Pennsylvania sets annual gaming revenue records in 2022

Online casinos and sportsbooks in Pennsylvania set a new annual revenue record during 2022 as igaming continues to grow.
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Online casinos and sportsbooks in Pennsylvania set a new annual revenue record during 2022 as igaming continues to grow.

According to figures published by the Pennsylvania Gaming Control Board, sportsbooks handled $7.25bn and online casinos took in $1.36bn in revenue during 2022, smashing new records in the process. 

Sportsbook handle improved by 10.7% year-over-year, with online casino revenue improving by 22.6% YoY as both verticals continue to show double-figure annual growth, despite being one of the most mature markets in the US. 

FanDuel dominating PA sports betting market

Despite setting records for handle, the hold rate for operators was not as meteorically high, with a hold rate of 5.5% leaving sportsbooks with $401.2m in revenue. This represents a 17.9% increase on the $340.1m raised in 2021 despite a lower hold rate than anticipated, showing the strength of growth. 

Per operator, FanDuel led the way in terms of annual sports betting revenue, taking over 50% of all PA sports betting revenue with $209.9m, marking growth of 30.2% YoY. 

With FanDuel dominating the state, the top five operators list is made up of DraftKings ($76.2m), Barstool Sportsbook ($21.6m), BetRivers ($18.9m) and BetPARX ($15.9m). 

iGaming continues to boom

As mentioned, igaming in Pennsylvania proved even more popular with players in 2022, with $1.36bn in revenue setting a new record for the vertical in the state. 

It marked a 22.6% increase in growth and continues the state’s consistent growth for igaming, making it one of the most popular states for online gaming in North America. 

Per operator, there is another clear market leader as Hollywood Casino had the largest market share during 2022 with $561.2m, denoting a 34% yearly increase. 

The top five operators included Rivers Casino ($326.4m), FanDuel ($255.5m), PokerStars ($57.1m) and BetPARX ($44.8m). 

Breaking down December 2022

Sportsbooks in Pennsylvania handled $754.8m in December, which was down slightly on the $789.2m handled in November, with the holiday season perhaps diminishing the appetite for wagering. 

Operators made $71.2m in revenue from this, which was slightly up from November, giving sportsbooks a slightly improved hold rate for December. Promotional credit was down slightly from November, with December credit standing at $16.6m. 

With a 36% tax rate on sports betting, operators paid $19.7m in taxes for December, which was up on November’s tax payment of $19.0m. 

For online casino, slots coin in stood at $2.69bn, which was up on November’s $2.46bn. Revenue for slots operators was $91.6m, which was significantly higher than November’s $86.6m.

Meanwhile, table games saw a coin-in of $2.48bn, compared to $2.26bn in November, and received $40.3m in revenues compared to $39.5m in November.