Kansas sports betting revenue rockets in October
Sunflower State reports combined online and retail handle of $190m as DraftKings and FanDuel near taxation threshold
Kansas licensed sports betting sites generated $18.6m in gross revenue in October, a jump of 1,330% month over month on the state’s debut sports betting month of September.
The state’s four retail sports betting venues and six mobile operators generated handle of just short of $190m in October, up 18.3% on September.
Promotional spend topped $9m in October, down from the $34.4m spent by operators looking to acquire customers in September.
Deductions due to promotional spend reduced the adjusted revenue total to just $9.2m, the first positive adjusted revenue figure since market launch.
Of the state’s six licensed mobile operators, four did not pay tax in October after not accruing the required adjusted revenue to do so. Kansas officials collected $141,088 in taxes from operators, of which 63% came from two sportsbook operators, Caesars and Barstool Sports.
Following up from its negative debut in September, DraftKings generated the most adjusted revenue during October with $4.4m, thanks in part to a reduction in its promotional spend from $17m in September to just $3m promotional spend in October.
Nearest rival FanDuel reported gross revenue of $6.1m and adjusted revenue of $2.8m, with promotional spend halving from $7.4m in September to $3.2m in October.
Under rules relating to the Kansas market, operators become liable for taxation only once they hit break-even in terms of revenue.
PointsBet generated $2.6m in handle and just $85,000 in gross revenue in October. After the adjustment resulting from promotional spend, the firm had a negative adjusted gross revenue figure of -$106,454.
Of the rest, BetMGM reported a 48.8% month-over-month drop in gross revenue to just $2.4m with a promotional spend of $1.8m, leaving the firm with adjusted revenue of $560,000.
Barstool Sports reported $1m in gross revenue during October, with a $27,221 negative carry over from September, amounting to adjusted gross revenue of $650,000.
Caesars sportsbook generated handle of $8.7m, with revenue declining 17.5% month over month to $625,000, however promotional credits of $800,000 across both September and October meant the firm is the only operator to pay taxes in both months.