The Louisiana Control Board announced the sports betting numbers for June and the Pelican State followed a similar pattern across the nation – a June swoon.
Sluggish Summer Start
Louisiana sports betting numbers experienced a predictable decrease. Major League Baseball is about the only game in town, save for tennis, golf, and MMA events, which causes a decrease in the handle along with the revenue. It’s not a situation peculiar to Louisiana as we have seen the trend year after year in virtually all markets during the summer months.
There were a combined $160 million in wagers placed between in-person and online sports bets with the hold, or win rate, at 7.8% which delivered $12.4 million in adjusted revenue for the sportsbooks to which they paid the state $1.6 million in taxes.
And although something is better than nothing, it paled in comparison to May’s numbers when the NBA and NHL playoffs were in full swing coupled with baseball that always attracts attention in April and May due to the sheer novelty of a new season. We see that June’s handle shrunk by 17.3% from May while the revenue tumbled over $13 million from $25.5 million.
The vast disparity in revenue from May to June was more a result of a hold that went from 14.4% to 7.8% than the lower betting handle. Yet, we should look at the bright side and know that the handle grew 28% from last June while the net profits jumped 7.5%.
Retail Sportsbooks Barely Break Even
Of the $160 million total bets placed in Louisiana last month, only $14.3 million was bet at retail books. And that’s not unusual as mobile and online sports betting routinely pummels in-person betting by an average margin of 90% to 10% across the country.
Simply put, people find it much more convenient to bet in the comfort of their own homes or when they are on the go versus trekking to the nearest sportsbook. Speaking of which, the $14.3 million handle proved to be the slowest month for retail books since they opened in November of 2021, netting just $1.1 million. It was a 23% drop in retail books from June 2022.
Louisiana Bill Bans Colleges From Promoting Sports Betting
It was in June that Louisiana passed a bill prohibiting all Louisiana colleges from promoting sports betting and it wasn’t coincidental that LSU and Caesars Sportsbook ended their relationship at the same time which was reported to be worth seven figures to the school.
And for that money, Caesars was allowed naming rights for the Caesars Sportsbook Skyline Club and other promotional signage scattered across Tiger Stadium.
State Sen. Gary Smith, D-Norco, is the legislator who proposed Senate Bill 191 to keep universities from promoting sportsbooks for a paycheck. Smith stated, “When we saw that, it really kind of dawned on us that we’re glad the industry is taking their own approach to this, but there’s probably something we should have done in the first place here in Louisiana.
“Just to keep that separation between some of our youngest individuals, who are just hitting that legal age, and the industry.”
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