Pennsylvania Sports Betting Handle Continues to Grow Consistently

Pennsylvania sports betting has taken a small step back after two months of breaking state records for handle and revenue. This expected contraction is a telltale sign of a healthy betting market in the Keystone State, as it aligns with the behaviors of a market that has just undergone a massive growth phase. When averaged out, the sports betting handle in Pennsylvania continues to grow consistently and steadily, marked by the steady increase in betting volumes over time.

In Jan. 2024, Pennsylvania recorded more than $858 million in legal sports betting. While the figure is a 7% month-over-month decline from Dec. 2023, it aligns with the normal growth trajectory of the state’s betting revenues, as operators move past the high promotional spends associated with the holidays and Super Bowl season.

Accordingly, betting revenues also experienced a decline in comparison to December’s all-time high but still remained significantly higher than revenues recorded in the months leading to December. Pennsylvania betting operators netted $97.6 million in gross gaming revenue. After deducting $27.7 million in promotional spends, adjusted revenue stood at $69.9 million for the month.

The combined hold of the state’s sportsbooks amounted to 11.3% of the accepted wagers. However, the state’s online sportsbooks performed better than retail locations, contrary to what the recent study by Eilers and Krejcik Gaming suggests about online gaming and betting supporting local retail ecosystems.

More: Pennsylvania Sports Betting | Sports Betting Apps | Sportsbook Promos

FanDuel Pennsylvania Crosses $1 Billion in Revenue

FanDuel’s $97.7 million in operator winnings enabled it to cross a total of $1 billion in revenue generated in the state. Pennsylvania is the second state from which the sportsbook has made a billion dollars, after New York.

FanDuel was the first digital operator to surpass $40 million in gross revenue when it rode the excitement of the holiday season to net $40 million for the month in December. Its handle dipped to $370 million in January, a dip of $370.7 million from its best-ever result of $391.8 million in monthly handle in Dec. 2023.

Jan. 2023 also marked a significant milestone in the history of FanDuel Sportsbook. The platform crossed the $10 billion mark in all-time handle. Nearly 15% of this massive figure was acquired between Oct. 2023 and Jan. 2024.

ESPN BET Spends Heavily to Maintain Popularity

Penn Entertainment’s ESPN BET Sportsbook invested heavily in marketing and promotions to maintain its foothold in the former’s home state. While its approach of acquiring more customers is working, its spending may not pay off in the long run. ESPN BET’s huge budgets still place them well behind FanDuel and DraftKings, who continue to be the top two competitors in the Keystone State, much like in several other geographies across the US.

FanDuel topped the rankings for money wagered by recording $373 million in bets and $39.5 million in revenue. DraftKings came in at a distant second place with $212 million worth of recorded wagers, amounting to a total of $19 million in revenue.

Together, the state’s two top sportsbooks leave ESPN BET in the dust. The rookie sportsbook managed to generate $75 million in wagers but ended the month at a net loss of $142,000. BetMGM came in fourth place for revenue in the state by earning $47.5 million in wagers and $3.5 million in revenue.

The fifth spot for Pennsylvania sportsbooks in Jan. 2023 went to the struggling BetRivers, which still managed to turn a profit, unlike ESPN BET, by generating $34.3 million in handle and $1.6 million in revenue. None of the state’s other sportsbooks outside of the top five managed to generate more than $1 million in revenue in Jan. 2024.

PA Sports Betting Market Grows Despite Dip

Compared to the opening month of 2023, Pennsylvania’s betting handle increased by 11.1%, and gross gaming revenue increased by more than 1.5x at 68%.

Promotional bets and credits also increased by a massive 48.2% to $27.2 million, with FanDuel alone accounting for more than half of this figure. Pennsylvania collected taxes on $69.9 million in adjusted gross revenue, allowing the state to collect $23.8 million in gaming tax.

READ MORE:

• Betr Gains Entrance in Three US Sports Betting Markets
• Pennsylvania Sports Betting Monthly Revenue Sets New Record in December
• US Sports Betting Revenue Tracker