Sports Betting in Louisiana Reaches All-Time High

Sports betting businesses collected more than $43.1 million in gross revenue for September, an all-time high in the state, according to the Louisiana Gaming Control Board (LGCB). The revenue haul was 33.7 percent higher than the previous September and exceeded the previous record of $37.2 million set in December. With $280.1 million in handled for the month, it was the second-highest handle ever, only surpassed by the $282.3 million in wagers received in January.

With nine mobile providers and eighteen retail sportsbooks, Louisiana’s combined gross revenue hold of 15.4%—more than twice the industry average—ranks third among the state’s 21 months of mobile wagering. Sportsbooks have had a statewide hold of 15 percent with a minimum $200 million handle in three states: Louisiana, Maryland, and Ohio. However, compared to the isolated instances elsewhere, this has occurred five times in the Pelican State.

Taxes on adjusted gross revenue of $41.8 million brought in $5.3 million for the state, an all-time record and the first time the monthly total exceeded $5 million. Through the first three quarters of 2023, Louisiana has collected $26.7 million in taxes, which is almost $6.7 million more than it did through the first nine months of 2022.

Although the LGCB does not offer statistics by operator or handling by sport category, parlays have shown to be a reliable driver in the market in Louisiana. Sportsbooks claimed $23.1 million in September, which was about $205,000 more than the previous all-time high of $22.9 million set in November of last year.

Consider Illinois’ $24.6 million in parlay income for August, which contrasts with its $676.1 million handle, which was nearly 2.5 times greater than Louisiana’s. This year, the Pelican State’s operator profits from parlays totaled $134.9 million, or 56.8% of the total gross income.

With $6.8 million in revenue, Louisiana sportsbooks also saw an all-time high for baseball. It only cleared $5 million once, bringing the house’s total loss to minus $26.7 million. The house’s previous total loss was mostly caused by Jim “Mattress Mack” McIngvale’s enormous payouts in November of last year following the Houston Astros’ World Series victory.

With $9.1 million, football ranked among the top three revenue categories. The catch-all “other” category, which in Louisiana includes boxing, MMA, hockey, golf, tennis, and auto racing, brought in $2.8 million for the house.

Operators spent $1.3 million on promotions, a four-fold increase from September 2022. Operators are only allowed to spend $5 million on promotions per year, and through the first nine months of this year, they have given bettors $21.2 million in credits.

The $1.86 billion in wagers that have been accepted through September, the start of the last three months of the year, represent a 21.9 percent increase over the first nine months of 2022. In the same time period, the hold of 12.8 percent is more than 1.5 percentage points higher, which has helped to drive a 38.9 percent increase in total revenue to $237.6 million.

In comparison to 2022, the total amount spent on promotions is 13% lower, and it is also more evenly distributed than it was the previous year, when mobile carriers made a big splash in Louisiana during the NFL playoffs in January and the Super Bowl in February. Of the $25.4 million in credits provided by the books, $21.7 million were earned in the first two months of 2022. Operators have spent more than $1 million every month in every month but July this year, bringing the total to $11.8 million.