Daily fantasy sports operators in Pennsylvania stopped a three-month revenue slide in August but returns paled in comparison to legal sports betting.
DraftKings also generated more revenue than FanDuel for a third consecutive month in August, according to the Pennsylvania Gaming Control Board (PGCB).
DraftKings and FanDuel again far outpaced competitors in the fourth overall month of regulated DFS in the Keystone State with more than $943,000 in revenue. That’s a slight bump up from July’s total of more than $878,000.
Neither compares favorably to the more than $9 million in revenue generated by New Jersey sports betting in August.
Increase in DFS revenue
Five DFS operators reported an increase in revenue. Here’s how the DFS companies stacked up in August adjusted revenue in Pennsylvania:
$502,023.71 revenue, $75,303.56 tax
$424,487.40 revenue, $63,673.11 tax
$10,763.69 revenue, $1,614.55 tax
$3,847.78 revenue, $577.17 tax
- Yahoo! Fantasy Sports:
$1,358.31 revenue, $203.75 tax
- Sportshub Technologies:
$425.75 revenue, $63.86 tax
- Boom Fantasy:
$713.58 revenue, $107.03 tax
- Full Time Fantasy Sports and Fantasy Football Players Championship: No revenue
$943,620.22 revenue, $141,543.03 tax – August
$878,184.93 revenue, $131,727.75 tax – July
DFS operators are taxed at 15 percent of adjusted gross revenue and pay $50,000 for a five-year license. Under PGCB regulations, all money collected goes into the state’s general fund.
State tax revenue increased by almost $9,000 from July to August. Football season likely will increase those numbers in September, although we will need to wait for a definitive answer.
Impact of the first full month of football
DFS operators usually thrive on professional football. As both DraftKings and FanDuel add sports betting to their portfolios, NFL football promises to increase their bottom line from sportsbooks. September numbers could provide more insight into whether DFS is losing share to sports betting or if the market is expanding overall.
Pennsylvania plans to launch sports betting by fall despite opening applications early in the year. It wants to do so as quickly as possible to keep up with neighbors Delaware and New Jersey. Both states have enjoyed strong starts to their sports betting operations.