First year of Kentucky sports betting revenue 60% ahead of projections

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The first year of Kentucky sports betting outpaced projections. According to a recent report Kentucky Horse Racing Commission (KHRC), the state’s sportsbooks accepted $2.3 billion in wagers and generated $37 million in tax revenue.

When the bill passed last year, projections floated in Frankfort suggested the opening year of action would result in $23 million in tax revenue for the state. With $2.3 billion in wagers and nearly $285 million in gross gaming revenue and a 14.25% tax rate, the state easily sailed passed that benchmark by more than 60%.

As in every other state, FanDuel and DraftKings were the top performers in the Bluegrass State. DraftKings led the way in the handle with $895 million compared to FanDuel’s $817 million. However, as is the case in several states, FanDuel outpaced DraftKings in the revenue department.

FanDuel generated $106 million in revenue compared to DraftKings Sportsbook’s $100.8 million.

Here is the handle breakdown of each of the Kentucky operators for the first year of operation (Circa did not launch until May 2024):

  • DraftKings: $895 million
  • FanDuel: $817 million
  • bet365: $157 million
  • BetMGM: $144 million
  • Caesars: $118 million
  • ESPN Bet: $104 million
  • Fanatics: $52 million
  • Circa: $4.3 million

KHRC does not offer data on promotional spend, but given bet365’s spending in neighboring Ohio, it stands to reason the operator went big on promotional offers to establish itself as the #3 book ahead of BetMGM. BetMGM trailed in handle but was third in revenue with just shy of $19 million in GGR compared to bet365’s $13.5 million.

On the retail sports betting side, Churchill Downs led the way with its Kambi-powered offering, generating $35 million in handle. The Caesars offering at Red Mile produced $22.3 million in bets while the Kambi product at Turfway Park rounded out the top three with $14.7 million.

Altogether, retail sportsbooks in Kentucky produced $87 million in handle, $7.8 million in GGR and $756,000 in tax revenue for the state.