Indiana Sports Betting Tax Revenue Down Slightly YoY After Border States Launch
Online sportsbooks in Indiana saw an increase in activity for October. The NFL and college football seasons have helped push the market to $429,673,062 in wagers for the month. This is a 6.3% increase month over month compared to the $404,141,002 wagered in September. Indiana sports betting also continues to be dominated by the best sports betting sites. How much sports betting tax revenue did Indiana see from all these wagers?
Sportsbooks reported $45,232,502 in taxable adjusted gross revenue (AGR). The state took in $4,297,088 in taxes in October. However, year-over-year tax revenue is down slightly, with bordering states going online with sports betting.
Indiana Sportsbook Report Examined
Football wagers were responsible for the largest chunk of bets in Indiana. $153,314,373.13 of the total handle alone came from football bets. Year to date, football wagers have contributed $328,471,304.58 in handle.
The start of the college basketball and NBA seasons have also seen a spike in activity. Basketball was the second most wagered on sport in October, with $38,339,867.46.
| State Wide Handle By Sport | Month | YTD |
|---|---|---|
| Football | $153,314,373.13 | $328,471,304.58 |
| Basketball | $38,339,867.46 | $81,124,122.50 |
| Baseball | $27,422,147.12 | $213,973,892.28 |
| Parlay | $142,285,068.40 | $393,959,647.33 |
| Other | $67,983,041.67 | $256,764,460.65 |
| TOTAL | $429,344,497.78 | $1,274,293,427.34 |
Despite the monthly increase in action, sports betting is actually down year over year compared to October 2022. Sportsbook handle saw a 3.7% decrease in 2023 compared to the $446,248,394 wagered in October last year. Indiana sports betting tax revenue is also down by $1.7 million compared to the $46,932,575 in 2022.
The decrease can be attributed to bordering states launching betting. Indiana was an earlier adopter of sports betting and enjoyed wagers from citizens in neighboring markets that had yet to launch. In 2023 alone, neighbors in Ohio and Kentucky have gone live, keeping those sports bettors to themselves.
Ohio, in particular, arrived with a bang, instantly becoming one of the biggest sports betting markets in the nation. Indiana’s decrease is unsurprising when looking at the effect of these markets going live.
DraftKings Dominates Indiana In October
The biggest operator for October was DraftKings Sportsbook. DK alone was responsible for $170,810,427 of the total handle and $17,846,733 of taxable AGR. FanDuel took the second place spot with $146,449,306 of the total betting handle and $17,406,710 of taxable AGR.
In total, online sportsbooks were $411,825,053 of the total handle for October, which is 95.8% of the entire market. Indiana is home to a dozen sports betting apps that grant locals a lot of options to choose from. Online betting is expected to remain the primary choice for locals going forward.
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