Even Without Online Sportsbooks, Indiana Sports Betting Revenue Impresses

Despite being restricted to placing bets in person, both residents and visitors of the Hoosier State fully embraced legal sports betting in its inaugural month. The revenue generated from sports betting in Indiana during its first month is commendable.

Indiana sportsbooks took in $35,215,416 in bets and made $8,558,974 in September.

Given the state’s population, the lagging of neighboring states, the commencement of the basketball season, and the activation of mobile betting, the remainder of 2019 holds potential for further improvement.

Information on revenue from sports betting in Indiana in September

On September 1, the first legal sportsbooks in Indiana began taking bets. By the end of the month, 13 land-based operators were active in the Hoosier State.

The state’s revenue report only lists 10 licensees with actual revenue. However, the revenue figures from Indiana’s three off-track betting sites are encompassed within other licensees’ revenues. This inclusion raises the total number of physical locations accepting bets in the state to 13.

The total adjusted gross revenue (AGR) from all 13 sites in September amounted to $8.55 million.

Horseshoe Hammond reported the highest handle, nearing $9 million. The tax on the AGR brought the state a total of $813,103.

The Indiana Gaming Commission has provided the following numbers for each licensee for the month of September:

Figures for Winner’s Circle OTBs in Indianapolis and New Haven are included in Harrah's Hoosier Park.

Figures for Winner's Circle OTB in Clarksville are included in Indiana Grand.

Comparing the first months of sports betting in Indiana, NJ, and PA.

Although Indiana’s figures appear substantial, they become even more notable when compared to the initial months of legal betting in New Jersey and Pennsylvania.

In their initial months of legal sports betting, the AGR for all operators in NJ and PA did not perform as well as those in the Hoosier State. Indiana has had a remarkable beginning.

In January 2019, the Keystone State generated $2.6 million in sports betting revenue. Meanwhile, legal sportsbooks in the Garden State made a clear profit of $3.83 million in July 2018.

Adjusted for population, Indiana’s revenue is even more impressive. Although Indiana’s current population estimate is 6.72 million, which is less than both New Jersey’s 8.92 million and Pennsylvania’s 12.81 million, its revenue still stands out.

Moreover, Indiana sportsbooks surpassed their east-coast peers in terms of winnings. In their initial month, operators in Pennsylvania paid out approximately 92% of handle. However, those in the Hoosier State retained more than 24% of handle during September.

It is probable that not only Indiana residents made bets in September, but also people from other states. This was likely also the case for New Jersey and Pennsylvania in their initial months. It’s also probable that New York residents made similar trips as those from Illinois, Michigan, and Ohio.

Admittedly, Indiana had the benefit of commencing before the NFL betting season kicked off, a period which is typically slower for betting in New Jersey and Pennsylvania. Nonetheless, this doesn’t detract from the remarkable beginning in the Hoosier State.

Similar to Pennsylvania, Indiana did not launch mobile sports betting in its first month. This bodes well for future revenue reports.

The sports betting revenue report for October could overshadow that of September.

The Indiana Gaming Commission confirmed that the first two legal mobile sportsbooks in Indiana started accepting bets on October 3. Furthermore, it was confirmed that at least one more online sportsbook would be launching in Indiana by the end of the month.

The enhanced convenience implies that a larger number of people could bet more often. Furthermore, the surge in online betting raises the chances of residents from neighboring states, where sports betting is still unlawful, crossing the border.

The imminent commencement of the NBA season is another reason for Indiana sportsbooks to be thrilled. Kambi, a sportsbook software firm that offers infrastructure to businesses such as DraftKings Sportsbook, states that basketball is the most favored sport for US bettors.

Overall, the Indiana legal sports betting market appears poised for significant growth. It’s still in its infancy, with the coming months set to reveal the extent of its potential.