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In the third overall month of regulated DFS in Pennsylvania, DraftKings collected about $10,000 more than its primary competitor. The two heavyweights accounted for more than 98 percent of all daily fantasy revenue collected in the Keystone State.
July marked a third consecutive month of declining DFS revenue for operators in total. The overall handle of more than $878,000 fell by almost 14 percent from June.
Here’s how the DFS companies stacked up in July adjusted revenue in Pennsylvania:
Total: $878,184.93 revenue, $131,727.75 tax
Under PCGB regulations, operators pay $50,000 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.
Tax collection for July dropped by $21,000 from June and by close to $70,000 from May. The latter represents a decline of about 34 percent from the opening month of regulated DFS in Pennsylvania.
Yahoo! also moved back into the black after claiming a loss on its June statement.
Most of the DraftKings headlines for the past month revolve around sports betting. The former DFS upstart brought the first New Jersey sports betting app to market via its DraftKings Sportsbook brand.
New Jersey’s top state regulator said this week that other mobile apps remain in testing and not ready for launch. That leaves the online New Jersey sports betting market exclusively to DraftKings Sportsbook and its partner, Resorts AC.
FanDuel outpaced DraftKings by more than $40,000 in May DFS revenue in Pennsylvania, but fell slightly behind in the past two months. The three-month total shows FanDuel a hair ahead of DraftKings in overall revenue thanks to that strong May showing.
The downward trend of DFS collections in Pennsylvania could reflect a couple of key factors. The first one is fairly obvious: one of the lightest months of the year on the sports calendar presents fewer opportunities to play.
While that likely plays at least some part in the decline, it might not account for the entirety of it. Worth exploring is whether the start of legal sports betting in neighboring New Jersey and Delaware could be siphoning from DFS.
Look at the map: Philadelphia sits close to both states and presents an easy drive for those seeking sports betting action. Pennsylvania sports betting opened for business earlier this year, but only last week did Penn National apply for the first state license. It likely will not launch operations until well into football season and could further affect DFS then.
Not all DFS players are sports bettors, and vice versa, but the trend certainly bears watching. A more robust picture likely will come clear through the early months of football, which drives both DFS and sports betting.