Iowa Sees Huge Sports Betting Revenue Boost From March Madness

The Hawkeye State's sports betting industry got a much-needed shot in the arm with a successful March fueled by the men's and women's NCAA basketball tournaments.

Dave Bonderoff

Last updated: April 13, 2023 11:58 AM EDT • 2 min read

The annual March Madness sports betting bump hit the state of Iowa hard – in a good way.

With the Hawkeyes reaching the women's NCAA basketball final behind the exploits of the mesmerizing Caitlin Clark, and two Iowa teams qualifying for the men's NCAA Tournament, the state's sports betting handle and revenue numbers saw double-digit month-over-month growth.

It was a welcome boost for Iowa sports betting, which has been underperforming when compared to last year's numbers. Combined January, February, and March sports betting figures came in 12.3% lower than the first three months of 2022, taking some luster off of Iowa’s overall legal sports betting scene.

But for now, Iowa sportsbooks and the tax coffers that are funded off of the industry will celebrate a very good March reporting period – just in time for the annual spring/sports betting slump experienced nation-wide.

Iowa's March sports betting handle

Iowa's 18 licensed mobile sportsbooks took in $232.6 million in bets in March, a 16.7% percent increase over February's figure.

Despite the positive numbers, Iowa's sports betting activity showed a slight year-over-year decline. Just over $233.5 million was bet in the state in March 2022, about 0.4% more than last month. While not eye-popping, 2023’s figures signal a decline that Iowa regulators were hoping to avoid prior to the summer slowdown.

Revenues tell a different story

Perhaps the biggest story out of the Iowa Racing and Gaming Commission's March sports betting report was the month-over-month spike in revenues – and ultimately, the tax contributions made to the state by its wagering providers.

Sports betting revenues for the Hawkeye State's providers came in at just under $20 million in March, which is a staggering 67.3% increase from the $11.9 million made by the state's best sportsbooks in February. The spike can not only be attributed to the handle increase but also the state's hold rate that jumped from 6.1% in February to 8.5% in March.

Looking back, Iowa's sportsbooks made $14.4 million in March 2022, $5.5 million less than they did the previous month.

It all led to the state collecting $1.29 million in taxes from the legal sports betting sector, a hefty 64% increase from February's numbers.

DraftKings reign supreme in Iowa

Almost all of the 18 sports betting operators in Iowa made money in March. All but one of the 18 posted profits, though DraftKings was by far the most popular. DraftKings Iowa accounted for $80 million of Iowa's $232.6 million March handle.

FanDuel was next with $53.7 million, Caesars Sportsbook took in $35.6 million, BetMGM Sportsbook Iowa was responsible for $14.6 million and Barstool Sportsbook rounded out the Top 5 with $6.5 million in handle.

Written By:
Dave Bonderoff

Dave Bonderoff and betting go hand-in-hand. Both are characterized by "odds". Dave fancies himself as one of the most dedicated sports and pop-culture junkies around, to the chagrin of his family and friends. Following sports for 50 years and writing about it for 20, Dave hasn't found a sport yet that can't contribute to 2-3 straight hours of couch time. That search remains ongoing. As a good old Canadian boy, hockey is in Dave’s heart, as is curling sadly. But evolution is a real thing and that’s why football, baseball, and just about every sport on the planet has become a passion. Dave isn’t afraid to kill some time obsessing over politics or the far-too-frequent awards shows the consume the airwaves.