Sports Betting In Kansas Sees Jump Of $50 Million In March

The Kansas sports betting industry experienced a surge in March, with the handle reaching an all-time high. According to the Kansas Lottery, the total sports betting handle for the month amounted to $252.9 million, a significant increase of nearly $50 million from the previous month. This exceptional growth in handle positions March as the third-highest month in the state’s history, only surpassed by November and December of the previous year.

Online sportsbooks played a pivotal role in driving the growth of the Kansas sports betting handle in March. Out of the total handle of $252.9 million, online sportsbooks contributed a staggering $243.1 million, while retail locations accounted for approximately $10 million in wagers.

Among the various online sportsbooks operating in Kansas, DraftKings emerged as the dominant player in March. The company recorded a handle of $98.2 million, surpassing all other competitors in terms of both handle and net revenue. However, despite its high handle, DraftKings experienced a relatively low hold rate, paying out $90.5 million back to customers. After accounting for promotional expenses, DraftKings finished the month with a net revenue of $4.7 million.

DraftKings has consistently demonstrated its prowess in the Kansas market throughout the fiscal year. With a handle of $785.6 million and gross revenue exceeding $70 million, DraftKings has firmly established itself as a frontrunner in the state’s sports betting industry. The company’s tax payments for March amounted to $473,600, more than double that of its closest competitor.

FanDuel, another prominent player in the Kansas sports betting scene, also enjoyed a successful month in terms of handle. The company recorded a handle of $70.2 million, contributing significantly to the overall betting activity in the state. However, FanDuel’s gross revenue stood at under $5 million, as the company paid back $65.4 million to its patrons. After accounting for promotional expenses, FanDuel’s net revenue for March amounted to $2.1 million. The company also contributed $215,390 in tax payments to Kansas.

FanDuel’s fiscal year performance has been noteworthy, with a handle surpassing the $500 million mark. Despite paying out close to $500 million to customers, FanDuel has managed to achieve a net revenue of over $30 million, underscoring its strong presence and profitability in the Kansas sports betting market.

Caesars Sportsbook also experienced a profitable month in Kansas, collecting $11.9 million in handle. The company finished March with gross revenue just below $900,000, contributing to the overall growth of the sports betting industry in the state. Caesars Sportsbook paid out $257,071 in tax at a rate of 10%, further contributing to the state’s tax receipts.

In contrast to the profitable ventures of DraftKings, FanDuel, and Caesars Sportsbook, three companies operating in Kansas did not make any tax payments to the state. ESPN BET, BetMGM, and PointsBet reported their bottom-line revenues as $0. Despite this, BetMGM recorded a handle of $43.6 million and gross revenue exceeding $1 million. However, the company spent nearly the entirety of its revenue on promotional expenses.

ESPN BET reported a handle of $17.9 million, paying back $16.3 million to customers. PointsBet collected $1.3 million in settled wagers and paid back $1.1 million. Notably, on March 28, 2024, the online sportsbook operation for Kansas Crossing Casino rebranded from PointsBet to Fanatics, with all account balances and wagers being carried over to the new platform.

While online sportsbooks dominated the Kansas sports betting landscape, retail locations also made a modest contribution to the overall handle. In total, retail locations added $9.7 million to the handle, with Hollywood Casino leading the way. Hollywood Casino, provided by the Penn Entertainment-owned ESPN BET, recorded a handle of $7.3 million and paid out $6.7 million back to bettors. However, due to a net carryover from the previous month, there was no taxable revenue for Hollywood Casino.