October 2024 painted a picture of progress and adversity, as a rising handle contrasted with plummeting revenues and the impending exit of a major operator, Betfred.
A Surge in Betting Activity, But Revenue Declines
Iowa’s sportsbooks handled $294.9 million in October 2024, marking a 15.5% increase compared to the same month in 2023. It was the third consecutive month of growth, a promising rebound after a sluggish start to the year.
Major players like DraftKings IA and FanDuel led the way, collecting handles of $109.8 million and $76.3 million, respectively.
However, the revenue story was less optimistic. Despite the increased betting activity, overall sportsbook revenue dropped significantly, falling from $24.1 million in October 2023 to $18.4 million this year — a 32.8% decline from September alone.
The disparity suggests that operators may be facing tighter margins or more successful bettors, eroding their profitability.
Performance among casino partners varied widely. Diamond Jo Dubuque, with its FanDuel partnership, topped the state’s earnings, generating $5.8 million in revenue. Conversely, Grand Falls Casino Resort recorded over $12,000 in losses, a stark reminder of the volatility within the sports betting market.
Some operators, such as Casino Queen Marquette, bucked the trend, doubling their revenue year-over-year.
Betfred’s Exit: A Major Shake-Up
Adding to the turbulence, Betfred Sportsbook announced it would cease operations in Iowa by the end of 2024. The company has already halted account registration and wagering as of November 5 and will allow withdrawals until December 31.
Grand Falls Casino, a key Betfred partner, pledged to rebrand its sportsbook to ensure continuity for its patrons. Betfred, meanwhile, assured users it would work with regulators to settle outstanding wagers and refund any unclaimed balances via check.
This decision underscores the difficulties of sustaining a foothold in Iowa’s competitive and evolving market. With Betfred exiting, opportunities may arise for other operators to step in and capture the attention of bettors.
What Lies Ahead
Iowa’s sports betting ecosystem remains one of the most active in the U.S., but the road forward is far from straightforward. The rising handle reflects a strong appetite for wagering, but declining revenues highlight operational inefficiencies and the challenges of balancing growth with profitability.
The state’s casinos also face broader financial pressures, with gaming revenues down from $136.3 million in October 2023 to $133.1 million this year. While admissions rose, per capita spending decreased, further straining operators’ bottom lines.
As Betfred exits, the Iowa market will undoubtedly shift. The rebranding at Grand Falls Casino and the potential for other operators to expand their footprint could reshape the industry’s competitive dynamics. With other states like Missouri actively pursuing legalization, Iowa must work to maintain its appeal to both bettors and operators.
“Gambling is big business,” noted Jan Zimmerman, chairman of the Missouri Gaming Commission, a statement that echoes Iowa’s current challenges. As competition intensifies, Iowa’s ability to adapt and innovate will determine its standing in the national sports betting landscape.
From growing pains to new opportunities, Iowa’s sports betting market is entering a period of transformation. Its resilience will be tested, but the rewards for navigating this changing landscape could be substantial.
