The state of Louisiana has kicked off the New Year with a bang, as it achieved a record-high handle in sports betting since its legalization in late January 2022. The Gaming Enforcement Division of the State Police has reported that the total handle from both retail and mobile sportsbooks in January amounted to an impressive $282.2 million. This shows significant improvement after the handle fell to $254.2 million in December.
Of the total amount, Louisiana online sports betting sites have emerged as the biggest contributor, with an 11% increase in wagers from $218.7 million to $245.2 million. This indicates a growing trend of bettors turning towards online platforms as their preferred mode of sports betting, particularly in light of the ongoing pandemic.
Meanwhile, retail sports betting handle also increase. From $35.5 million in December to $37 million last month, which shows a 4% improvement.
Lower Profits for LA Sportsbooks
Louisiana’s sports betting industry has hit a speed bump at the start of the year, with revenues falling from December’s record-breaking $37 million profit to $28 million in January. The drop in revenue can be attributed to a lower hold percentage in January, with the number falling from 14% in December to 11%. However, the 11% still remains a high number that both the sportsbook and the state would be pleased with.
One factor that contributed to the lower numbers was the high number of promotional offers provided by sportsbooks in the early part of the year. To start the year, sportsbooks in Louisiana deducted a whopping $11.7 million in promotional offers, the highest since sports betting was legalized. This indicates a significant increase in the use of promotional offers to attract and retain customers in the highly competitive sports betting market.
The use of promotions has become an essential tool for sportsbooks, particularly in a state like Louisiana, where the industry is still in its infancy. By offering enticing bonuses and promotions, sportsbooks can attract new customers, build brand loyalty, and ultimately increase their revenue over time.
Despite the dip in profits in January, Louisiana’s sports betting industry remains looking to continue investing in promotional offers. The number for the current month is aligned with the spending in January and is expected to maintain the figures in March.
According to recent reports, online sportsbooks made the most profit from parlays, earning a staggering $12.7 million in revenue.
Following closely behind were football and basketball, with $4.6 million and $3 million in revenue, respectively. This is a clear indication that parlays remain the go-to option for many bettors in Louisiana, offering the potential for high payouts with relatively low risk.
The retail side of the industry tells a slightly different story, with football emerging as the top revenue generator for sportsbooks, bringing in $3.2 million in profits. Parlays were the second-biggest moneymaker, earning $1.5 million in revenue, while basketball betting trailed behind with $1.1 million.
More About Louisiana Sports Betting
This surge in Louisiana’s sports betting handle can be attributed to a number of factors, such as the recent expansion of online sportsbooks in the state and the growing popularity of major sporting events like the NFL playoffs and college basketball games.
The legalization of sports betting has brought about a significant economic impact in Louisiana, creating new job opportunities, generating tax revenue for the state, and boosting local businesses. With the increasing popularity of sports betting, Louisiana is poised to benefit even more from the industry in the coming years.
However, the state also faces challenges in regulating the industry and ensuring responsible gambling practices. To address these concerns, the Louisiana Gaming Control Board has implemented strict regulations and safeguards to protect consumers and promote responsible gambling behavior.