April Slide in Sports Betting Hits Pennsylvania

Pennsylvania can now be included in the list of jurisdictions that experienced significant decreases in betting site activity, including overall handle, revenues, and tax contributions, between March and April.

Although there was a significant decrease in sports betting activity in Pennsylvania in April, this decline is consistent with the trends seen in other states that have released their financial reports for the same month.

The absence of NFL and March Madness, as well as shortened playoff schedules in the NBA and NHL, has had a significant impact on Pennsylvania’s legal sports betting industry. However, business is expected to rebound in September with the return of NFL games and the start of basketball and hockey seasons.

Pennsylvania’s April sports betting figures

According to the Pennsylvania Gaming Control Board, sportsbooks in Pennsylvania saw a decrease in total handle in April, taking in $572.1 million. This represents a 20.9% decrease from the previous month’s total of $723.5 million in March. However, it only reflects a slight 0.11% drop from the same month last year, when sportsbooks reported $572.8 million in total handle.

In Pennsylvania, online betting sites accounted for 93.7% of the total handle, while retail betting made up the remaining 6.3%.

Pennsylvania betting sites have officially surpassed the $21 billion lifetime handle mark with the release of April’s sports betting figures. This achievement puts them in the company of Nevada, New Jersey, New York, and Illinois as the only states to reach this milestone.

State revenues

In April, the top betting sites in Pennsylvania generated a total revenue of $51.8 million, which was a decline of 21.1% from the previous month’s $66.5 million. However, there was a slight year-over-year increase of 5.5% from the $49 million reported in April 2022. The hold rate for Pennsylvania sports betting sites remained steady at 9%, the same as in March.

After deducting promotional costs, net revenues for Pennsylvania’s sports betting industry totaled $51.7 million, marking the lowest figure in the past eight months.

Pennsylvania’s sports betting revenues generated approximately $13.33 million in taxes for the state and local governments, thanks to the 36% tax rate imposed on the state’s betting providers.

FanDuel rules Pennsylvania

Since its inception, FanDuel has consistently held the top position in the Pennsylvania market and remained the most favored sportsbook in the state during April. FanDuel accounted for $225.6 million of the total $571.1 million handle and generated $28 million in revenue, further solidifying its dominance in the industry.

In the Pennsylvania market, DraftKings came in second place with $157.8 million in bets and $11.3 million in revenue. BetMGM followed in third with $44.2 million, Caesars Underscoreg in fourth with $29.5 million, and Barstool Underscoreg in fifth with $26.3 million in bets.

Singing an optimistic tone?

As summer approaches, it is anticipated that the legal sports betting industry in Pennsylvania and across the United States will experience ongoing decreases in revenue.

Chris Imperiale, managing editor of PlayPennsylvania, appears to have changed his tune slightly.

According to PlayPennsylvania’s Corey Sharp, May may give the 76ers’ NBA playoff run and ongoing NHL playoffs a boost in figures, but the betting handle in PA is not likely to spike again until the start of the NFL.

The 76ers have been eliminated from the NBA playoffs, and the MLB teams in Pennsylvania are having lackluster seasons, making it difficult to envision Imperiale’s positivity becoming a reality.