Pennsylvania Underscoregs Continue Record Pace in November

The legal sports betting industry in Pennsylvania is thriving. In November, the Keystone State exceeded the $900 million monthly handle mark, surpassing the previous record set just one month prior. The best sportsbooks in Pennsylvania continue to see increased activity.

The November report from the Pennsylvania Gaming Control Board revealed that revenues for PA sports betting apps and retail providers did not reach a new record, despite the overall handle.

During its initial 16 days of operation in the state, ESPN BET and its promotional credits were a major factor in the industry’s disappointing overall revenues. Additionally, Pennsylvania sportsbooks were outperformed by bettors in the Keystone State, further contributing to the lackluster results.

The new handle record in the PA sports betting scene did not translate to increased revenue or tax contributions, as both saw month-over-month decreases.

$934.1 million November handle

In November, Pennsylvania sportsbooks collectively generated $934.1 million in revenue, setting a new monthly record for the state’s sports betting industry. This milestone was likely driven by bettors capitalizing on promotional offers from PA sportsbooks.

The monthly handle record for Pennsylvania reached $934.1 million, representing a 12% increase from the previous record of $829 million in October. This marked the first time the state surpassed the $800 million milestone.

November’s totals show a year-over-year increase of approximately $145 million compared to the $789.2 million recorded in November 2023.

In November, Pennsylvania sports betting apps were responsible for 94% of all bets placed in the state.

Revenues way down

Several key factors led to a decrease in Pennsylvania sportsbook revenues in November. The introduction of ESPN BET resulted in a significant increase in promotional credits for state bettors, totaling nearly $11 million. Additionally, the underwhelming hold rate for state sportsbooks also played a role in the decline in revenue.

In November, Pennsylvania sportsbooks generated $49.15 million in gross gaming revenue, a decrease of $24.5 million from the previous month’s total of $73.6 million. This marks a significant 75% decline compared to the nearly $70 million in profits reported in November 2022.

Due to a disappointing 5.2% hold rate, only $4.6 million in taxes was collected from Pennsylvania sports betting providers for state and local tax coffers, a sharp decline from the $16.4 million in October and $19 million in November 2022.

For comparison, the win rate was 8.8% in October 2022 and increased to 8.9% in November 2022.

Operator battle between FanDuel, DraftKings…and ESPN BET

As expected, the competition for the top spot among Pennsylvania sports betting apps was between FanDuel and DraftKings, while ESPN BET also made a strong showing in third place based on monthly handle.

In November, FanDuel and DraftKings dominated the Pennsylvania market, capturing a total of 68% of the market share. FanDuel led the way with $384 million in bets, followed by DraftKings with $253 million. ESPN BET secured third place with $66.8 million in wagers.

It is worth mentioning that ESPN BET incurred a loss of $7.8 million in Pennsylvania due to promotional expenses, impacting their November earnings.

In November, BetMGM Pennsylvania ranked fourth with $54.3 million in wagers, while Caesars Underscoreg Pennsylvania came in fifth with $47.6 million in bets.