This October was not like Kentucky's first full month of sports betting last year.
The Kentucky Horse Racing Commission reported $18.8 million in gross revenue, down 61.3% from October 2023. The latest handle of $274.9 million was also a 4.5% decrease year-over-year.
Bluegrass State operators turned an 18.6% hold in last year’s first big month, but that win rate dropped to 7.7% this year, thanks to more customer-friendly outcomes from NFL favorites covering at a high rate at times in October.
Adjusted revenue of $20.5 million was down 62.1% year-over-year and 39.1% month-over-month while October’s handle increased 7.5% from September.
Retail sportsbooks reported a $78,000 loss for the month on a $9.8 million handle while online sports betting operators recorded a decent 8% hold on a $265.1 million handle.
The Bluegrass State filled its coffers with nearly $3 million, a far cry from the $7.6 million in tax revenue received in October 2023.
DraftKings reaches $1 billion
DraftKings became the first online operator to accept $1 billion wagered in Kentucky. The sportsbook has accepted $1.1 billion in bets after generating a $102.7 million handle in October.
It’s the fourth time since September 2023 that DraftKings has recorded a handle of more than $100 million, and nearly $775 million has come year-to-date. FanDuel will be the next operator to reach that mark as the online sportsbook has produced a $994 million handle in Kentucky.
FanDuel adds to revenue lead
| Operator | October Handle | Revenue |
|---|---|---|
| DraftKings | $102.7 million | $8.2 million |
| FanDuel | $92.3 million | $9.8 million |
| bet365 | $24.5 million | $1.3 million |
| BetMGM | $13.1 million | $684,350 |
| Caesars | $11.5 million | $389,326 |
| Fanatics Sportsbooks | $9.6 million | $556,786 |
DraftKings held the handle advantage over FanDuel but lost the revenue battle. FanDuel led the Bluegrass State with a 10.6% hold from a $92.3 million handle that produced $9.8 million.
FanDuel also leads Kentucky sports betting operators in all-time revenue with $131.5 million.
bet365 generated a $24.5 million handle and was the only other online operator to haul in at least $1 million in revenue. BetMGM produced a hold under 6% that led to a 47% month-over-month drop in revenue.
Caesars had an even worse go, winning back only 3.4% of the $11.5 million in wagers accepted. Fanatics Sportsbook took in $9.6 million, nearly identical to last month’s handle, but hauled in $300,000 less in October revenue.
ESPN BET produced a 6.3% win rate on a $6.5 million handle, while Circa Sports suffered a nearly $200,000 loss on $5 million in wagers accepted.
Retail woes
October marks the first losing month for Kentucky’s brick-and-mortar sportsbooks. Three of the nine retail operators reported an adjusted revenue loss.
Churchill Downs, which is partnered with Kambi, suffered the most, losing $132,480 in adjusted revenue on a handle of $3.5 million, the largest among brick-and-mortar shops. Turfway Park lost $70,863 while Ellis Park finished October over $50,000 in the red.
