Healthy Hold Helps Pennsylvania May Sports Betting Revenues Rise Despite Handle Drop

Pennsylvania, like all other jurisdictions that have reported July earnings, saw a drop in overall sports betting activity. — The Phillie Phanatic mascot rides an ATV before the game against the San Diego Padres. Photo by Michael Reaves/Getty Images via AFP.

In May, Pennsylvania sports betting saw a decline in its annual numbers, with the total handle falling below $500 million for the first time since August 2022. The Keystone State joined other legal sports betting markets in reporting a double-digit decrease in its sector compared to the previous month.

Despite some challenges, Pennsylvania sports betting apps have seen positive developments. The state’s providers have maintained a healthy hold rate, resulting in an increase in revenues on a monthly basis. The latest report from the Pennsylvania Gaming Control Board (PGCB) shows improvements in both the year-over-year sports betting handle and revenues.

A peek at Pennsylvania’s May handle

The Pennsylvania Gaming Control Board reported that the state’s sports betting sites collected $495.6 million in bets, showing a 13.4% decrease from the $572.1 million reported in April. This decline aligns with the national trend we have been observing.

At the same time, the top sportsbooks in Pennsylvania received 92.9% of all sports bets placed in the state.

Yet, the sports betting activity in Pennsylvania slightly increased compared to May 2022. Bettors wagered $493.35 million with the state’s betting providers last year during the same period, which is just over $200,000 less than in May 2023.

What about revenues?

In May, the Pennsylvania legal sports betting industry saw mostly positive revenue trends, with both month-over-month and year-over-year profits increasing in the Keystone State sector.

In May 2023, revenues totaled $57.5 million, showing an 11% increase from April and a 20.3% increase from May 2022’s $47.8 million. Adjusted gross revenue after Pennsylvania sportsbook promo deductions was $41.1 million, up from $37 million in April.

The state’s sports betting providers saw a boost in revenue due to a strong hold rate in Pennsylvania. In May, the House held 11.6%, up from 9.1% in April and 9.7% in May 2022, indicating that bettors were not as successful during that month.

In May, Pennsylvania sportsbook revenues resulted in $14.8 million in taxes collected, with approximately $740,000 distributed to local entities.

FanDuel once again leads the way

FanDuel remained the top sports betting app in Pennsylvania, accounting for $194.3 million of the state’s $495.6 million handle in May. This marked a 13.8% decrease from April, but FanDuel still maintained a 15.1% hold rate during the month.

FanDuel led the way in revenue generation, bringing in $22.2 million, which represented 60% of the total net profits from all sportsbook revenues in the state.

In May, DraftKings came in second for betting activity in Pennsylvania, with a total spend of $133.2 million. This marked a 15.5% decrease from the previous month’s totals.

DraftKings has been surpassing FanDuel in growth in Pennsylvania this year, despite a decrease in numbers in May. DraftKings has experienced a year-to-date growth of 24.8%, outpacing FanDuel’s growth of 13.75% in the first five months of 2023.

In May, BetMGM emerged as the third most popular sports betting app in Pennsylvania, raking in nearly $36.9 million in bets, marking a remarkable 86.8% increase from the previous month. Following closely behind, Caesars secured the fourth spot with $26.8 million in bets, while BetRivers claimed the fifth spot with $22.7 million in wagers.

In May, Barstool’s ranking among Pennsylvania sports betting apps dropped further as it slid down the list. Formerly the third most popular betting site in the state, Barstool has been surpassed by BetMGM, Caesars, and now BetRivers in recent months. Barstool’s May handle of $21.5 million was surpassed by BetRivers for the first time ever.

Written By:
Perry Sandra

Perry Sandra and betting go hand-in-hand. Both are characterized by “odds”. Dave fancies himself as one of the most dedicated sports and pop-culture junkies around, to the chagrin of his family and friends. Following sports for 50 years and writing about it for 20, Dave hasn’t found a sport yet that can’t contribute to 2-3 straight hours of couch time. That search remains ongoing. As a good old Canadian boy, hockey is in Dave’s heart, as is curling sadly. But evolution is a real thing and that’s why football, baseball, and just about every sport on the planet has become a passion. Dave isn’t afraid to kill some time obsessing over politics or the far-too-frequent awards shows the consume the airwaves.