Kansas’ mobile and retail sports betting soared in October to a record-breaking $275.9 million, but the public proved to be razor sharp, as evidenced by a paltry 4.7% hold for the top-rated sportsbooks.
Kansas Sports Bettors Blast Off
Everything is relative. New York’s sports betting landscape is the most vibrant in the nation, posting an October 2024 sports betting handle of $2.32 billion. However, New York has 19.5 million people compared to only 2.9 million residing in Kansas.
Clearly, we’re not comparing apples to apples, but for a small state that has under three million people, Kansas’ October handle of nearly $276 million is a $15 million year-over-year increase and 10.9% higher than September. It was also the 11th time since sports betting launched in September 2022 that over $200 million was wagered in the Sunflower State.
Big Action, Slim Margins
The secret recipe for success is not so secret. The NFL and college football seasons are in full swing while the NHL and NBA seasons began in October as well. There is no dearth of sports betting programming, and the sports betting menus are bursting at the seams.
As in all other markets, digital sports betting via mobile devices and PCs dominated, accounting for $266.3 million of the handle, while retail sportsbooks took in $9.6 million in accepted wagers. Both sectors saw month-over-month and year-over-year handle increases. Unfortunately for the sports betting operators, all that action did not pay huge dividends, as the hold (win rate) was a meager 4.7%. This resulted in smaller-than-anticipated revenues of $12.97 million between the state’s six online and four retail locations. Compared to September’s record-setting $34 million revenues, it was a stunning decrease.
After deductions for promotions and expenses, the sportsbooks sent $498,355 to the state’s tax coffers on a 10% adjusted gross revenue obligation.
DraftKings Sets New State Record
DraftKings was unequivocally the most popular sportsbook in October, handling $122.8 million in wagers, breaking its previous mark of $119.3 million set in September. Its archrival, FanDuel, posted a healthy handle of $85 million, but its superior hold showed revenues of $5.9 million against $4.3 million generated by DraftKings.
The other four mobile sportsbooks, ranked in descending order by handle (with revenues in parentheses), were as follows:
- BetMGM: $23 million ($1.3 million)
- ESPN BET: $12.5 million ($457,134)
- Caesars: $12 million ($538,286)
- Fanatics Sportsbook: $11.2 million ($435,418)
Handles and revenues are likely to be adversely affected next year when neighboring Missouri launches its online and retail sports betting platforms. The referendum question, Amendment 2, was narrowly passed by the voters in the Show Me State, which means Missourians will no longer be forced to cross state lines to make a wager on a game.
The law mandates that Missouri sports betting must be launched before December 1, 2025, but it is highly likely that the sportsbooks will be ready to go live before next year’s football season. Many of the same sports betting platforms operating in Kansas will also be available in Missouri.
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