Immense Potential of Mobile Sports Wagering Shines in LouisianaLouisiana
Many people have touted the benefits states can realize from mobile sports wagering, but that is nowhere more apparent than in Louisiana.
New data released late last week by the Louisiana Gaming Control Board revealed that the state brought in almost as much in the first four days of mobile sports betting as it did in all of January at retail sportsbook locations.
In the first four days of mobile betting, the state’s six mobile sportsbooks brought in $40.5 million in total bets. For the entire month of January, by comparison, Louisiana’s 13 retail sportsbooks brought in $49.3 million.
Louisiana’s total sports betting handle during the month of January was quite impressive. Combined between retail and mobile sports betting, the state’s operators brought in roughly $89.8 million for the month.
Mobile sportsbooks were able to generate a hold of 6.7%, before adjusting for the spending they made on various promotions — which is usually quite high for new launches.
In fact, the Louisiana Gaming Control Board reported that the state’s six mobile sportsbooks lost a combined $9 million in the month of January, after making adjustments to the numbers for promotions.
In total, the sportsbooks gave out $11.7 million in promotions in just the first four days of operation. This may seem like a lot — and it is — but it’s done to get new players to try out their operation. It’s especially important in competitive markets where there are a lot of big operators, like Louisiana.
What’s more beneficial for the mobile sportsbooks in Louisiana is that the state law allows the operators to deduct as much as $5 million every year for money they spend for promotions. That’s a big incentive for the sportsbooks to increase their promotional offerings even more than normal.
Retail sportsbooks had a more impressive hold of 10.8% on the $5.3 million in revenue they brought in for the month.
Where Louisiana Goes from Here
The month of January was quite impressive, but the state is only expected to have even a larger handle for legal sports bets going forward.
Currently, there are six mobile sportsbooks that are operational in Louisiana. They all were allowed to launch on January 26.
The mobile sportsbooks include Barstool Sportsbook, BetMGM, BetRivers, Caesars Sportsbook, DraftKings Sportsbook and FanDuel Sportsbook.
State law allows for 20 licenses for sports betting, which are allocated to the racinos and casinos located in the state. Thus far, there are 13 retail sportsbooks that are opened, with two more opening in January.
In addition, each license given out comes with the option to offer two online skins. This means that there could be even more growth in the mobile sports betting market in Louisiana going forward.
The Louisiana Lottery is also allowed to operate kiosks at lottery retailers for sports betting and open an online sportsbook. Both of those things could happen in the coming months.
Sports betting revenue has increased every month since Louisiana’s first sportsbook opened its doors on October 31 of last year.
In November of 2021, the state’s residents wagered $27.6 million in legal sports bets. In December of 2021, that rose to $39.5 million. And January’s $49 million wagered at retail sportsbooks was another 24% increase over the previous month.
Now with mobile sportsbooks allowed to operate, the sky is the limit for legal sports betting in Louisiana.