The valuation on Betr is $300 million but the micro-betting sportsbook continues to struggle in Ohio. The sportsbook was the 17th out of 18 operators with $770,000 in handle, $54,000 in revenue, and $116,000 spent on promotional credit. Even Fanatics, which is only in beta, managed to outpace the sportsbook with $1 million in handle, $212,000 in revenue, and $470,000 in promotions.
Altogether, Ohio sportsbooks generated over $446 million in handle, almost $58 million in revenue, and roughly $5.8 million in tax revenue for the state during May according to the Ohio Casino Control Commission.
The sports betting tax rate could change in the future, as the Ohio legislature has settled on a version of the budget that would double the rate in the state to 20% with no deductions for promotions. The new rate would go into effect July 1 of this year (Saturday).
The agreed-upon budget will increase the tax rate and will be voted on by the House and Senate on Friday. The state expects to generate between $100 million to $135 million in additional tax revenue with the move.
Here is a look at the top five operators in the state for May:
- FanDuel: $158 million in handle, $24.3 million in revenue, $6.8 million in promotional spending
- DraftKings: $137 million in handle, $17.5 million in revenue, $6.5 million in promotional spending
bet365: $32 million in handle, $4.4 million in revenue, $3.8 million in promotional spending - BetMGM: $29.7 million in handle, $3.9 million in revenue, $3.2 million in promotional spending
- Caesars: $24 million in handle, $2 million in revenue, $371,000 in promotional spending
This is the second month since launch that bet365 has surpassed BetMGM to crack the top three, but the effort comes with continued spending on the promotions side.
Tipico, on the other hand, decided to curb promotional spending in May, offering only $470,000 in promos after seven-figure spending the previous four months. It retained the eighth spot in terms of handle, but unlike April, trailed far behind Hard Rock Sportsbook with $4.7 million in handle compared to Hard Rock’s $7.9 million.
Caesars has also continued to drop promotional spend but remains solidly in fifth place with 5.5% of the market. Caesars has slowly built up market share month-over-month despite consistently decreasing marketing spend and putting up a fraction of what the operators in front of it are offering in terms of promotions.
Barstool Sportsbook has similarly curbed spending but remains in striking distance of Caesars and just outside the top five.
Hold came in at 13% on the month. However, given the winning streak of the Cincinnati Reds, that number could drop once the June numbers are released.
