The buzz surrounding sports betting continues to reverberate across the United States, even as the industry matures from its groundbreaking inception in 2019. States quick to embrace the legalization of sports betting following the Supreme Court’s repeal of the Professional and Amateur Sports Protection Act in 2018 are witnessing sustained growth in revenue.
Iowa, an early adopter with its legalization in April 2019, serves as a prime example, experiencing a record surge earlier this year.
In March 2024, Iowa sportsbooks reported a staggering total handle surpassing $272 million, marking a remarkable 23 percent increase from the previous month and a notable 17 percent uptick year-over-year. These figures underscore the industry’s organic expansion five years into its establishment, with additional factors contributing to Iowa’s remarkable March surge.
Caitlin Clark and the Hawkeyes may have influenced sports betting numbers in Iowa
A pivotal catalyst for this surge may well be attributed to the exceptional performance of the Iowa Hawkeyes women’s college basketball team, particularly the stellar play of Caitlin Clark, recently drafted as the number one overall pick by the WNBA’s Indiana Fever. Clark’s meteoric rise to prominence captivated audiences nationwide as she dominated Division-I competition, transcending the sport and captivating television audiences across the country.
The Hawkeyes’ journey to the finals, fueled by Clark’s electrifying presence, proved to be a watershed moment for women’s basketball, eclipsing the viewership of the men’s final between Purdue and the University of Connecticut. In an unexpected turn, the women’s final garnered more viewership than any other March Madness game that year, a testament to Clark’s unparalleled impact on the sport.
March revenue drops over eight percent year over year despite rise in handle
Undoubtedly, Clark’s remarkable performance with the Hawkeyes had a profound influence on sports betting in Iowa, culminating in a record-breaking month during the March Madness tournament. While the surge in handle reflected heightened betting activity, the state’s bettors seemingly fared better than anticipated.
Despite the significant year-over-year increase in handle, sportsbooks reported a nearly nine percent decline in revenue for March 2024 compared to the same period in 2023, with revenue plummeting to $18.2 million. This unexpected outcome highlights the dynamic nature of sports betting markets and the multifaceted factors at play, including the impact of key sporting events and individual player performances on wagering behavior.