Pa State Gambling Revenue
Oct 16, 2020 The Pennsylvania gambling expansion law passed largely because the state desperately needed a new source of tax revenue.One of the biggest sources of that revenue was upfront licensing fees for all the new types of gambling.
- 1 day ago The Pennsylvania Gaming Control Board said the November 2020 handle was up 55.4% from November 2019’s $316.5m. The Keystone State is five months into its 2020-2021 fiscal year, and handle during that period has topped $2 billion. Pennsylvania has 14 retail sportsbooks and 10 online operators.
- The state ended up being a big winner because of the activity. The retail sportsbooks and mobile sports betting applications reported $36.8 million in gross revenues, and the state received $12.5 million in tax funding as a result, by far a record for state revenue. The previous high-water mark was $7.8 million in January.
- As the Keystone State nears the anniversary of its first online casinos, the industry put up yet another historic month. Already trending upward, what with revenues up over 31% month to month since December, operators in March reported some $24.3 million in online revenue, marking a 24.5% increase from February.
- July 2019 August 2019 September 2019 November 2019 December 2019 January 2020 February 2020 March 2020 May 2020 June 2020 FYTD Grand Total Wagers $206,721,546.20.
The state of Pennsylvania can call October a success for its gambling industry. Every major segment of the industry grew from the previous month, and most segments even grew from the previous year.
The Pennsylvania Gaming Control Board released its October revenue report this week. While the coronavirus pandemic still rages and land-based casinos still operate at a limited overall capacity, the state’s newer revenue streams delivered a big win for the gambling industry. The state’s gambling revenue actually grew nearly 13% from October 2019 and still more than 12% from September to October 2020.
The internet gaming industry and sports betting outlets have been a savior for the Pennsylvania gambling sector this year. And in October, the sector was so healthy that even online poker revenue increased.
That is called progress.
Single-Site Market of Online Poker – October 2020
Technically, online poker in Pennsylvania just celebrated its one-year anniversary. PokerStars was the first poker site to open in the state under its new regulations and with a state-issued online gaming license on November 4, 2019.
PokerStars celebrated that milestone with an online poker series for Pennsylvanians. What made it even sweeter for PokerStars was that it remains the only poker site licensed in Pennsylvania…one year later. While the Pennsylvania Gaming Control Board approved licenses for other companies, none have launched their sites or plan to in 2020. That leaves the entire little market for PokerStars.
Even so, as online poker has shown in New Jersey and Delaware, it is a fickle little sector.
PokerStars PA’s revenue soared in March and April of this year due to the pandemic, as online sites did nearly everywhere in the world, but its monthly revenue dropped consistently since then. But October showed a small boost, and that is positive for PokerStars and online poker in PA.
–PA online poker revenue in October: $2,422,505 (2% increase)
–September: $2,376,045 (12.9% decrease)
–August 2020: $2,729,199 (8.6% decrease)
–July 2020: $2,986,498 (7.9% decrease)
–June 2020: $3,240,917 (29.5% decrease)
–May 2020: $4,596,418 (12.5% decrease)
–April 2020: $5,253,304 (67.7% increase)
–March 2020: $3,133,019 (71.2% increase)
–February 2020: $1,830,356 (15.2% decrease)
–January 2020: $2,157,266 (12.8% decrease)
–December 2019: $2,473,137 (25.8% increase)
–November 2019: $1,965,494
It seems that the revenue increase in October was due to an extra day in the month. When October is broken down by daily average revenue, it actually shows a monthly decrease. Let’s keep that our secret, though, okay?
–PA average online poker revenue per day in October $78,145.32 (1.3% decrease)
Pa State Gambling Revenue Laws
–September: $79,201.50 (12.9% decrease)
–August 2020: $90,973.30 (5.6% decrease)
–July 2020: $96,338.65 (10.8% decrease)
–June 2020: $108,030.56 (271% decrease)
–May 2020: $148,271.55 (15.3% decrease)
–April 2020: $175,110.13 (73.3% increase)
–March 2020: $101,065.13 (60.1% increase)
–February 2020: $63,115.72 (9.3% decrease)
–January 2020: $69,589.23 (10.5% decrease)
–December 2019: $77,778.61 (1.1% decrease)
–November 2019: $78,619.76
Online poker isn’t making the strides it was in March and April because many of the casinos reopened their poker rooms. There is a chance that some of those poker rooms will close again before the end of 2020 due to a second wave of the virus, so it could drive online poker revenue up slightly.
