Pennsylvania Sports Betting Revenue More Than Doubles in September, Total Handle Swells 78 Percent

Posted on: October 19, 2019, 02:00h. 

Last updated on: October 18, 2019, 11:17h.

Todd Shriber @etfgodfather Read More
Expertise: Financial, Gaming Business, Mergers and Acquisitions.

Sports betting revenue in Pennsylvania more than doubled to $14.92 million in September from $6.11 million in August, indicating the start of football season provided a better-than-expected benefit to sportsbook operators there.

FanDuel’s Pennsylvania sportsbook led the state’s September sports betting haul. (Image: Yahoo Finance)

Last month’s total handle in the Keystone State was $194.50 million, well above the August mark of $109.03 million, according to data released Thursday by the Pennsylvania Gaming Control Board (PGCB). The September handle topped prior forecasts calling for $125 million upon the start of the NFL season.

Overall gaming revenue in the Commonwealth during September of this year from all sectors was 5.43 percent above revenue generated in September 2018,” said the PGCB in a statement. “Total tax revenue generated collectively through all forms of gaming and fantasy contests was $116,564,227 during September of 2019.”

Sports betting generated $5.35 million in tax revenue for the state last month. The September data includes partial results from Mount Airy Casino Resort and Mohegan Sun Pocono because sports wagering at those venues commenced after Sept. 1.

FanDuel Dominance

Of the nearly $195 million in total sports handle in the Commonwealth last month, $88.54 million came from FanDuel’s sportsbook at the Valley Forge Casino Resort. To put FanDuel’s September sports wagering dominance in Pennsylvania into context, the combined handle last month for that sportsbook’s nearest competitors – Philadelphia’s SugarHouse and Pittsburgh’s Rivers Casino – was about $68.5 million.

Underscoring the growth of online sports wagering in the Keystone State, revenue from that activity jumped to $9.2 million last month, with FanDuel accounting for over half that total at $4.73 million. In September, there were five online sportsbooks operating in the state.

Data indicates Pennsylvanians are taking to mobile sports betting in a fashion similar to their neighbors in New Jersey. Last month, 81 percent of sports wagers placed in the Commonwealth were made online or via a mobile device.

The online and mobile sports betting tally was well ahead of the $5.32 million in turnover generated by internet slots and table games. Three Pennsylvania casinos – Hollywood, Parx and SugarHouse – offer those games online and via mobile devices.

Each retail sportsbook operating in the state in August saw handles increase in September. Pennsylvania’s total September handle was more than triple the July figure of $59 million, while revenue was almost quadruple the $5.07 million notched in the seventh month of the year.

Daily Fantasy, Too

The arrival of professional football also brought an uptick in revenue for daily fantasy sports (DFS) operators in the Commonwealth.

“September’s Fantasy Contest Revenue Report shows revenue of $2,929,047 in September 2019, an increase of 37.27% over September of last year when revenue was $2,133,714,” said the PGCB.

At $1.58 million and $1.36 million, respectively, DraftKings and FanDuel accounted for nearly all of Pennsylvania’s September DFS turnover.

DFS generated more than $439,000 in taxes for the state in the ninth month of the year.

Pennsylvania is home to 10 land-based casinos and racinos and two smaller gaming venues, which send more than $1.3 billion annually to state coffers. Those properties employ over 16,000 people.