Pennsylvania Sportsbooks Clear $1bn in Lifetime Gross Revenue
Pennsylvania sports betting witnessed another milestone in March as they topped $1 billion in gross revenue since launch.
According to the latest report released Monday, Pennsylvania sportsbooks reported $715 million handle, up 19.7% from February’s $597.1 million and a 27.6% increase from 2021’s $560.3 million.
March Maness helped swell the numbers last month.
February was the worst-ever month for retail and mobile sportsbooks in Pennsylvania, which launched its sports betting industry in 2018. The Keystone State’s sportsbooks had experienced a combined loss of $442,847. However, net revenue in March skyrocketed to $30.4 million.
PA mobile sports betting handle was $667 million, a 19.5% surge from February’s $558.1 million. It also increased 29.7% from last March’s $514.3 million.
Pennsylvania Sportsbooks Bounced Back in March
The Keystone State’s operators recovered from the worst month (February) in terms of revenue, which turned red for the first time since launch. Gross revenue in March was $30.4 million, compared to -$442,847 in February. It was also a 3.6% increase from $29.4 million reported in March 2021.
Insane promotions in a highly competitive market led to negative gross revenue in February as sportsbooks were looking for new customers for Super Bowl bets. Pennsylvania operators deducted $18.1 million in promos for February, compared to $22.6 million in February.
The deep run to the Final Four by Villanova and the unexpected run to the Elite Eight by St. Peter’s helped swell March numbers.
Five Operators Make Up Most of PA Handle
Since the first mobile operator launched in May 2019, Pennsylvania has grown to be one of the largest US online sports betting markets. The Keystone State’s mobile share is one of the highest, and March’s 93.3% just repeated what has become a new normal for PA sports betting.
More than 90% of total bets in Pennsylvania flow through six sportsbooks from five operators – FanDuel, DraftKings, BetMGM, Barstool, and BetRivers.
Of the $667 million mobile handle, the New York-based FanDuel generated $21.8 million from $267 million wagered through its mobile app. The Boston-based DraftKings was the second-highest with $164.7 million in March handle and generated $6.67 million in sportsbook revenue.
BetMGM saw the third-highest handle with $78.4 million and churned out $5.1 million in revenue. Barstool Sportsbook reported $55.2 million in handle to generate $2.7 million in revenue, while BetRivers rounded out the fifth spot with a $27 million handle and $1.8 million in sportsbook revenue.
PA Sportsbooks Post $1bn-plus in Lifetime Revenue
Gross sportsbook revenue topped $1 billion – or $1.014 to be exactly – with the March report. Since promotional deductions are allowed for mobile PA operators to attract new customers, it reduced taxable sports betting revenue to $678.6 million.
Since SugerHouse became the first mobile sportsbook operator to go live in May 2019, PA sports betting has witnessed an ever-increasing upward trend.
The state has generated $241.9 million in overall taxes from the industry.
Pennsylvania imposes a 36% tax on its sports betting industry – the highest rate among the nation’s competitive market.
Only the newly launched New York sports betting has a higher (51%) rate on its sports betting industry.
The national average is somewhere between 10% and 15%.
However, despite the state’s exorbitant tax rate, 14 mobile operators have launched in Pennsylvania since 2019.