The sports betting handle in Kentucky has soared to over $250 million with mobile wagering dominating despite it launching three weeks after retail sports betting commenced.
In a staggered launch, retail sports betting in the Bluegrass State opened on September 7th, and mobile sports wagering followed on September 28th. Since that time, mobile betting has generated nearly $232 million in bets while retail sportsbooks have delivered over $15.7 million despite its three-week head start.
Betting Boom
It is a pattern we have seen throughout the nation as people are far more inclined to wager from their PC and mobile devices rather than make a trip to their nearest sportsbook.
Kentucky Governor Andy Beshear released a statement late last month that said:
“Kentucky is approaching $250 million wagered. That is a strong number that certainly reflects excitement for the opening of sports wagering. It has taken many years to get here, but sports wagering is finally a reality in Kentucky. This is a win-win for Kentuckians, who can enjoy a quality entertainment experience and benefit from funds staying right here in our state to help us build a better Kentucky.”
High Season
The launches coincided with the arrival of the NFL and college football regular seasons which is the optimum time to start taking wagers as football is the biggest betting sport in North America. Matt Kalish, president of DraftKings North America, noted as much in his statement regarding his company’s entry into the nation’s newest market.
“Kentucky marks the 24th jurisdiction overall where DraftKings is live,” Kalish said. “We are thrilled to have the opportunity to deliver sports fans across Kentucky with our safe and legal mobile DraftKings Sportsbook app.
“It’s an exciting time of year with the NFL and college football seasons currently underway. We look forward to being the ultimate host, providing customers with a seamless and enjoyable sports betting experience.”
New Revenue Stream
Kentucky crafted sports betting legislation, via House Bill 551, that imposed a 9.75% tax on adjusted gross revenue (AGR) generated from brick-and-mortar locations while a 14.25% tax is levied on adjusted gross revenue produced from mobile and online wagering.
Once the market has matured, estimates are that Kentucky will see an annual windfall of approximately $23 million annually from sports betting profits. The vast majority of which will be derived from the mobile betting market.
Few Glitches
As for any glitches in Kentucky’s nascent sports betting industry, they have been few and far between which has pleased Kentucky Horse Racing Commission Chairman (KHRC) Jonathan Rabinowitz who said:
“We are hearing very positive feedback from both our licensees and people wagering in Kentucky. Thanks to the dedication and hard work of the team, this launch has exceeded our expectations. Our work continues to protect the bettors in the state and support the best customer experience.”
The state’s racetracks are allowed up to three online operators, commonly known as skins, and can offer retail sports betting at their facilities. Bet365, BetMGM, Caesars, Circa, DraftKings, FanDuel, and Penn Sports Interactive were all granted mobile licenses with Fanatics also allowed to operate in the state.
Much of the revenue the state derives will be earmarked toward oversight and regulation of the sports betting industry while 2.5% will go towards a Problem Gambling Assistance Fund. The remaining profits will support the Kentucky permanent pension fund.
Calculators
