Iowa Sports Betting Operators Experience Boost in July Thanks to Mattress Mack's Bets
Taking a Swing at the Small Fry: Jim "Mattress Mack" McIngvale's Gambling Spree Boosts Iowa's Sports Betting Revenue
Jim "Mattress Mack" McIngvale, the infamous furniture mogul, shook things up in Iowa's sports betting scene last July. His one-of-a-kind bets worth $2 million each on the Houston Astros winning the World Series, placed through Unibet and Betfred, sent shockwaves throughout the Hawkeye State.
The IRGC's (Iowa Racing and Gaming Commission) recent reports reveal that McIngvale's moves significantly increased sports wagering revenue in Iowa. The combined revenue generated by operators came close to $11.2 million from about $108.6 million wagered.
McIngvale's bets were a game-changer. The state's overall win rate of 10.3% is the fifth-highest in 36 months of wagering, and a massive upgrade from the 8.9% win rate without his iconic wagers.
In fact, McIngvale's bets played a crucial role in elevating revenue by 70.1% compared to June, offsetting the 11.3% decrease in handle. The moves contributed nearly $2.8 million in bets, generating over $2.1 million in revenue and boosting the win rate by almost 5 percentage points.
Thanks to these bets, the state bagged over $750,000 in taxes in June alone, skyrocketing the annual amount to over $5.4 million. This figure surpasses last year's pace by more than $1.2 million, with handle increasing 47.4% compared to 2021 and revenue jumping 29.3% higher.
With three full years of wagering under their belts, Hawkeye State operators have now accepted over $4.1 billion in bets, including a whopping $1.3 billion in 2022.
Unibet and Betfred's Windfall
McIngvale's bets were eye-catching, to say the least, and both Unibet and Betfred have major payouts at stake if the Astros make history. These stakes are unlike any encountered by the two books in their Iowa operations.
Prior to July, Unibet had generated only $35,008 in revenue and $160,013 in its inaugural 10 months in Iowa. McIngvale's juggernaut bet represented 88% of Unibet's July handle and now accounts for more than 20% of its total handle in the state so far.
Betfred, a newcomer to the state since July 2020, already garnered $26,625 in revenue by July, and previously fell short of its 2021 revenue by less than $35,040. McIngvale's multi-million dollar bet accounted for 61% of Betfred's July handle and 22.5% of its 2022 handle to date.
The colossal wagers seen in July catapulted both Unibet and Betfred into unfamiliar territory as significant revenue earners in the online betting apps market. The usual suspects like FanDuel, DraftKings, and Caesars Sportsbook ruled this domain, with FanDuel leading mobile revenue with over $2.5 million. DraftKings came in just behind at $2.4 million, but took the top spot for handle with nearly $26.6 million, slightly edging out FanDuel by $410,352.
Caesars pocketed over $1.4 million from a $21.8 million handle, becoming the only other operator with an eight-figure handle. The combined mobile handle swiftly reached just shy of $98.4 million. The overall win rate of 10.3% — it would have been 8.4% without McIngvale's bets — marks the highest since reaching 11.2% in October 2020.
The Rough and Smooth of Retail Betting
When it comes to brick-and-mortar sportsbooks, the overall hold was a robust 10.5%. However, results varied greatly across the state's 19 casinos. The Ameristar and Horseshoe in Council Bluffs posted double-digit win rates, with the former's sportsbook generating close to $350,000 in revenue from a 15.3% win rate and Horseshoe boasting an even higher 17.65% win rate.
Diamond Jo in Worth, one of the larger retail betting hubs, had a less impressive 6.3% hold, resulting in nearly $233,000 in revenue from a state-high $3.7 million handle. Overall, 11 retail sportsbooks managed win rates of at least 10%, but three also finished in the red for the month. The most significant loss came from Wild Rose in Clinton, where bettors walked away $24,081 ahead on $104,304 wagered, resulting in a devasting -23.1% win rate.
Since the demise of in-person registration in late 2020, mobile betting has been the primary driver of handle. Close to 90% of handle over the past 19 months originated online, with the current standing at 90.5% for 2022.
Operators surpassed the $250 million mark in total revenue with July's report, and 2022's takings already reached over $80 million. Even with the strong win rates in July, the overall win rate of 6.2% after three years of wagering is still significantly below the industry standard of 7%. The operators hit that benchmark only 16 times in 36 attempts.
- The massive wagers placed by Jim "Mattress Mack" McIngvale through Unibet and Betfred, totaling $2 million each, are significant as they account for a large portion of the operators' overall handle in sports betting, with Unibet's July handle representing 88% of its total handle in Iowa so far, and McIngvale's bet accounting for more than 20%.
- McIngvale's bets have also brought about substantial payouts for the two operators, Unibet and Betfred. If the Houston Astros win the World Series, both books stand to gain major revenue, a situation that is unparalleled in their Iowa operations.
- The technological integration in sports-betting finance, particularly in the mobile betting apps market, has allowed for increased revenue and handle. Operators like FanDuel, DraftKings, and Caesars Sportsbook have dominated this sector, but the colossal wagers in July have catapulted Unibet and Betfred into significant revenue earners in this market.
