 | $26 million | $1 million |
| BetMGM | $16.2 million | $975,000 |
| Fanatics Sportsbook | $14 million | $785,000 |
| Caesars | $13.2 million | $933,000 |
Online sports betting operators accounted for $284.9 million of March’s total handle and $19.5 million of the gross revenue.
DraftKings generated a monthly handle of more than $100 million for the eighth time. The $104.7 million total was the most the online operator has recorded since December. However, March Madness wasn’t able to come close to the winnings produced by Super Bowl LIX. The $8.7 million in revenue took a 22% month-over-month plummet.
FanDuel finished second in the Bluegrass State with a $98.6-million handle and gross revenue of $6.6 million, $5 million less than February’s haul. Next, bet365 generated $26 million but only produced a 3.8% hold. No other operator in Kentucky was able to reach $1 million in revenue.
BetMGM came in fourth in wagers with $16.2 million, while Fanatics Sportsbook rounded out the top five at $14 million. Caesars was close with $13.2 million, and ESPN BET generated a $7.7-million handle. Circa Sports accepted $4.3 million in wagers.
Derby madness
With the NFL and college basketball in the rearview, Bluegrass State residents turn their attention to the 151st Kentucky Derby, which runs on Saturday. In 2024, the prestigious horse race generated a record $210.7 million, besting the previous high of $188.7 million.
Derby Week produced $446.6 million from all wagering sources. Churchill Downs, where the Derby is held, took in a record $320.5 million.
The track’s executives, however, aren’t predicting that the 2025 event will surpass the previous year. They’re hoping for a comparable handle but are being a bit more modest with this year’s handle projections.
