Analysis

October breaks sports betting records in U.S.

U.S. sportsbooks’ revenue during the month October has reached a new record despite four states yet to publish their monthly figures.

According to the data consultancy H2 Gambling Capital, states’ data so far shows that regulated bookmakers have recorded total revenues of $219m.

It represents a hold of 8.4%.

Four states still to publish 

Pennsylvania and New Jersey continue to lead the way.

Colorado, Illinois, Rhode Island and West Virginia are still to publish their figures 

If those four states  were included at the same average growth rate as the states that have reported, H2 says October gross win would be $246m.

“This compares to the highest previous month of gross win (revenues) of $164m in October 2019,” the group says.

If the positive volumes Illinois has experienced continue, gross win for the month could be as high as $250m.

The data confirms recent comments from Dave Rebuck, director of the New Jersey Division of Gaming Enforcement (NJDGE), who said the US had only “scratched the surface” in terms of sports betting revenues.

October’s revenues were helped by a higher than average margin of 8.4% (vs. previous average of 6.5%). 

Growing handle and revenues

There has also been strong underlying growth in handle – despite the headwind of lower recycling, says H2.

Reported handle has come in at $2.6bn for October so far.

Once again assuming the same growth rate for those states that are yet to report, H2 says total sports-betting handle for the month will reach circa $3.2bn.

“This will be the third successive month of record handle, with August ($2.3bn) and September ($2.9bn) both ahead of previous records.”

Unsurprisingly, online and mobile channels accounted for 74% of the overall handle in October.

It also represented 64% of revenues throughout those states.

This was a significant increase on the same period last year, where online accounted for 59% of handle and 49% of gross win.

H2 forecasts revenues of $1.4bn in 2020. This represents a 46% rise on the $971m recorded in 2019.

It would also amount to annual handle of $21.6bn, a 56% rise on 2019’s $13.8bn.

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Jake Pollard

Jake Pollard is an experienced journalist and editor who has covered the online gaming and betting industry for many years. He has written for the leading media outlets as well as operators and suppliers in the igaming space. His current areas of focus are wide-ranging and include regulatory developments in the US, emerging markets in South America and how European countries are adapting to a decade of igaming regulation.

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