Louisiana Experiences 17.3% Legal Sports Betting Drop in June

The June hits keep coming for the U.S. legal sports betting industry and the best sports betting apps in the state. On Friday, it was Louisiana's turn to report double-digit percentage drops in wagering activity from May to June.

Louisiana followed a familiar nationwide pattern of state seasonal summer sports betting slumps in both overall handle and revenues from the best sportsbooks.

The only good news out of the Louisiana Gaming Control Board report is that betting activity, including at online betting sites, is up from June 2022, along with the revenues and ultimately tax contributions to needy state and local coffers accompanying that development.

About that month-over-month dip in handle

The Louisiana Control Board is reporting that Louisiana sports betting (mobile and retail sports wagering facilities) took in $160 million in bets during June. It represents the second straight month and third time in the last five months that sports wagering activity in the state came in under the $200-million mark.

June's handle is 17.3% less than the just under $193.6 million from May, and about $122 million lower than the record $282.3 million sportsbooks in the Pelican State took in during January.

The good news out of Louisiana's June legal sports betting take? It's up 28% year-over-year from the disappointing $132.4 million in wagers that Louisiana saw in June 2022.

Mixed numbers with revenues too

With the inevitable and projected drop in handle came a dip in overall revenues for Louisiana sports betting apps and the state's retail providers. 

Net profits, after payouts, Lousiana sportsbook promos, and deductions came in at just $11.3 million in June, thanks in large part to an underwhelming hold rate for Pelican State wagering providers. The hold rate for Louisiana sportsbooks was just 7.8% in June, compared to the 15.3% in May.

The $11.3 million is less than half of the $25.5 million in net revenues that Lousiana sportsbooks reported in May, thanks to gamblers in the state getting far more success in June.

Just like the handle figures, revenues actually rose from June of 2022, despite month-over-month declines in Louisiana's June sports wagering numbers. Net profits for Louisiana providers were up 7.5% in June 2023 when compared with the numbers from June 2022.

Retail takes a hit

While sports betting numbers across the board were down month-over-month, year-over-year numbers showed some positive signs, except for the retail side of the industry. Year-over-year June retail sports betting numbers dropped an eye-opening 23% when compared with June 2022. The brick-and mortar betting handle in June 2023 was the worst ever month for the platform, dating back to when Louisiana legalized sports wagering in November 2021.

Retail sports betting providers in the Pelican State saw just $14.3 million in bets and $1.1 million in net profits.

Louisiana sports betting apps didn’t exactly blossom in June, but we're able to see that retail was the true drag on the legal sports betting industry there.

LSU College World Series win helps the bottom line

LSU's run to their first College World Series win in 14 years contributed to the overall rise in year-over-year wagering activity, according to Ronnie Johns, the chairman of the Louisiana gaming control board. Hometown bets on the Tigers could have also been the reason for the poor hold rate for the state's sportsbook.

“I think the win ratio was actually down, so I think a lot of people were betting on LSU to win and we’re grateful that they did,” Johns said during a meeting of the gaming control board.