Round Two in Pennsylvania Daily Fantasy Sports Goes To DraftKings

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Pennsylvania daily fantasy sports

DraftKings claimed a narrow victory over FanDuel in the second month of Pennsylvania daily fantasy sports contests.

The DraftKings win reverses the results from the opening month. FanDuel outpaced its DFS rival in May by a similarly small margin. Overall, Pennsylvania DFS revenue fell more than $300,000 in June.

The positive news is welcome for DraftKings following a recent run of major moves by FanDuel. That includes its acquisition by Paddy Power Betfair and the launch of FanDuel Sportsbook in New Jersey earlier this month.

DraftKings takes it by a nose

Here’s a breakdown of what each DFS company made in adjusted revenue in Pennsylvania in June and how much tax money that generates for the state:

Yes, you are reading the Yahoo number correctly — the company filed a loss for June and claimed a refund. Pennsylvania Gaming Control Board officials confirm that Yahoo reported paying out more in prizes than it collected in fees in the state.

DFS revenue drops in June

Pennsylvania DFS action tailed off in June as the sports calendar thinned out. As a result, the June tax collection for the Keystone State dropped from just below $200,000 in May to just over $150,000 in May.

The drop spread evenly across most operators, with FanDuel and DraftKings both posting lower revenue figures. Only DRAFT and FantasyDraft bested their opening-month take, and on a modest scale compared to the DFS heavy hitters.

After a full month of NBA and NHL playoffs, both leagues held their finals in June. World Cup soccer in July could help bump revenue back up toward May numbers.

DraftKings looking for more cash

After FanDuel’s acquisition by Paddy Power Betfair, DraftKings finds itself seeking a cash infusion to compete in legal sports betting. A report this month indicated DraftKings wants to raise $200 million toward a valuation of $1.5 billion.

The company plans to launch a DraftKings Sportsbook product after the Supreme Court repealed PASPA. Its first deal to offer legal sports betting is in New Jersey, where it is partnered with Resorts Atlantic City. A deal with sports betting platform provider Kambi was announced last month.

PA new to overseeing DFS

Pennsylvania began regulating DFS after authorizing it under a 2017 law. That legislation made it the 17th state to approve DFS back then, though providers operated in the state prior to the law.

Under PCGB regulations, operators paid a $50,000 fee for five years of licensure. They are taxed at 15 percent of adjusted gross revenue and the money collected goes into the state’s general fund.