New Hampshire Sports Betting Revenue Update
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Sports Betting Revenue in New Hampshire
New Hampshire’s deal with DraftKings seems to be working. The current deal that DraftKings and New Hampshire agreed upon is that the State takes 50% of the profit. A massive chunk in exchange for DraftKings being the only sportsbook in the entirety of New Hampshire.
New Hampshire lottery officials, the group running and regulating sports betting in the state, announced that since launch in December of 2019, the state had made $4.6 million in revenue. When taking into consideration the size of New Hampshire, this is rather impressive and speaks to the success of the deal with DraftKings.
Let us compare to Colorado, a state with three times the number of people and a relatively even GDP per capita to New Hampshire. In roughly five months, the state only collected $814,661.34, not even a fourth of what New Hampshire has made in under ten months of sports betting.
The reason for this is that Colorado sportsbooks are competing heavily with one another by offering promotions and the best-priced odds that they can, leading to a much smaller revenue for the sportsbooks, and therefore, a much smaller tax income for the state. On top of this, Colorado only gets to keep 10% of the total gross revenue from the sportsbooks.
New Hampshire instead allows DraftKings to act as a heavily regulated monopoly, where the state can basically control the odds with regulations. This allows DraftKings and the state to make much more in terms of revenue and leads to significantly more money going to the state and education.
Lottery officials confirmed that bettors are placing over $4 million in bets every weekend. This is not a massive number, even considering the state’s size. The thing is, though, it is turning into revenue at a much higher percentage than in any other state. New Hampshire seems to have found a system that works for its population and achieves its goals of bringing in millions to its people.
New Hampshire Sports Betting Update
New Hampshire opened up two physical locations for players to bet in! With the pandemic hopefully slowing down, having two brick and mortar sportsbooks could drive up revenue a little bit more as patrons find a place to sit down and enjoy the games.
The first location is located in Seabrook and is called “The Brook”. This location provides food & drink as well as a top-notch casino and sportsbook. It seems to be extremely well designed and hopefully will cultivate a big following as DraftKings and New Hampshire look to find new ways to increase the revenue heading into 2021.
The second location is at the bar, Southside Tavern, in Manchester. Having a sportsbook inside a bar is always a smart decision for revenue. It is where people hang out and watch sports, a perfect opportunity to place some money on a game.
However, even with both of these physical locations opening, it is clear that mobile and online betting will be the major revenue route for the state and DraftKings. As sports go back to normal in 2021, hopefully, and residents start to see income increase from the economy getting back to full tilt, New Hampshire should see a spike in revenue made. I expect that New Hampshire will crush the $4.6 million these next ten or so months as normality starts to come, and huge events like the Super Bowl are played with a broader base of the population knowing and enjoying sports betting.
