Correlation Between Sports Betting Handle and Revenue in Kansas
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00:00 But there's not a correlation and people need to understand, I guess, there's not a correlation
00:09 between the amount of handle and the amount of revenue.
00:12 And I think Kansas exemplifies that point right there.
00:16 Yeah, you know, as we see, these legal markets start to become a bit more mature, obviously,
00:26 when markets come online and they launch, they open up, the sports folks are more inclined
00:32 to throw a lot of free bets, bet credits at customers to try and get them on their platforms.
00:42 But like I just mentioned, when we see the summer months roll around and there's a limited
00:49 number of events to bet on, obviously, that sports betting handle is going to decline.
00:55 And then we see a lot of times that the sports books kind of turn their attention more so
01:01 to generating revenue, generating profit, as opposed to the customer acquisition phase
01:07 when they're first coming online.
01:09 So in Kansas, their handle was just shot at $80 million in July, which is the lowest monthly
01:17 handle that the state has recorded.
01:20 Now, they only launched legal online sports betting in Kansas back in September.
01:26 So obviously, right before the football season, carry that through the football season.
01:31 So this is the first summer where they're live and online.
01:37 So again, not uncommon to see this drop in handle.
01:42 That said, they did produce higher revenue, $9.6 million collectively for the month of
01:50 July.
01:51 So yes, to your point, a lower handle doesn't necessarily correlate to a lower revenue total.
01:59 As like I said, the sports books are switching up their, maybe they're a little bit of their
02:06 philosophy trying to generate some revenue, generate some profit rather than customer
02:12 acquisition in the summer.
02:14 And maybe we'll see those trends start to change.
02:17 And I suspect they'll start to change once football season rolls around and these apps
02:23 are wanting to get more customers on their platform because the NFL betting season is
02:28 obviously the most popular thing to wager on across the country.
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