Pennsylvania Underscoregs February Revenues Fall Year-Over-Year and Month-Over-Month

Despite a nationwide trend of decreasing sports betting numbers, Pennsylvania has managed to maintain steady revenue levels. Although there were declines in both monthly and yearly comparisons, the majority of the top sports betting sites in the Keystone State still performed well during the month.

The February earnings report from the Pennsylvania Gaming Control Board, which was released on Wednesday, showed a mixed bag of results for the state’s sports betting industry. While most measurable categories for both Pennsylvania sports betting apps and retail providers saw declines, there was one exception. Surprisingly, the state’s sports betting handle increased year-over-year, despite the absence of the hometown Philadelphia Eagles in this year’s Super Bowl compared to last year.

While other measurements in Pennsylvania’s sports betting industry, such as monthly handle, revenue, and hold, experienced significant declines, February saw the sixth consecutive month of year-over-year growth in the state’s wagering scene.

$661.7 million February handle

In February, Pennsylvania sports betting apps and retail providers collectively accepted $661.7 million in bets. This marked a 22.9% decrease from the previous month, largely attributed to the limited number of NFL games played in February, including the highly anticipated championship game. Betting apps were responsible for 94.8% of the total wagers placed.

The $661.7 million amount represents a noteworthy 10.4% increase compared to the betting activity in February 2023, when the Eagles were predicted to win the Super Bowl.

In the first two months of 2023, there has been a 10.8% increase in legal sports betting activity compared to the previous year, with a total of $1.52 billion in bets placed. Pennsylvania residents continue to make use of sportsbook promotions.

Revenues drop on the heels of a poor hold

In February, Pennsylvania bettors outperformed the state’s top sportsbooks, causing a decrease in revenue figures compared to the previous year and month. Last month, the best sportsbooks in Pennsylvania only retained 7.6% of bets, a drop from 11.4% in January and 10.4% in February 2023 when the sportsbooks capitalized on the Philadelphia Eagles’ loss in the Super Bowl.

In February, Pennsylvania’s top sportsbooks reported $50.4 million in gross sports betting revenues, a decrease of 48.1% from January’s total of nearly $97.7 million. This figure also represents an 18.9% decline from the $62.2 million reported in February of the previous year.

Because of the Eagles’ loss and the bets made by citizens of Pennsylvania, last year’s Super Bowl brought in $29.7 million out of the $62.2 million in winnings for the state’s sportsbooks in February. The state’s sportsbooks also did well this year during the Super Bowl, earning $11.1 million with a 15.5% hold.

In February, Pennsylvania’s top sportsbooks brought in adjusted gross revenue of $30.3 million, taking into account promotions and deductions. This resulted in $10.3 million in tax revenue for the state, based on the 34% tax rate.

FanDuel tops handle and revenues

FanDuel continued its streak as the top-performing Pennsylvania sports betting app in February, boasting $276 million in accepted bets and $27.1 million in revenues, thanks to a 9% hold.

In the Pennsylvania market last month, DraftKings came in second place with approximately $177.3 million in wagers and $13.9 million in revenues, maintaining a 7.9% hold.

In February, ESPN BET secured a solid third place position, pulling in $52.2 million in bets and $3.3 million in revenue with a 6.3% hold. ESPN BET Pennsylvania exceeded expectations, capturing an 8.2% market share, surpassing the company’s goal of a 7% share within its first year of operation.

In February, BetMGM Pennsylvania ranked fourth, accepting $36.7 million in wagers and generating nearly $2.5 million in revenue. Caesars Underscoreg Pennsylvania came in fifth with almost $31.6 million in bets, but had a disappointing month in terms of profits. Despite a -0.3% hold, Caesars suffered losses of over $89K for the Pennsylvania sports betting app.