The Indiana Gaming Commission recently revealed the February sports betting numbers, and it was a disappointing month for the industry and the state. For the first time in six months, the total sports betting handle decreased, and several factors were at play.
The February sports betting handle figure was $273.9 million, which was a decrease of more than 24 percent from the $348.2 million in January. February is traditionally a slow month in the U.S. sports betting industry, but Indiana was also facing some challenges.
The tax revenue generated from sports betting was just $1.6 million in February, a steep drop from the $2.7 million in January. Indiana is a state that is hurting for revenue, so this was a tough blow for the state.
Michigan’s launch of online sports betting in January played a role in the small numbers in February, but the month was also shorter. Sportsbooks in Indiana will have to battle the Michigan sports betting market, but the NCAA Men’s Basketball Tournament should help the state rebound.
Mobile Leading the Way
While the total sports betting handle saw a significant dip during February, online sports betting is as popular as ever in the Hoosier State. The total mobile handle went down, but the percentage of the total bets placed increased to nearly 88 percent in February.
Since the beginning of online wagering, Indiana has utilized online registration, which has allowed online sportsbooks to build up a strong customer base. Indiana residents and visitors are not forced to travel to a land-based casino to create a sports betting account, leading to significant handle and revenue numbers.
DraftKings, FanDuel Most Popular
Once again, DraftKings and FanDuel were the most popular sports betting operators in Indiana. These are two of the biggest names in the U.S. sports betting industry, and each has built up a solid presence in the state.
DraftKings accounted for a little more than $107 million of the total sports betting handle in February. FanDuel was next on the list with close to $71 million.
BetMGM has started to make its presence known in the Hoosier State, accounting for $33 million in sports betting handle in February.
Here Comes Michigan
Perhaps the biggest threat to the sports betting market in the state of Indiana comes from Michigan. Michigan launched online sports betting in January 2021, stealing customers away from the Hoosier State.
Illinois has been viewed as the biggest threat to Indiana, but Michigan racked up more than $100 million in sports betting handle within the last 10 days of January. Both states share a number of the same operators, and it is easy for bettors to jump back and forth across the border to place their bets.
As sports betting continues to grow in Michigan, Indiana online sportsbooks will have to increase bonuses and promotions to keep sports betting in the state. Also, they should get back on track in March with bets on the NCAA Tournament.