The launch of sports betting in neighboring Ohio has presented a challenge for Indiana sportsbooks at the beginning of the year. The betting handle in Indiana has seen a decline of 14.9% since the start of the year, while Ohio’s market has surged with nearly $2.5 billion in betting volume through March. This can be attributed to the fact that Ohioans can now place bets from anywhere within their home state, eliminating the need for them to cross state lines to place bets in Indiana.
The impact of Ohio’s entry into the market was expected, and it has affected the Indiana betting market. However, it remains to be seen how the Indiana market will adapt and respond to this new competition. Indiana may need to strategize and offer unique features or promotions to attract and retain bettors in the face of increased competition from neighboring states. It will be interesting to observe how the Indiana betting market evolves in the coming months as it adjusts to the changing landscape.
Ohio wagering cuts straight into Indiana’ ings player pool area
Indiana’s sportsbooks have handled $1.54 billion in bets through April, compared to $1.75 billion in 2022. The proximity of two of Ohio’s largest cities, Cincinnati and Dayton, to Indiana has likely contributed to the decrease in betting volume in Indiana. These metropolitan areas have a combined population of approximately 2 million, which is roughly one-sixth of Ohio’s total population of 11.9 million. With nearly 7 million residents in Indiana, the addition of nearly 30% more potential gamblers from western Ohio could have had an impact on the betting volume in Indiana. It is worth noting that prior to the legalization of sports betting in Ohio, Ohioans had to travel to Indiana to place bets, which created a barrier to entry.
Indianapolis sports betting take care of 2023 or 2022
| 2023 | 2022 | Decline percentage | |
| January | $427. 2 thousand | $500. you million | -15. 6% |
| March | $356. a couple of million | $409. 1 thousand | -12. 9% |
| March | $433 million | $476. 8 thousand | -9. 8% |
| April | $321. 4 thousand | $360 thousand | -10. seven percent |
| Overall | $1. 54 billion dollars | $1. seventy five billion | -10. 9% |
Indiana immediately affected by Ohio’ s unveiling
According to Pew Research, approximately one in five U.S. adults engaged in gambling between June 2021 and June 2022. While the study did not provide state-specific data, it is likely that the percentage is higher in states where gambling is legal and lower in states where it is illegal.
Assuming that the number of Ohioans traveling to Indiana to place bets is around one in 10 or one in 20, estimating around 95,000 to 200,000 Ohioans betting in Indiana seems reasonable. However, it is important to note that some bettors may also take trips to other states with legal betting options, such as Illinois or Nevada.
Using the same calculation, if 20% of Indiana’s population engages in gambling, that would amount to around 1.4 million individuals. Comparing the two, it is likely that Ohio accounted for approximately 10% of Indiana’s handle, which could be a contributing factor to its lower numbers at the start of 2023.
More components of the bigger picture
According to PlayIndiana, Indiana was projected to have a handle of around $4.1 billion in 2023, a 9.1% decrease from $4.5 billion in 2022. However, the actual handle in the first four months of the year is $50 million below projections, representing a deviation of approximately 2.8%. The launch of sports betting in Ohio can account for about 85% of Indiana’s decline in handle.
The remaining 15% to 20% can be attributed to the market’s maturity in its fourth year. Most bettors in Indiana have already signed up for sportsbooks, and fewer promotional opportunities are available for new users. Additionally, the number of sportsbooks in the state has reached its limit, with MaximBet being the last operator to launch in October 2022 and closing its doors shortly after.
Indiana’s revenue trends reflect the overall state of the U.S. gambling market, as other states are also reaching maturity and new states like Ohio and soon Kentucky are entering the landscape. However, states like Indiana will eventually find their place in the broader national sports betting economy, even though they may have benefited from early growth.
Despite the setback caused by Ohio’s entry into the market, Indiana is still expected to rank 13th in the U.S. sports betting market based on initial projections.
Other towns affected by Kentucky launch
Despite the impact of Ohio’s entry into the market, Indiana is performing better compared to two other neighboring states in terms of sports betting handle.
Michigan, with a population of over 10 million, has seen a 12.1% year-over-year decline in handle, slightly worse than Indiana in terms of percentage. Its total wagers surpass Indiana by only $70.2 million.
West Virginia, with a population of 1.8 million, has experienced the steepest decline in handle due to the loss of bettors from southeastern Ohio. Its handle in March was down 20.4% year-over-year, with no month surpassing $50 million.
On the other hand, Pennsylvania has remained relatively stable. Its handle of $2.1 billion through April is only down $10 million year-over-year, representing a decline of 0.5%. Pennsylvania has consistently been a top-five market among neighboring states like New York and New Jersey.
While Ohio’s entry into the market will likely push Pennsylvania into sixth place in the U.S. this year, it is understandable why Pennsylvania, with its population of 13 million, has weathered the impact of Ohio’s launch when compared to other neighboring states
Hill Kerby is a advocate for safe, lawful betting, and it is grateful in order to contribute to developing the industry. They have a history in online poker, sports, plus psychology, all of these he includes into their writing.
