The Iowa Gaming and Racing Commission reported a record-setting monthly handle of $315.2 million, a 6% increase from October and an 8.8% rise compared to November 2023. Online sports betting accounted for $294 million of the wagers, illustrating the sector’s overwhelming preference for mobile platforms.
Sports Betting Hits Record Highs
The revenue figures were even more eye-catching. Operators took home $30 million in November, more than double the $14 million reported a year prior, thanks to a robust 9.5% hold. For the state, this translated into over $2 million in tax revenue.
This growth marks a milestone for Iowa, as its all-time sports betting handle surpassed $10 billion, generating over $50 million in state tax revenue since legalization.
Leading the charge was DraftKings, with a record $115.8 million handle and $12.1 million in revenue. FanDuel followed, setting its own record with an $81 million handle. Caesars and BetMGM rounded out the top four, with handles of $30.3 million and $23.2 million, respectively.
While IA online sportsbooks thrived, retail sportsbooks, though representing only 6.7% of November’s wagers, contributed 9.3% of the statewide revenue, reflecting a higher-than-average hold of 13%.
Tina Eick, administrator of the Iowa Racing and Gaming Commission, noted the broader trend in the state’s sports betting market:
“We are seeing maybe more of a rightsizing or reversion to the market that we were seeing before,”
signaling sustained growth tempered by evolving consumer habits.
Casino Revenue Slows Amidst Competition
While Iowa’s sports betting market soared, the IA casino gaming industry showed signs of stagnation. Statewide casino revenue fell for the second consecutive year, dipping to $1.72 billion in fiscal 2024 from $1.76 billion in 2023. Attendance also dropped, falling from 17.5 million in fiscal 2022 to 16.9 million in 2024.
Despite the regression, revenue remains above pre-pandemic levels, when annual totals hovered around $1.46 billion in 2018 and 2019.
Still, competition from Nebraska’s newly established gaming industry has made an impact, particularly on border casinos like the Horseshoe Casino in Council Bluffs. Its adjusted gross revenue declined from $212 million in 2022 to $187 million in 2024, underscoring the competitive pressures.
Industry leaders attribute the slowdown to several factors, including inflation-driven economic concerns and the allure of new gaming facilities in neighboring states.
“We’re facing some competition in other states,”
said Wes Ehrecke, President of the Iowa Gaming Association.
“Anytime a new casino opens, everybody wants to go and check out the new facility.”
Despite these challenges, the long-term outlook for Iowa’s gaming industry remains stable. Experts believe the current downturn represents a correction following record highs in fiscal 2022, fueled by post-pandemic demand.
Iowa’s sports betting boom and casino dip reflect contrasting trajectories in consumer behavior. While traditional gaming faces hurdles, the sports betting market is thriving, supported by mobile innovation and robust operator competition.
These trends underscore the evolving preferences of Iowa gamblers and present opportunities for sustained growth in the state’s gaming economy.
