The first monthly revenue report for Pennsylvania daily fantasy sports contests are in – and there is something of a surprise at the top.
In total, eight DFS companies reported revenue in the Keystone State for May, taking advantage of an October 2017 gaming expansion bill that laid the groundwork for legalized DFS, online gambling, and sports betting. According to figures released by the PA Gaming Control Board, leading the way was the second-largest DFS operators in the nation: FanDuel.
Second in nation, first in PA
Earlier this month, it was reported that DraftKings was the runaway leader in national leader in estimated entries, handle and revenue. Nationally, DraftKings boasted 19 million entries, $137 million in handle and $14 million in revenue for May, while FanDuel’s slash line was 17 million/$77 million/$10 million.
But FanDuel has made an early statement as the king of Pennsylvania.
Figures released by the PGCB showed FanDuel posting $673,013.94 in revenue, while DraftKings raked in $632,008.62. The two DFS giants finished more than $600,000 ahead of the third-place company, DRAFT, which reported $16,992.35 in revenue.
Total fees collected from PA participants equaled $12,430,588.18 last month. And again FanDuel was the leader with $5,986,794, $48,293.50 ahead of DraftKings.
Not all brand-name companies shined in the first month of DFS contests. Yahoo Fantasy Sports, for example, was fourth with just $4,430.47 in revenue. The rest of the 10-company field were as follows:
- FantasyDraft: $2,499.86
- Sportshub Technologies: $1,590.67
- Boom Fantasy: $851.42
- Fastpick: $319.01
- Full Time Fantasy Sports and Fantasy Football Players Championship: No revenue reported
Big revenue equals tax money for state
Pennsylvania got its first cut of the DFS contest revenue, and it was a strong debut.
Per the regulations laid out by the PGCB, which included operators paying a $50,000 entry fee for a five-year license, adjusted gross revenue is taxed at 15 percent with that money going to the state’s Commonwealth General Fund.
As a result, the combined $1,331,706.34 in adjusted gross revenue added up to $199,755.94 in tax money for Pennsylvania. FanDuel and DraftKings alone combined for $195,753.38 in taxes.
DFS is in, sports betting next?
FanDuel made a strong first impression with daily fantasy sports contests in Pennsylvania. But the DFS company could make waves in another facet of the gaming expansion bill.
Just over a week after the US Supreme Court struck down the Professional and Amateur Sports Protection Act on May 14 to clear the way for regulated sports betting, FanDuel was acquired by Dublin-based gaming company Paddy Power Betfair. Not to be outdone, it was announced this week that DraftKings, which has a deal lined up to offer sports betting at Resorts Atlantic City in New Jersey, has partnered with tech company Kambi Group.
Those two deals set the DFS giants to get in on sports betting theoretically wherever single-game wagering is regulated. For some time, Pennsylvania has been in line to do just that, though state lawmakers are still developing legislation as their initial proposals have not been received well.
For starters, operators wanting to offer sports betting must pony up $10 million for licensure, and any revenue would be taxed at an eye-opening 36 percent rate.
Still, should regulations be agreed upon and enacted in the Keystone State, FanDuel and DraftKings are in prime position to bolster their revenue even more. That is, so long as casinos like Hollywood don’t pressure the Gaming Control Board into leaving them out.