Following a strong March, Pennsylvania’s sportsbooks have now generated $1.0bn in revenue on $13.7bn in wagers since the market went live in 2018, joining New Jersey and Nevada as the only states to surpass the $1bn lifetime sports betting revenue mark.
The Keystone State’s sportsbooks witnessed more than $700m in wagering in March, while its online casinos surpassed $140m in monthly revenue for the first time, setting a new US record in the process, according to PlayPennsylvania.
“March couldn’t have gone any better for Pennsylvania’s gaming industry,” commented Katie Kohler, Lead Analyst for PlayPennsylvania.com.
“Sportsbooks got a significant NCAA Tournament sweetener with Villanova’s run to the Final Four and a small boost from New Jersey, where betting on in-state St Peter’s is banned. And online casinos produced eye-popping results with no end to the growth in sight.”
Official data has revealed that Pennsylvania’s sportsbooks attracted $715.0m in wagers in March, up 27.6% year-over-year (March 2021: $560.3m) and a 19.7% improvement from February’s $597.1m.
Online sportsbooks accounted for $667.0m (93.3%) of the state’s handle during the month, while retail sportsbooks took $48.0m in wagers.
March’s bets produced $48.5m in gross revenue, up 18.2% YoY (March 2021: $41.0m) and a 118.9% growth on the previous month (February: $22.2m). With $18.1m in promotional spending, the Keystone State’s sportsbooks produced $30.4m in taxable revenue, yielding $10.9m in state and local taxes.
Dustin Gouker, Lead Analyst at PlayUSA.com, which includes PlayPennsylvania.com, stated: “Of all the states that have legalized and regulated sports betting over the last four years, few can claim the level of maturity that Pennsylvania has reached. This is a stable market that is still showing healthy growth, even if some newer markets garner more attention now.”
Per online operator, FanDuel led the way with $267.1m in wagers, winning $21.9m in revenue, followed by DraftKings ($164.8m in wagers, $6.7m in revenue), BetMGM ($78.4m in handle, $5.2m in revenue) and Penn National’s Barstool ($55.3m in wagers, $2.8m in revenue).
Of its $48.0m in March handle, retail sportsbooks produced $5.0m in gross revenue, with Live Philadelphia being the month’s top operator with $6.7m in wagers.
“With the NBA playoffs, baseball, and major golf tournaments the main attractions, sportsbooks now enter the slow season,” added Gouker.
“But the last six months have produced a significant leap forward, with wagering that never really fell below $600m. Better yet, the industry can look forward to a football season this year that should bring even bigger numbers.”
Pennsylvania set a US record in gross revenues for online casinos and poker rooms in March with $142.7m, up 27.9% YoY (March 2021: $111.6m) and a 15.4% improvement on the previous month (February: $123.7m). Online casino games alone produced $139.5m in revenue on $4.3bn in wagers, while poker generated $3.2m.
The month’s US record results topped the state’s previous high of $129.99m and broke the previous best US record of $137.9m held by New Jersey, both set in January.
The pace at online casinos and poker rooms rose to $4.6m in revenue per day over the 31 days in March, up from the record $4.4m per day over the 28 days of February. February’s revenue created $118.1m in taxable revenue after $24.6m in promotional spending. That yielded $49.0m in state taxes and local assessments.
Per operator, PokerStars led the way in poker with $1.9m in revenue. In online casino, Penn National (DraftKings, BetMGM, Barstool, PointsBet, and Hollywood casinos) was the top operator with $55.2m in revenue, followed by Rivers Philadelphia (PlaySugarHouse, Borgata, and BetRivers) with $37.0m.
Kohler concluded: “The most interesting question that is still outstanding for online casinos is where is the ceiling. There are broader economic concerns that could affect the market. But right now, it appears Pennsylvania’s market still has more room for growth.”