Pennsylvania’s sports betting landscape remains robust in 2024, showing significant year-over-year growth despite a monthly dip in activity. The Pennsylvania Gaming Control Board reported a May handle of $591.9 million, marking an 8.3% decrease from April but a remarkable 19.4% increase compared to May 2023. This trend of monthly declines paired with yearly surges was also seen in April, which saw a 19% drop from March but a 13% rise year-over-year.
Sports Betting Revenue Trends and Promotional Impact
Despite the lower handle in May, gross revenue rose by 4.4%, reaching $61.7 million. After accounting for nearly $17.5 million in promotional credits, net profits for online and retail sports betting operators stood at $44.2 million. This figure represents a 7.6% year-over-year increase and a slight improvement from April’s $42.4 million.
Key Contributors to the Betting Boom
The NBA and NHL playoffs, along with MLB games, didn’t generate as much betting action as April, but a notable 10.4% hold—up nearly a percentage point from April—helped boost profits. The state collected $15.9 million in tax revenue from sports betting in May, an increase from April’s $14.4 million.
Milestone Achievements
Pennsylvania continues to solidify its status as a top gaming market in the U.S. The state’s lifetime sports betting handle surpassed $30 billion in May, joining the ranks of New York, New Jersey, Nevada, and Illinois. Year-to-date wagers also crossed the $3 billion mark, with the 2023/2024 fiscal year’s handle reaching $7.7 billion and gross revenue approaching $690 million. Since July 2023, operators have contributed over $164 million in taxes to the state.
Dominance of Online Sports Betting
Online sports betting remains the dominant force, accounting for $556.9 million of the total handle and generating $59.1 million in revenue. FanDuel led the market with over $200 million in monthly handles for the ninth consecutive month, accumulating $1.48 billion in wagers for 2024. DraftKings followed with a $163.3 million handle and $31.2 million in revenue, half of FanDuel’s earnings.
BetMGM narrowly beat ESPN BET for the third spot in May by less than $5 million, though their revenues were nearly identical, separated by only $200,000. BetRivers was the only other online sports betting to surpass $20 million in wagers, while Caesars fell short in revenue due to a 3.8% hold.
Retail and Online Sports Betting Revenue Growth
Retail sports betting saw a 7.7% month-over-month decline in the handle to $34.9 million in May. However, a 7.4% hold led to $2.6 million in revenue, marking an 85% increase from April. Online casinos also experienced growth, with revenue rising 23.5% year-over-year to $174 million, slightly up from April’s $173.4 million. Pennsylvania collected $76 million in tax revenue from iGaming in May.
Overall, all forms of gaming, including traditional casino games and fantasy sports, generated $521 million in revenue, an 8.7% increase year-over-year.
Conclusion
Pennsylvania’s sports betting market continues to thrive, driven by strong online betting performance and growing revenues across various gaming sectors. Despite some monthly fluctuations, the state’s year-over-year growth underscores its resilience and the increasing popularity of sports betting among residents. As the fiscal year draws to a close, Pennsylvania’s gaming industry is poised for continued success and expansion.
