Sports betting operators in the Keystone State struggled to haul big profits from the second-best handle of 2024.
The Pennsylvania Gaming Control Board reported a 43.2% year-over-year decrease in sportsbooks’ October adjusted revenue of $27.4 million, thanks to a strong month from bettors across the country. The $58.1 million in gross revenue was down 21% from October 2023 as operators’ promotional spending surpassed $30 million for the month.
The October handle of $858.1 million rose 3.5% year-over-year and was $3,508 shy of January’s year-to-date-best total amount wagered. It marked the fourth time in 2024 that a month has generated at least an $800 million handle.
More than $6.5 billion has been wagered in Pennsylvania in 2024.
Online sports betting accounted for $811.8 million of the total handle and $56.2 million of the gross revenue. Retail sportsbooks combined to generate $46.3 million and haul in nearly $2 million of profit in the Keystone State.
Despite the lower operator revenue, Pennsylvania still filled its coffers with $9.3 million to close in on $140 million in tax revenue in 2024.
Low hold
Above-average win rates were hard to come by in an October where NFL favorites and public bettors collided across the industry for strong customer-friendly outcomes during a mid-month stretch.
Pennsylvania’s monthly hold of 6.8% on gross revenue was in line with several other U.S. legal sports betting states, but the win rate was down from the 9.9% in September that produced $95.8 million in revenue on a handle that was nearly 6% less than October’s.
The hold for adjusted revenue was even worse, coming in at 3.2% and representing a top-10 lowest win rate of all time in Pennsylvania.
Operator profits fall
| Operator | October Handle | Revenue |
|---|---|---|
| FanDuel | $344.7 million | $28.2 million |
| DraftKings | $222.5 million | $13.9 million |
| BetMGM | $61.6 million | $3.2 million |
| Fanatics Sportsbook | $39.3 million | $3.1 million |
| ESPN BET | $38.1 million | $1.4 million |
| BetRivers | $35.7 million | $1.3 million |
FanDuel's $344.7 million handle accounted for 42.6% of all online dollars wagered in October. FanDuel also led Pennsylvania with gross revenue of $28.2 million and had the only hold above 8%.
DraftKings generated $222.5 million in wagers but a hold below 7% led to $13.9 million, the second-most in October. BetMGM was the only other Pennsylvania sports betting operator to cross $50 million in handle, but bettors kept the win rate to 5.2% from the online operator.
Fanatics Sportsbook took in a respectable $39.3 million to finish fourth, and a 7.9% hold nearly matched BetMGM’s revenue haul. ESPN BET wasn’t far behind with a handle of $38.1 million while BetRivers’ two partners finished with a combined $35.7 million in gross revenue.
bet365 finished with the seventh-best handle, but a hold above 7% led to more revenue than ESPN BET, BetRivers, and Caesars.
Total gaming rises
All forms of gaming in the Keystone State produced a combined total revenue of $496.6 million, up 21% year-over-year. Pennsylvania generated $209.1 million in tax revenue from in-person slot and table games, online casinos, video gaming terminals, online and retail sports betting, online poker, and fantasy contests.
iGaming revenue increased 22% year-over-year and 7% month-over-month to $189 million. Online casinos generated $83.8 million in tax revenue. Retail table gaming revenue rose 9.3% from Oct. 2023 while profits from slots were up 4.2% year-over-year.
