Ohio’s casino industry experienced a slight increase in revenue, while the sports betting sector stagnated during the summer months. This analysis is based on the figures released by the Ohio Casino Control Commission for June.
A Steady Rise in Casino Revenue
The Jack Casino in Cleveland was among the contributors to a minor surge in revenue for Ohio’s gaming industry in June. The state’s online casinos reported over $82.8 million in taxable revenue for the month, a commendable recovery from May’s disappointing performance from games such as Progressive Slots, Live Poker and Craps. May had recorded the lowest total for the year at just above $80 million, a significant drop from April’s $86.4 million. June’s revenue also marked an increase from $81.5 million during the same period last year.
Ohio is home to four independent casinos that collectively generated over $512 million in taxable revenue in the first half of 2023, slightly surpassing the revenue generated during the same period last year. These casinos offer a variety of table games, including blackjack.
Additionally, Ohio has seven racinos – gambling establishments located at horse racetracks that exclusively offer slot machines. These racinos contributed $110.3 million to the revenue, up from $107.7 million. Consequently, the combined revenue from casinos and racinos for the first half of 2023 was $1.21 billion, marking an improvement from $1.17 billion during the same period last year.
Sports Betting Experiences a Downturn
Despite the overall positive trend in the gambling industry, Ohio’s sportsbooks recorded their slowest month in June. The 18 online sportsbooks and 14 retail venues registered a total handle of $362.1 million and a combined revenue of $32.6 million. This represents a nearly 19% drop in handle and more than a 43% decrease in revenue from May.
Such a slowdown in June is not uncommon in states with legalized sports betting, which could be attributed to a slower sports calendar. Ohio, which legalized sports betting on January 1, 2023, had attracted national attention with promotional offers reaching nearly $320 million and first-month figures exceeding $1 billion. However, these promotional credits fell significantly to $14.9 million in June.
Looking Forward: Potential Rebound in Sight
Despite the June slump, Ohio’s combined total for the first half of the year amounted to $3.82 billion in handle and $539.4 million in revenue. Online betting accounted for 96% of the volume at sportsbooks in June, with DraftKings and FanDuel dominating the market.
Moving forward, the state expects a rebound due to the doubling of the tax rate to 20% starting July 1 and the imminent return of the NFL season. Therefore, while June may have been a slow month for Ohio’s sports betting industry, the momentum might return in the coming months, contributing to the overall growth of the state’s gambling industry.