Ohio Reports Massive Drop in Revenue and Sports Betting Handle in February

Last month, we announced that Ohio reached $1.1 billion in total sports gambling wagers in January, an impressive figure for the first month when the Buckeye State officially embraced sports betting.

The second report from the Ohio Casino Control Commission issued at the end of last week has revealed that the earnings recorded by brick-and-mortar sportsbooks and mobile betting apps in February faced a dramatic dip compared to the previous month.

Ohioans who are allowed to bet on online or mobile platforms in land casinos, racinos, and kiosks with smaller retailers wagered $639 million on sports. This sent a total net tax revenue of $8.3 million to the state’s coffers, compared to January’s $21 million.

While bets on mobile betting apps and land-based sportsbooks dropped, kiosks located in bars recorded a larger number of users. Let’s take a closer look at the Ohio Casino Control Commission’s freshest report to learn more.

$562 Million in Real Cash Bets Via Mobile Apps

In February, the people of Ohio placed approximately $621 million in bets on the state’s 17 apps that accept mobile bets on sports. The number shows a significant decrease from the $1.09 billion recorded in January, despite the release of the brand new BetParx app in February.

In January, promotional credit deals attracted around $320 million in promotional bets and betting credits. This led to sports betting apps only taking $770 million in real cash bets. By comparison, Ohioans relied on 82% fewer promotion credits ($59 million) compared to January, which means the available mobile apps accepted around $562 million in real cash bets.

Betting apps generated $82 million in taxable revenue for February, also marking a drop from the $205 million figure recorded in January. In terms of winning payouts, the mobile apps paid out $536 million, compared to $864 million in the previous month.

According to data from the casino and Lottery commission, brick-and-mortar sportsbooks and gaming kiosks did not hand out any promotional credits in February.

Brick-and-Mortar Bets Also Dropped in February

Drops in bets placed were also noticed for land sportsbooks located inside casinos, racinos, and various other locations. Ohio’s 14 brick-and-mortar sportsbooks including JACK Cleveland Casino and MGM Northfield Park generated $17.7 million in bets, signaling a $23 million drop from the January figures.
Together, these venues reported a little over $1 million in taxable revenue, down $2.2 million from January’s number.

Land facilities paid out $16.6 million in winnings, again reporting a $19.5 million drop compared to the first month when sports betting became officially available in the Buckeye State.

Betting kiosks’ paid out $910,000 in winnings in February, marking a 34% increase compared to the $722,000 figure reported in January, thus signaling a revenue drop of 46% in revenue from $116,000 in January to $62,000 in February.

At the same time, the kiosks reported $973,000 in total bets, up 14% from January, despite an increased number of businesses that hosted these kiosks in February compared to January, from 772 to 866.

By mid-March, Ohio’s gambling regulator had issued $1 million in penalties since the opening of the sports betting market, including a $150,000 fine issued to BetMGM by the state’s watchdog.