PA Sports Betting Handle Hits New High In October

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PA sports betting

FanDuel maintained the overall PA sports betting revenue edge in October as marketwide handle set a new monthly record at $829 million.

The latest state report released last week showed the revenue gap narrowing between FanDuel and DraftKings. Only $1 million separated the rivals in October, after the difference was more than $10 million the month before.

FanDuel took in $29.1 million last month, while DraftKings pulled down $28.1 million. The two PA sports betting operators combined for 78% of the market’s $73.6 million October revenue.

Closer look at PA sports betting revenue

While FanDuel produced the most overall revenue, DraftKings topped the taxable revenue list.

PA sports betting companies can lower their monthly tax bill by deducting player bonuses from overall revenue, then paying the state 36% of the remaining total. This is part of why PA sports betting apps are not shy about spending heavily on promos and odd boosts.

After deducting $9.2 million in free play, DraftKings took home $18.9 million in taxable revenue. FanDuel produced $18.2 million after removing $11 million in October promos.

Talking Pennsylvania taxes

Sportsbooks combined for $73.6 million in October revenue. After deducting $25.5 million in bet credits, taxable revenue reached $48.2 million.

That led to $17.3 million in October sports betting taxes based on Pennsylvania’s 36% tax.

Operators have paid more than $500 million in taxes since the first legal retail sportsbook opened in November 2018.

Record PA sports betting handle

October’s $829 million handle mark set a new monthly record in the Keystone State. The previous record was set one year ago in October 2022 at $797.1 million.

The record-high handle was a 14% bump over September’s $726.3 million.

FanDuel ($328.4 million) and DraftKings ($258.3 million) combined for 71% of total handle. BetMGM earned the third-most handle share at 6.5% with $53.6 million in bets.

PA performing well for DraftKings

DraftKings continues to see growth, now in its fourth full football season with mobile betting in Pennsylvania. Executives expect vintage states, like Pennsylvania, to generate about 52% more in net revenue this year over last year.

Through October, DraftKings produced $94 million in taxable Pennsylvania revenue, up nearly 90% compared to the first 10 months of last year.

During a recent presentation, CFO Jason Park said DraftKings acquired four times as many customers in its older markets between 2022 and 2023 as it did between 2018 and 2019.

Caesars ahead of BetRivers among rest of top five

Caesars kept its lead over BetRivers for the second consecutive month. The two apps handled the fourth- and fifth- most Pennsylvania sports betting dollars in October.

Caesars’ $39.6 million handle was its highest total since March 2023. However, it posted a win rate below 1% and cleared less than $300,000 in October revenue.

BetRivers made $3.3 million on 10% hold from $33.5 million in bets. Its parent company, Rush Street Interactive, also operates the SugarHouse brand in the state.

Barstool swansong in Pennsylvania

In its final full month of Pennsylvania sports betting operations, Barstool Sportsbook handled $32.3 million.

Barstool posted revenue gains, clearing $1.7 million in October after losing money in September.

The Barstool app rebranded to ESPN Bet in mid-November, part of a new deal with Barstool’s former parent company, Penn Entertainment.