Indiana’s retail and online sportsbooks have seen significant negative impacts during the first weeks on the Coronavirus shutdown, with analysts at PlayIndiana estimating a $125m downturn in wagers during March.
With no immediate end in site, the loss of the NCAA’s March Madness is said to have proven ‘particularly damaging,” after the state proceeded towards its first month of over $200m in bets.
“This is an unprecedented stoppage for legal sportsbooks, and there is no playbook for them to follow to help manage the crisis,” commented Dustin Gouker, lead analyst for PlayIndiana.com.
“Obviously, the sports betting industry is just one facet in a crisis that is affecting us all, too often tragically. But it is a business that employs hundreds in Indiana and generates millions in state taxes. And the bottom line is that there will be no significant relief until the sports world begins to open back up.”
Instead $74.8m was generated in March wagers, down 60 per cent from the record $187.2m in February, according to official reporting. Almost all of the handle was generated before March 11, when the sports world began to shutdown.
March’s bets produced $5.5m in adjusted gross revenue, down 50.5 per cent from $11.9m in February, and yielded $522,0825 in tax revenue for the state.
“There is no way to replace the revenue that would have been generated from the NCAA tournament, which in legal jurisdictions generates more action than the Super Bowl,” noted Jessica Welman, an analyst for PlayIndiana.com.
“The NCAA tournament can’t be rescheduled, but professional leagues are beginning to draw plans to begin games again. We still don’t know what that looks like or when it will happen. Whether spectators are there to watch in-person or not, though, online sportsbooks should again be able to attract bettors, which will be welcome news for the industry.”
In March, online sportsbooks generated 81.3 per cent, or $60.8m, of the state’s handle, with DraftKings and Ameristar Casino leading the market with $33.1m, down from $74.1m a month earlier. Horseshoe Hammond led the retail market with $3.4m in bets, down from $12.4m.
“Online sportsbooks will bounce back more quickly than their retail counterparts, which face a much more uncertain future as the coronavirus pandemic continues,” Gouker added.
“In states where online casino games and poker are legal, such as New Jersey and Pennsylvania, casino operators have had a bit softer landing. But Indiana has really borne the brunt of this crisis, unfortunately.”
