December 2019 was a great month for Pennsylvania, setting another record. For PA online sports betting, the sports betting handle reached new heights with over $342M in handle. With Pennsylvania only just beginning to hit strides, the state will accrue more and more tax revenue, given how high the state regulations are for sportsbooks. With over $342.56M in handle in December, the 34% state tax and the 2% local share combined for over $4M directly to the state budget.
Let’s take a deeper look at the latest report from the Pennsylvania Gaming Control Board (PGCB)
Continued Handle Growth in December 2019
The sports betting handle in Pennsylvania grew again for the sixth consecutive month, each of the six PA has offered legal sports betting. At $342.56M, that is an 8.24% increase from November. As you can see, the revenue dropped $3.1M, or 15%. Why did that happen?
- Promotional Credits were at a record-high $6.1M
- Gamblers had more success, with a 5.1% hold in December
As long as the betting handle continues to increase over time, there is nothing to worry about. $17M in revenue is still terrific for a month, let alone month six into an operation.
PA December #SportsBetting Revenue & Handle
📈Total sports wagering handle = $342.6M
Up from $316.5M in Nov.
📱Online sports wagering handle = $297.4M in Dec.
Up from $266.7M in Nov.
💰Total Rev = $17,459,091
— PA Sportsbooks (@PASportsbooks) January 16, 2020
Online Betting Hits New High
As we have seen over the last year or so in New Jersey, mobile betting is key for states to bring in large numbers on the betting handle, thus increasing revenue and tax dollars. Look at the mobile betting numbers for September to December, and you can see the growth and the new online betting record.
|Month||Retail Handle||Mobile Handle||Total Handle||Mobile Percentage|
86.83% of total bets coming from mobile devices is incredible, which begs the rest of the states that do not have mobile betting yet…what are you waiting for? For every $10 wagered in Pennsylvania, $8.68 has come from mobile devices. With the mobile handle increasing to nearly $300M in December, it’s easy to see where the growth is coming from.
PA Dec and full year 2019…
— Alfonso Straffon 🇨🇷🇺🇸🇲🇽 (@astraffon) January 16, 2020
FanDuel Leads, But DraftKings is Chasing the Crown
FanDuel Sportsbook remains at the top of the table in terms of sports betting handle amongst operators, bringing in $154.5M. But, DraftKings Sportsbook (Meadows) is steadily climbing in its infancy in the state of Pennsylvania, as it now has a 35.9M handle. Of course, that is far from $154.M million in handle, but given that December is just the second month in existence for DraftKings Sportsbook Pennsylvania that is a solid number. In its first full month, DraftKings Sportsbook brought in $18M in handle, so the book more than doubled its handle in a month.
By comparison, FanDuel’s second full month was in August 2019 and it brought in $37.8M in revenue as really the only option in the state. Granted, there was no NFL or NBA betting going on. Other books showed some promise in PA in December as well: