FanDuel Extends Dominance in Pennsylvania With $331 Million March Handle

FanDuel Flutter Entertainment 25,50 0,00% continued its dominance over its closest competitor, DraftKings, and the other operators in Pennsylvania, with another strong performance in the state in March. After registering a sports betting handle of $331 million in March, FanDuel carried its total handle for the fiscal year 2023-24 to well over $2.5 billion in the state.

FanDuel Spent More On Promos Than Any Other Operator

FanDuel generated $32 million in gross revenue, which resulted in a win rate of 9.7%. FanDuel spent the most on promotional credits than any other Pennsylvania sports betting operator in March, giving its customers $7.8 million in bonus offers. These promo credits can be reduced from the gross revenue to arrive at the taxable adjusted revenue, which was $24.1 million for FanDuel in March. In total, FanDuel has spent $77.7 million in promos this fiscal year.

In just nine months, FanDuel has generated gross revenue of $262 million. Of that, taxable gaming revenue is $184.3 million. FanDuel has also generated the most tax receipts for Pennsylvania. After paying $8.2 million in state tax (34%) in March, FanDuel’s tally of tax payments surpassed $62 million, excluding the 2% in local share assessment that Pennsylvania additionally charges.

DraftKings Well Behind in Pennsylvania

DraftKings DraftKings 36,61 -10,29% has dominated several other states but has not been able to make up ground on FanDuel in Pennsylvania. DraftKings still managed to cross $207 million in sports betting handle in March, generating $14.7 million in revenue. Regarding taxable gaming revenue, DraftKings still collected over $10 million after spending $4.1 million in promotional credits. In March, DraftKings paid $3.6 million in state tax.

In comparison, DraftKings doesn’t come close to FanDuel with $1.76 billion in betting handle in nine months this fiscal year. DraftKings’ $158.3 million in sports betting revenue is more than $100 million less than the state leader. However, DraftKings is also a comfortable second, having crossed $100 million in taxable revenue. Overall, the company has paid the state $36.3 million in tax.

BetMGM vs. ESPN BET Heats Up

Both BetMGM MGM Resorts International 38,98 -1,86% and ESPN BET Penn Entertainment 15,10 -5,80% had decent months in March in their respective bids for the third spot in Pennsylvania’s race for market share. ESPN BET generated $53.3 million in betting handle to take third on that metric, generating $3.1 million in revenue. After spending $1.7 million on promotional credits (more than double their revenue for the period), ESPN BET finished with $1.4 million in taxable revenue.

While BetMGM picked up a lesser handle ($51 million in March), the company outlasted ESPN BET on all other metrics. BetMGM collected $3.5 million in revenue, and taxable revenue was $1.5 million. Total tax payments to the state were a little over $500,000.

Over this fiscal year, ESPN BET has been the clear winner in the sports betting handle. The Penn Entertainment-owned company has generated $436.3 million in handle against BetMGM’s $391.8 million. However, ESPN BET is still in the red after spending $28.6 million on promotional credits, almost $2 million more than its gross revenue in this period.

ESPN BET’s taxable revenue is presently in the red at $2.4 million. BetMGM, in that regard, has had a far cleaner fiscal year, with taxable gaming revenue of $16 million.

Pennsylvania Records $800 Million in Handle

Another strong winner among legal sports betting states in March was the Keystone State. Operators collected $800.7 million in handle, a sharp rise from February’s tally of $661.7 million. Overall, gross revenue across both retail and online sports wagering totaled $63.7 million, another stark increase from February’s $50.4 million.

The state collected more than $5 million extra in tax from a slow February. After generating tax receipts of $10.2 million in February, Pennsylvania picked up $15.5 million in March. Almost $1 million was paid in local share assessment as part of the state’s tax framework.

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About the Author
Nikhil Kalro

Nikhil Kalro

Nikhil Kalro covers the sports betting industry and revenue reporting at Gaming Today. Much of his work analyzes state revenue information, including betting activity and revenue for individual states and sportsbook operators. In addition, Nikhil provides news updates on the gambling industry itself, including product launches and legal issues. Nikhil’s previous experience includes five years with ESPN.

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