Louisiana closes the first year of sports betting with a record title

Louisiana capped a strong first 12 months of legal sports betting in October with record October revenue of $255.5 million, according to figures from the Louisiana State Police, which oversees gaming discipline in the state of Bayou.

The previous record of $238.4 million was hit in February, thanks in large part to former LSU quarterback Joe Burrow and wide receiver Ja’Marr Chase playing for the Cincinnati Bengals in the Super Bowl. The availability of bets on the NFL and college football regular seasons for the first time plus a fifth weekend proved crucial to the new record as odds are up 23.1% compared to September.

Overall, bettors placed more than $1.8 billion worth of bets in the first 12 months of activity. Of the six states that formed in 2021, Louisiana ranked only second behind Arizona for grip, but that runner-up has caveats: Louisiana has about 1 million more residents than third-place Connecticut; Maryland Will Finally Launch Mobile Betting Wednesday; and the combined population of Wyoming and South Dakota is less than a third of Louisiana’s 4.6 million.

In October, the operators achieved gross sales of $30 million for the second straight month and third time overall, although the $30.7 million fell 4, 9% down as the 12% attitude for October was over 3.5 percentage points lower from the previous month.

Lower carryovers of cell phone operator deductions contributed to a record $4.3 million tax contribution in October as Louisiana’s coffers filled with $26.3 million in tax revenue for the first 12 months of operations — 25 of which $3 million in the first 10 months of this year.

Operators win big in year 1 against bettors

When sports betting took off in Pelican State, operators tended to enjoy the results more than the bettors. The hold is down 11% in eight of the first 12 months, despite the first two months of activity being all retail. October marked the fifth time the nationwide win rate was 12% or more in 2022, with a minimum of $115 million during those months.

Capping advertising credits at $5 million per carrier proved a feat in generating tax revenue over the past six months of operation. Operators burned most of their powder earlier in the year at the NFL playoffs, February’s Super Bowl and March’s NCAA tournament.

As a result, total promotional spend from April through October was $2.3 million, compared to $22.5 million from January through March. With operators generating at least $20 million in gross revenue in four of the past six months, the state has been able to collect taxes on 98.6% of the nearly $130 million in gross revenue generated during that span .

New high for parlay earnings

The Louisiana State Police only report earnings figures for select categories and it appeared that bettors were holding their own bets in select sports but were not finding the right combinations for winning combinations. Operators generated $21.6 million in parlay revenue, which accounted for more than 70% of total monthly revenue and hit an all-time high for the second straight month. The house generated $40 million in parlay revenue for September and October combined, and the $112.9 million in total parlay revenue for the first 12 months of activity represented 53.3% of total gross revenue.

Soccer revenue fell 57.8% from September to just over $3 million, which was slightly less than basketball and baseball combined. The “Other” collection category, which includes hockey, tennis and golf, among others, brought in $2.4 million in revenue, but operators had to make a small profit in football with less than $170,000 in earnings.

Soccer was the top contributor among sports for the first 12 months at $26.4 million, followed by baseball at just under $19 million. Other revenue came third with $15.5 million and baseball fourth with $13.6 million.