Sportsbooks enter slow season with nearly $575 million in wagers, but still post significant year-over-year gain, according to PlayPennsylvania
(LAS VEGAS) — Pennsylvania’s online and retail sportsbooks slowed to less than $575 million in wagers in April, but the expected post-NCAA Tournament dip was met with a higher win percentage and impressive year-over-year gains. Meanwhile online casinos continued a torrid pace that continues to put Pennsylvania ahead of New Jersey as the nation’s largest market, according to PlayPennsylvania.com, which tracks the state’s gaming industry.
“Without football or a major sports betting holiday like the opening rounds of the NCAA tournament, sportsbooks inevitably lose steam through the summer,” said Katie Kohler, lead analyst for PlayPennsylvania.com. “If there is a concern for the industry, though, it’s that troubles in the greater economy will push customers to slow their spending. It’s something every business has to watch closely over the next few months, especially for online casinos and sportsbooks that have known nothing but growth.”
Pennsylvania’s sportsbooks drew $572.8 million in wagers in April, up 19% from $479.4 million from April 2021, according to official data released Tuesday. But the month’s betting was down 20% from $715.0 million in March, dropping to the lowest volume since sportsbooks took in $348.5 million in August 2021.
Sportsbooks won $49.1 million in gross revenue in April, up 36% from $36.0 million in April 2021 and up 1% from $48.5 million in March. The month’s win yielded $12.1 million in state and local taxes.
Without the NFL or the NCAA Tournament, sportsbooks inevitably hit a seasonal ebb that begins in April and lasts through August. And the pace of wagering should continue to slow as the NBA and NHL Playoffs wind down.
“The NBA Playoffs, the Final Four, and the first month of baseball gave just enough inventory with general interest to keep bettors engaged in April,” said Dustin Gouker, lead analyst at PlayUSA.com, which includes PlayPennsylvania.com. “But sportsbooks won’t be so lucky going forward with the Penguins and Sixers eliminated, and the Pirates and Phillies off to slow starts.”
Online sportsbooks attracted $536.1 million in wagers, or 93.6% of the state’s April handle. FanDuel topped the online market with $226.6 million in wagers and $28.4 million in revenue. DraftKings followed with $119.1 million in online wagers, producing $5.3 million in gross revenue.
BetMGM was third with $65.9 million in wagers, yielding $4.7 million in gross revenue. Penn National’s Barstool-branded app was fourth with $38.2 million in online wagers, which created $3.6 million in gross revenue.
Retail sportsbooks took in $36.7 million in wagers in April, which produced $3.0 million in gross revenue. Parx led all retailers with $5.7 million in wagers.
“With the NBA playoffs, baseball, and major golf tournaments the main attractions, sportsbooks now enter the slow season,” Gouker said. “But the last six months have produced a significant leap forward, with wagering that never really fell below $600 million. Better yet, the industry can look forward to a football season this year that should bring even bigger numbers.”
“Even with lower volume, wagers such as baseball parlay betting and major golf tournaments can be enormously profitable for sportsbooks,” Gouker said. “The focus for sportsbooks changes, too. Football season is an opportunity to reach a broader audience, and most operators aggressively promote to acquire new customers. During the warmer months, sportsbooks get creative in finding ways to keep bettors engaged.”
Online casinos and poker
Online casinos and poker rooms continued to fare exceedingly well in April, leading all U.S. markets with $138.0 million in gross revenue. That is the second-most all-time for the state, falling short of the U.S. record $142.7 million in gross gaming revenue produced in March. And it was just ahead of New Jersey’s $136.9 million in April.
Year-over-year, PA online casinos and poker rooms grew 30.8% from $105.5 million in April 2021. The pace at online casinos and poker rooms hit $4.6 million in revenue per day over the 30 days of April, essentially even with the 31 days of March. April’s win led to $113.1 million in taxable revenue after $24.9 million in promotional spending. That yielded $47.2 million in state taxes and local assessments.
“The growth of online casinos has been relentless since the beginning of the pandemic, when it would have been a stretch to think that Pennsylvania would overtake New Jersey as the nation’s largest market” Kohler said. “The vertical will likely be resilient in the face of economic challenges, even if it isn’t immune.”
Other highlights from April:
- Online casino games alone produced $135.1 million in revenue on $4.2 billion in wagers.
- Poker generated $2.9 million in revenue. PokerStars topped poker operators with $1.8 million in revenue.
- Penn National, which includes DraftKings, BetMGM, Barstool, PointsBet, and Hollywood casinos, led all online casino licensees with $54.9 million in gross revenue.
- Rivers Philadelphia, which includes PlaySugarHouse, Borgata, and BetRivers casinos, was second with $35.7 million.
Pennsylvania sports betting revenue, April 2022
|Licensee||Total Revenue||Slots||Tables||Poker||Promos||State/Local Taxes|
|Hollywood Penn National||$54,896,545||$39,213,937||$15,434,126||$248,482||$9,670,473||$18,456,700|
|Mohegan Sun Pocono||$1,894,445||$1,497,783||$396,661||$0||$248,897||$737,864|
For more information, visit www.playpennsylvania.com/news.
Contact: Zack Hall, Catena Media, [email protected]
Lead image credit: AP Photo/Kathy Willens