California, Ohio Miss Out On Revenue From Potential $400M In Super Bowl LVI Bets

NEW YORK, Feb. 7, 2022 /PRNewswire/ -- Bettors in California and Ohio potentially could have wagered as much as $400 million on Super Bowl LVI Sunday were sports betting live in either state, according to an in-depth report issued today by SportsHandle.com, a leading news source of information on sports betting legalization in the U.S.

If bettors had the opportunity to wager on this year's Super Bowl, featuring the Los Angeles Rams and Cincinnati Bengals on Feb. 13 at SoFi Stadium in Los Angeles, Sports Handle projects that handle in California could have reached $300 million with gross gaming revenue reaching $21 million, and the state potentially taking in $2.1 million in tax revenue on a single event.

In Ohio, where fans will watch the Bengals make their first Super Bowl appearance since 1989, handle could have reached up to $100 million, with gross gaming revenue of up to $7 million, and tax revenue of up to $700,000. 

Both sets of gross gaming revenue projections come from using the industry-standard 7% win rate or "hold" that operators claim in wins against bettors from handle wagered.

The Sports Handle research and subsequent article were compiled by managing editor and sports betting legislation expert Jill R. Dorson and by legislative analyst and wagering revenue researcher Chris Altruda. The research and analysis assume that operators in both states were offering live, legal digital wagering with remote registration for at least one full NFL season ahead of the Super Bowl, that a minimum of 10 digital platforms would be live, that the game would be competitive into the fourth quarter, and that all wagering platforms and the live broadcast would not have any major technical glitches. 

The tax revenue projections are based on a 10% tax rate, which will go into effect in Ohio when wagering goes live, and is also the proposed tax rate put forth by a group of seven sports betting operators working to qualify an initiative for the November 2022 ballot in California. 

The SportsHandle.com article entitled "What If California and Ohio Had Legal, Live Sports Wagering For Super Bowl LVI?" can be accessed here: https://sportshandle.com/california-ohio-super-bowl-projected-handle

In December, Ohio Governor Mike DeWine legalized sports betting when he signed HB 29 into law. State regulators are currently crafting rules, and the law calls for betting to go live no later than Jan. 1, 2023. 

In California, a tribal retail-only sports betting initiative has already qualified for the November 2022 ballot. There could potentially be three others, but the most likely is a proposal from a group of seven operators, including BetMGM, DraftKings, and FanDuel, that would allow for statewide mobile wagering with a 10% tax rate. The projections are based on voters approving the operators' proposal.

Currently, legal online wagering is live in 20 U.S. jurisdictions, with up to three more -- Maryland, Ohio, and Puerto Rico -- to come online before 2023. In seven other states, retail-only wagering is available. 

Founded in May 2017, Sports Handle is an elite sports betting industry news site that covers legislative and regulatory developments through original reporting, features, and analysis.  Sports Handle is owned and operated by Better Collective, a leading sports betting media group that includes The Action Network, US Bets, and RotoGrinders.

About SportsHandle.com:

Sports Handle is home for information on the legal U.S. sports wagering industry -- legislation, business, and policy. The team is comprised of veteran journalists who deliver original and investigative reporting, opinion, and analysis of sports betting legislation and regulation at the state and federal levels, plus coverage of the sports betting business landscape. For the latest news, follow along on Twitter at @sports_handle.

Media Contact:
Max DeFilippis - FINN Partners
[email protected]
(201) 390-5718

SOURCE Sports Handle