Iowa sportsbooks closed out Fiscal Year 2023 with a $115.5 million handle in June. The Iowa Racing and Gaming Commission announced that sports betting handle totaled $2.24 billion, down 8.6% from $2.46 billion during FY 2022.
These numbers are based on fiscal year data, which runs from July 1 through June 30.
Betting handle in Iowa tops $2B once again
Online wagers dominated the Iowa sports betting landscape in FY 2022-23, accounting for 90% of all action with a $2.02 billion handle. Retail wagers made up the remaining $223 million.
From these wagers, sportsbooks reported $182.8 million in revenue. Of that total, $161.4 million (88%) came from online sportsbooks, an 8% hold for the year. Retail sportsbooks had a 9.5% hold on their $21.4 million win.
The state collected over $13 million in taxes from sports betting in FY 2023. Since legalizing sports betting in 2019, Iowa sports bettors have wagered nearly $6.3 billion, resulting in more than $438 million in lifetime revenue and nearly $30 million in taxes to the state.
- 2023: $2.24 billion handle; $182.8 million revenue
- 2022: $2.46 billion handle; $139.6 million revenue
- 2021: $1.22 billion handle; $90 million revenue
- 2020: $368 million handle; $25.7 million revenue
Despite the drop in handle, Iowa sportsbooks set a yearly revenue record with a 33.9% YoY increase over FY 2022. Sports betting taxes also increased by 36% after contributing $9.6 million in FY 2022.
Iowa sports betting dips in June after strong start to 2023
June marked the third straight month with double-digit drops in Iowa sports betting handle. Sportsbooks started the year strong, boosted by the NFL playoffs and March Madness, nearing or surpassing $200 million in January, February and March.
However, March’s $232 million handle seems much further in the rearview after numbers have fallen by more than 50% in the last three months. June’s $115.5 million handle represents a 5.6% YoY drop and is down 21.8% from May.
- January: $233.6 million (+1.5% month-over-month from December 2022)
- February: $193.9 million (-17%)
- March: $232.6 million (+20%)
- April: $172.6 million (-25.8%)
- May: $147.7 million (-14.4%)
- June: $115.5 million (-21.8%)
Sports betting revenue took an even greater plunge in June, reaching just $7.1 million – less than half of May’s $16.6 million. It was one of only two months in FY ’23 under $10 million, along with November 2022’s $5.8 million, which resulted from a 2.3% hold.
The future is still trending upward
June’s handle marks the lowest since last July, when sportsbooks accepted $108.6 million in wagers. Iowa’s month-over-month handle has fallen from March to July each year, meaning another drop this July would fall in line with historical trends.
However, the greater trend shows hope for sports betting in Iowa.
Sixteen of Iowa’s 19 sportsbooks, including the market-leading DraftKings Sportsbook, were profitable in June. DraftKings accounted for 38% of all action in the state, with a $39.9 million handle that returned $2.6 million in revenue.
Two operators finished marginally in the red, ClutchBet (-$1,700) and Bally Bet (-$9,500).
The third, bet365 Sportsbook (-$1.6 million), began operations in Iowa and invested heavily in promotional spending, contributing to its loss. The spending was an investment, as bet365 reported a $3.6 million handle, fifth behind only DraftKings, FanDuel Sportsbook ($27.6 million), BetMGM Sportsbook ($15.7 million) and Caesars Sportsbook ($9 million).
With football season a few months away, bet365 brings added competition to the middle of the pack, including operators like Barstool ($2.4 million), BetRivers Sportsbook ($2 million) and PointsBet Sportsbook ($1.3 million).
