Every week, it seems new record-breaking numbers are coming from the sports gambling industry. This time, the American Gaming Association is saying that 2023 was a record year for handle, revenue, and state tax income. The tax revenue records have Alabama sports betting closer to approval, while DraftKings saw an increase in revenue and users in 2023.
With the record-setting Super Bowl behind us, it’s time to turn our attention to NCAA Tournament futures. Can UConn repeat? If so, the Huskies pay out +500 right now.
Sports Betting News: 2023 Sets Records, Alabama Moves Closer To Sports Betting and DraftKings Increases Revenue
The American sports bettor wagered in record amounts in 2023, according to the American Gaming Association (AGA).
The AGA’s Commercial Gaming Revenue Tracker shows that sports betting achieved new records for handle and sportsbook revenue in 2023. The total handle of $119.8 billion represents a growth of 27.8 percent from 2022. Meanwhile, sportsbooks brought in a record $10.9 billion, or 44.5 percent more than the previous year.
The AGA says that the growth was fueled by continued maturation across most existing markets and several new markets, such as Massachusetts and Ohio.
The report adds that the entire commercial gaming industry drew a record revenue of $66.5 billion in 2023. This total led to commercial gaming operators paying an estimated $14.4 billion in taxes, which is a 9.7 percent increase from 2022.
“From the traditional casino experience to online options, American adults’ demand for gaming is at an all-time high,” said AGA President and CEO Bill Miller.
“Sustaining our momentum will take unified industry efforts around combating pernicious illegal operators and growing responsible gambling efforts in tandem with the growth of the legal market—both of which the AGA is committed to lead on throughout 2024.”
Sweet Home For Alabama Sports Betting
The Alabama House of Representatives passed a pair of Bills last week that would legalize sports betting, lottery, and casino play.
According to this article, HB 151, sponsored by Rep. Chris Blackshear (R-Smiths Station), is a constitutional amendment authorizing a state lottery, limited casino gambling, and sports betting. It passed the House 70-32. HB 152, also sponsored by Blackshear, would set tax rates on legal gambling and provide for the distribution of revenues and enforcement policies. It also passed easily, 67-31.
The next step for both Bills is to pass the State Senate and to vote by the public later this year. After that, Gov. Kay Ivey indicated she would approve the Bill when it reaches her desk.
“The proposal passed by the House will clean up and crack down on the rampant illegal gambling and will give Alabamians the opportunity to have their say on regulated, limited forms of gaming,” Ivey said in a statement.
Alabama sports betting is expected to generate anywhere from $15-$24 million for the state. When you add in the lottery and expanded casino tax revenue, Alabama could see $1.2 billion.
DraftKings Revenue Up
Last week was a big week for the sports gambling industry on the stock market.
DraftKings (DKNG) released its 2023 Q4 earnings last week, and while it increased revenue 44 percent year over year and reported a 37 percent increase in unique payers, the stock missed Wall Street estimates.
DraftKings loss per share was 10 cents vs. the expected profit of 8 cents. Revenue missed $1.23 billion compared to the $1.24 billion expected.
The miss didn’t do much immediately to the company’s stock price, however. It hovered in the mid $40s in the days that followed.
DraftKings did increase its fiscal year 2024 guidance to between $410 million and $510 million. Its prior guidance was between $350 million and $450 million.
Penn Entertainment (PENN) wasn’t as fortunate. The company, which operates ESPN BET, announced Q4 earnings that were down 12 percent year over year. Penn reported fourth-quarter revenue of $1.4 billion, which missed consensus estimates of $1.53 billion. The company reported a loss of $1.75 per share. That also missed consensus estimates of a loss of 52 cents per share.
Despite the miss, Penn CEO Jay Snowden was optimistic.
“Penn delivered another quarter of solid property level performance while continuing to invest in our high growth digital business, which we believe will create significant long-term shareholder value,” Snowden said.
Penn saw its stock fall 13.8 percent after the news. It continues to trade down. As of Tuesday, it’s trading below $18 per share.
Flutter, the parent company of FanDuel, will release its Q4 2023 results on March 26.
UConn Favorite to Win Men’s Tourney
With the Super Bowl behind us, it’s time for sports bettors to turn their attention to college basketball.
The Connecticut Huskies are the current favorite to win the NCAA men’s basketball tournament. According to BetMGM, the Huskies are +500. The defending champions opened at +1200 and were +700 just last week.
Purdue is behind UConn as the second favorite at +650, with Houston third at +950.
The highest handle percentage is UConn at 15.3 percent, followed by Kentucky at 13.5 percent. Kentucky, which is +2500 to win it all, has the highest ticket percentage at 12.1.
Purdue’s Zach Edey is the heavy favorite to win the Wooden Award at -5000. He is ahead of North Carolina’s RJ Davis (+3000) and Kansas’ Hunter Dickenson (+5000).
On the women’s side, Iowa’s Caitlyn Clark is where all the money is at. The Hawkeyes are the second favorite to win it all at +700 and have the highest ticket percentage (37.6), and are the biggest liability.
South Carolina is the favorite to win it all at +110 and has the highest handle percentage at 38.5 percent. Iowa is at 32 percent. LSU is next at just 7.6 percent.
The UConn women at +1500 to win it all.
