September was a successful month for the sports betting industry in general as the start of the NFL and college football seasons increased the amount of interest in placing wagers. Oregon reported an overall sports betting handle of $25.1 million for September, up 41.8% from August’s $17.7 million. However, that handle dropped 4.2% from the same month in 2020 when Oregon saw a handle of $26.2 million. A new partnership between DraftKings and the Oregon Lottery is expected to propel these numbers in the coming months.
Oregon’s September Sports Betting Details
In September, Oregon’s $25.1 million handle generated revenue of $1.3 million. That revenue represented an 18.5% increase from August’s $1.1 million in revenue. However, as the handle decreased from September 2020, revenue decreased as well – September 2021 saw 17.5% less income from $1.5 million in September 2020. Revenue decreased as Oregon’s September 2021 hold rate was just 5.0%, down from 5.8% in September 2020 and 6.0% in August 2021. The decline from September 2020 is particularly curious, and it will be interesting to see if that is a trend we find in other states.
In September, football was predictably the most popular sport for betting, with $9.7 million in total wagers, representing 38.6% of the total market. The large handle from football betting was partially driven by a hot 4-0 start to the season for the Oregon Ducks before they lost to Stanford on Saturday. Baseball followed close behind football with $6.8 million in total bets, while soccer ($3.3 million), tennis ($1.5 million), and basketball ($1.2 million) rounded out the top five. Parlay bets accounted for $6.4 million or 25.5% of the September handle.
Oregon’s Unique Sole Provider
Most states with legalized sports betting have opened the market to a handful of competing brands to generate better odds and more promotions for players. However, Oregon is one of the few states with a single sports betting provider as the Oregon Lottery is the only entity approved for a sports betting license. The Oregon Lottery currently partners with SBTech, a Bulgaria-based sports technology company, to provide sports betting via Scoreboard. However, a new partnership with DraftKings is in the works to change the landscape of Oregon sports betting.
DraftKings Making its Oregon Push
The Oregon Lottery Commission unanimously approved DraftKings as the new sole betting provider during a meeting on August 27. Barry Pack, the director of the Oregon Lottery Commission, was given the authority to negotiate a long-term agreement with DraftKings, one of the most successful sports betting brands in the country. DraftKings is dropping its DFS offerings in Oregon to show good faith as DFS is questionably legal in the state. DraftKings may see significant revenue from DFS games in Oregon, but it’s very willing to forfeit that revenue as it should be far more profitable as the sole sports betting provider in the state.
DraftKings owns SBTech, but the switchover for the Oregon Lottery will require all users to create a new sports betting account on DraftKings Sportsbook. DraftKings will provide bettors in Oregon with one of the best sports betting experiences in the market, featuring a seamlessly integrated mobile application with unique promotions, competitive odds, and a wide range of sports and betting markets. The switchover to DraftKings is expected to happen at some point during the 2021 NFL season.