Kentucky’s sports betting market hits $2.39 billion

Sudhanshu Ranjan October 7, 2024

Share it :

Kentucky’s sports betting market hits $2.39 billion

Kentucky entered the legal sports betting arena in September 2023, rolling out both retail and online platforms. The launch was eagerly awaited, and with $2.3 billion in online wagers and $264.3 million in adjusted gross revenue in its first year, the state has experienced significant growth.

Launch of legal sports betting in Kentucky

Kentucky’s official entry into the sports betting market began on 7 September 2023, with the launch of retail sportsbooks. Three weeks later, on 28 September, online wagering platforms went live, allowing residents to place bets from the comfort of their homes.

In its first year, Kentucky saw a total betting volume of $2.3 billion placed through online platforms. This figure highlights the growing trend towards online gambling across the U.S., with Kentucky following suit. The first year of online betting in Kentucky generated $264.3 million in adjusted gross revenue (AGR).

Notable operators in Kentucky

FanDuel, owned by Flutter Entertainment, led the online betting market in Kentucky. In the first year, FanDuel generated $105.9 million in adjusted gross revenue from $817 million in bets, resulting in a 12.96 percent hold one of the highest in the state.

DraftKings, a long-term rival of FanDuel, followed closely behind with $100.9 million in revenue. Despite having a larger handle of $895 million, DraftKings had a slightly lower hold of 11.27 percent, making the competition between the two fierce but close.

BetMGM posted impressive numbers, generating $18.9 million in revenue from a $143.6 million handle. Its hold percentage of 13.16 percent was one of the highest among major operators.

Bet365 and ESPN Bet also contributed to Kentucky’s betting landscape. Bet365 reported $13.5 million in revenue from $157.3 million in bets, while ESPN Bet generated $10.6 million from a $104.3 million handle.

In the retail sector, Churchill Downs and its partner Kambi led the way with $2.5 million in revenue from $35.1 million in wagers. The hold percentage for Churchill Downs was 7.06 percent, making it the top retail sportsbook in Kentucky. Turfway Park came in second in the retail sector, generating $920,878 in revenue from $14.7 million in wagers, with a hold percentage of 6.25 percent.

Tax contributions

From the online betting sector, Kentucky collected a total of $37.7 million in tax revenue. While retail betting generated far less in wagers, it still contributed $756,517 in tax revenue. Although modest compared to online betting, it adds to the overall tax collection from sports wagering.

August 2024 saw a 17.1 percent increase in total betting volume compared to July, with players wagering $151.4 million. Of this, $147 million was placed online, further demonstrating the dominance of online platforms.

Despite the increase in betting volume, adjusted gross revenue dipped by 21.9 percent from $15.1 million in July to $11.8 million in August. This decline highlights the month-to-month volatility that can affect sports betting operations.

Overall, legal sports betting in Kentucky has been received positively, with many residents appreciating the convenience of online platforms and the excitement of live betting.

Stay ahead in iGaming! Subscribe to SiGMA’s Top 10 News and Weekly Newsletter for the latest updates and exclusive offers