Eleven-Site Market of iGaming – October 2020
As demonstrated by New Jersey, the online casino games sector will continue to rise regardless of the pandemic. Of course, casino closures have and will again send numbers soaring, but the industry seems to have the ability to grow organically.
So, despite casinos being reopened, online slots and table games still grew in October.
With 11 sites now operating online casinos, Rivers Philadelphia remains the one generating the most revenue by far and mostly with its online slots. Penn National remains second, with Valley Forge in third and Mount Airy (the only casino with online poker) remains in fourth.
–PA internet gaming revenue in October: $59,760,431 (4.8% increase)
–September: $57,041,936 (2% increase)
Gambling Revenue By State
–August 2020: $55,942,525 (2.9% increase)
Pennsylvania State Gaming Revenue
–July 2020: $54,352,149 (8.6% increase)
–June 2020: $50,055,251 (10.4% decrease)
–May 2020: $55,838,789 (29.7% increase)
–April 2020: $43,067,881 (77.5% increase)
–March 2020: $24,265,820 (24.5% increase)
–February 2020: $19,490,815 (39.6% increase)
–January 2020: $13,957,539
For the month of October, internet gaming contributed $24,894,497 in tax revenue to the state of Pennsylvania.
Twelve-Site Sports Betting Sector – October 2020
Sports wagering got its groove back.
Pennsylvania’s toughest months for sports betting seem to be behind them. The lack of sports activities early in the pandemic may have benefited internet gambling, but sports betting suffered. Since then, however, the sector has been growing at an impressive clip.
Valley Forge remains at the front of the pack by leaps and bounds, delivering more revenue in retail and online for yet another month. The Meadows then jumped into a solid second place, mainly due to the popularity of its online sports betting options.
The handle figures were:
–PA sports betting handle in October: $525,802,524 (13.6% increase)
–September: $462,787,394 (26.8% increase)
–August: $364,985,422 (121.5% increase)
–July 2020: $164,782,229 (85.1% increase)
–June 2020: $89,002,562 (14.8% increase)
–May 2020: $77,510,033 (68.4% increase)
–April 2020: $46,015,988 (185.4% decrease)
–March 2020: $131,330,059 (60.2% decrease)
–February 2020: $329,765,782 (7.5% decrease)
–January 2020: $348,381,708
The revenue numbers increased in very dramatic fashion:
–PA sports betting revenue in October: $36,776,926 (486.6%)
–September: $6,269,883 (65.7% decrease)
–August 2020: $18,274,075 (124.3% increase)
–July 2020: $8,147,480 (22.3% increase)
–June 2020: $6,660,158 ($37.9% increase)
–May 2020: $4,828,989 (67.5% increase)
–April 2020: $2,883,471 (1.4% decrease)
–March 2020: $6,889,255 (45.9% increase)
–February 2020: $4,722,252 (79.3% decrease)
–January 2020: $22,841,213
It appeared that online sports wagering revenue was the star of the month. Retail revenue increased by 23.12%, but online revenue jumped an astonishing 2,556% from September to October.
In total, the sports betting sector contributed $13,239,693 to Pennsylvania tax revenue last month.
Total Gaming in October 2020
Land-based gaming revenue continued on its path to post-lockdown recovery.
Table games revenue from those 12 properties in October rose 7.1% from the previous month but remained down 13.4% year-on-year. Slot machines, on the other hand, dropped 1.7% monthly and 17.2% yearly. Casinos still cannot fill their casino floors with as many slot machines as in 2019, and they are still beholden to capacity limitations.
The entire gambling sector in Pennsylvania includes revenue from land-based casinos, internet gaming partnerships, sports betting, fantasy contests, and video gaming terminals (VGTs). October was a good month for the group.
