• Indiana recorded $37.4 million in total sports betting handle in May and $3.2 million in revenue—a hold rate of 8.5%.
  • Handle increased 42% from April and revenue increased 104%.
  • Indiana sportsbooks appear to be on the road to recovery, but they won’t return to pre-pandemic levels of revenue until major American sports leagues resume play.
  • When leagues do return, there could be a big spike in betting action, as there was for horse racing.

INDIANAPOLIS – Indiana’s sports betting industry was hit hard by the novel coronavirus pandemic, but May’s revenue report indicates that it could be in the beginning stages of recovery.

Indiana’s May betting handle was $37.4 million, a 42% month-over-month increase. Sports betting revenues also increased to $3.2 million, a 104% increase.

This equates to a hold rate of 8.5%, which is somewhat higher than normal but still well within the standard deviation.

Wagers on football, basketball, baseball and parlay cards accounted for only $6.9 million (18.5%) while the other $30.5 million went toward other bet types – things like UFC, WWE and racing, which have continued play despite the pandemic.

The $37.4 million Indiana monthly betting handle is still a far cry from the roughly $170 million Indiana was averaging before March, but it is still an encouraging sign of growth.

The Ameristar Casino and Blue Chip Casino once again led the way with a combined $32.4 million in betting handle. Their partnerships with DraftKings and FanDuel, respectively, have given them a leg up on competitors in terms of the visibility and popularity of their mobile betting options.

When Will Indiana Sportsbooks Recover From COVID-19?

Indiana will enter Stage 4 of its reopening procedure on Friday and casinos will be allowed to reopen on Monday, June 15. A few notable guidelines that could affect casinos include:

  • Maximum of 250 people at social gatherings
  • Dining services restricted to 75% capacity
  • Horse racing facilities can reopen but with no spectators
  • Bars and nightclubs restricted to 50% capacity

While the crowds will undoubtedly be thinner than they would be under normal circumstances, legal sports betting revenues should still be significantly bolstered with casinos reopening.

Sportsbooks should receive another boost in July when prominent leagues like MLS and the NBA are likely to resume play in an altered format.

MLB could also return in July, but it is unclear when the financial dispute between the owners and the MLB Players Association will be resolved.

Revenues aren’t likely to fully recover until the sports world returns to a normal schedule, but if horse racing is any indication, sportsbooks could see a huge spike in betting action when play resumes.

Racetracks across the country recorded record betting handles upon reopening for races.

Sportsbooks will still carry lasting financial scars from the coronavirus, as will most Americans, but it appears likely that the Indiana sports betting industry will return to a state of normalcy within the next three months.

News tags: | | | | | | | | | | | |