May Handle Grows To $37M As Indiana Reopens Casinos

Indiana’s sports betting handle experienced another decline in May.

Bettors in Hoosier placed bets totaling approximately $37 million during the month, resulting in May 2020 having one of the smallest handles in the history of the state’s sports betting.

Nonetheless, the low figures were hardly a surprise.

The amount of money placed on sports betting naturally decreased when COVID-19 drastically reduced the number of betting options.

Indiana garnered $185 million in handle during February, the final month before the pandemic. However, by April this figure plummeted to a record low of $26 million.

Thus, despite the low figures in May, there is a promising outlook. With the resumption of more sports activities, it is expected that the sports betting handle in the Hoosier State will begin to recover.

Sports betting figures for Indiana in May 2020

Here’s an examination of the origins of Indiana’s sports betting handle in May 2020:

Licensee	Online Brand(s)	Total Handle	Online Handle	Retail Handle	Gross Revenue	State Tax
Ameristar East Chicago	DraftKings	$20,132,953	$20,132,953	$0	$1,801,639	$173,536
Blue Chip	FanDuel	$12,271,816	$12,271,816	$0	$1,056,061	$101,030
French Lick	BetRivers	$2,396,529	$2,396,529	$0	$168,380	$16,681
Belterra	BetMGM	$1,501,998	$1,501,998	$0	$123,467	$10,850
Hollywood Lawrenceburg	PointsBet	$986,258	$986,258	$0	$74,687	$0
Rising Star	BetAmerica	$37,323	$37,323	$0	$10,042	$0
Horseshoe Hammond	Caesars	$8,063	$8,063	$0	$2,755	$0
Harrah’s Hoosier Park		$0	$0	$0	$0	$0
Indiana Grand		$0	$0	$0	$0	$0
Caesars Southern Indiana		$0	$0	$0	$0	$0
Tropicana Evansville		$0	$0	$0	$0	$0
Total		$37,334,940	$37,334,940	$0	$3,237,031	$302,097

DraftKings and FanDuel persist in their dominance.

DraftKings and FanDuel sportsbooks are at the forefront of sports betting in the Hoosier State.

It’s almost an understatement to say that they are the two most popular sportsbooks in Indiana. These two accounted for approximately 88% of the handle in May.

Caesars was the sole sportsbook to launch in May. This launch brought Indiana’s total online sportsbooks to seven.

In its first month, Caesars only brought in $8,063 in bets. However, as it launched on May 19, it missed out on more than half of the month’s betting activity.

The historical performance of other sportsbooks in Indiana suggests that Caesars still faces a significant challenge.

For instance, since its inception in the state in December 2019, BetAmerica has faced challenges. Without the entry of Caesars, BetAmerica would have recorded the least handle among all the sportsbooks in the state.

In May, BetAmerica received bets totalling $37,323. PointsBet, excluding Caesars, had the second-lowest handle, bringing in almost $1 million in bets.

There’s a huge disparity between the two, and PointsBet hasn’t really had an opportunity to establish itself.

PointsBet and BetMGM initiated their operations in Indiana just ahead of the COVID-19 shutdown, meaning both sportsbooks are keen to make a significant impact once major sports resume. Similarly, Caesars will also be actively involved, as it seeks to secure a portion of the state’s handle.

However, the three sportsbooks have a significant amount of progress to make before they can rival DraftKings or FanDuel.

In May, PointsBet, BetMGM, and Caesars collectively handled approximately $2.5 million. However, this pales in comparison to FanDuel’s $12.2 million and DraftKings’ $20.1 million. Therefore, it’s evident that these other competitors have some ground to make up.

Indiana’s only gambling revenue still comes from sports betting.

For the second consecutive month, the entire revenue of the casino industry was generated from sports betting.

Since March, Indiana’s brick-and-mortar casinos have been closed.

During the shutdowns, online casinos have been a source of additional income for some states. However, as online casinos are not legal in Indiana, the Hoosier State has not had this financial safety net to rely on.

Despite the state’s handle seeing an increase of approximately 42% from April to May, the revenues for sportsbooks increased by more than 100%.

In April, the adjusted gross revenue for sportsbooks in Indiana was approximately $1.5 million. This figure significantly increased to almost $3.2 million in May.

Despite the improvement in the state’s sports betting handle, the figures are still significantly lower than their potential.

If sports had been operating normally throughout May, Indiana's handle would likely have exceeded $200 million. This is a significant drop to $37 million.

Missing out on over $160 million in bets is far from ideal for Indiana, but that's simply the state of affairs as most major sports are still not happening.

Thankfully, the situation is improving. As soon as the main sports betting events kick off again, Indiana’s betting volume is expected to revert to the levels seen before the pandemic.

Indiana’s economy will begin to recover in June.

Indiana’s sportsbooks will have a better month in June.

Indiana’s numbers are expected to get a boost with the reopening of the state’s casinos, including retail sportsbooks, on June 15.

Furthermore, more sports are also making their return.

The past few months have seen Indiana’s sportsbooks predominantly betting on obscure sports like table tennis. However, this trend is beginning to shift.

This week, the PGA Tour makes a comeback with the Charles Schwab Challenge, while the UFC and NASCAR have already resumed in full force. Additionally, European soccer is also starting to ramp up again.

Both the NBA and NHL have declared their return to play. Even though their seasons won’t restart until July, this could spark additional interest in futures betting.

These factors will contribute to increasing Indiana’s handle. While normalcy may not be fully restored yet, June will assist the Hoosier State in making significant strides towards regaining its former condition.