Ohio sports betting marks successful debut year with $7.6 billion in wagers in 2023

Ohio concluded 2023, its inaugural year of legalized sports betting, by amassing $7.6 billion in wagers during the first 12 months of its market. The Buckeye State’s sports betting handle for 2023 narrowly missed the fifth spot nationally in 2023, which was claimed by Pennsylvania.

“Outside of New York, that’s the fastest launch we’ve seen in any state,” said David Forman, V.P. of Research with the American Gaming Association, the national trade association representing the nation’s gambling industry.

Despite a 4% decrease in wagering from November, amounting to handle slightly above $831.1 million, the taxable revenue generated from bets in December experienced a notable 28% increase compared to the previous month.

Online platforms remain dominant in Ohio’s sports betting landscape, comprising 97% of all wagers. FanDuel and DraftKings lead the way, representing 43% and 30% of total bets, respectively, while other operators hold single-digit shares.

The ease of betting on sports online is why several smaller sportsbooks had months where they actually paid out in bets more than they took in in wagers, as shown by reports.

FanDuel and DraftKings maintained their dominance, accounting for over two-thirds of the $809.7 million in mobile wagers in December. FanDuel secured the top position for the year at more than $2.72 billion in wagers, with DraftKings following at $2.51 billion.

In terms of revenue, sportsbook operators claimed close to $87.4 million in adjusted gross revenue for December, with a 10.5% hold. The state collected nearly $17.5 million in tax receipts for the month, bringing the total first-year tax revenue to over $136.8 million.

ESPN BET, entering the Ohio market aggressively in November, retained its third position in terms of handle. A 2.8% increase in handle to nearly $72.9 million in bets in December gave the Penn Interactive brand a nearly 9% share of the market.

Bet365 surpassed BetMGM for the fourth spot in handle for December, exceeding $450 million. However, both operators engaged in aggressive promotional spending to attract bettors, spending in credits and bonuses.

Retail sportsbooks in casinos, racinos, arenas, and stadiums collectively earned nearly $2.9 million in revenue in December. Penn Entertainment’s venues in Columbus, Dayton, Mahoning Valley, and Toledo contributed significantly to this revenue, with Hollywood Columbus leading with $504,128.