Pennsylvania Sports Betting Continues to Soar

For the first time ever, October saw monthly sports betting in Pennsylvania surpass $800 million. According to the monthly figures given by the Pennsylvania Gaming Control Board on Friday, the $829 million in combined handling with 12 mobile sportsbooks and 18 retail outlets was 4% more than the previous record of $797.1 million in October 2022. Additionally, it was 14.1% higher than the amount of wagers sportsbooks received in September.

Though it was not an all-time high, sportsbook revenue of $73.6 million in gross winnings and $48.2 million after promotional credit deductions was solid. The percentage of wagers that the bookmakers kept, at 8.9 percent, was less than the record $84.9 million/$63.7 million income month of November 2021. The operators’ $25.5 million in promotional credits to attract bettors last month was significant and contributed to the record volume, but it was still less than the $29.5 million that was historically given away in September to kick off the new football season.

In October, sports betting brought in $17.3 million in tax income for state and local governments in Pennsylvania, where the tax rate is 36 percent, greater than in most other states.

FanDuel and DraftKings are vying for supremacy in Pennsylvania, as is the case in most of the country where betting is permitted. As usual, FanDuel accounted for the majority of online wagers last month, but DraftKings managed to surpass them in net revenue—a rare occurrence in the state. FanDuel had a $325 million online handle, $29.1 million in gross revenue, and $18.1 million in taxable revenue after deducting promotional credits.

With a $255.5 million handle and $27.9 million in total revenue (or $18.7 million adjusted), DraftKings announced earnings. FanDuel’s hold percentage of 9 percent was in line with the state average, but DraftKings’ was 10.9 percent. With a $51.6 million handle and $2 million in revenue, BetMGM maintained a strong third position.

With the introduction of the ESPN BET brand, PENN Entertainment’s Barstool Sportsbook operations came to an end in October. The goal of the joint PENN/ESPN venture is to significantly increase betting activity compared to the $30.6 million in handle that Barstool drew in October. The business generated $1.4 million in gross and adjusted revenue, with minimal promotions as it concluded.

Caesars Sportsbook had a mixed bag of a month in October. Its volume reached $36.6 million with a 17.7 percent increase in handle from September—among the best in the state. BetRivers had one of its best months ever, bringing in $2.7 million/$1.7 million in revenue on $28.4 million in bets.

Apart from Caesars, the website that is currently called PointsBet a Fanatics Experience experienced a negative balance of $49,565 on wagers totaling $11.2 million. Bettors also defeated the Wind Creek/Betfred business, which has a far smaller volume and was only $5,582 in the red.

Merely 3% of Pennsylvania’s total gambling activity is legalized through retail betting at casinos and off-track betting shops. This sum was $55.8 million in October, a $2.4 million increase over the previous month. The total amount of money the operators made from live betting was $5.1 million.

In terms of betting handle, the retail sportsbooks at the major casinos in the state’s largest cities—Rivers Philadelphia at $8.9 million, Live! Philadelphia at $8.7 million, Parx at $8.1 million, and Rivers Pittsburgh at $5.1 million—are the most popular because they attract large crowds to watch sporting events, including Eagles and Steelers games.