West Virginia Sports Betting Operators Reach $50 Million In Handle In October
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West Virginia's sports betting industry reached a new milestone in October, with a record-breaking $50 million in handle--the total amount wagered by bettors in online and retail sportsbooks, not including winnings paid out to bettors.
This amount marks the highest handle in West Virginia since January of this year, representing an 18% increase from October 2023. However, despite this significant handle, the revenue for the state's sportsbooks saw a decline. This indicates a shift in outcomes in favor of the bettors and not the operators.
Major online sportsbooks, like DraftKings and ESPN BET, and reputable online casinos that offer sports betting like Golden Panda, attracted high betting volumes thanks to their significant bonuses but saw a reduced hold rate (the amount retained by sportsbooks after payouts to winners).
The West Virginia Lottery reported that gross revenue for October was $4.6 million, reflecting a 25.6% decrease from last October and a sharp 35.9% drop from September. This decline in revenue is due to a drop in the hold rate, which fell to 9.1% in October from a high of 15.3% in September.
This drop ended a six-month streak where sportsbooks in the state maintained double-digit hold rates, allowing more winnings to enter the pockets of bettors. Retail sports betting, which accounted for just 10% of the total handle, saw a significant drop in win rates.
In-person wagers amounted to $4.8 million in October, almost identical to September's figures, yet the hold rate dropped from 21% to 8.1%, causing a revenue decrease from $1 million to just $386,000.
Focusing on individual sportsbooks, the two leading sportsbooks in the state, The Greenbrier and Charles Town, had notable handle volumes. The Greenbrier (powered by BetMGM and FanDuel) received $22.1 million in wagers and produced $2.3 million in revenue. Charles Town (featuring DraftKings, ESPN Bet, and Fanatics) reported a $21.2 million handle but only a revenue of $1.7 million. Mountaineer Casino, which partners with Caesars, reported a handle of $2 million and a revenue of $187,000, which is a 25% decrease from September.
West Virginia's sports betting industry has continued to grow since legalization in 2018 following a Supreme Court ruling, and despite October's lower figures, revenue remains strong. Total revenue for 2024 is nearing $45 million, which is 20% more than the first 10 months of 2023. October's revenue from sports betting contributed over $387,000 in taxes for the state, which is significant although it is down by over $200,000 for September due to lower win rates.
These fluctuating month-on-month win rates may impact monthly revenue, but the increased handle indicates that there is growing interest in West Virginia sports betting.
Sports betting operators in the state will likely continue to adapt their strategies, especially as the football season progresses and wagering volumes remain high. The recent fluctuations in hold rates and revenue show the competitive dynamic of the sports betting market, and bettors are benefitting from lower hold rates.