Kentucky Sports Betting Revenue Growth and Insights

Since the inception of legal sports betting in September 2023, Kentucky has demonstrated a robust and rapidly growing market. In its first year, the state reported an impressive Gross Gaming Revenue (GGR) of $112 million, with a handle totaling $892 million. This performance reflects a hold rate of 10.94%, indicating a strong market engagement from bettors.

January–October 2024

Kentucky’s sports betting market has continued to thrive in 2024, demonstrating consistent month-over-month growth:

• Total Handle: $2.64 billion
• Gross Gaming Revenue (GGR): $439.86 million
• Average Hold Percentage: 16.64%
• Tax Revenue: $43.16 million

Monthly Highlights

• January 2024: The year began with a handle of $257.11 million and revenue of $39.25 million, driven by NFL playoff betting and college basketball interest.
• August 2024: The lowest handle of the year, $129.27 million, was recorded during the quieter summer sports season.
• October 2024: The market rebounded strongly, with a handle of $255.86 million and the highest monthly revenue of $48.33 million, fueled by the NFL season and college football games.

Since the legalization of sports betting in Kentucky, the industry has seen several significant developments:

• September 7, 2023: Governor Andy Beshear placed the state's first legal sports bet at Churchill Downs, marking the official launch of retail sports betting in Kentucky (AP, 2023).
• September 28, 2023: Online sports betting platforms became operational, expanding access for residents statewide.
• May 14, 2024: Circa Sports launched its mobile sports betting app in Kentucky, partnering with Cumberland Run harness track to enhance the state's sports wagering offerings.
• October 10, 2024 — Kentucky sports betting revenue in Q3 2024 was $65.4 million (American Gaming Association, 2024).
• August 8, 2024 — Circa Sports revealed plans to launch a temporary retail sportsbook at Mint Gaming Hall Kentucky Downs on August 12, with a permanent facility set to debut next summer.

Kentucky’s sports betting market has demonstrated strong performance and rapid growth since its launch in September 2023. With substantial increases in handle, revenue, and tax contributions, the state is quickly establishing itself as a competitive player in the U.S. sports betting sector. Here’s a detailed breakdown of the market’s performance:

2023 (Partial Year)

In its launch year, Kentucky’s sports betting handle reached an impressive $892.4 million, generating $112.1 million in Gross Gaming Revenue (GGR). The market recorded a strong 10.94% hold rate, showcasing its robust initial performance. Despite operating for only a few months, tax revenue totaled $15.5 million, exceeding state projections and highlighting the market's potential for sustained growth.

2024 (Year-to-July-30)

Kentucky’s market has continued to grow significantly in its first full year. Through October 2024:

• The handle has already surpassed $2 billion (Kentucky Horse Racing Commission, 2024).
• Revenue figures indicate a consistent hold rate near 11%, maintaining profitability for Kentucky sportsbooks.
• Tax contributions from retail and online sports betting have provided crucial funding for state initiatives, including problem gambling programs and public pensions (Kentucky Government, 2023).
• The state now has eight prominent sportsbooks, including Bet365, BetMGM, DraftKings, FanDuel, ESPN Bet, Fanatics, Caesars, and Circa Sports, attracting significant bettor activity.