Pennsylvania Sports Betting Revenues Sees Dip For January

Pennsylvania

The sports betting handle in Pennsylvania has been showing consistent growth over time, however there was a 7% month-over-month decline in January 2024 compared to December 2023, this is expected as the market moves beyond the high promotional spends associated with the holidays and Super Bowl season. The decline aligns with the normal growth trajectory of the state’s betting revenues.

Despite the decline, Pennsylvania’s betting revenues in January remained significantly higher than the months leading up to December. Betting operators in the state netted $97.6 million in gross gaming revenue, with adjusted revenue standing at $69.9 million after promotional spends were deducted. The combined hold of the state’s sportsbooks amounted to 11.3% of the accepted wagers.

It is worth noting that the state’s online sportsbooks outperformed retail locations, contrary to a recent study by Eilers and Krejcik Gaming that suggests online gaming and betting may not support local retail ecosystems. This indicates the strong demand and preference for online sports betting options among Pennsylvania bettors.

FanDuel, one of the key players in the Pennsylvania sports betting market, achieved a significant milestone by crossing $1 billion in revenue generated in the state. This achievement solidifies FanDuel’s position as a leading sportsbook in Pennsylvania, making it the second state, after New York, where the company has reached this impressive revenue mark.

In December 2023, FanDuel recorded $40 million in gross revenue, capitalizing on the excitement of the holiday season. However, the handle dipped to $370 million in January 2024, a slight decline but still a substantial figure. FanDuel’s overall all-time handle surpassed $10 billion, with nearly 15% of this amount acquired between October 2023 and January 2024.

Penn Entertainment’s ESPN BET Sportsbook has been investing heavily in marketing and promotions to maintain its popularity in Pennsylvania, its home state. While this approach has helped ESPN BET acquire more customers, it still lags behind competitors like FanDuel and DraftKings in terms of revenue and market share.

FanDuel, with $373 million in bets and $39.5 million in revenue, topped the rankings for money wagered in Pennsylvania. DraftKings followed in second place with $212 million in bets and $19 million in revenue. Together, these two sportsbooks overshadow ESPN BET, which generated $75 million in wagers but ended the month at a net loss of $142,000.

BetMGM, another prominent player in the Pennsylvania sports betting market, earned $47.5 million in wagers and $3.5 million in revenue. While not at the same level as FanDuel and DraftKings, BetMGM’s presence is notable.

The struggling BetRivers managed to turn a profit, unlike ESPN BET. BetRivers generated $34.3 million in handle and $1.6 million in revenue, securing the fifth spot among Pennsylvania sportsbooks in January 2024. Other sportsbooks outside the top five failed to generate more than $1 million in revenue.

Despite the slight dip in recent months, Pennsylvania’s sports betting market has shown overall growth. Compared to January 2023, the betting handle increased by 11.1%, and gross gaming revenue saw a significant increase of over 68%. This growth indicates the ongoing popularity and demand for sports betting in the state.

Promotional bets and credits also saw a substantial increase of 48.2% to $27.2 million, with FanDuel accounting for more than half of this figure. The state collected taxes on $69.9 million in adjusted gross revenue, resulting in $23.8 million in gaming tax revenue.