Ohio posts Lowest Sports Betting Output in May

May marked the lowest monthly output for Ohio since it launched sports betting in January.

Dave Bonderoff

Last updated: July 3, 2023 5:00 PM EDT • 4 min read

It wasn't all that long ago that Ohio seemed poised to leapfrog some of the most successful legal sports betting states in the nation. Unfortunately, reality has set in, and a spring/summer sports betting slowdown has reared its ugly head in one of America's newest legal sports betting heavyweight states.

The Ohio Casino Control Commission on Friday released their May earnings report for the legal sports betting sector in the Buckeye State, including retail and Ohio sports betting apps. Ohio's legal sports betting platform launched on January 1 and came out of the gate strong with an astounding $1.1 billion first month handle.

Ohio sports betting hasn’t been able to touch that number since. In May, sports betting activity was less than half of what was seen in January. In fact, May was the lowest monthly output for the state's emerging industry.

In the end, Ohio in May clocked in as the sixth most successful state in America with regard to legal sports betting handles, but they were second in January and third in March.

Handle dips under $500 million

There has been a rather steady decline in legal sports betting activity in the Buckeye State since their January launch date. Regulators there, and the state's sports betting providers are finding out that the lack of NFL, NBA, college sports, and NHL action really hurts the overall bottom line.

The Ohio legal sports betting handle fell beneath the $500 million mark for the first time ever in May. $447.5 million was taken in by the best sports betting apps, about 14% less than the $527.1 million spent at the state's sportsbooks in April.

More handle pain is expected throughout the typically and expected slow summer months before it cranks up again in September, at the start of the bread-and-butter NFL season. That is when we will see a boost in Ohio sportsbook promos as well.

Revenues down, hold rate up in May

Following Ohio's downward handle slide was the revenues reaped by the state's legal sports betting providers. A total $57.8 million in gross gaming revenues was reported by the Ohio Casino Control Commission in May, down about $6 million from the $63.6 million in profits from April.

May represented the lowest revenue total yet for Buckeye State sports betting operators. January saw a stunning $209 million in revenues, and March generated $95.3 million in profits.

The Buckeye State sportsbook hold rate for May came in at just under 13%, which represents only the third-best win rate for the state's providers in their five months of operation. April's hold was 12.2%, while January's hold was a very sportsbook-friendly 18.8%.

All together, Ohio’s best sportsbooks have been lucky - they haven't posted a monthly hold rate under 12.2% so far. In May, their win rate ranked ninth among the 26 states that have reported their revenue figures for that month.

$5.8 million in taxes was paid by Ohio operators to state and local coffers.

FanDuel tops in Ohio

In the battle between the best online betting sites, FanDuel came out on top in terms of overall handle and revenues.

FanDuel made up $158 million of the overall $447.5 million handle and generated $24.3 million in revenue. DraftKings was second with $137 million in handle and $17.5 million in revenue, while bet365 came in third with $32 million in handle and $4.4 million in revenue.

BetMGM was fourth in the Ohio market in May with $29.7 million in handle and $3.9 million in revenue, while Caesars rounded out the top-five with $24 million in handle and $2 million in revenue.

New sports betting tax rate

A somewhat controversial doubling of the tax rate on sportsbook revenues will go into effect in Ohio starting July 1. The new rate would see gross revenues for Buckeye State legal sports betting providers taxed at 20%, rather than the 10% it was through their first five months of operation.

$50.7 million in taxes has been paid since the Ohio legal sports betting launch January 1. The new law would double the amount of taxes paid to state and local coffers.

While exciting for the state, the increase in tax rate could lead to an exodus of sports betting providers in Ohio. An eye-opening four of their 18 sportsbooks failed to generate even $100,000 in revenue in May. SuperBook actually saw losses in May.

If those providers leave, the state's sports betting family could be halved, and the state itself could lose out on huge revenues from the $10 million licensing fees currently required to be part of the Buckeye State legal sports betting scene.

Written By:
Dave Bonderoff

Dave Bonderoff and betting go hand-in-hand. Both are characterized by "odds". Dave fancies himself as one of the most dedicated sports and pop-culture junkies around, to the chagrin of his family and friends. Following sports for 50 years and writing about it for 20, Dave hasn't found a sport yet that can't contribute to 2-3 straight hours of couch time. That search remains ongoing. As a good old Canadian boy, hockey is in Dave’s heart, as is curling sadly. But evolution is a real thing and that’s why football, baseball, and just about every sport on the planet has become a passion. Dave isn’t afraid to kill some time obsessing over politics or the far-too-frequent awards shows the consume the airwaves.