The recently-concluded NFL and college football season was one full of volatility for Pennsylvania sportsbooks. However, it ended on a high note for the industry and a downswing for the average bettor as postseason action largely went against the grain.
The Pennsylvania Gaming Control Board (PGCB) reported that sportsbooks generated $873.1 million in total bets and $84.3 million in revenue for the month of January. Operators posted a much better hold rate of 9.7%.
That is good for operators, considering that February’s numbers are unlikely to be favorable in Pennsylvania. Nationally, the money that came in on this year’s Super Bowl was fairly balanced. However, looking at Pennsylvania in a vacuum, the game did not go the sportsbooks’ way, as the Philadelphia Eagles crushed the Kansas City Chiefs, 40-22. The PGCB reported that sportsbooks lost $6.5 million on the day because of “a high percentage of wagers placed on the Eagles to win.”
That said, the Super Bowl numbers are going to give February a nice bump, in terms of handle, which will be reflected in next month’s report. For national operators, Chiefs’ bets in other parts of the country will offset the revenue losses in Pennsylvania.
Pennsylvania January sports betting at a glance
- Handle: $873.1 million (2.3% MoM decrease; 1.7% YoY decrease)
- Revenue: $84.3 million (77.5% MoM increase; 13.7 YoY decrease)
- Adjusted Gross Revenue (taxable): $51.5 million
- Hold: 9.7% (up from from 5.3% last month)
- Percent of bets placed online: 95.1%
- Promotional credits: $32.8 million
- January sports betting tax revenue: $17.5 million
- State and local entities tax revenue: $1 million
- Top sports betting app by handle: FanDuel Sportsbook with $342.3 million
- Top sports betting app by revenue: FanDuel with $44.6 million
Playoff football continues rollercoaster football season
Despite the calendar winding down in January, the games become much bigger. Despite a month-over-over decline, handle increased slightly at 1.7%.
Penn State football and the Eagles each went on deep postseason runs. The Nittany Lions wound up losing to Notre Dame in the national semifinals, while the Eagles won three home playoff games in January before winning the Super Bowl earlier this month.
The mark of a good month for sportsbooks is hold percentage. The public and operators have each taken licks at each other throughout the season. Sportsbooks got one in last month, recording a 9.7% hold rate. The other rates throughout the season are as follows:
- September: 11.6%
- October: 6.8%
- November: 11%
- December: 5.3%
- January: 9.7%
In Pennsylvania, the public got the final lick with the Eagles’ Super Bowl victory.
Fanatics comfortably sits fourth in handle, struggles with revenue
Though Fanatics Sportsbook is relatively new to the market, it is certainly making its mark. The operator generated $54.5 million in handle, behind FanDuel, DraftKings and BetMGM.
Fanatics made its move ahead of ESPN BET, in terms of handle. However, a low hold percentage did not equate to a strong revenue month. The operator had a 1.0% hold, good enough for $518,945 in revenue.
While Fanatics is posting solid handle, retaining more of it is its next goal.
ESPN BET market share slides for first time in football season
ESPN BET had been slowly improving market share in Pennsylvania. However, the operator declined for the first time since football season began.
Here are the following market share percentages for the sportsbook:
- September: 4.1%
- October: 4.6%
- November: 4.7%
- December: 4.9%
- January: 4.8%
Despite the dip, ESPN BET did improve on revenue. In December, it only posted a 1.8% hold percentage, yielding $794,626. Last month, it recorded 3.2% and $1.3 million, respectively.
There could be questions about the future of the company moving forward. Especially since there was so much chatter about PENN Entertainment selling over the summer.
PA sportsbook handle by operator in January
| Licensee | Online Brand | Handle | Revenue | Hold | Taxes |
|---|---|---|---|---|---|
| Valley Forge | FanDuel | $342,311,089 | $44,602,127 | 13.0% | $10,363,118 |
| Hollywood Meadows | DraftKings | $220,979,366 | $23,393,284 | 10.6% | $5,394,322 |
| Hollywood Morgantown | BetMGM | $68,723,798 | $5,833,222 | 8.5% | $1,234,580 |
| Hollywood York | Fanatics | $54,516,760 | $518,945 | 1.0% | ($649,717) |
| Hollywood Penn National | ESPN BET | $41,795,092 | $1,325,999 | 3.2% | $171.092 |
| Presque Isle Downs | bet365 | $36,563,263 | $2,711,083 | 7.4% | $299,876 |
| Rivers Pittsburgh | BetRivers | $31,108,137 | $2,133,523 | 6.9% | $610,278 |
| Harrah's Philadelphia | Caesars | $29,064,626 | $812,399 | 2.8% | $172,354 |
| Parx | betParx | $18,651,689 | $1,302,170 | 7.0% | $412,090 |
| Rivers Philadelphia | PlaySugarHouse | $16,436,004 | $688,076 | 4.2% | $189,709 |
| Live Philadelphia | Betway | $7,196,188 | $547,928 | 7.6% | $197,254 |
| Wind Creek | Wind Creek | $1,529,608 | $114,426 | 7.5% | $41,193 |
| Mohegan Pennsylvania | $1,376,690 | $147,199 | 10.7% | $52,992 | |
| Mohegan Lehigh Valley | $1,054,635 | $22,693 | 2.2% | $8,169 | |
| Live Pittsburgh | $984,299 | $97,993 | 10.0% | $35,277 | |
| Mount Airy | $801,140 | $12,324 | 1.5% | $4,437 | |
| Parx Shippensburg | $57,474 | $8,724 | 15.2% | $3,140 | |
| Total | $873,149,858 | $84,272,113 | 9.7% | $18,540,165 |
