Iowa Reports Rare Handle Retreat for February
By now, those following the US legal sports betting industry have become accustomed to monthly handle-records being set. But the first numbers we have seen for February – the ones out of Iowa could be the start of a nationwide trend of a slight dip in the number of bets seen by participating sportsbooks.
February has always been characterized by a bit of a post Super Bowl lull in the sports betting world. With the NFL ending early in the month and with only 28 days for bettors to place their wagers, February is often seen a breather, before the start of March Madness and the beginning of the MLB season.
Breaking Down Iowa's February Figures
February certainly wasn't a bad month for sportsbooks in Iowa in terms of their monthly handle, it was instead a reset for the industry which had been in the midst of five-straight months of setting handle-records. At the end of the day, the Iowa industry did well to even approach January's record-$149.5 million sports betting handle.
Iowa sportsbooks ended up taking in a respectable $143.62 million in bets in February. While it represents a slight 4% drop from the numbers seen during a robust January, with only 1 NFL game and with 3 less days than January, it is hardly an eye-opening drop-off.
Revenues from Iowa's legal sports betting platform showed an even bigger decline. Sportsbooks made $7.71 million in February, down 32% from January’s $11.34 million in profits. A dip in the overall handle plus an average hold for February of 5.37% compared to January’s 7.58% were obvious reasons for the decline. Because of both factors, tax revenue for state and local coffers also dropped 32% to $520,444.
Making the Most of the Mobile Sign-up Switch
We are now two months removed from the change in policy regarding Iowa's mobile betting sign-up rules. Remote sign-up for mobile apps just became legal January 1 and bettors in the state are taking advantage. Iowa's mobile handle came in at $125.2 million or 87.2% of the overall February handle, topping last month’s record of nearly $120.8 million.
“With the casino sportsbooks offering remote registration and online access; it has created more options for those who love watching and wagering on sporting events!" said Iowa Gaming Association President Wes Ehrecke.
In the two months since the policy-switch, Iowa's mobile sports betting platform has been responsible for 83.9% of the Iowa handle which amounts to $293.1 million. This after not hitting 75% in the 17 prior months of operation.
Where Iowa Stands After Nineteen Months of Legalization
Iowa, by all accounts has been a nice surprise withing legal sports betting circles. It has become "the little state that could" in its 19 months of legal sports betting operation. Iowa has done a lot with a little population, a strong regulatory body and a rabid fanbase willing to supports their home-grown casinos.
The state, after February's report has now taken in $1.08 billion in legal sports bets. With that, Iowa gained the distinction of becoming just the seventh jurisdiction in the US to reach that magical mark. Tax contributions over that time period have eclipsed $5 million after February’s haul.
“The commission has been very pleased, to this point in time, with how the sports wagering industry has progressed in Iowa,” IRGC Administrator Brian Ohorliko recently said about reaching the milestone. “The foundation of the Iowa sports wagering industry was the thoughtful legislation that has allowed for market growth in a highly regulated environment where customers can feel confident that their wagering activity is safe, and operators are complying with Iowa’s sports’ wagering laws and rules. We are also extremely fortunate to have strong sports wagering operators licensed in this state that understand the importance of compliance and operate with integrity.”
Looking Forward to March
The Iowa legal sports betting industry will take another step forward starting March 10 when casino operators in the state will be eligible to apply for a third skin, thanks to a ruling by the state's Administrative Rules Review Committee.
It means more sports wagering locations for Iowa's bettors and more action for the top-tier providers that have already made the most of the Iowa betting scene. With more locations, the evolution of the state's mobile betting registration policy and with March Madness on the horizon, all of those involved in the Iowa scene are looking forward to a bounce back March.
At this point, its pretty hard to bet against Iowa.
