Rare Step Back in Indiana's February Sports Betting Scene
A hiccup was probably due for the Indiana legal sports betting industry and that's what we saw when its Gaming Commission released its February figures over the weekend. After five straight months of record handles, sportsbooks in Indiana reported an eye-opening drop over the 28-day February period.
With the NFL season coming to an end and with just 28 days in which bettors could place a wager, February drop-offs, like the ones seen in the Hoosier State could become a theme across America as reports start to trickle in. For Indiana, insiders aren't worries about a sustained slump however - March Madness figures to create a frenzy in the hoops-crazed state.
Breaking Down February's Figures
While a slight dip in legal sports betting wagers was perhaps expected for Indiana sportsbooks, the numbers show more of a decline than projected. The Indiana scene generated $273.9 million in bets in February, a decline of 21.4% from January's record handle of $348.2 million.
Gross revenues followed suit and even showed a bigger month-over-month decline. Sportsbooks made $16,955,904 in February, down 42.2% from $29.3 million in January. A smaller handle and a 6.2% February hold compared to January's 8.4% hold have been deemed responsible for the marked revenue decrease.
Tax contributions to state and local coffers also declined. They fell 42.2%, just like revenues, from January’s $2,786,357 to $1,610,811 in February.
February's figures aren't all bad news. A look at the year-over-year numbers shows strong growth for the Indiana sports betting scene. February 2021's $273.9 million handle was up 46.3% from $187.2 million in February 2020. January 2021 Gross Gaming Revenues of nearly $17 million was up 52.9% from $11.1 million in February 2020.
Mobile Numbers Remain Strong
To nobody's shock, Indiana's mobile betting platform continued to dominate the overall sports wagering platform in February. Online betting generated $246.6 million or about 90% of the state's overall handle in February, which is up from 85.1% in January.
Those numbers could have grown larger if the state would have considered and passed a pair of Bills that would bring online casinos into the overall legal betting fold in Indiana. Both Bills to bring about legal online casinos stalled out and likely won't be considered this year.
Retail books took in just $32.9 million in bets in February, which is down from $41.3 million in January.
Reasons for the Downturn
There are obvious reasons for the downturn in the legal sports industry across the country. Having just 28 day in which to place a bet and the end of the NFL season dealt a blow to not only Indiana but all participating states across the nation. Super Bowl LV produced just $18.8 million in bets in Indiana
anyway and further proved that the NFL means a bit less to Indianans than those in other states around the country.
“With two years of data now, I think it’s fair to say that the Super Bowl does not seem to drive as much interest in Indiana as in other event-dominated sports betting markets,” said Dustin Gouker, analyst for PlayIndiana.com.
But perhaps the biggest factor in the Indiana downturn is the emergence of Illinois as a major player in the US legal sports betting industry. Illinois bettors who had frequented Indiana establishments for their betting fix are now staying home and placing wagers from the comfort of their own homes. And now Illinois is elevating into the elite class of legal sports betting states.
That trend may see a bit of a pause in March however - Illinois bettors are still banned from betting on in-state college teams and may flow across the Indiana border for a chance to wager on local favorites like #5 ranked University of Illinois or the University of Loyola Chicago who will also have a presence in the Tournament.
The March Toward Madness
Despite a February dip, analysts and insiders are expecting a strong March bounce back for the legal sports betting scene in Indiana. The reason? March Madness - a tournament that they are not only fully hosting, but also an annual event that captivates the whole of the Hoosier State and the nation for that matter.
“March promises to be an exciting month for Indiana sports betting with the March Madness tournament being held in its entirety in the state. The action from the tournament is sure to have sports betting numbers back to an upward trend,” said Bill Ordine, sports betting analyst.
