March Madness Not Quite Enough to Propel Indiana to Sports Betting Record
More than a few eyes were on the hoops-crazed state of Indiana and their March legal sports betting handle. While the Hoosier State revealed an impressive sports betting increase from February's disappointing figures, the March numbers are still a far cry from those posted in the record-generating month of January.
The whole NCAA Basketball tournament took place in Indiana and it was expected to result in the state approaching a record handle. Indiana is somewhat uniquely reliant on basketball as evidenced by hoops contributing over half of March's overall handle. But what we saw was that the complete absence of football and the inability of the other major sports to make up the lost ground led to sportsbooks' failing to set a new sports betting standard for the state.
A Peek at the Numbers
Indiana sportsbooks reported $316.7 million in bets during the month of March, a 15.6% increase from February's disappointing figures. While a nice bump, the $316.7 million is far from the record $348.2 million that Indiana sportsbooks recorded during January, which coincided with the NFL playoffs.
Revenues followed the handle-spike in Indiana. The state's sportsbooks made $26.4 million, up 55.4% from February’s $17 million and just slightly under the record-$29.3 million that the state's providers made during their record January haul.
The state is reporting an above-average 8.3% hold and state and local coffers benefitted from the $2.5 million in taxes collected from the sports betting revenues. Tax contributions spiked 55.4% from February's $1.6 million.
Year-over-year, Indiana sportsbooks showed a 300% increase in revenues but keep in mind that March 2020 was the first month global sports were shut down and COVID restrictions started decimating our world.
The Drivers of the March Bounce Back
To nobody's surprise, it was Indiana's mobile sports betting platform that provided the bulk of the overall handle. Betting apps were responsible for $286.8 million of the overall $316.7 million handle, or 88.1% with little reason to think mobile domination is going away.
As mentioned, basketball was the main reason for the March increase in Indiana's sports betting handle. $160.7 million was bet on basketball in Indiana in March, a month-over-month 26% increase, thanks largely in part to the state's March Madness obsession and the fact that the state hosted the entirety of the tournament.
PlayIndiana analyst Jessica Welman noted: “We expect to see high volume across most legal US markets in March, but Indiana’s circumstances were unique with March Madness played entirely in Indiana. It’s hard to know just how much it moved the needle, but March’s results were clearly fueled by a huge volume of NCAA Tournament games all in one place and by a number of fans who traveled to Indiana and then bet legally as they attended games. We may never see a betting event quite like that ever again.”
Basketball numbers may have been even larger in Indiana in March had the only Indiana team in the NCAA Basketball Tournament, Purdue, not fallen victim to North Texas in the first round of the Dance.
Looking Ahead
Indiana will continue to be one of the most reliable sports betting states in the nation and while they may fall out of the Top-5 thanks to the emergence of Illinois and Michigan, there is very little worry about a Hoosier State scene that has now topped $3.1 billion in handle since its launch.
With Illinois reverting back to an in-person only sign-up requirement for its mobile betting platform, Indiana sportsbooks could actually benefit from an unforeseen handle-bump.
April will also likely see the added effect of some semblance of a retail sector in the Indiana legal sports betting scene which should benefit the state’s bottom line. The impending opening of a Penn National Barstool Sportsbook should also contribute its share toward the April totals.
The arrow is pointing up once again in the Indiana legal sports betting scene, proving that February’s disappointment was the exception, not the rule. Indiana, along with Iowa generally set the stage for what to expect in the rest of the country with regard to legal sports betting. If that is the case, March should be a solid month but will likely fall short of any sort of National records.
