Ohio’s Sports Betting Handle Nears $1 Billion in March

March Madness Fuels a Big Month

This haul, just shy of $1 billion, jumped 30.4% from February’s $761.6 million and 22.6% from March 2024, thanks to the NCAA’s March Madness tournament driving heavy action. B

ut while bettors poured in cash, operator revenues took a hit, dropping 11.6% from February to $66.5 million, though still up 4.1% from March 2024’s $63.9 million.

The hold rate, or the chunk of wagers kept as revenue, slipped to a low 6.7%, down from 9.9% in February and 7.9% a year ago, showing bettors scored more wins than usual.

Online platforms dominated, handling 98.1% of bets at $972.8 million and 96.6% of revenues at $64.2 million, while retail spots like casinos and kiosks chipped in $19.1 million in handle, a solid 53.2% jump from February, and $2.3 million in revenue.

Top Players and Market Breakdown

FanDuel and DraftKings led the pack, as usual. FanDuel, tied to Belterra Park, topped the charts with a $326.5 million handle and $26.3 million in revenue, while DraftKings, linked to Hollywood Toledo, followed close with $316.7 million in bets and $22.7 million in revenue.

Bet365, partnered with the Cleveland Guardians, nabbed third place with an $89.9 million handle and $4.6 million in revenue. Other names like BetMGM, Fanatics, Caesars, PENN Interactive’s ESPN Bet, Hard Rock, and betJACK also saw action, but the big two stole the show.

Promotional credits, totaling $26.8 million, juiced the handle without cutting taxable revenue, though starting in 2027, operators can offset some of these giveaways. These promos likely fueled March’s betting frenzy, especially with March Madness drawing casual and seasoned bettors alike.

Taxes and Policy Debates

Ohio’s 20% tax on sports betting revenue, doubled from 10% in July 2023, pulled in $12.8 million from online and retail operators in March, with a total of $13.3 million including lottery-regulated kiosks. Most of this cash feeds the state’s education fund for K-12 programs, while 2% bolsters problem gambling initiatives.

Governor Mike DeWine’s pushing to double the tax again to 40%, aiming to raise $130 million to $180 million yearly for stadium projects, like a new Cleveland Browns venue in Brook Park and Cincinnati Bengals upgrades, plus youth sports education.

The tax hike plan’s stirred up debate. DeWine calls sportsbooks’ marketing “aggressive” and wants them to chip in for stadiums, but industry folks warn a 40% rate could scare off operators, leaving bettors with fewer choices.

Meanwhile, the Ohio Casino Control Commission’s cracking down, issuing cease-and-desist orders to Kalshi, Robinhood, and Crypto.com in March for offering unlicensed sports event contracts, signaling tight oversight.