Oregon’s sports betting industry was booming in February. Draftkings posted a margin of 8.5% in February, beating out January’s 5.6% margin.
The jump in gross gambling comes in the wake of Scoreboard scaling back operations in the state as DraftKings assumes the role of the Oregon Lottery’s official sportsbook provider. As a result, the surge in DraftKings’ revenue is a sort of coronation, hearkening back to the company’s original announcement about its Oregon Lottery partnership.
“DraftKings is thrilled to embark on this journey with the Oregon Lottery,” DraftKings executive Paul Liberman said in a January statement. “The Oregon Lottery shares our innovative spirit as one of the most progressive organizations in the real-money gaming sector, and together we look forward to delivering the exceptional online sportsbook products that Oregonians have been anticipating.”
Biggest gains came in football, basketball
DraftKings saw its most significant jump in revenue in football, where the sportsbook operator’s margin rose from 12.9% in January to 18.4% in February.
Moreover, the book’s handle was down by around 40%. However, it managed to pull in nearly as much gross gaming revenue in February as it did in January: $893,403 and $936,258, respectively.
DraftKings may have benefitted from a close Super Bowl, in which the favored Rams did not cover the spread, which hovered around 4.5 points in the days leading up to their 23-20 victory.
As for basketball, DraftKings tallied an 18.4% margin with $1.07 million in gross gaming revenue. That’s a stark contrast to DraftKings’ January numbers, in which its margin was -0.5% and its gross gaming revenue was -$46,672.
Furthermore, DraftKings’ moneymaker in February was its parlay bets, which raked in an 11.3% margin.
Scoreboard handle dwindles as transition is nearly complete
The Oregon Lottery’s revenue numbers indicate that the transition from Scoreboard to DraftKings is almost complete. Scoreboard’s February handle was $273,328. It was $20.7 millionin January —a nearly 90% drop–off.
The past two months give a glimpse into DraftKings’ initial strengths and weaknesses compared to Scoreboard.
For example, DraftKings parlay margin was 11.3% in February. Scoreboard’s parlay margin was 7.2% in January. At this point, it seems DraftKings plays its parlay game better than Scoreboard did, month-on-month.
Scoreboard seems to have had a better read on soccer. The operator posted a 13.7% margin in January. DraftKings, on the other hand, pulled a 10.9% margin in February.
Even better days ahead for DraftKings?
The handover from Scoreboard to DraftKings was an interesting one. It’s not a scenario that often happens. Most states with legal sports betting have multiple operators.
But in Oregon, there’s one king of the hill. And right now, DraftKings is resting on some pretty significant laurels. Additionally, amid the enthusiasm of the NFL playoffs, Scoreboard pulled in around $33 million in handle. In contrast, DraftKings captured $39 million in February.
The boost in handle is expected, as DraftKings’ brand far outshined Scoreboard’s.
March’s revenue report will be a critical report, and March Madness is the biggest handle generator on the sports calendar.