To no one’s surprise, NFL season boosted Pennsylvania daily fantasy sports revenue to its strongest month yet in September.
DFS companies totaled more than $2.1 million in revenue through the first full month of NFL football, according to the Pennsylvania Gaming Control Board. That’s more than double what Pennsylvania DFS brought in during August, when operators brought in more than $943,000.
September’s Pennsylvania DFS haul worked out to more than $320,000 in tax revenue for the state. That is boosted from more than $141,000 last month.
Breaking down Pennsylvania DFS revenue
DraftKings maintained what has become a consistent place as the Pennsylvania DFS market leader with nearly $1.2 million in revenue. That extends its lead by percentage over FanDuel, which netted close to $950,000 in September. Both operators better than doubled their revenue from August.
Here’s how the monthly report shakes out for all Pennsylvania DFS operators, who pay a 15 percent tax on adjusted revenue:
|Full Time Fantasy Sports||$242||$36|
|Fantasy Football Players Championship||$0||$0|
|Yahoo! Fantasy Sports||-$12,049||-$1,807|
No, you’re not reading a massive typo in the Yahoo! report. The company reported a loss after moving into the black in Pennsyvlania DFS last month.
Yahoo! should not be expecting a tax refund check in the mail though. Pennsylvania regulators said the refund will be applied to future tax bills.
Compared to sports betting revenue though …
Pennsylvania DFS began regulation and taxation in May this year under a 2017 law authorizing it. September’s strong showing highlights the continued viability of DFS even in the new era of legal sports betting.
Its place, however, clearly will be behind sports betting. You need only to look next door at New Jersey sports betting revenue from September to see that.
The Garden State generated roughly $24 million in adjusted revenue on about $184 million in total handle in September. That’s the most robust month yet for New Jersey sports betting, and the first in which most sportsbooks had mobile apps.
While New Yorkers and Pennsylvanians certainly add to New Jersey sports betting coffers, its smaller neighbor has almost 4 million less people than Pennsylvania. That population gap only underscores the popularity of sports betting.
Pennsylvania will be in the sports betting game soon enough. PCGB regulators expect to launch by the end of the year after landing multiple operators despite a $10 million license fee and 36 percent tax rate.