PA Sportsbooks Report Decreased August Revenue Despite Handle Lift

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PA sportsbooks

Pennsylvania sportsbooks chased off the summer handle slowdown felt throughout the US in August, but revenue did not benefit.

Sports betting revenue slid for the second straight month, hitting $25.3 million in August. That is good for a 7.3% hold on the $348.5 million wagered for the month, according to the state report.

Revenue might increase in September now that NFL betting and college football betting are back in full swing. That does not directly lead to higher taxes paid by Pennsylvania sportsbooks, though, beause operators can deduct promo credits from taxable revenue.

PA sportsbooks handed out $7.3 million in promos in August, or 28.9% of gross revenue. Last September’s promotional spend of $12 million accounted for nearly 66% of gross revenue, though hold was a low 3.9% that month.

After deductions, operators paid $6.5 million in taxes last month.

PA sportsbooks in line with neighboring NJ

Pennsylvania ranks fourth and 11th, respectively, in terms of handle growth and revenue decline month-over-month.

Nextdoor neighbor and US sports betting powerhouse New Jersey ranks third in handle growth and second in revenue decline.

StateAugust handleJuly handleDifferenceAugust revenueJuly revenueDifference
New Jersey$664,675,859$578,729,29014.9%$52,023,081$54,966,257-5.4%
West Virginia$22,350,089$21,290,2755.0%$1,993,383$2,295,743-13.2%
Washington DC$12,445,312$12,808,240-2.8%$1,492,901$1,801,748-17.1%

The declines felt by Mississippi sportsbooks are from the impact of Hurricane Ida on retail sports betting late last month.

FanDuel, DraftKings alone grow online handle

The two US sports betting leaders picked up online handle share in August. The other 10 sportsbooks saw their share decline.

FanDuel Sportsbook led with $135.7 million, good for 42.6% of the $318.1 million bet online. The brand led all operators with $2.6 million in promos as it gained 3.9 percentage points of share from the prior month.

DraftKings Sportsbook was a distant second with $80.4 million bet, or 25.3% of online handle share. The sportsbook gained 1.3 percentage points in share compared to the prior month.

BetMGM saw the largest decline of 1.6 percentage points to 8.9% of the online market with $28.4 million bet. That is despite the brand spending the second-most on promos in the month with $1.6 million.

Barstool Sportsbook (8.3%, $26.3 million) and BetRivers (4.1%, $13.2 million) rounded out the top five operators by online share.