July Sports Betting Slump Extends to Indiana

Prior to Thursday, the US legal sports betting industry had heard from two of its jurisdictions regarding their July handles and both Iowa and Oregon reported an expected but still eye-opening drop in wagering activity. On Thursday, it was Indiana's turn to report a sharp month-to-month drop in their overall sports betting handle and theirs took the industry into territory it hasn't seen in almost a year.

"Sports betting is ultimately for entertainment, and this time of year it can take a backseat to long weekends at the lake or summer barbecues," said Jessica Welman, analyst for the PlayUSA.com Network, which includes PlayIndiana.com. "With people traveling at an accelerated rate this summer, it appears that the trough is even more pronounced than usual. But July should be the low point, as bettors begin to return from their summer vacations in August and excitement builds for the upcoming football season."

The July Drop-off

July is traditionally the worst month for the US legal sports betting industry as demonstrated by the rash of data that has been compiled since the US Supreme Court overturned their blanket ban on sports betting in 2018. So, it is no surprise to see sharp declines in betting activity across the country. Thursday's sports betting report for Indiana revealed a 21% month-to-month slide for the state's scene.

Just $194.5 million was taken in by sportsbooks in July - a sharp contrast to the still-low but respectable $246.3 million in June. It is the first time in nearly a year that Indiana sportsbooks failed to eclipse the $200 million mark. About $6.3 million per day was taken in by the state's sportsbooks in July - down from $8.2 million in June.

Revenues, Tax Contributions and the Mobile Take

There had been a pattern in the broader US legal sports betting space of handle dips and revenue spikes. Unfortunately for Indiana, they snapped that trend and registered a significant revenue slide, along with their handle dip. Sportsbooks in the state made just $17.5 million in July, down 36% from the $26.7 in gross gaming revenues reported in June.

Lower profits led to lower tax contributions to the state. Indiana state and local coffers benefitted to the tune of $1.66 million from legal sports betting in July - down 31.5% from the $26.7 million in June. Not surprisingly, it was Indiana's mobile sports betting platform that dominated the overall handle in July. $179 million of the overall $194.5 million handle came from the state's betting apps, which is 92% but still a 20.1% month-to-month drop.

How About Some Good News?

With July's sports betting numbers, the Indiana legal sports betting industry reached a major milestone - the $4 billion lifetime handle mark. With $4.1 billion in bets, Indiana became the lowest populated state, outside Nevada to reach the $4 billion threshold. $3 billion of that has come in the last 12 months. $334.6 million in gross gaming revenues has been reported by the near two-year old platform as has a tax contribution by the state's sportsbooks to the state of $31.8 million.

Filling the Basketball Void

It is widely known that Indiana is a basketball crazed state. During July, there were only a few games in the NBA Final, leading to a greatly diminished hoops betting take for the state. Since December alone, basketball bettors in Indiana have dropped $896.9 million on their passion. The NBA season doesn’t start again until October 19, meaning there will be a prolonged wait for hoops to a main contributor to the Indiana sports betting scene.

“Indiana's love of basketball has helped shield the state's sportsbooks from some of the more pronounced seasonal dips experienced in other states, so a smaller volume of games in July was felt," said Nicole Russo, analyst for PlayIndiana.com. "Betting interest on the Olympics appears to have been modest at best, and even with the NBA Finals being later than usual, it wasn't enough to overcome fewer games being on the board."

Baseball betting was able to step up and fill the basketball void somewhat. Betting activity on MLB increased from $60.5 million in June to $63.5 million in July. Basketball contributed just $26.8 million in July - a stark drop from the $77.1 million bet in June.

Bouncing Back

Like the rest of the US legal sports betting scene, Indiana sportsbooks will be eager for September and the NFL season to arrive. October, when the NBA season returns is when the legal sports betting market is expected to approach and even break wagering records for the state. The retail sector looks as though it is stuck in neutral for the time being.

Retail betting is still trying to bounce back to pre-pandemic levels, and news of a fresh surge in the pandemic is the latest challenge for the industry," Nicole Russo said. "Online sportsbooks will continue to flourish in the state, but it's apparently going to continue to be a hard road for the retail side." That strong Indiana mobile sports betting network and some incredibly busy fall sports betting months ahead should have regulators looking forward, not back. August is expected to be another disappointing month, but things begin to crank in the state's betting industry almost immediately once this month concludes.