analyst for PlayIA.com

Iowa’s online sportsbooks set to boom with expiration of in-person registration

Published

4 years ago

January 5, 2021

GamingAmericas.com

WITHOUT IN-PERSON REGISTRATION REQUIREMENT, IOWA’S ONLINE SPORTS BETTING MARKET POISED FOR DRAMATIC GROWTH

Requirements expired on Jan. 1, opening door for fresh boom, according to PlayIA.com analysts

(LAS VEGAS) — Iowa took a monumental step in its development as a sports betting industry on New Year’s Day with the expiration of the state’s in-person registration requirement to bet online, opening the door to exponential growth that should generate billions in annual wagers, according to analysts for PlayIA, which tracks Iowa’s legal sports betting and gambling industries.

“The in-person registration requirement has unquestionably stunted the growth of Iowa’s online sports betting market, which is the main engine in every state where it is legal,” said Jessica Welman, analyst for PlayIA.com. “With the requirement in place, Iowa would have never reached its potential as a market. Letting the requirement to expire is akin to correcting a mistake, and we expect Iowa to finally begin to blossom because of that correction.”

PlayIA analysts projected in 2019 that within five years Iowa would grow into a market that generated more than $4 billion in bets annually, more than $300 million a year in operator revenue, and more than $20 million a year in state taxes. But since launching in August 2019, Iowa has generated a total $682.6 million in wagers and $53.4 million revenue, according to official statistics. That has produced $3.7 million in state taxes.

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Iowa’s start has unquestionably been muted by in-person-registration, which required that online bettors sign up in-person at a physical sportsbook.

Illinois launched earlier this year with an in-person registration requirement and then suspended it over the summer. The effect on that market was immediate. With just one operator, Illinois grew wagers to $52.5 million in July 2020 from $8.3 million in June 2020 and saw an immediate influx of 230,000 mobile sports betting accounts in the days after the state lifted in-person registration requirements, all as a slew of new operators launched.

In the months since, Illinois has grown to the fourth largest market in the U.S., generating $434.4 million in wagers in October 2020 alone.

“Illinois showed just how much drag in-person registration puts on a market,” said Dustin Gouker, analyst for PlayIA.com. “It was an uneven, unsure start, but almost as soon as the registration requirement was lifted the market embarked on an expansion that has been the most rapid in U.S. history.”

In November, Iowa ranked No. 7 among states where sports betting is legal with a state record $87.2 million in wagers. That still significantly lagged No. 6 Colorado, which has about twice the population as Iowa but attracted $231.2 million in November bets.

Home to some of the best-known brands in online sports betting, operators’ interest in the Hawkeye State has already increased. BetMGM, one of the largest operators in the U.S., launched on Monday. And more could come soon.

“With a fair tax rate and strong regulatory framework, Iowa was already an attractive market for operators,” Welman said. “This was the missing piece. With the in-person registration requirement now gone, Iowa can truly reach its potential as a sports betting market.”

For more information and analysis on regulated sports betting in Iowa, visit PlayIA.com/news.

an analyst for PlayIA.com

March Madness propels Iowa to new heights

Published

4 years ago

April 9, 2021

GamingAmericas.com

IOWA SPORTSBOOKS SET WAGERING RECORD WITH $160 MILLION MARCH

March Madness propels Iowa to new heights, as race for market supremacy heats up, according to PlayIA analysts

(LAS VEGAS) — Iowa sportsbooks capitalized on the popularity of March Madness to set a fresh round of records with more than $160 million in wagering, a welcome result following February’s modest dip in handle, according to analysts for PlayIA, which tracks regulated online and retail gaming in the state.

“Iowa was one of the few legal sports betting jurisdictions to actually improve per-day betting in February, so it is no surprise that sportsbooks set new highs in March,” said Jessica Welman, an analyst for PlayIA.com. “With new operators coming online and the in-person registration requirement is long gone, the Hawkeye State is well-positioned ahead of the inevitable summer slowdown.”

In March, online and retail sportsbooks combined to take in $161.4 million in wagers in March, according to official data released Thursday. That is up 8% from $143.6 million in wagers in February and topped the record $149.5 million handle in January. The heavy action, much of which came from bets on the NCAA Tournament, helped Iowa set records for per-day betting average and revenue, too. Per-day betting hit $5.2 million in the 31 days of March, which was up from the record $5.1 million bet per day during the 28 days of February.

The record month resulted in $13.5 million in net receipts for sportsbooks, which was up from $7.7 million in February and broke the previous high of $11.3 million set in January. In all, March’s bets yielded $908,011 in state taxes, yet another new high.

Iowa and Drake combined for four games in the NCAA Tournament, which undoubtedly boosted interest in March. And the Iowa and Iowa State women’s basketball teams added five more NCAA Tournament games, which also helped spike interest in college basketball betting. But the main catalyst for Iowa’s growth over the first quarter of 2021 has been the removal of in-person registration requirements for online betting in January. Online betting captured $139.4 million in bets, or 86.3% of the state’s overall handle, in March. Compare that to December, the last month of in-person registration when 74.4% of a much smaller overall handle came from bets made online.

“Three months after removing the in-person registration requirements, Iowa has set new highs in wagering per day in each month, even bucking a national trend of declining bets in February,” said Dustin Gouker, an analyst for PlayIA.com. “Obviously the key reason for that is that registration is easier than it was last year, and that has opened the door to new customers across the state. Those customers have responded enthusiastically, and the success of Iowa and Drake this season gave Iowans added incentive to engage with a sportsbook.”

William Hill — which partners in Iowa with Prairie Meadows, Horseshoe Casino Council Bluffs, Isle Casino Hotel Waterloo, Isle of Capri Bettendorf, Lakeside, and Harrah’s Council Bluffs — narrowly led the market with $49.5 million in retail and online handle, which included $43 million in online wagers in March. That produced $2.3 million in receipts from online betting alone.

But the two largest sportsbooks in the country continue to gain ground in Iowa. The Wild Rose license, which is anchored by DraftKings but includes BetRivers, came in second with a $44.3 million total handle and topped online betting with $43.7 million, which led to a market-best $3.6 million in net receipts from online betting. FanDuel and BetMGM helped put Diamond Jo in third place with $42.8 million in bets, including 37.7 million in online bets. Online betting netted $2.9 million in receipts .

Retail betting generated $22.1 million, up from $18.4 million in February.

“It will not be easy for William Hill to fend off DraftKings and FanDuel,” Welman said. “The two largest sportsbooks in the country have brought a lot of marketing know-how to the state, and that has led to continued gains. Ultimately, though, bettors are the beneficiaries as they all compete for attention.”

For more information and analysis on regulated sports betting in Iowa, visit PlayIA.com/news.