–PA total gambling revenue in October 2020: $320,218,237
–prior month of September 2020: $284,235,444
–prior year of October 2019: $283,706,124
Year-on-year: 12.87% increase
Month-on-month: 12.66% increase
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Pennsylvania’s sports betting market continues to look merry and bright. Handle totaled about $492 million in November, down just 6.4% from the record $525.8 million set in October. Five months into the 2020/2021 fiscal year, Pennsylvania surpassed the $2 billion mark for handle.
November was the second-highest ever for handle in PA and marked the best month yet for sportsbooks in terms of overall revenue. The Commonwealth’s 10 online sportsbooks and 14 retail books combined for $37.4 million in gross (taxable) revenue, up a tick from the previous record of $36.8 million set the previous month.
Online wagering continues be the overwhelming preference of bettors, with 91% of bets placed at PA online sports betting apps, according to figures released by the Pennsylvania Gaming Control Board.
FanDuel online sportsbook remains the leader in PA again with taking $176.7 million, or 36.6% of the state’s wagers.
Big month for revenue and taxes
NFL and college football betting fueled another big month for the books. $37.4 million in revenue represents a huge increase from $6.2 million in September 2020. Sportsbook apps also gave away $11.1 million in promotional credits, a nearly identical number to the previous month.
The state collected $12.7 million from sports betting taxes in November 2020, with another $747,005 for local taxes.
PA’s November numbers, and any other state with legalized sports betting, pales in comparison to neighboring New Jersey. They set the all-time high for handle in any state for the fourth straight month with $931.6 million.
FanDuel and DraftKings lead the pack in PA
FanDuel took 36% of all wagers which is a decrease from 41% in September. However, the market-leader broke the record for revenue for a PA online sportsbook in October ($14.7 million) and again in November ($15 million).
DraftKings surpassed the $100 million threshold for the third consecutive month with a handle of about $110 million. They also posted the highest revenue since their Nov. 2019 launch with $6.8 million in Nov. 2020.
New sportsbooks in PA
The much-anticipated Barstool Sportsbook, through its partnership with Hollywood Casino, arrived in Pennsylvania in mid-September. In its third full month, Barstool took $55.86 million in wagers, a small decrease from about $61 million in October.
Barstool won’t be the baby of the books for much longer. There are rumors that BetMGM, which recently released its online casino is PA, will be rolling out its online sportsbook very soon.
PA sports betting handle & revenue by operator in November 2020
| Sports Betting Operator | Total Handle | Total Revenue | Online Handle | Online Revenue | Retail Handle | Retail Revenue |
|---|---|---|---|---|---|---|
| Valley Forge Casino (FanDuel) | $180,056,254 | $15,428,575 | $176,746,119 | $15,060,960 | $3,310,135 | $367,615 |
| The Meadows Casino (DraftKings) | $112,546,122 | $7,174,759 | $109,886,617 | $6,887,440 | $2,659,505 | $287,319 |
| Hollywood/Penn National (Barstool) | $57,806,082 | $3,784,120 | $55,656,541 | $3,488,727 | $2,149,541 | $295,392 |
| Rivers Pittsburgh (BetRivers) | $34,998,795 | $2,019,720 | $28,085,328 | $975,843 | $6,913,467 | $1,043,877 |
| Mount Airy Casino (Fox Bet) | $28,902,526 | $1,575,915 | $28,067,087 | $1,539,392 | $835,439 | $36,523 |
| Parx Casino | $28,529,299 | $3,563,619 | $19,371,783 | $2,054,563 | $9,157,516 | $1,509,056 |
| Rivers Philadelphia (PlaySugarHouse) | $27,386,960 | $2,029,993 | $19,399,744 | $917,164 | $7,987,216 | $1,112,829 |
| Mohegan Sun Pocono (Unibet) | $9,991,516 | $605,958 | $8,181,449 | $194,793 | $1,810,067 | $411,165 |
| Presque Isle Downs (BetAmerica) | $4,610,010 | $378,802 | $957,165 | $8,632 | $3,652,845 | $370,170 |
| Harrah's Philadelphia (Caesars) | $3,328,342 | $418,773 | $1,066,617 | $58,141 | $2,261,726 | $360,632 |
