Indiana sportsbooks pay higher taxes in Feb despite 13% YoY drop in handle

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Sportsbooks in Indiana took almost 13% less money in bets during February 2023 than in the same month in 2022 but paid more in tax thanks to more favorable sporting results. 

Indiana Gaming Commission data shows that the Hoosier State’s sports betting handle during last month was $356.2m, as the Super Bowl enticed bettors. However, this was 12.9% down on February 2022’s $409.1m. 

This figure also represented a 16.6% drop in handle from the month prior, as NFL playoff games saw bettors wager $427.2m.

It marks the second consecutive month that Indiana sports betting figures have dropped, coinciding with the launch of Ohio’s regulated sports betting market. 

Indiana shares a long border with Ohio, which launched its legal and regulated sports betting market on Jan. 1 and may have deterred those who traveled cross-border to bet in the Hoosier State from doing so. 

The hold rate for sportsbooks in Indiana during February was 7.8%, leaving a taxable AGR of $27.7m which is up significantly from February 2022’s low rate of 4.1% and $16.9m in taxable AGR. 

However, the hold rate was slightly down from January’s 8.5%, meaning that the taxable AGR is down 24.1% in one month as the state witnesses a second monthly drop-off.

With the state imposing a tax of 9.5% on AGR, Indiana’s sportsbooks paid out $2.8m in taxes for February.

Per operator, DraftKings led the way in terms of sports betting handle, taking $121.9m in wagers. FanDuel ($113.2m), Caesars ($35.8m), BetMGM ($32.3m), and Barstool ($22.2m) made up the top five operators in terms of handle. 

Breaking down the top operators by taxable AGR, FanDuel led the way, bringing in $13.4m. The top five comprised DraftKings ($8.2m), BetMGM ($2.8m), Caesars ($1.1m), and BetRivers ($513k).