Kentucky Sports Betting Revenue Exceeds $100 Million in 2023
Kentucky 2023 Revenue Record: Sportsbooks Handle Hits $855M
Sports betting has gotten off to a robust start in the Bluegrass State.
The Kentucky Horse Racing Commission released sports betting revenue figures for November and December of 2023 on Wednesday, showing the state generated $106 million in adjusted gross revenue and more than $15 million in tax revenue during the last two months of operation.
Since their much-anticipated September launch, the state’s sportsbooks have seen a combined $855 million in action, with tax revenue already more than two-thirds of the $23 million projected for the first year. Here’s what else we know about Kentucky’s 2023 revenue record.
DraftKings, FanDuel Trump Competition
DraftKings and FanDuel established themselves as the state’s best online sportsbooks. Each posted $327 million in handle and nearly $40 million in revenue.
Bet365 was the third-best performer, collecting nearly $66 million in handle and $12.5 million in revenue. Jockeying for fourth were Caesars, BetMGM and ESPN BET, with each generating between $36-43 million in handle. Lagging well behind the competition with $15.7 million in handle was Fanatics.
That still far exceeded the state’s retail sportsbooks, which reported handles of $10 million in November and $8.8 million in December. Combined revenue was $1.3 million, equating to $130,000 in state taxes.
October was the busiest month on Kentucky’s 2023 revenue record, with state operators collecting nearly $280S million in bets. Each of the next two months saw a gradual decline, as the handle dipped from $272.5 million in November to $255.3 million in December.
That is hardly a surprise, as promotional credits tend to inflate numbers during the first month of operation.
Operators Getting Up to Speed
Legalized sports betting was gradually rolled out in Kentucky. Brick-and-mortar sportsbooks launched first on Sept. 7, followed three weeks later by online operators.
That the launch coincided with the start of college football and the NFL was a boon for business.
There are currently eight licensed online sportsbooks in Kentucky, those being DraftKings, FanDuel, Bet365, Caesars, BetMGM, ESPN BET, Fanatics and Circa Sports. All but Circa have accepted bets.
As of November, seven of Kentucky’s nine licensed racetracks have licenses to operate as sports betting sites. As part of that, these racetracks are allowed to partner with up to three sportsbooks. Current partnerships include the following: Sandy’s Racing and Gaming (Bet365, BetMGM), Red Mile (Caesars), Cumberland Run (DraftKings, Circa Sports), Oak Grove Racing and Gaming (Fanatics), Turfway Park (FanDuel) and Ellis Park (ESPN BET).
Brick-and-mortar sportsbooks have also opened at several tracks, including Churchill Downs, which hosts the Kentucky Derby.
Churchill Downs and Red Mile accounted for well over half of the $36.6 million in handle from brick-and-mortar sites, though the latter was the only venue to surpass $1 million in winnings for the year.
Industry Growing Across U.S.
Online sports betting is now legal in 29 U.S. states plus Washington, D.C. That doesn’t include North Carolina, which is slated to launch on March 11. Seven states have also legalized online casinos, in which operators offer traditional games such as blackjack, roulette and poker, along with hundreds of slots.
While Kentucky allows mobile betting on horse racing and online lotteries, it’s yet to OK online casinos. Perhaps that will be revisited in the future.
Stay tuned for more updates on Kentucky’s 2023 revenue record.
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