| South Philly Race & Sportsbook | $2,031,016 | $90,795 | $0 | $0 | $2,031,016 | $90,795 |
| Mohegan Sun Lehigh Valley | $1,399,802 | $169,837 | $0 | $0 | $1,399,802 | $169,837 |
| Wind Creek | $164,486 | $62,065 | $0 | $0 | $164,486 | $62,065 |
| Live! Casino Pittsburgh | $159,503 | $47,317 | $0 | $0 | $159,503 | $47,317 |
| Total | $491,910,713 | $37,350,246 | $447,418,449 | $31,185,656 | $44,492,263 | $6,164,590 |
Other PA online sportsbooks in November:
- Barstool (Hollywood Casino): $55.6 million in handle (down from $60.9 million), $3.5 million in revenue
- Fox Bet (Mount Airy): $28 million in handle (down from $28.2 million), $1.5 million revenue
- Rivers Casino Pittsburgh: $28 million in handle (up from $26 million), $975,843
- Parx online sportsbook: $19.4 million in handle (down from $21.7 million), $2 million revenue
- Rivers Casino Philadelphia: $19.4 million in handle (down from $21.4 million), $917,164 revenue
- Unibet (Mohegan Sun Pocono): $8.1 million (down from $9.8 million), $194,793 revenue
- Caesars Sportsbook (Harrah’s): $1 million in handle (up from $1 million), $58,141 revenue
- Bet America (Presque Isle Downs): $957,165 in handle (up from $912,236), $8,632 revenue
Two-years and counting for PA sports betting
Last month, Pennsylvania celebrated the second anniversary of the start of legal sports betting in Pennsylvania. Hollywood Casino launched Pennsylvania’s first legal sportsbook with partner William Hill on Nov. 17, 2018.
The PA sports betting industry is officially blossoming into maturity. Since its birth two years ago, the sports betting industry has experienced quite a growth spurt in terms of operators and handle.
- 2018-19: $244.6 million
- 2019-20: $2.5 billion
- 2020-21: $2 billion (five months)
PGCB Director of Communication Doug Harbach commented to PlayPennsylvania about the burgeoning sports betting market after its two-year anniversary:
“The type of customer and revenue growth in this gaming segment is similar to that seen other segments. Particular to sports wagering, certainly the rapid increase in the number of operators is the chief reason. The effective marketing of the operators then produces an exponential uptick in the total potential customers in their databases which, combined with an increased comfort from gamblers in participating in sports wagering in Pennsylvania, leads to growth in the amount of wagering. Finally, the parallel competition of major sports, particularly professional and college football is certainly driving the record handle and revenue numbers seen in the last few months.”
PA sports betting: How it started, how it’s going
| November 2018 | November 2020 | |
|---|---|---|
| Handle | $1.4 million | $491.9 million |
| Revenue | $508,997 | $37.3 million |
| Retail operators | 1 | 14 |
| Online operators | 0 | 10 |
2020 PA sports betting handle, revenue and taxes
Here’s a look at top-line numbers for PA sports betting since the start of 2020. Tax revenue includes the 34% state tax and 2% in local taxes.
| Total Handle | Total Gross Revenue | Tax Revenue (36%) | |
|---|---|---|---|
| Jan. 2020 | $348.4 million | $22.8 million | $8.2 million |
| Feb. 2020 | $329.8 million | $4.7 million | $1.7 million |
| March 2020 | $131.3 million | $6.9 million | $2.5 million |
| April 2020 | $46.0 million | $2.9 million | $1.0 million |
| May 2020 | $77.5 million | $4.8 million | $1.7 million |
| June 2020 | $89.0 million | $6.7 million | $2.4 million |
| July 2020 | $164.8 million | $8.1 million | $2.9 million |
| August 2020 | $365.0 million | $18.3 million | $6.6 million |
| Sept. 2020 | $462.8 million | $6.3 million | $2.3 million |
| Oct. 2020 | $525.8 million | $36.8 million | $13.2 million |
| Nov. 2020 | $491.9 million | $37.4 million | $13.4 million |
November fantasy figures
In November, fantasy operators combined to report about $27 million in revenue, a decrease from $28.6 in October. DraftKings ($16.9 million) and FanDuel ($9.8 million) make up the lion’s share of DFS action in PA.
Lead image credit: AP Photo/Matt Rourke